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Minority shareholders becoming disillusioned with boilerplate advice: SIAS

Minority shareholders are becoming increasingly disillusioned with boilerplate advice from independent financial advisers (IFAs) and are questioning their usefulness: SIAS

SINGAPORE: Minority shareholders are becoming increasingly disillusioned with boilerplate advice from independent financial advisers (IFAs) and are questioning their usefulness, the head of the Securities Investors Association of Singapore (SIAS) said on Friday (June 6).

The remarks by SIAS President & CEO David Gerald came in a statement noting the dissatisfaction on the part of minority shareholders over a buyout offer for LCD Global, a hospitality and investment company, at S$0.17 a share.

"SIAS notes that while the IFA report has indicated that the offer is fair, based on a historical perspective, the offer does represent a discount to NAV at S$0.27," Gerald said.

NAV, or net asset value, refers to the value of a firm's holdings properties minus debt, divided by the number of shares.

LCD Global, which was formerly known as LC Development, owns several hotels and serviced residences around the world including the Crowne Plaza London Kensington and Holiday Inn Resort Phuket.

"For this reason, we had earlier called on the offer or to reconsider and revise the offer," he added, noting that LCD Global shares were trading at around S$0.25 apiece.

SIAS will study the current situation and may highlight its concerns to regulators, he added.

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