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NOL, Linc should disclose potential prices

Published Mon, Nov 23, 2015 · 09:50 PM
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COMPANIES listed on the Singapore Exchange (SGX) operate within a disclosure-based framework, which in essence means "when in doubt, disclose". All material information that could have an impact on share prices has to be announced promptly, so that the playing field is level and the market is able to make informed, reasoned decisions.

Bearing this in mind, you'd have to ask - have Neptune Orient Lines (NOL) and Linc Energy adhered to these principles with their disclosure practices over the past few weeks? Maybe not. Both companies have recently made potentially game-changing announcements - NOL's could lead to a takeover and Linc could sell its South Australian assets, presumably for a handsome sum. Both, however, said nothing about the most important component - prices.

NOL and Linc separately said they have signed exclusive deals with foreign counterparties that require the latter to perform due diligence over the next few weeks. Since this requires NOL and Linc to open their books to scrutiny, it is reasonable to expect that preliminary term sheets with indicative prices may have already been agreed - after all, it is hard to see any company exclusively exposing sensitive financial data to outsiders without being fairly happy with the rewards that could be offered. So it would be reasonable to expect that both companies have some idea of how much might be offered.

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