They say it undervalues what they have paid.
Singapore Airlines has greased the pan, and it raised its offer to Tigerair shareholders from $0.41 to $0.45 a share, and it’s now the shareholders’ turn to pour the batter.
However, according to a statement by the Securities Investors Association of Singapore (SIAS), some shareholders aren’t satisfied with the sweetened offer, saying it underestimates what long-time shareholders have paid.
Meanwhile, SIAS says it is an option for shareholders to not accept the offer and remain an owner of Tiger Airways. But, they caution that if SIA manages to achieve over 90%, Tiger Airways would no longer be listed, and the shareholders would have a hard time selling their shares.
“Nevertheless, under the Singapore take- over code, he will have an additional 3 months to decide to tender his Tiger Airways shares to SIA, and SIA will have to honour the original offer price. After this 3 month period, SIA is not obliged to accept his Tiger Airways shares, and he will continue to remain a Tiger Airways shareholder as an unlisted company,” SIAS said.
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