The offer, to be made in cash, allows it to exercise greater control over its share capital structure in relation to the preference shares
[SINGAPORE] Property player City Developments Limited (CDL) will be repurchasing 10 per cent of its preference shares – or about 26.8 million shares – at S$0.78 a share, it announced in a regulatory filing on Tuesday (May 13).
CDL offers to repurchase these shares through the off-market equal access manner, with each preference shareholder entitled to sell 10 per cent of such shares held as at 5.30 pm on Jun 2.
However, preference shareholders may tender shares over 10 per cent of their holding if others do not accept their full entitlement. The offer will be open for acceptance to preference shareholders for 10 calendar days (excluding public holidays) from the date of the letter.
CDL said that there will be no implications for takeovers or mergers arising from this scheme, as these shares do not carry voting rights, and will be scrapped.
The offer, to be made in cash, allows it to exercise greater control over its share capital structure in relation to the preference shares.
CDL pointed out that the trading volume of the preference shares has been low, with an average daily trading volume of 0.0042 per cent of the total number of issued preference shares for the one year up to May 9.
However, demand from the preference shareholders who wish to sell their preference shares through the off-market equal access scheme appeared to be strong, going by 2024’s exercise that attracted acceptances four times the maximum buyback amount of the preference shares.
CDL shares were trading at S$0.04 or 0.8 per cent lower at S$4.81 at Tuesday’s market close, before the preference shares repurchase announcement.
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