Minority shareholders, independent directors can do more to oppose lowball buyout offers

GENERAL reinsurer Singapore Reinsurance last week joined the list of companies with an offer on the table at a discount to net asset value (NAV).

Fairfax Financial Holdings, an insurer, is offering shareholders S$0.3535 for their shares of Singapore Reinsurance - an over 20 per cent discount to the latter's NAV.

As with many other offers in recent months, the rationale for the offer included a challenging operating environment requiring patient money. The offer was touted as a golden opportunity for minorities to exit their investments in a relatively illiquid counter at a premium to the most recent trading price.