Substantial shareholder disclosure

[Mushy]

Hi guys, I have another question regarding substantial shareholder disclosure.

A is a substantial shareholder (around 10 to 20%) of company X. If there is a change in the shareholding, A will need to make a disclosure right? And we should see this in SGX announcement. Even if A is just transfering shares around its subsidiaries and still effectively own the same number of shares in X, it still has to make this disclosure right?

So recently I noticed from Annual reports of X that A now owns less number of shares compare to previous year. However I did not see any disclosure on SGX over the past years that they dispose any shares.
Could this be a breach of disclosure rules?
How long can A take to make a disclosure?

[donmihaihai]

Hi guys, I have another question regarding substantial shareholder disclosure.

A is a substantial shareholder (around 10 to 20%) of company X. If there is a change in the shareholding, A will need to make a disclosure right? And we should see this in SGX announcement. Even if A is just transfering shares around its subsidiaries and still effectively own the same number of shares in X, it still has to make this disclosure right?

So recently I noticed from Annual reports of X that A now owns less number of shares compare to previous year. However I did not see any disclosure on SGX over the past years that they dispose any shares.   
Could this be a breach of disclosure rules?
How long can A take to make a disclosure?

Not all changes require disclosure. There is a 1% rule for changes in interest of substantial shareholder.

[Mushy]

Thanks donmihaihai.
The change is around 0.3%.

I read from MAS the below. "Percentage level change" means at least 1%?


© Duty of substantial shareholder to notify corporation of change in interests under section 136(1) of the SFA

Section 136(1) of the SFA provides that where there is a change in the percentage level of the interest or interests of a substantial shareholder in a corporation in voting shares in the corporation, the substantial shareholder shall give notice in writing to the corporation within two business days after he becomes aware of the change.

[ghchua]

Thanks donmihaihai.
The change is around 0.3%.

I read from MAS the below. "Percentage level change" means at least 1%?

Hi Mushy,

Its not 1%, but crosses the 1% mark. For example, from 5.01% to 5.99%, no need to disclose. But from 5.99% to 6.01%, need to disclose, since it crosses the 1% mark to above 6%.

Hope that the above clarifies.

[Mushy]

Thanks ghchua. It is clear now.