LTC minorities should not hold out for SGX's proposed changes

SOMETIMES the best of intentions can lead to unintended outcomes.

Such appears to be the case with steel trading firm LTC Corp (formerly known as Lion Teck Chiang). Its privatisation-cum-delisting plans have been thrown into doubt after some 31 shareholders at a Nov 14 extraordinary general meeting (EGM), which was convened to vote on the deal, instead opted for an adjournment to see if a proposed change by Singapore Exchange (SGX) to the delisting rules comes into force in the future. If it does, the minority feel that the new rules will be fairer to them, as the majority shareholder will not be able to vote.

Should the minority who asked for the adjournment be of the view that the new rules were already in force, then they were mistaken.