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LTC Corp shareholders to vote on proposed delisting at EGM on Nov 14
THE shareholder vote on a potential delisting of LTC Corp will be held in two weeks' time, the company said on Monday morning, in a notice for the extraordinary general meeting (EGM).
Controlling shareholders from the managing director's family are gunning for a voluntary delisting with a final exit offer of S$0.925 in cash for each share - the same price as their takeover bid earlier this year.
The family of managing director Cheng Yong Liang held an 88.44 per cent stake in the steel and property group when investment vehicle Mountbatten Resources made the delisting proposal on Sept 7.
Now, for the delisting to go through, shareholders with at least 75 per cent of voting shares must say "aye" to the proposal at the meeting, while the proposal cannot be voted against by shareholders representing more than 10 per cent of the voting shares.
The Singapore Exchange (SGX) confirmed on Oct 19 that it has no objection to the delisting, subject to shareholders' approval, LTC Corp had previously disclosed.
According to a circular released by independent financial adviser Xandar Capital at the end of the trading day, the exit offer is deemed fair and reasonable and is not prejudicial to the interests of the company and its independent shareholders.
As such, independent directors recommended that shareholders accept the exit offer or sell their shares in the open market if they can obtain a higher price.
Asian Corporate Advisors, the independent financial adviser in the earlier buy-out bid, had previously found the original takeover offer to be fair and reasonable.
The EGM, when minority shareholders will decide on the proposed delisting, is scheduled for 10am on Nov 14 in Ballroom A of Swissotel Merchant Court.