Singapore Paincare worth up to S$0.37 a share, more than double its privatisation offer: Sias
[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.
Especially for those who are able to afford waiting, Sias recommends that shareholders wait for the independent financial adviser (IFA) report before making any moves.
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.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
21 hours ago
- Business Times
Singapore shares buck regional trend to close lower; STI falls 0.4%
[SINGAPORE] Local stocks fell for the second straight day on Wednesday (Jun 11), bucking the gains in most Asian markets as investors are concerned about the lack of details in the recently concluded US-China trade talks. While the world's two largest economies agreed to a preliminary deal on how to implement the consensus reached in Geneva, the full details of their accord were not immediately available. US negotiators said they 'absolutely expect' that issues around shipments of rare earth minerals and magnets will be resolved with the framework implementation. Investors are also looking ahead to the latest US bond auction on Jun 12, where the Treasury is set to sell US$22 billion of 30-year government bonds. While part of its regularly scheduled borrowings, the results are keenly watched for an instant read on the scope of demand, at a time when investor appetite for 30-year US debt has soured. 'A lack of demand for US government debt would impede the rally's momentum and throw a bone to the bears,' Jose Torres, senior economist at Interactive Brokers, said in a report, referring to the recent gains in American equities. In Singapore, the benchmark Straits Times Index (STI) fell 0.4 per cent or 14.75 points to end at 3,919.05. In the broader market, gainers beat losers 310 to 183, with around 1.1 billion securities worth S$1.2 billion changing hands. Venture Corp was the top blue-chip gainer, rising 1.2 per cent or S$0.14 to S$11.38. ST Engineering was the biggest decliner, falling 1.9 per cent or S$0.15 to close at S$7.71. The trio of local banks ended lower. DBS fell 0.6 per cent or S$0.28 to S$44.87; OCBC dropped 0.7 per cent or S$0.11 to S$16.16; and UOB shed 0.4 per cent or S$0.13 to S$35.12. Markets in most of Asia closed higher, with South Korea's Kospi up 1.2 per cent and leading the advance. This was followed by Taiwan's Taiex, which gained 1 per cent. Greater China markets also rose; Hong Kong's Hang Seng Index was the best performer, notching an increase of 0.8 per cent.
Straits Times
2 days ago
- Straits Times
Singapore stocks snap 5-day winning streak, with STI inching down 0.1%
In Singapore, the benchmark Straits Times Index fell about 0.1 per cent or 2.52 points to end at 3,933.80. ST PHOTO: BRIAN TEO SINGAPORE - Local stocks closed lower on June 10, ending five straight days of gains amid concerns that the US-China trade talks may not be going well. Chinese stocks fell ahead of the second day of trade talks with the US, a sign that investors are still nervous as the countries meet to address contentious issues in London. Some Chinese investors have speculated that the negotiations are not progressing well, following an earlier commentary listed in a social media account affiliated with state broadcaster CCTV. The post stated that 'the US should realistically view the progress made and revoke negative measures against China'. The Shanghai Composite fell 0.4 per cent at the close, and the Shenzhen Component shed 0.9 per cent. Still, the sustained dialogue between the US and China is encouraging market participants, 'even though immediate breakthroughs are not expected', said Mr Eric Mak, Asia equity research analyst at Julius Baer. In Singapore, the benchmark Straits Times Index (STI) fell about 0.1 per cent or 2.52 points to end at 3,933.80. In the broader market, gainers beat losers 249 to 216, with around 984.9 million securities worth nearly $943 million having changed hands. UOL advanced the most on the STI, rising 1.8 per cent, or 11 cents, to $6.18. DFI Retail reversed its June 9 performance as the biggest gainer to lose the most on June 10, down 1.8 per cent, or 5 US cents, to close at US$2.75. The trio of local banks ended lower. DBS Bank fell 0.8 per cent, or 34 cents, to close at $45.15; OCBC Bank dropped 0.6 per cent, or 10 cents, to $16.27; UOB dipped 0.2 per cent, or seven cents, to $35.25. Trade in the broader Asian region was mixed; apart from the declines in China, Hong Kong's Hang Seng Index, Malaysia's KLCI Index and the Philippines' PSEi closed lower. On the other hand, Japan's Nikkei, South Korea's Kospi and Taiwan's Taiex ended higher. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
2 days ago
- Business Times
Singapore stocks snap 5-day winning streak on Tuesday; STI down 0.1%
[SINGAPORE] Local stocks closed lower on Tuesday (Jun 10), ending five straight days of gains amid concerns that the US-China trade talks may not be going well. Chinese stocks fell ahead of the second day of trade talks with the US, a sign that investors are still nervous as the countries meet to address contentious issues in London. Some Chinese investors have speculated that the negotiations are not progressing well, following an earlier commentary listed in a social media account affiliated with state broadcaster CCTV. The post stated that 'the US should realistically view the progress made and revoke negative measures against China'. The Shanghai Composite fell 0.4 per cent at the close, and the Shenzhen Component shed 0.9 per cent. Still, the sustained dialogue between the US and China is encouraging market participants, 'even though immediate breakthroughs are not expected', said Eric Mak, Asia equity research analyst at Julius Baer. In Singapore, the benchmark Straits Times Index (STI) fell about 0.1 per cent or 2.52 points to end at 3,933.80. 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 the broader market, gainers beat losers 249 to 216, with around 984.9 million securities worth nearly S$943 million having changed hands. UOL advanced the most on the STI, rising 1.8 per cent, or S$0.11, to S$6.18. DFI Retail reversed its Monday performance as the biggest gainer to lose the most on Tuesday, down 1.8 per cent, or US$0.05, to close at US$2.75. The trio of local banks ended lower. DBS fell 0.8 per cent, or S$0.34, to close at S$45.15; OCBC dropped 0.6 per cent, or S$0.10, to S$16.27; UOB dipped 0.2 per cent, or S$0.07, to S$35.25. Trade in the broader Asian region was mixed; apart from the declines in China, Hong Kong's Hang Seng Index, Malaysia's KLCI Index and the Philippines' PSEi closed lower. On the other hand, Japan's Nikkei, South Korea's Kospi and Taiwan's Taiex ended higher.
