Hi ghchua,
Thanks - Yes, we can tender excess shares, not only the 20%+ entitled.
Thanks for your reply and help - I went back to dig up the SBL. Strangely, why weren't the loaned shares recalled straight upon suspension 2+ years back then ?
Actually, the $1.36 is the EAO price according to the SGX letter*.
Price issue aside**, I am more upset on the process of "forced" settlement - literally, it means I am forced to accept cash instead of getting my loaned shares back. This defeats the spirit of "providing the option" to participate in the EAO, it's akin to CDP taking the decision to accept on our behalf with no consultation whatsoever.
Just to clarify, I mean in this technological age, which party the borrowers sell to, and the "route" of loaned shares should be traceable. The shares couldn't just disappear into thin air. Ultimately, wherever the loaned shares go, I believe CDP is still in control of the share register? I believe enforcement is possible but perhaps difficult ?
So it bags the question - is it a matter of administrative convenience ? We have to weigh this against basic principles as humans : ok may not be the best example but I don't borrow a spoon from a person and happily return a fork and assume everything is fine.
If it is really technically impossible to trace with current IT systems, or somehow really just impossible, then perhaps SGX shouldn't allow this exercise or at least be forthcoming with explanations to the helpless. Have the implications to all stakeholders been thought through or consulted ? Actually, a simpler way I could think of is perhaps for the shareholder to indicate whether he/she intends to participate in the EAO. If not, then there is no need to recall the loaned securities.
Just curious whether anyone knows is this the first time for such a scenario in SGX listed stocks ?
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*https://www.investingnote.com/posts/2391894 (2nd pic)
**"....The Offer Price is the
last traded price immediately preceding the trading suspension of the Shares, and it
represents a discount to the average of the closing market prices of the Shares over the five (5) Market Days on which transactions in the Shares were recorded immediately preceding the trading suspension of the Shares...." (emphasis added)
https://links.sgx.com/FileOpen/2022%2001...eID=697843
And we also have to consider the context of what happened near the start of the suspension period, it can be argued that simply basing on trading price near such incidents may not be fair.
"....BEST World International shares fell as much as 11 per cent on Wednesday after short-seller Bonitas Research published a 28-page report that questioned the authenticity and legality of the premium skincare firm's profits.
When the company halted trading of its shares at 11.25am, the stock was down 8.99 per cent at S$1.62 on volume of 8.7 million shares...."
https://www.businesstimes.com.sg/compani...tas-report