Shareholders of Japfa have approved a strategic plan to delist the agri-food company from the Singapore Stock Exchange, marking a significant step in the anticipated privatization process.
This move has been in the planning stages since March of last year. A resolution was officially passed during the annual general meeting held in the city-state on April 15, allowing the business to transition to private ownership through a scheme of arrangement.
According to a document released by Japfa’s board of directors, the resolution successfully met the required 75% threshold of shareholder votes. This confirmation was signed by the executive director and CEO, Tan Yong Nang.
Pending regulatory approval, Japfa’s shares are expected to cease trading on the Singapore exchange around May 9, with the delisting anticipated to occur on June 3.
Eligible shareholders participating in the scheme will receive a total cash consideration of S$0.62, which includes a final dividend of S$0.01 approved during the AGM and an adjusted scheme consideration of S$0.61 for each scheme share.
This cash offer of S$0.62 is viewed as a premium relative to Japfa’s average share trading price over the past four years.
Japfa specified in the document that the scheme agreement is subject to court approval, with a hearing scheduled for approximately May 5.
Notably excluded from the scheme of arrangement due to abstentions were certain existing shareholders, referred to in the document as “joint offers” or “persons acting or presumed to be acting in concert with the joint offerors regarding the acquisition and the scheme”.
The excluded parties include: Rangi Management, Tasburgh Ltd., Morze International, Tallowe Services, and Renaldo Santosa.
As reported by Singapore’s Business Times, Renaldo and Gabriella Santosa, along with Rachel Anastasia Kolonas, submitted a joint privatization offer in January.
The publication further noted that the Santosa siblings are the children of the late Handojo Santosa, who previously served as Japfa’s executive chairman, and they are also related to the company’s founder, the late Ferry Teguh Santosa.
Kolonas is the daughter of Japfa’s non-executive director Hendrick Kolonas, who is the uncle of both Santosa siblings, as stated by the newspaper.
