Following Best World International's announcement on 31 Dec 2021 of a share buyback offer, the Central Deposit (CDP) has written to certain shareholders of Best World regarding their shares which had been loaned out.

CDP said in its letter dated 14 Jan 2022 that it is recalling the loaned securities from the borrowers to return to the lenders, so those shares can participate in the proposed share buyback by Best World.

As trading in the counter has been suspended since May 2019, if the borrowers are unable to returned the loaned securities, the outstanding loan will be settled at S$1.36 a share, which is the same price as Best World's buyback offer, said the CDP. 

The FAQs supplied by CDP are as follows: 

Frequently Asked Questions

What will I be getting back from the loan return?

 

You may be getting back some or all of your shares of Best World which were on loan. 

DRsSecret17DR's Secret is the key product line of Best World International. If the borrowers return the loaned securities, these returned shares will be automatically credited into your CDP account. Any unreturned loan securities will be paid to you in cash equivalent at a cash settlement price of S$1.36 per share.

To find out how many shares of Best World you currently hold, please login to SGX Investor Portal at investors.sgx.com to view your securities holdings.

 

When will I be receiving the securities or cash?

 

The loaned securities, if any, will be returned to you in time for you to be able to participate in the Equal Access Offer. For any unreturned loans, cash settlement will take place on 31 January 2022 (the “Cash Settlement Date") and the amount will be paid in February 2022.

The loan(s) will be terminated upon the earlier of securities being returned or the Cash Settlement Date, and lending fees will be computed accordingly. In other words, lending fees for January 2022 will be computed until the earlier of the date the shares of Best World are returned or the Cash Settlement Date, 31 January 2022, for any unreturned loans.

 

What do I have to do to receive the loan return?

 

No action will be required from you. Your loan(s) for Best World shares will be processed accordingly by CDP and returned to you as mentioned above. A notification will also be sent to you if there are shares credited to your securities account for the returned shares.

However, please note that after receiving the returned securities, you may choose to participate in the Equal Access Offer by following the instructions on the offer document.

 

Can I elect to receive the loan entirely in cash instead of receiving the shares of Best World?

 

The loan return will be processed based on the number of securities returned by the borrowers. You will not be able to elect to receive only cash. You may choose to participate in the Equal Access Offer by Best World after receiving your returned securities in your securities account.
 

Can I continue to loan out the shares of Best World instead of having the loan returned?

 

The loan return is initiated by CDP because of the upcoming Equal Access Offer corporate action announced by Best World. As the counter is currently suspended, it is not eligible for new borrowing.

Currently, for all corporate action events except for the payment of dividends in Singapore dollar, CDP will recall the loaned securities from the borrowers and return them to you. When the loaned securities are returned to you, you will once again be registered as a shareholder or unit-holder for the associated entitlements to be accrued to you.

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