Hot stock: Isetan Singapore jumps 147.5% on proposed privatisation after resuming trade

SHARES of mainboard-listed Isetan Singapore surged as much as 150 per cent at Tuesday’s (Apr 2) market open, after the company announced on Monday a proposed privatisation by majority shareholder Japanese department store operator Isetan Mitsukoshi.

Isetan Singapore’s shares climbed S$4.26 to S$7.10 right after resuming trade on Tuesday, S$0.10 shy of Isetan Mitsukoshi’s S$7.20 per share privatisation offer. By 9.21 am, the counter was trading 147.5 per cent or S$4.19 higher at S$7.03, with 35,100 shares changing hands.

The company called for a trading halt on Monday morning before making the privatisation announcement; it last traded at S$2.84 on Mar 26.

Tokyo-listed Isetan Mitsukoshi is the holding company for Mitsukoshi and Isetan department stores. It owns a direct interest in 21.8 million shares, representing around 52.73 per cent of Isetan Singapore’s share capital.

It is looking to take Isetan Singapore private by fully acquiring all the shares it does not own, ending the departmental store operator’s four-decade run on the Singapore bourse. This will be achieved through a scheme of arrangement.