Wednesday, March 11, 2009

Daily news - 10 Mar

SATS to mop up remaining SFI shares
Singapore Food Industries is a step closer to being delisted from the Singapore Exchange, now that its buyer Singapore Airport Terminal Services has accumulated over 90 per cent of its shares. The mainboard-listed food company yesterday announced that SATS would exercise its right of compulsory acquisition under Section 215(1) of the Companies Act, with its offer price of 93 cents per SFI share. It will then proceed to delist SFI from the SGX. SATS advisers Merrill Lynch yesterday announced that the closing date of the offer would be extended from 5.30 pm yesterday to 5.30 pm on March 23. This means minority shareholders who have not accepted the SATS offer to date have two more weeks to do so before trading ceases on the stock. SFI shares will be suspended at the end of the trading session on March 23. 'The offeror has no intention to extend the offer beyond 5.30 pm on the revised closing date,' Merrill Lynch said. This marks the final chapter of SATS's takeover of SFI, which started when SATS minority shareholders gave the company the nod to buy a controlling stake in SFI from Temasek Holdings in January. Almost 70 per cent of minority votes cast at a meeting were in favour of SATS buying 359.7 million SFI ordinary shares, equivalent to a 69.6 per cent stake, for $334.5 million.

Source: Kim Eng

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