Tougher delisting rules have little impact on Guoco Group's bid for Bermuda-registered GL

A wholly-owned unit of Guoco Group owns 73.67% of GL's shares and is accepting the offer

Ben Paul

Published Sat, Feb 20, 2021 · 05:50 AM

Singapore

TOUGHER voluntary delisting rule changes introduced less than two years ago might have little effect on Guoco Group's lowball bid for GL Ltd. The changes were aimed at making it harder for dominant shareholders to take their companies private without adequately compensating minority investors.

Last month, GL announced that a unit of Guoco Group would make a cash offer for the company at S$0.70 per share, or a 27 per cent discount to its net asset value.

The offer is conditional upon the offeror obtaining not less than 90 per cent of GL's shares. A wholly-owned unit of Guoco Group called GuocoLeisure Assets Ltd (GAL), which owns 73.67 per cent of GL's shares, has irrevoca…