Deals
Singapore’s Change to Delisting Rule Will Lead to Higher Prices, Say Analysts
- Offeror should abstain from delisting vote: Singapore Exchange
- United First Partners, RHB Securities see higher offer prices
Photographer: Bryan van der Beek/Bloomberg
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Singapore’s move to shift the power on delistings in favor of minority shareholders means bidders will need to pay higher premiums to get deals done.
That’s according to analysts at United First Partners and RHB Securities after the Singapore exchange announced two changes on Thursday to the rules on voluntary delistings. Analysts at both firms said the new guidelines will now make the delisting process more onerous and therefore lead to higher offer prices in comparison to the past.