SINGAPORE (Nov 19): The Singapore Exchange Regulation Co (SGX RegCo) has proposed several changes to the delisting rules for Singapore companies. Minority shareholders are in favour of the move, as it will better protect their rights and interests. This includes investors in VARD Holdings, for whom the changes are coming too late. VARD’s privatisation on Nov 2 by major shareholder Fincantieri Oil & Gas was done at a “not fair but reasonable” valuation of 25 cents a share.

“It is a step in the right direction. Finally, SGX RegCo has listened to the chorus of complaints by minorities of how the existing delisting rules are unfair to them,” says Tan, who holds about 100,000 shares in VARD.

Similarly, S Nallakaruppan, who holds about 500,000 shares in VARD, is taking this in stride. This is because the “cause” for better protection of the interests and rights of minority shareholders did not go to “waste”, he says. “It would help prevent unfair delisting of companies from happening in the future,” he adds.

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