Dragon Group seeks clarification for proposed exit offer

Its controlling shareholder is still working on a cash exit offer pursuant to the firm’s delisting.

Investment holdings firm Dragon Group International has made an application to the Securities Industry Council seeking clarification on the extent to which the provisions of the Singapore Code on take-overs and mergers applies to a proposed exit offer, an announcement revealed.

According to rule 1309 of the listing manual, companies to be delisted or its controlling shareholders must provide a reasonable exit offer to shareholders. They must also inform the SGX-ST of the exit offer no later than one month from the date of the delisting notification.

The firm first received its notification of delisting in April 2018 from the Singapore Exchange Securities Trading (SGX-ST), after the market regulator rejected Dragon Group’s application for a further extension of time to be removed from the watchlist.

“The controlling shareholder of the company, ASTI Holdings, is still working on a cash exit offer proposal to be issued to the shareholders,” the firm explained in its filing with the local bourse.

Trading in the company’s shares were suspended after 10 May until completion of the exit offer.