Latest news with #IFAs
Business Times
30-06-2025
- Business
- Business Times
BT Mark to Market: Independent Financial Advisors —The Gatekeepers of Singapore's Corporate Takeover
Dive into this week's episode of the 'Mark To Market' podcast for an in-depth analysis of the pivotal role independent financial advisors (IFAs) play in corporate Singapore. Discover why their work is both crucial and often criticised. Learn about recent high-profile delistings and the outcomes that hinged on IFA evaluations. Join Ben Paul, a senior correspondent at The Business Times, as he delves into the contentious world of exit offers and delistings under Singapore Exchange (SGX) Listing Rules. This episode promises to offer insightful commentary on why IFAs hold a critical position in determining the fairness and reasonableness of these offers. Find out how these gatekeepers protect minority shareholders and the ramifications of their opinions. Great Eastern's Extraordinary General Meeting Slated for July 8, this crucial event will decide whether the insurer goes private with OCBC's exit offer or resumes trading. Learn about the two key conditions that an exit offer must meet to be deemed acceptable, and how IFAs influence these deals. Delve into past instances where IFA recommendations, such as those for Great Eastern and Boustead Projects, led to improved terms for minority investors and the ensuing market reactions. Major Shareholders vs Minorities BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Understand the inherent tension in take-private offers and why IFAs often find themselves in the crossfire. Get acquainted with the guidelines that stress the need for IFAs to maintain objectivity and transparency in their evaluations. This episode of 'Mark To Market' is a must-listen for anyone interested in corporate governance, market regulations, and investor protection in Singapore. Whether you're a market watcher, a minority shareholder, or simply intrigued by the dynamics of corporate takeovers, Paul's expert analysis will leave you with a clearer understanding of these complex processes. Listen now to the full episode and stay ahead of market trends and corporate developments with Ben Paul. 'Mark to Market' is a podcast of BT Correspondents. Look out for the next episode featuring wealth editor, Genevieve Cua. And if you have any thoughts or questions, feel free to reach out to us at btpodcasts@ Written and hosted by: Ben Paul (benpaul@ Edited by: Howie Lim & Claressa Monteiro Produced by: Ben Paul, Howie Lim & Chai Pei Chieh A podcast by BT Podcasts, The Business Times, SPH Media --- Follow BT Correspondents: Channel: Amazon: Apple Podcasts: Spotify: YouTube Music: Website: Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party's products and services. Please consult professional advisors for independent advice. --- Discover more BT podcast series: BT Money Hacks: BT Podcasts: BT Market Focus: BT Branded Podcasts: BT Lens On:
Business Times
06-05-2025
- Business
- Business Times
IFA stands its ground on valuations in Sinarmas Land offer; says methods used ‘appropriate' and in line with practice
[SINGAPORE] W Capital Markets, which is advising Sinarmas Land's independent directors on the Widjajas' offer to privatise the company, insists its valuations of the group's assets are 'appropriate' and 'consistent with widely accepted industry practice'. The independent financial adviser (IFA) was responding to concerns raised by the Singapore Investors Association (Singapore) or Sias, and The Business Times columnist Ben Paul in his Mark to Market column. Both parties had argued that the IFA's valuation range for Sinarmas Land shares was undervalued. In a letter addressed to Sinarmas' independent directors on Monday, W Capital said it 'categorically refutes' these suggestions and that it had adopted the most appropriate methods in line with conventional industry practice by other IFAs in Singapore. It had earlier said the offer from Widjaja-family linked Lyon Investments was 'not fair but reasonable', estimating a fair value range of S$0.35 to S$0.361 per share, derived from a sum-of-the-parts (SOTP) analysis of the company's listed and unlisted assets. BT columnist Ben Paul had questioned the IFA's fair value and whether its valuations captured the full potential of Sinarmas Land's components, noting that the company's assets could likely fetch prices in the private market that are 'well above the valuations implied by their public-listed holding companies'. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In response, W Capital Markets said the SOTP method was appropriate given Sinarmas Land's nature as a pure investment holding company, with no direct control over the assets held by the company's listed subsidiaries that operate under separate management teams. On the view that IFAs tend to ignore how the basis of valuation might change once a target company is taken private, W Capitals said its role was not to speculate on and assess private market valuation frameworks that may alter a company's value after a delisting. 'Our adopted yardsticks for assessment do not deviate from conventional industry practice taken by other IFAs in Singapore,' the firm said. Sias had charged that the IFA's valuation had 'double-discounted' Sinarmas Land's unlisted assets, both in its SOTP analysis which valued the assets at a 37 per cent discount to its revalued net asset value (RNAV), as well as applying a 'holding company discount' of 20 to 22 per cent to its valuation. The IFA responded that the company's RNAV may not reflect fair value, as it does not account for additional costs including professional fees, liquidation costs or regulatory requirements, which could all reduce the realisable RNAV. It noted that comparable companies and past Singapore Exchange privatisations have typically been priced below net asset value and in such cases, were deemed to be fair and reasonable by IFAs. As for the holding company discount, it said such methods are commonly applied to reflect the market perception of risks involved in owning a holding company. Corporate expenses, tax implications from dividends and investors' limited control over subsidiaries could also be the basis for such discounts, the IFA said. 'We strongly disagree with Sias' view that there is double discounting,' said Wayne Lee, chairman and chief executive officer of W Capital Markets, arguing that the holding company discount is conceptually distinct from the SOTP methodology. Shares of Sinarmas Land were trading flat at S$0.32 at 3 pm on Tuesday.
