Sunningdale latest to face activist investor Quarz
Securing improved terms for minorities would be better outcome than voting down the whole deal
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
QUARZ Capital Management is at it again. Barely six weeks after winning a bruising battle to prevent Sabana Reit from merging with ESR-Reit on value-destructive terms, the activist investor has turned its sights on Sunningdale Tech - a precision plastic components maker in the throes of a private equity buyout.
Under the deal, which was announced on Nov 9, Sunningdale's chairman and major shareholder Koh Boon Hwee has teamed up with a unit of Novo Tellus PE Fund 2 to offer minority shareholders S$1.55 per Sunningdale share.
In an open letter to Sunningdale's board, Quarz grumbled that the deal is opportunistically timed - coming right after an extended period of heavy capital expenditure by Sunningdale that weighed on its profitability.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
TRENDING NOW
Shelving S$5 billion office redevelopment plan proved ‘wise’ as geopolitical risks mount: OCBC chairman
Why where you park your joint venture matters: Lessons from a US$689 million shareholder dispute
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
Singaporeans can now buy record amount of yen per Singdollar
