Delong Holdings has requested that its shares resume trading after the lunch break on Friday after the mandatory suspension a week ago.
Earlier Friday, Delong’s board of directors said in a filing to SGX that the voluntary conditional cash offer from Best Grace Holdings for all of the company’s shares had been withdrawn.
“Accordingly, no further action will be taken by the company in relation to the offer, including issuing an offeree circular to the shareholders,” Delong said on Friday.
SIC to investigate
On Thursday, the Securities Industry Council (SIC) of the Monetary Authority of Singapore said it was investigating the circumstances leading to the withdrawal of the offer for Delong, particularly whether there was a breach of Rule 17 of the takeover code.
“The investing public and shareholders of the company are advised to exercise caution when dealing with their shares,” the SIC said, adding it wouldn’t comment further to avoid compromising the on-going investigation.
Best Grace withdraws offer
Best Grace Holdings withdrew its offer to buy all of Delong as its bid would need to be raised to be compliant with Singapore’s takeover code, it said in a filing to SGX after the market close on Thursday.
Delong Holdings’ CEO and Executive Chairman Ding Liguo had made the takeover bid in late September via special purpose vehicle Best Grace Holdings, offering S$7.00 a share for all of the company’s shares. The offer price was a 8.0 percent premium over the volume weighted average price of the stock for the previous month, the filing had said.
But Singapore’s takeover code requires that the offer price must not be less than the highest price paid by the offeror for shares either during the offer period or within six months before the offer begins.
To be compliant with the code, under Rule 17.1, the offer price would need to be raised to S$7.42 a share, the filing on Thursday said.