Singapore Reinsurance to delist after Fairfax compulsorily acquires remaining shares

FAIRFAX Asia, which launched a cash offer for Singapore Reinsurance in March, will exercise its right to compulsorily acquire all the shares of dissenting shareholders.

After that, the offeror will delist the mainboard-listed company, which underwrites general reinsurance and is also involved in investment activities of its non-reinsurance funds.

As at 6pm on Wednesday, Fairfax received valid acceptances amounting to about 90.02 per cent of the total number of issued shares other than those already held by the offeror, its related corporations or their respective nominees.

Fairfax said it is thus entitled to, and intends to, exercise its right of compulsory acquisition.

The offer will stay open for acceptance until the final closing date of June 17 at 5.30pm.

It therefore "remains as an opportunity" for Singapore Reinsurance shareholders who have not accepted the offer to realise their shares at the offer price as soon as practicable, Fairfax said in a filing on Wednesday night.

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The offer price of 35.35 Singapore cents a share was 20.6 per cent higher than the volume weighted average price for both the one-month and three-month periods up till March 18.

Fairfax had offered to buy the 71.8 per cent interest that it and its concert parties did not own then. Public acceptances later amounted to 63.1 per cent as at June 1, and ticked up to about 64.7 per cent by June 16.

The offeror extended the closing date twice, from May 18 to June 2, and then to June 17.

Singapore Reinsurance lost its free float on May 25, which means the trading of its shares will be suspended at the close of the offer.

The stock was flat at 34.5 Singapore cents at Wednesday's close, before the latest announcement.