CMA CGM will attempt to voluntarily delist CMA CGM

 

Three Conditions for voluntary delisting (Rule 1307 of the Listing Manual): 

 

1) Need to convene general meeting of shareholders 

 

2) 75% of shares belonging to the shareholders present at meeting must vote yes

 

3) Not more than 10% of shares belonging to shareholders present at the meeting must vote against delisting

 

If CMA is forced to try a voluntary delisting, it means that more than 10% of shareholders already did not agree to sell their shares to CMA in offer. So to defeat this voluntary delisting, all we will need is for the shareholders who did not accept NOL' s offer to turn up and vote no. There' s a very strong incentive to vote no because if the voluntary delisting proceeds, we minority holders will be left with shares in a delisted company that we will find very hard to sell. 

 

Even if the voluntary delisting happens (ie because too few minority shareholders turned up to vote against it), under Rule 1309 of the Listing Manual, CMA will have to offer a " reasonable alternative" " usually in cash" to all shareholders. Likely to be the same $1.30 offer price because there would be a huge uproar if anything lower. Today the Frenchie said it will be $1.30, then Ng Yat Chung contradicted him and tried to say they may offer lower LOL. 

 

In the most likely scenario that the voluntary delisting attempt is defeated as more than 10% vote against it, here' s where things get interesting. CMA CGM will be the majority shareholder but will not be able to delist NOL and acquire it as a subsidiary - which was it' s original intention in the first place.