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PR Newswire
02-04-2014, 08:50 PM
Before Silchester pare down its stake, SingLand's public float was at 11.38%. If another 1.38% of shareholders decide to accept the offer at $9.40, then SingLand will be delisted and game over for the minority shareholders who think SingLand is worth more than $9.40.
What Silchester did was to increase the public float to 11.38%+8.16%=19.54%, because the 4.95% which it now holds and the 3.21% which it had disposed off via market transaction at $9.50 are now treated as public float. That is an excellent move from the perspective of the minority shareholders who do not want to accept the present offer.
We know Silchester will hold on to its 4.95%. The buyers of the 3.21% at $9.50 today are not going to accept the offer at $9.40. Silchester just need 1.84% out of the original 11.38% public float to ensure the delisting will not happen. It is likely that the offer at $9.40 will lapse without a delisting.
The increase of public float give confidence to investors to accumulate at current market price in the hope of a better offer, by removing the fear of a delisting. For future offers to be successful, it must entail an offer price that is acceptable to Silchester, imho.
What Silchester did was to increase the public float to 11.38%+8.16%=19.54%, because the 4.95% which it now holds and the 3.21% which it had disposed off via market transaction at $9.50 are now treated as public float. That is an excellent move from the perspective of the minority shareholders who do not want to accept the present offer.
We know Silchester will hold on to its 4.95%. The buyers of the 3.21% at $9.50 today are not going to accept the offer at $9.40. Silchester just need 1.84% out of the original 11.38% public float to ensure the delisting will not happen. It is likely that the offer at $9.40 will lapse without a delisting.
The increase of public float give confidence to investors to accumulate at current market price in the hope of a better offer, by removing the fear of a delisting. For future offers to be successful, it must entail an offer price that is acceptable to Silchester, imho.