Straits Trading shareholders' club a commendable initiative, but it should re-think co-investment plan

Ben Paul

Published Thu, Sep 30, 2021 · 05:50 AM

THE Straits Trading Company's announcement on Sept 8 that it had launched a "shareholders' club" to strengthen ties with investors might have left some market watchers scratching their heads.

Over the preceding month, the real estate group that also owns a controlling stake in the world's third-largest tin producer had made a number of announcements that boosted its stock price and put it on the radar of many investors.

In particular, on Aug 5 its shares jumped nearly 14 per cent on elevated trading volume after the news broke that ARA Asset Management - in which Straits Trading held a nearly 19 per cent stake - was being acquired by Hong Kong-listed ESR Cayman for US$5.2 billion.

On a pro forma basis the transaction would have lifted its net tangible assets per share as at end-2020 from S$3.72 to S$5.52, the company said in an announcem…