The Securities Investors Association Singapore (SIAS) is appealing to Singapore Airlines' board for a revision of the group's takeover offer for Tiger Airways.
This comes a week after independent financial adviser Maybank Kim Eng said the 41 cents per share offer was "fair and reasonable".
In a letter to the SIA board on Friday, SIAS chief David Gerald highlighted the concerns of long-term Tigerair minority shareholders, saying: "These are the shareholders who are not satisfied and may not accept the offer. The reason for their investing in Tiger Airways, they say, is because of the fact that SIA was behind Tiger. This fact brought them comfort."
SIA - which holds an almost 56% stake in Tigerair - announced in November that it was seeking to delist and privatise the low-cost carrier to integrate it in the SIA group. SIA's offer price is a premium of around 32% over Tigerair's closing price on Nov 5. Tiger shareholders can also subscribe to SIA shares at $11.1043 per share as a way of participating in Tiger's fgrowth.
Gerald notes that SIA "was prepared to pay more" when it acquired Temasek's 7% stake in Tigerair 67.8 cents in 2013, but appears unwilling to pay more to Tiger's minority shareholders to take it private. Tiger's minority shareholders have also highlighted to SIAS that SIA paid 56.5 cents per share to raise its stake in Tigerair from 40% to 55.8%. which was made possible by an earlier whitewash waiver granted by minority shareholders.
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This comes a week after independent financial adviser Maybank Kim Eng said the 41 cents per share offer was "fair and reasonable".
In a letter to the SIA board on Friday, SIAS chief David Gerald highlighted the concerns of long-term Tigerair minority shareholders, saying: "These are the shareholders who are not satisfied and may not accept the offer. The reason for their investing in Tiger Airways, they say, is because of the fact that SIA was behind Tiger. This fact brought them comfort."
SIA - which holds an almost 56% stake in Tigerair - announced in November that it was seeking to delist and privatise the low-cost carrier to integrate it in the SIA group. SIA's offer price is a premium of around 32% over Tigerair's closing price on Nov 5. Tiger shareholders can also subscribe to SIA shares at $11.1043 per share as a way of participating in Tiger's fgrowth.
Gerald notes that SIA "was prepared to pay more" when it acquired Temasek's 7% stake in Tigerair 67.8 cents in 2013, but appears unwilling to pay more to Tiger's minority shareholders to take it private. Tiger's minority shareholders have also highlighted to SIAS that SIA paid 56.5 cents per share to raise its stake in Tigerair from 40% to 55.8%. which was made possible by an earlier whitewash waiver granted by minority shareholders.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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