Sanion to clarify intention for NatSteel by December 13
The Securities Industry Council (SIC) has asked for Indonesian businessman Oei Hong Leong to declare whether he has the intention to make a general offer for NatSteel or not, setting the deadline of December 13, 2002 for this purpose. Being the watchdog of
Singapore Exchange, by requesting such announcement from Oei Hong Leong, SIC is aiming to secure clarity for NatSteel shareholders allowing them enough time to evaluate the offers of both Oei Hong Leong's company Sanion and 98 Holdings. The deadline falls on the 50th day of 98 Holdings initial offer on October 24, which means 4 days after the final date to submit any final offer by the company, giving enough time for Sanion to consider whether to make a general offer or not. 98 Holdings by then will be in a position to increase its bid accordingly until December 23 in case of occurrence of a competing offer.
Oei Hong Leong has increased his NatSteel shares by making significant purchases recently and currently possesses 19.38% shares. Although he has not reached the 30% key level to be bound to make a general offer, the SIC is entitled to require such announcement from Sanion under the
Singapore takeover and mergers code.
Current general offer by 98 Holdings is S$2.03 per share and Oie Hong Leong's offer for the Development Bank of
Singapore (DBS) shares of 14.67%, is at S$205 per share, which triggered speculations that he is a potential competing offeror for NatSteel.
Naturally, even though being ahead of Oei Hong Leong with 25% shares of NatSteel, 98 Holdings might have to face difficulties convincing NatSteel shareholders for a transaction of shares at a lower price of S$ 2.03 when the market of the shares are at a higher level at the moment.
NatSteel closed at S$2.06 on November 20, 2002up by one cent.