CDL plans off-market purchase of preference shares at S$0.78 apiece
Vivienne Tay
CITY Developments Limited (CDL) on Thursday (Nov 2) proposed undertaking an off-market purchase of its preference shares at S$0.78 apiece under an equal access scheme.
The property developer will buy back up to around 33.1 million preference shares, or about 10 per cent of its entire preference shares in issue as at Apr 26, 2023 – the day the group’s share purchase mandate was approved.
Each preference shareholder will be entitled to sell 10 per cent of his or her entire holdings, the group said in a bourse filing.
The offer will be open for acceptance from Nov 9 – the date the letter to preference shareholders will be dispatched. It will close at 5.30 pm on Nov 23, which is also the record date, based on an indicative timeline.
CDL said all preference shares purchased or acquired in connection with the offer will be cancelled. As these shares do not carry general voting rights, there will be no implications arising from Singapore’s takeover and mergers code.
The off-market equal access offer will allow the company to exercise greater control over its share capital structure. It noted that the trading volume of these shares has been “generally low”.
Accordingly, the off-market equal access offer will provide preference shareholders with a cash exit opportunity to tender their preference shares for acceptance by the company and monetise such preference shares,” CDL added.
CDL’s shares ended 0.6 per cent or S$0.04 higher at S$6.38 on Thursday.
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