Is this, what, an annoying joke as part of the April Fools' Day? I read the Business Times headlines, "Keppel Corp fails to hit compulsory acquisition threshold for Keppel Land buyout". Meaning to say, with Keppel Corp now owns 95.1% of Keppel Land, they'd just have to stick to the offer price at a base price of S$4.38 per Keppel Land share, rather than the higher price of S$4.60 a piece if the threshold (of 95.5%) had been reached.
Seriously, who are on their right mind still determine to keep the shares & not accepting the offer to help gain that threshold?! Especially since the update of the level of acceptance is published openly & those who have not opted to accept the offer should know that they could have enjoyed better price if they're joining the rest who have accepted.
Refer to the last 10 days of such publicly announced level of acceptance:
- 30 Mar 2015, Keppel Corporation owns 93.9% of Keppel Land
- 27 Mar 2015, Keppel Corporation owns 93.4% of Keppel Land
- 26 Mar 2015, Keppel Corporation owns 93.2% of Keppel Land
- 25 Mar 2015, Keppel Corporation owns 90.9% of Keppel Land
- 24 Mar 2015, Keppel Corporation owns 89.4% of Keppel Land
- 20 Mar 2015, Keppel Corporation owns 87.5% of Keppel Land
- 19 Mar 2015, Keppel Corporation owns 87.2% of Keppel Land
- 18 Mar 2015, Keppel Corporation owns 86.7% of Keppel Land
- 17 Mar 2015, Keppel Corporation owns 86.2% of Keppel Land
- 16 Mar 2015, Keppel Corporation owns 85.9% of Keppel Land
I am not really sure whether the recent press release dated 31 Mar 2015, SGXNET: Disclosure Of Interest/ Changes In Interest Of Director/Chief Executive Officer – Ms Ng Hsueh Ling which states that the Keppel REIT Chief Executive Officer and Executive Director, Ms Ng Hsueh Ling after her acceptance of employee share options/share awards of 537,000 Units, she is now holding the total no. of rights/options/warrants held: 1,420,299. Hers is rights/options/warrants. Not shares. So I just wonder how if any this impact to the acceptance level of Keppel Corp's offer (after all it refers to 'shares', not 'rights/options/warrants'.
Oh well. Lessons learnt:
1. Should have disposed the shares in the open market as the price is more attractive than the base offer of $4.38.
2. Should have studied more what happens if one opts to decline the offer & thus when the counter is delisted, how one is holding the shares (especially if one is still not willing to exercise one's right to get Keppel Corp to acquire the shares at $4.38)?
Keppel Corp failed to hit the compulsory acquisition threshold needed to complete the buyout of Keppel Land by the end of the offer close.From Business Times, "Keppel Corp fails to hit compulsory acquisition threshold for Keppel Land buyout".
Late on Tuesday evening, it released a report saying that it now owns 95.1 per cent of Keppel Land as at March 31, 5.30pm, just 0.4 percentage points short of the 95.5 per cent threshold.
This means that the offer price will remain at a base price of S$4.38 per Keppel Land share, rather than the higher price of S$4.60 a piece if the threshold had been reached.
Remaining shareholders who have not tendered have a right to require Keppel Corp to acquire their shares at S$4.38 in cash, joint financial advisers DBS and Credit Suisse said in the report.
This essentially allows the shareholders to exit rather than stay stuck with illiquid private shares.
Keppel Land lost one cent to end at S$4.45 on the stockmarket on Tuesday. Some 2.1 million shares changed hands.
The Singapore Exchange will suspend trading of the shares henceforth.
"Keppel Corporation Limited intends to take steps to delist Keppel Land Limited from the SGX-ST following the close of the offer," said the financial advisers.