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|5 September 2009
Singapore: Delisting firms should make reasonable exit offer
The Singapore Exchange (SGX) wants companies seeking to delist from the exchange to provide a reasonable exit offer to shareholders, local media reported on Friday.
The SGX said a company may seek delisting from the exchange, but it would consider a delisting application only if it is approved by at least 75 percent of shareholders present at the delisting resolution, local radio 938live reported.
At the same time, there cannot be more than 10 percent voting against the company's delisting.
In addition, SGX said there must be a reasonable exit alternative, normally a cash offer, to shareholders. An independent financial adviser is also needed to advise on the exit offer.
It said the company's board should take into account the interests of shareholders, to ensure that the exit alternative does not place the shareholders at a disadvantage.
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