SingLand’s big shareholder cut stake to avoid delisting

Silchester trimmed down stake to 4.95%.

According to OSK, Silchester International Investors (Silchester), the second largest shareholder of SingLand, trimmed down its stake from 8.16% to 4.95% after offloading 13.25m SingLand shares yesterday at SGD9.50 per share. As a result, it ceases to be a substantial shareholder of SingLand (defined as any shareholder with > 5% stake).

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With its move, free float of SingLand has increased from 11% to 19%, removing the threat of any potential delisting had UIC been able to garner 1% of the free float from public shareholders.

Silchester had earlier highlighted that it deemed UIC’s offer, at a 33% discount to net assets, too low and it intended to sell down its stake to below 5% to protect its clients’ interests in the absence of a higher offer from UIC. UIC’s offer is now doomed to fail with the increased free float, unless it raises its offer.

With the threat of a potential delisting removed and the price discovery process facilitated by UIC’s general offer, we think SingLand’s share price will find good support at the current levels even if the offer lapsed.

We continue to advocate a Trading BUY on SingLand, which is trading at a 34% discount to our RNAV of SGD14.50. Our T.P of SGD10.80 is premised on a 25% discount to RNAV.