Takeovers have been part of the stock market for centuries. A takeover happens when one company makes a bid to acquire a target company. Usually, the price offered to existing shareholders is a slight premium over the last trading price of the shares, to make it sound lucrative to accept the offer. However, sometimes, the offer price may not sound attractive to shareholders, hence getting a low level of acceptances, leading to offerors revising the offer price.
The takeover process can occur over a short period of a month to as long as a couple of months, depending on the conditions listed in the offer and the level of acceptances by shareholders.
If you have a stock that is undergoing a takeover, please follow through the company's announcement to ensure you take the necessary actions to get your offer. In my experience, some investors have let the offer lapse past the closing date and resulted in having their money "stuck" in the stock. It is usually difficult to cash out once the offer is already lapsed.
DELISTING LEVELS
In Singapore's context, if the level of valid acceptances is more than 90% of the total number of issued shares, the offeror may exercise its right to compulsorily acquire all the remaining offer shares. Following the compulsory acquisition, the stock will likely be delisted from SGX.
WHICH STOCKS ARE UNDERGOING TAKEOVERS NOW?
Below is a list of the stocks that are undergoing takeovers.
Do take note some do not have closing dates yet as they are undergoing the process of meeting conditions in the offer, and prices may still be revised.
| Stockname | Offer Price | Closing Date | Latest Level Of Acceptances (as of 30 May 2016) | Remarks |
| NOL | S$1.30 | - | - | Independent Financial Advisory Citibank rendered that Offer Price of S$1.30 was fair from financial point of view. |
| Lantrovision | S$3.25 | - | - | Offerer has intentions to delist; Expected last trading day 08 June 2016. |
| Healthway Medical Group | S$0.10 + S$0.43 Consideration Share | - | - | Transfer of shares to IHC Share, ration of 10 IHC Share for every 43 Shares held. |
| China Dairy Group Ltd | S$0.195 | 01 June 2016, 5.30pm | 63.91% | Share trading suspended. |
| Pteris Global Limited | S$0.735 | 23 June 2016, 5.30pm | - | No compulsory acquisition for all Shares due to SZ TGM Undertaking. Also does not intend to take any actions for trading suspensions. |
| China Merchants Holdings (Pacific) Limited | S$1.02 | - | - | Offerer has intentions to delist. |
| Eu Yang Sang | S$0.60 | - | - | Offerer has intentions to delist. |
If you have any questions regarding the takeover of your stock, please feel free to give me a call.
