Of the 3 IDs, the lead ID seems OK. I dont feel good vibes from the other 2 IDs.
http://infopub.sgx.com/FileOpen/Synear_R...eID=255598
SYNEAR FOOD HOLDINGS LIMITED
(Incorporated in Bermuda)
(Company Registration Number 38042)
LETTER TO THE EDITOR, THE BUSINESS TIMES, FRIDAY, 6 SEPTEMBER 2013 –
CLARIFICATION
The Board of Directors (“Board”) of Synear Food Holdings Limited (the “Company”) refers to the
“Letter to the Editor” column in The Business Times dated 6 September 2013 (the “Letter”) by Mr
Vincent Tan.
Share Price
Mr Vincent Tan has stated as follows in the Letter:
“Recent news of a staphylococcus bacteria contamination had hurt Synear's sales of its
premium dumplings and hence its share price, which has dropped from previous highs of
above $2.
…I do not agree with E&Y's view that the offer is reasonable given the stock's low trading
price, which was affected by the bacterial contamination scare.”
The directors who were considered independent for the purposes of the Proposed Delisting and the
Exit Offer (the “Independent Directors”) consider Mr Vincent Tan’s statement to be incorrect and
misleading.
The Company had on 21 October 2011 released an announcement regarding minute traces of
bacteria in its savour dumping products (which are considered in the tolerable range under current
PRC Ministry of Health standards). In the six months prior to this announcement, the Company’s share
price traded in the range of S$0.115 – S$0.172 per share, with the average price traded during this
period at S$0.1419 per share. Previous highs of above S$2.00 alluded to by Mr Vincent Tan were prior
to 8 November 2007, before the global financial crisis came to a head.
Allegations against the Independent Directors
Mr Vincent Tan has also stated in the Letter that the “Independent directors…have instead assisted
majority shareholder Li Wei and his associates to to [sic] take the company private at a price that
shortchanges minority shareholders”.
The Independent Directors strongly refute any suggestion that they have in any way assisted Li Wei
and his associates in the Proposed Delisting and Exit Offer and take a serious view of the above
allegation by Mr Vincent Tan and reserve their rights accordingly.
Under Rule 7.1 of the Singapore Code on Take-overs and Mergers (the “Code”), “the board of the
offeree company must obtain competent independent advice on any offer and the substance of such
advice must be made known to its shareholders”.
Ernst & Young Corporate Finance Pte Ltd (the "IFA")
was appointed to provide such advice to the Independent Directors in accordance with Rule 7.1 of the
Code and had set out its advice in full in the Company’s circular (“Circular”) to shareholders dated 12
August 2013 and the Independent Directors had concurred with the views of the IFA after having
carefully considered the IFA’s advice in detail.
BY ORDER OF THE BOARD
SYNEAR FOOD HOLDINGS LIMITED
Cai Hong
Director
9 September 2013
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster