SIAS says no objection to Hwa Hong appointing IFA ahead of independent reviewer

THE Securities Investors Association (Singapore), or Sias, on Friday (May 27) said it does not object to Hwa Hong Corporation’s appointment of an independent financial adviser (IFA), ahead of its appointment of an independent reviewer.

Property company Hwa Hong on Thursday appointed an IFA to assess a privatisation offer by Sanjuro United – made up of substantial shareholders of Hwa Hong including its former group managing director and his family. The privatisation offer was announced on May 17.

Sias’ stance comes days after it advised Hwa Hong to first appoint an independent reviewer – to adhere to the notice of compliance (NOC) it received from the Singapore Exchange Regulation (SGX RegCo) – before it appoints an IFA.

On May 9, Hwa Hong was served with a NOC to look into the company’s board nomination process, among other requirements.

In a letter on Friday, Sias president and chief executive David Gerald said it “had a good meeting with Hwa Hong”, after the latter approached Sias for independent guidance on the related issues and to brief Sias on the next steps.

He noted that Hwa Hong’s current directors are deemed to be independent of the offeror under the Singapore code on take-overs and mergers, and that the company will need to proceed with the appointment of the IFA under the code.

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Gerald also noted that Hwa Hong has been working closely with the SGX RegCo on an appropriate choice of the independent reviewer, and that he looks forward to the appointment “expeditiously”.

Shares of Hwa Hong : H19 0% were trading flat at S$0.39 at 4.11 pm on Friday.