Additionally, the offeror, Isetan Mitsukoshi, says a private company will provide the offeror, which is also the parent, with operational flexibility and will save on listing costs.
This year, two companies were privatised through a scheme of arrangement: RE&S Holdings (SGX:1G1
) , a relatively small food company specialising in Japanese cuisine, and Isetan (Singapore). Additionally, the recently delisted Best World International (SGX:CGN) completed its privatisation through a selective capital reduction.
Isetan’s scheme document said the scheme consideration represents a premium to historical trading pieces, and it provided an opportunity for shareholders to “fully exit their investment that is otherwise difficult due to the low liquidity of the shares”.
