In Silverlake’s case, the dual-pricing structure by the offeror helped garner a strong acceptance level among minority shareholders in one go, rendering the deal a success.
Singapore-listed Silverlake Axis (SGX:5CP
) ’ privatisation exercise has generated much interest because of its unique dual-pricing structure that is believed to be rare in such deals.
Typically, privatisation bids fail or are prolonged because investors hold out for a higher offer, especially when they know the offeror is close to reaching the minimum level of acceptance required for it to be able to compulsorily take over the rest of the company’s shares.
