Lyon Investments ups offer price for Sinarmas Land and extends closing date
[SINGAPORE] Lyon Investments has raised the offer price for Sinarmas Land shares to S$0.375 a share from S$0.31 a share, in an announcement on Saturday (May 10).
The closing date has been extended to 5.30 pm on May 29.
The revised offer price represents an increase of 21 per cent or S$0.065 over the initial offer price, and is higher than the highest closing price of Sinarmas Land shares for more than six years.
The offeror, Lyon Investments, held about 70.3 per cent of the total number of issued shares in Sinarmas Land at the launch of the initial offer. As at May 9, the offeror received valid acceptances of about 23.9 per cent of the total shares. This brings Lyon Investments' total number of shares to about 94.2 per cent.
The revised offer comes as the independent financial adviser (IFA) for the transaction, W Capital Markets, said that the offer was 'not fair but reasonable'. Sinarmas Land's share price closed above the initial offer price on every trading day since the offer was announced on Mar 27 – save for Apr 24, when it closed at S$0.31.
On May 5, the Securities Investors Association (Singapore), also known as Sias, criticised the offer as 'exploitative'. It then urged the offeror to revise its bid to more fairly reflect the company's net asset value per share, which stood at S$0.851 as at end-2024.
The IFA hit back at the concerns raised by Sias and The Business Times columnist Ben Paul in his Mark to Market column, insisting that its valuations of Sinarmas Land's assets are 'appropriate' and 'consistent with widely accepted industry practice'.
Shares of Sinarmas Land closed unchanged at S$0.32 on May 9.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
6 days ago
- Business Times
Sias calls for Singapore Paincare shareholders to await IFA opinion on privatisation offer
[SINGAPORE] The Securities Investors Association (Singapore), or Sias, is urging minority shareholders of Singapore Paincare to hold off on selling their shares amid the proposed privatisation deal. In a statement released on Wednesday (Jun 4), Sias noted that the company could be worth up to S$0.37 per share, which is more than double its privatisation offer of S$0.16 per share. Sias recommends that shareholders, especially those who can afford to wait, not make any moves until the independent financial adviser (IFA) report is released. It also noted that the deal is via a scheme of arrangement, which means that approval of the scheme has to first be approved by a majority vote at the scheme meeting – and by more than 75 per cent in value of the shares held by shareholders voting. There have been past instances where shareholders sought slight gains by selling their shares in the open market before IFA's opinion was released, said Sias. 'Shareholders who sold (shares in the open market) will not have recourse if there is a subsequent upward revision in the offer price,' Sias warned. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In its released statement, Sias highlighted that in July 2020, the medical services company listed at S$0.22 per share, when the Straits Times Index (STI) was trading at around 2,500. Now, when the STI is up by more than 50 per cent at 3,900, it wishes to delist at S$0.16 per share. Furthermore, its initial public offering (IPO) price was S$0.22, a 123 per cent premium to the group's unaudited net asset value (NAV) of about S$0.0986 per share on Dec 31, 2019. This was based on the post-placement share capital and after adjusting for net proceeds due to the company from the placement. Now, the price offered under the scheme of arrangement is instead at a slight discount to the company's NAV of S$0.166 per share as at Jun 30, 2024. Sias also noted that Singapore Paincare's unaudited NAV as at end-December 2024 stood at S$0.163 per share. Therefore, if the same IPO premium was to be applied now, the privatisation price should be around S$0.36 to S$0.37 per share. Sias further noted that 'well-managed healthcare companies generally trade at premiums to their NAV'. 'Sias would like to remind all offerors to treat shareholders fairly, and not to forget their promises made at the IPO. As such, they should therefore make offers that are fair and reasonable when subsequently delisting,' said David Gerald, founder, president and chief executive of Sias. 'It is also worth remembering that for a delisting to take place, the IFA has to conclude that the offer is both fair and reasonable,' he added. 'All told, it would therefore be advisable to wait for the IFA's opinion.'
