Home Views Commentary

New developments in the Challenger delisting saga

Ben Paul
Ben Paul6/14/2019 08:00 AM GMT+08  • 7 min read
New developments in the Challenger delisting saga
SINGAPORE (June 17): A reader of The Edge Singapore who owns shares in Challenger Technologies asked me last week if I was going to write anything more about the company’s proposal to delist from the Singapore Exchange. I didn’t think I was. But after
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (June 17): A reader of The Edge Singapore who owns shares in Challenger Technologies asked me last week if I was going to write anything more about the company’s proposal to delist from the Singapore Exchange. I didn’t think I was. But after reading the exit offer letter and circular to shareholders, both dated June 12, I changed my mind.

For one thing, it seems that the offeror — an entity in which Challenger’s CEO Loo Leong Thye and his family hold a 70% stake — is getting ready for a showdown with Pangolin Investment Management at the extraordinary general meeting scheduled for June 27. Pangolin has said that the exit offer price of 56 cents a share is too low, and the firm is reportedly canvassing other minority shareholders to join its effort to scupper the delisting plan. To prevent the delisting, at least 10% of Challenger’s shares have to vote against it at the EGM. Pangolin’s funds reportedly own some 2.94% of Challenger.

Now, Loo has provided some intriguing background to his engagements with Pangolin. According to Loo, Pangolin had made two “unsolicited offers” to sell its Challenger shares to him. “The first offer was received in October 2017 wherein Pangolin offered to sell its stake at 43.5 cents a share, and the second offer was received in March 2018 and did not state the price at which Pangolin would be willing to sell its shares,” Loo said in a statement.

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.