The board of 2GO Group Inc. has approved the voluntary delisting of the listed shipping, logistics and distribution company if the tender offer proposed by its parent company, SM Investments Corp., is successful.
SMIC seeks to buy from existing public shareholders up to 378.81 million stocks, which is equivalent to the entire free float 2Go of 15.39 percent.
Listed companies are required to maintain a free float of at least 10 percent of their shareholdings while companies looking to go public must freely float at least 20 percent. If the free float falls below 10 percent, a company is delisted from the stock exchange.
SMIC has yet to determine the tender offer price.
2GO has requested the stock exchange for a voluntary suspension of the trading of its shares on Wednesday “to allow the investing public equal access to and consideration of this information.”
