SGX RegCo orders Halcyon Agri to delist
The company has to make an exit offer to shareholders in line with listing rules
THE Singapore Exchange Regulation (SGX RegCo) has directed rubber manufacturer Halcyon Agri to delist, after it failed to restore the free-float requirement, the company said in a bourse filing on Monday (Aug 26).
The directive from SGX RegCo said that sufficient time had been given to Halcyon Agri to ensure that at least 10 per cent of its issued shares are held by the public – a listing rule set by the exchange – but it still has not been able to do so.
The company’s shares have not been trading since April 2023 because its public float has fallen below the 10 per cent requirement.
SGX had given Halcyon Agri until August this year to restore its free float but the company said that potential investors were unenthusiastic in buying compliance placement or new shares. The company’s board felt that it would continue to be very challenging to take any more action to restore the public float and decided not to apply for additional time extensions.
Following the directive, Halcyon Agri is required to make an exit offer to shareholders in line with listing rules.
The exit offer must be fair and reasonable, as assessed by the deal’s independent financial adviser, and include a cash alternative as the default alternative, according to the regulator’s notice to the company.
SGX RegCo has also requested the company to provide a proposal on its exit offer in one month.
Halcyon Agri said it is considering the necessary actions and will keep shareholders informed of any developments.
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