SGX should not grant Boustead Singapore’s request for more time to comply with delisting order

WHEN Boustead Singapore held its annual general meeting (AGM) on Jul 28, a shareholder asked the company’s board and management if they had been “incorrectly advised” in attempting to privatise Boustead Projects through a voluntary unconditional cash offer rather than through a scheme of arrangement.

The startlingly candid response – as recorded in the minutes to the AGM – bears scrutiny by market regulators in their efforts to ensure minority investors are treated fairly under such deals.

Boustead Singapore’s lead independent director Mak Lye Mun said the company’s objective was to acquire as many shares of Boustead Projects as possible, at the lowest price possible. A scheme of arrangement, where shareholders of Boustead Projects would vote at an extraordinary general meeting (EGM) on whether to accept the deal, would have resulted in an “all-or-nothing” outcome for Boustead Singapore.