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.