Ascott shares face suspension from SGX

Shares of Ascott Group are likely to be suspended, now that CapitaLand has gained control of 91.7 percent of the company.

Under listing rules, the Singapore Exchange may suspend a stock when its free float falls below 10 percent.

In a statement, CapitaLand says it will not appeal for the trading suspension to be lifted. The company has said that it intends to take the Ascott Group private.

However, it needs to acquire 97 percent of Ascott in order to exercise its right to compulsorily acquire the remaining shares of the company.

CapitaLand has offered to buy all remaining shares of Ascott that it does not own at S$1.73 each. The offer will close at 5.30pm on 26 February. – CNA/ir

Source : Channel NewsAsia – 21 Feb 2008