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Delisting plans by Golden Energy, Boustead Projects a test of SGX’s rules, stated views

SGX’s letter to Golden Energy is a template of sorts for proactively responding to unsatisfactory delisting proposals

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Ben Paul

Ben Paul

Published Mon, Mar 13, 2023 · 05:50 AM
    • SGX should devise a strategy to manage companies that attempt to slip away from the public market without properly compensating minority investors
    • SGX should devise a strategy to manage companies that attempt to slip away from the public market without properly compensating minority investors PHOTO: BT FILE

    THIS column highlighted three weeks ago questions raised by a shareholder of Golden Energy and Resources (Gear) about the manner in which the company’s appointed independent financial adviser (IFA) had been asked to opine on its proposed break-up and delisting.

    Four days later, the Singapore Exchange (SGX) read the riot act to Gear’s board and appointed advisers. In a letter dated Feb 24, SGX reminded the company to ensure its IFA’s opinion states specifically whether the “all cash” consideration of S$0.846 is fair and reasonable.

    SGX also instructed Gear to ensure its IFA – a firm called W Capital Markets – takes into account material changes to the traded price of its component assets. This appears to be a reference to the soaring market value of Australia-listed Stanmore Resources, in which Gear holds a 64 per cent stake.

    BT CorrespondentsGolden Energy & Resboustead projectsSGXM&APrivatisation

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