No rush to privatise ahead of rule changes; rising cost of debt should make listed status attractive

MARKET watchers do not see majority shareholders rushing to make privatisation offers ahead of rule changes that make compulsory acquisitions more difficult. Other factors are likely to play a bigger role in privatisation decisions, they said, including the rising cost of debt.

Following a public consultation, the Ministry of Finance and the Accounting and Corporate Regulatory Authority intend to amend the Companies Act to raise the bar for controlling shareholders wishing to privatise companies. (*see amendment note)

The amendment, which would first need to be tabled for debate in Parliament, would make it more difficult for shareholders owning a large chunk of a Singapore-listed company’s shares to compulsorily acquire the shares of dissenting minority shareholders.