Business Times
6 days ago
- Business Times
Singapore Paincare up 12.1% as Sias urges shareholders to await IFA report
[SINGAPORE] Shares of Singapore Paincare rose on Thursday (Jun 5), a day after the Securities Investors Association (Singapore), or Sias, said the medical services company could be worth more than double its privatisation offer price. As at 4.19 pm, the counter was trading at S$0.176, 12.1 per cent or S$0.019 above the previous closing price of S$0.157 on Wednesday, with 15.2 million shares transacted. This was its highest price in the year to date. It closed on Thursday 8.3 per cent or S$0.013 higher at S$0.17, with 17.3 million shares having changed hands. On Wednesday, Sias urged minority shareholders of Singapore Paincare to hold off selling their shares amid an acquisition bid from Advance Bridge Healthcare, a management consultancy for healthcare services. Sias noted that the company could be worth around S$0.36 to S$0.37 a share, more than double the S$0.16 a share privatisation offer price. It recommended that shareholders wait and refrain from taking action until the report by the independent financial adviser (IFA) is released. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'If the shares are sold on the open market, shareholders who sold will not have recourse if there is subsequent upward revision in the offer price,' Sias warned. There have been past instances when shareholders sought slight gains and sold their shares on the open market before the IFA issued its report, it noted. Moreover, the S$0.37 per share offer price is at a 'slight discount' to the company's audited net asset value (NAV) per share of S$0.166 as at Jun 30, 2024, it said. The association highlighted that Singapore Paincare made its July 2020 trading debut during Covid-19 with an initial public offering (IPO) price of S$0.22 per share, when valuations were depressed and when the Straits Times Index (STI) was trading at around 2,500 points. The IPO price of S$0.22 was a 123 per cent premium to the group's unaudited NAV per share of about S$0.0986 on Dec 31, 2019, based on the post-placement share capital and after adjusting for net proceeds due to the company from the placement. 'It now wishes to delist at S$0.16 per share when the STI is trading at around 3,900 points... If the same IPO premium were to be applied now, the privatisation price should be around S$0.36 to S$0.37,' Sias said. 'For a delisting to take place, the IFA has to conclude that the offer is both fair and reasonable... it would therefore be advisable to wait for the IFA's opinion.'
Business Times
6 days ago
- Business Times
Singapore Paincare up 12.1% on Sias valuation
[SINGAPORE] Shares of Singapore Paincare rose on Thursday (Jun 5), a day after the Securities Investors Association (Singapore), or Sias, valued the medical services company at more than double its privatisation offer price. As at 4.19 pm, the counter was trading at S$0.176, 12.1 per cent or S$0.019 above the previous closing price of S$0.157 on Wednesday, with 15.2 million shares transacted. This was its highest price in the year to date. It closed on Thursday 8.3 per cent or S$0.013 higher at S$0.17, with 17.3 million shares having changed hands. On Wednesday, Sias urged minority shareholders of Singapore Paincare to hold off selling their shares amid an acquisition bid from Advance Bridge Healthcare, a management consultancy for healthcare services. Sias noted that the company could be worth S$0.37 a share, more than double the S$0.16 a share privatisation offer price. It recommended that shareholders wait and refrain from taking action until the report by the independent financial adviser (IFA) is released. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'If the shares are sold on the open market, shareholders who sold will not have recourse if there is subsequent upward revision in the offer price,' Sias warned. There have been past instances when shareholders sought slight gains and sold their shares on the open market before the IFA issued its report, it noted. Moreover, the S$0.37 per share offer price is at a 'slight discount' to the company's audited net asset value (NAV) per share of S$0.166 as at Jun 30, 2024, it said. The association highlighted that Singapore Paincare made its July 2020 trading debut during Covid-19 with an initial public offering (IPO) price of S$0.22 per share, when valuations were depressed and when the Straits Times Index (STI) was trading at around 2,500 points. The IPO price of S$0.22 was a 123 per cent premium to the group's unaudited NAV per share of about S$0.0986 on Dec 31, 2019, based on the post-placement share capital and after adjusting for net proceeds due to the company from the placement. 'It now wishes to delist at S$0.16 per share when the STI is trading at around 3,900 points... If the same IPO premium were to be applied now, the privatisation price should be around S$0.36 to S$0.37,' Sias said. 'For a delisting to take place, the IFA has to conclude that the offer is both fair and reasonable... it would therefore be advisable to wait for the IFA's opinion.'
