SLB Development, Japfa may delist from SGX after privatisation offers

Two more companies, property developer SLB Development and agri-food business Japfa, may be delisting from the Singapore Exchange (SGX) after receiving privatisation offers from their major shareholders.

- Kang Wan Chern

The moves potentially extend a slew of SGX delistings that took place in 2024, which included Silverlake Axis, Best World International and Isetan Singapore.

The announcements also come at a time when the local bourse is almost halfway through a 12-month central bank-led review to revive trading and draw more listings.

Construction company Lian Beng Group announced after the market closed on Jan 24 that it is offering 23 cents in cash per share to privatise its subsidiary SLB Development at a premium over SLB's closing price of 17 cents.

The offer price is also approximately 16.8 per cent over SLB's net asset value per share of 19.7 cents as at Nov 30, 2024.

SLB was listed on the Catalist board of the SGX on April 20, 2018.

Lian Beng currently holds about 708.5 million shares in SLB, representing about 77.6 per cent of the total number of issued shares.

In its announcement, Lian Beng said the acquisition is an opportunity for SLB's shareholders to realise their entire cash investment at a premium over historically traded prices without incurring brokerage and other trading costs.

Lian Beng added that the trading volume of SLB's shares has "been generally low" over the past year, and that delisting will help it save on expenses and costs relating to the maintenance of a listed status and channel resources into business operations.

Lian Beng itself was privatised in 2024 by its chairman Ong Pang Aik and his family, through investment holding company OSC Capital, at 68 cents a share.