Involuntary Delisting from Singapore Exchange and the Efficacy of the Exit Offer Requirement

Company and Securities Law Journal, pp. 222-227, 2014

Singapore Management University School of Law Research Paper No. 12/2014

Posted: 15 Apr 2014 Last revised: 22 Aug 2014

See all articles by Wai Yee Wan

Wai Yee Wan

City University of Hong Kong (CityUHK) - Centre for Chinese & Comparative Law; Singapore Management University - School of Law

Date Written: 2014

Abstract

The recent saga relating to the involuntary delisting of Jets Technics International Holdings Limited (Jets Technics) from the Singapore Exchange (SGX) highlights the problem faced by minority shareholders when their companies or issuers are mandated to delist from the SGX. While the SGX, the Australian Stock Exchange (ASX) and the Hong Kong Stock Exchange (HKSE) have similar rules which allow the stock exchange to mandatorily delist companies in certain specified circumstances, the SGX appears to go further than ASX and HKSE by requiring the issuer or its controlling shareholders to make an exit offer to the minority shareholders in conjunction with the involuntary delisting. However, the case of Jets Technics illustrates the difficulties in ensuring compliance with the requirement of the exit offer.

This note discusses the difficulties arising in enforcing an exit offer in conjunction with an involuntary delisting, using Jet Technics as an illustrative example, and suggests some possible reforms. The case of Jets Technics may also provide some cautionary guidance to policy-makers of other stock exchanges who are considering putting in place minority shareholder rights in connection with involuntary delistings.

Suggested Citation

Wan, Wai Yee, Involuntary Delisting from Singapore Exchange and the Efficacy of the Exit Offer Requirement (2014). Company and Securities Law Journal, pp. 222-227, 2014, Singapore Management University School of Law Research Paper No. 12/2014, Available at SSRN: https://ssrn.com/abstract=2425039

Wai Yee Wan (Contact Author)

City University of Hong Kong (CityUHK) - Centre for Chinese & Comparative Law ( email )

83 Tat Chee Avenue
Room P5300, 5th Floor, Academic 1
Kowloon Tong
Hong Kong

Singapore Management University - School of Law ( email )

55 Armenian Street
Singapore, 179943
Singapore

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