Golden Energy’s delisting: IFA opinion is faulty
SGX should ask Gear and its IFA for a “reality check”, by considering if the exit offer on a standalone basis is fair and reasonable
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GOLDEN Energy and Resources (Gear) is scheduled to put its controversial delisting proposal to a shareholder vote on Jun 9.
But the opinion of the appointed independent financial adviser (IFA) that the deal is “fair and reasonable” is faulty. For one thing, the IFA has valued Gear’s stake in its Indonesia-listed thermal coal arm inappropriately in its sum-of-the-parts (SOTP) model.
More importantly, the IFA – a firm called W Capital Markets – has not provided any analysis on whether the exit offer for Gear (which takes place after its Indonesian arm has been separated) is fair and reasonable.
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