Sunningdale latest to face activist investor Quarz
Securing improved terms for minorities would be better outcome than voting down the whole deal
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.
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