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QuestionsCategory: MiscellaneousSingapore O&G
Stila tan asked 11 months ago

Hi, I have some SOG shares and they announced cash offer. If I reject the offer and majority accept the offer, what will happen to my shares? Will my shares get automatically buy out or will I be holding onto shares that cannot be liquidated once the co is taken private? I’m inclined to reject the offer as the offer is below my purchase price but I don’t want to be stuck with shares that I can’t liquidate.  Appreciate your advice.

1 Answers
Victor Chng answered 11 months ago

Hi Stila,
The statement below is from the offer document. If they hit more than 90% threshold, the offeror will compulsorily acquire your shares. If you still choose not to sell then your shares will become a private company shares. hope this helps :)

Pursuant to Section 215(1) of the Companies Act, in the event that the Offeror acquires not less than 90% of the total number of issued Shares (other than those already held by the Offeror, 11 its related corporations or their respective nominees as at the date of the Offer and excluding any Shares held in treasury), the Offeror will be entitled to exercise the right to compulsorily acquire all the Shares from Shareholders who have not accepted the Offer at a price equal to the Offer Price.

Ken Fong replied 8 months ago

hi Victor, what do you think of the recent merger announcement of SembMar and Keppel?

Victor Chng replied 8 months ago

Hi Ken,

we don’t invest in oil & gas business hence I do not have much insight on it.