OSIM buyout errors: Need to compensate shareholders

SHAREHOLDERS of OSIM International who lost out due to mistakes in the process of executing the buyout should be compensated. There were several errors, presumably by Credit Suisse, advisers to founder Ron Sim, which have resulted in the current unsatisfactory state of affairs.

The takeover code does not allow a final price for an offer to be further revised. On Tuesday (April 5), Mr Sim via his advisers announced a final revised offer price of S$1.39 from a previous offer of S$1.32. Both these offer prices included a final dividend of two cents. On an ex-dividend basis, the prices would be S$1.37 and S$1.30 respectively.

There was heavy trading of OSIM shares on Tuesday morning, with the stock traded as high as S$1.40 on an ex-dividend basis. The final offer price valued the stock at only S$1.37 on an ex-dividend basis; so the S$1.40 price was clearly erroneous.