Singapore Stocks to Watch: Olam, Golden Energy and Resources, Challenger Technologies

The following companies saw new developments that may affect trading of their securities on Wednesday (May 31):

Olam (VC2): Olam Group’s proposed initial public offering (IPO) of its agribusiness unit is no longer expected to be completed by H1 of 2023 or ahead of the summer holiday period, as originally planned.

On Tuesday (May 30), the agri-food giant said all necessary regulatory approvals required to launch Olam Agri’s IPO have yet to be obtained to date, given the “distinct nature” of the transaction. 

Assuming the listing goes through, the group noted that Olam Agri would be the first foreign company not incorporated in a Gulf Cooperation Council country to be listed in Saudi Arabia.

Golden Energy and Resources (AUE): The Securities Investors Association (Singapore) or Sias, is recommending that Golden Energy and Resources (Gear) minority shareholders reject the exit offer by the controlling shareholders.

Minority shareholders have been asked to accept the distribution in-specie of Gear’s Gem stake and the cash alternative at S$0.792 per Gear share.

In an e-mail to Gear’s board of directors, David Gerald, president of Sias, said that the independent financial adviser (IFA) had conflated the two corporate actions of the exit offer and the distribution of Golden Energy Mines (Gem) shares. This was despite the issue being highlighted as a concern in a press statement by Sias after meeting Gear representatives.

Challenger Technologies (573): MAJORITY shareholders of consumer electronics retailer Challenger Technologies have made a voluntary unconditional cash offer of S$0.56 per share to take the company private.

The offer is being made with a view to delist the company from the Singapore Exchange (SGX), as indicated by a bourse filing on Tuesday (May 30) afternoon. 

The offeror, DigiTech Holding, is the bid vehicle of a consortium formed by Challenger’s majority shareholders that collectively hold around 54.4 per cent of the company’s shares. The consortium comprises Asia Consumer Electronics, a special purpose vehicle (SPV) linked to Dymon Asia Private Equity, and Fortuna Capital, an SPV wholly owned by Challenger chief executive Loo Leong Thye.