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SGX RegCo tells Vard to hold new EGM on delisting proposal

IN an unprecedented move, the Singapore Exchange Regulation (SGX RegCo) on Thursday told Vard Holdings to hold another extraordinary general meeting (EGM) to get shareholders' approval on its delisting plan.

"SGX RegCo has reviewed the company's submissions in relation to its EGM, and noted certain inaccuracies in the financial evaluation of the terms of the exit offer presented in the Independent Financial Adviser's (IFA) letter," the regulator said.

At issue is an inaccuracy that was found in the circular to shareholders. In the document, CIMB had stated that the historical price to net asset value (P/NAV) for Sembcorp Marine was 1.2 times, when it should have been 1.7 times.

"The inaccuracy in Sembcorp Marine's historical P/NAV multiple has a consequential effect on the mean P/NAV multiple of the Comparable Companies stated in the IFA letter. The correct multiple should be 1.2 times instead of 1.1 times as erroneously stated," SGX RegCo said, noting that these figures are part of the information that shareholders take into consideration to make an informed decision on the proposed voluntary delisting.

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Apart from convening a new EGM, the regulator also asked for an updated IFA letter with the inaccuracies corrected and reflecting the current developments of the company. The independent directors' recommendation to shareholders must also be updated to reflect the updated IFA report.