Press Statement on LCD Global

Date: June 6, 2014

Shareholders of LCD Global have approached SIAS with regards to the offer for LCD Global’s shares of $0.17. SIAS notes that while the IFA report has indicated that the offer is fair, based on a historical perspective, the offer does represent a discount to NAV at $0.27. SIAS therefore understands the dissatisfaction on the part of minority shareholders. For this reason, we had earlier called on the Offeror to reconsider and revise the offer.  However, we note that the current market price of the shares of LCD Global is trading at around $0.25  (close to NAV). We also note that there has been an increase in the volume of shares traded and it is very likely that quite a number of retail investors have exited.

Needless to say, those with a short term view of LCD Global will exit the company, and those who take a long term view will, no doubt, be inclined to stay. Investors should continue to track their investment in this company and make an informed decision taking into consideration all prevailing considerations. SIAS does not opine on valuations but rather leave the investors to decide on whether to accept or reject the offer, based on facts prevailing at the time, including IFA’s advice.

On a broader perspective, with regards to IFA reports presented to minority shareholders on offers, it is true that minority shareholders are becoming more and more disillusioned with boilerplate advice and are questioning the perceived independence and the usefulness of the IFA reports to them. In some cases, they find the reports cumbersome and therefore difficult to accept the conclusion easily. SIAS will study the current situation, and if it warrants that their concerns should be highlighted to the regulators, with a view to improve the communication to the investors, it will do so. 

David Gerald
President & CEO
Securities Investors Association (Singapore)