Press Statement – Boustead Offer: SIAS Calls On Shareholders To Reject the Offer

Date: March 13, 2023

SIAS calls on the shareholders of Boustead Projects Limited to reject and not accept the voluntary unconditional cash offer by Boustead Singapore Limited. As the IFA opinion is that the offer is ‘not fair but reasonable’, shareholders should demand that the offeror raise the offer price to an amount that will be ‘fair and reasonable’. Based on the current offer price, the IFA has opined that the offer is ‘not fair’.

Shareholders should not fear that the company will be delisted even if they do not accept the offer. This is because the company cannot exercise compulsory acquisition under Section 215 of the Companies Act. Under the SGX’s listing rules, all exit offers for voluntary delisting must be ‘fair and reasonable’. In the event the company loses free float, SIAS calls on SGX RegCo to require the company to restore the free float because it has not complied with the Listing Rules requirements on exit offer for delistings.

Shareholders should seriously consider not accepting the offer and let the counter remain listed because the offer price is not fair. Shareholders who continue to accept the voluntary unconditional cash offer will cause a drop in the free float of the company which would have to be restored, failing which the company faces delisting.


David Gerald
President and CEO