The department store operator has posted a net loss of S$1.2 million for the full year ended Dec 31, 2023
DEPARTMENT store operator Isetan Singapore will delist from the Singapore Exchange on Thursday (Sep 19).
Its shares were suspended on Aug 29 after the Singapore High Court sanctioned a scheme of arrangement that allowed Japan’s Isetan Mitsukoshi to take the company private.
To recap, Isetan Mitsukoshi in April proposed to fully purchase all the shares of Isetan Singapore it does not own, at a consideration of S$7.20 for each target share.
The consideration implies a 37.4 per cent premium over the counter’s highest closing market price of S$5.24 in the past five years.
The offer came after the department store operator posted a net loss of S$1.2 million for the full year ended Dec 31, 2023, as opposed to a net profit of S$1.3 million in the previous fiscal year.
Mitsukoshi said in April that it believes the acquisition will be an opportunity for shareholders to fully exit their investment, which would otherwise be difficult due to the low liquidity of Isetan Singapore’s shares.
There are also no other alternatives for shareholders to realise the value of their investment in their shares, it added.
The company had attempted to unlock value for shareholders by attempting to divest its assets, particularly its strata title in Wisma Atria. The deal, announced in 2021, was unsuccessful.
