SIAS urges Hwa Hong shareholders to hold decision on privatisation offer

THE Securities Investors Association (Singapore), or Sias, on Friday (Jun 17) urged Hwa Hong’s shareholders to await more information from Hwa Hong’s management before deciding on the company’s offer to privatise.

The watchdog group further advised Hwa Hong’s board and group of advisers “to keep shareholders updated in a timely manner on any relevant material developments before shareholders make their final decision”.

Sias’ statement comes after it received enquiries from Hwa Hong’s shareholders on the offer to take the property firm* private.

The offer from Sanjuro United was initially priced at S$0.37 per share before it was later revised to S$0.40 per share. The independent financial adviser for the firm, Provenance Capital, said that the offer price was “fair and reasonable”, even though it represented a 20.8 per cent discount to the adjusted revalued net asset value (RNAV) of the group of S$0.5052 per share.

Shares of Hwa Hong closed unchanged at S$0.40 as at the midday trading break on Friday. *Amendment note: The article has been edited to reflect the correct description of Hwa Hong Corporation.