SINGAPORE (July 11): Singapore Exchange (SGX) serves the needs of listed companies by providing a public platform for fundraising activities and information dissemination to their shareholders. Where companies wish to privatise, they may apply to SGX to be delisted.

A delisting reduces the exit channels for shareholders who remain invested in what is now a private company. As such, companies implementing a Voluntary Delisting are subject to certain requirements to safeguard investor interest.

The SGX Listing Rules stipulate that SGX may agree to a Voluntary Delisting if:

  • the resolution to delist the issuer has been approved by at least 75% of the total number of issued shares held by independent shareholders (i.e. excluding the shares held by the offeror and parties acting in concert with it) present and voting; and
  • a fair and reasonable exit offer, which includes a cash alternative as the default alternative, is offered to shareholders. The independent financial adviser appointed to advise on the exit offer must also opine that the exit offer is fair and reasonable.

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