US-based investment manager provides irrevocable undertaking in favour of Fairfax Asia's cash offer for Singapore Reinsurance

Published Fri, Apr 2, 2021 · 07:27 PM

CALIFORNIA-based Dalton Investments on Friday provided an irrevocable undertaking in favour of Fairfax Asia to accept and/or procure the acceptance of Fairfax Asia's cash offer for Singapore Reinsurance in respect of all its shares, and to not withdraw the acceptance once it has been given.

Last month, Fairfax Asia announced that it is making a cash offer for Singapore Reinsurance's 71.82 per cent stakes that it and its concert party do not own, at S$0.3535 a share, conditional on them garnering more than 50 per cent stakes.

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

In a bourse filing on Friday, Fairfax Asia said that Dalton, as investment manager, has discretion and authority over the sale of some 30.3 million shares in Singapore Reinsurance, representing about 5.09 per cent of the total number of issued shares as at April 2.

Fairfax Asia noted that to date, both it and its concert parties have not received any other irrevocable undertaking from any party to accept or reject the offer, save for Dalton.

A subsidiary of Fairfax Financial Holdings and incorporated in Barbados, Fairfax Asia intends to delist the general reinsurer after obtaining more than 90 per cent of stakes.


Start and end each day with the latest news stories and analyses delivered straight to your inbox.


It earlier said that the offer price 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, when the counter closed at 29.5 cents.

The acquisition presents shareholders with an opportunity to exit their investment in the general reinsurer at a premium over the prevailing trading share prices without incurring brokerage and other trading costs, Fairfax Asia added.

Shares of Singapore Reinsurance closed flat on Thursday at S$0.35.


BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to

Companies & Markets


Get the latest coverage and full access to all BT premium content.


Browse corporate subscription here