Singapore Reinsurance extends closing date for Fairfax Asia's cash offer

SINGAPORE Reinsurance on Tuesday said that the closing date for Fairfax Asia's cash offer will be extended from May 18 to June 2, 5.30pm, with all other terms of the offer unchanged.

Fairfax Asia is making a cash offer for Singapore Reinsurance's 71.82 per cent stakes that it and its concert parties do not own. The offer is conditional on them garnering more than 50 per cent stakes.

As at 6pm on Tuesday, the number of shares owned, controlled or agreed to be acquired by Fairfax Asia and its concert parties, including public acceptances, stood at 84.12 per cent. Out of this figure, public acceptances was 55.14 per cent.

Singapore Reinsurance is principally engaged in the business of underwriting general reinsurance, and also involved in investment activities of its non-reinsurance funds.

Earlier in April, California-based Dalton Investments provided an irrevocable undertaking in favour of Fairfax Asia's cash offer. The investment manager has discretion and authority over the sale of about 5.09 per cent of the total number of Singapore Reinsurance's issued shares, as at April 2.

The offer price of 35.35 Singapore cents represents a premium of 20.6 per cent over the volume-weighted average price per share for both the one-month and three-month periods, and a premium of 21.9 per cent and 27.6 per cent over that for the six-month and 12-month periods respectively up to and including March 18, the last full trading day before the offer announcement. The counter closed at 29.5 Singapore cents on that date.

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The counter has traded below the offer price for the past 10 years up to March 18, Fairfax Asia said in its offer announcement on March 19.

Fairfax Asia intends to delist Singapore Reinsurance after obtaining more than 90 per cent of the latter's shares. The company, a subsidiary of Fairfax Financial Holdings, is incorporated in Barbados.

Shares of Singapore Reinsurance closed flat at 34.5 Singapore cents on Tuesday.