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Q1.
The SingTel capital reduction exercise was announced on 4 May 2006. The capital reduction became effective on 1 September 2006 and SingTel has cancelled 1 in every 20 of its shares, with the resultant shareholding rounded-up to the nearest 10 shares, where applicable. SingTel will reimburse you with a cash distribution of S$2.74 for each cancelled share.
Q2.
The Board will send you a capital reduction letter from 15 Sep 2006. The letter will state the number of discounted SingTel shares cancelled, your discounted SingTel shareholding after the capital reduction and the amount of cash distribution you will be receiving.
Q3.
To calculate the number of ST shares cancelled:
(i) Divide your existing shareholdings by 20, disregard the fractions;
(ii) Subtract the figure from your before capital reduction shareholdings to obtain the balance shareholdings
(iii) Round up this balance to the nearest multiples of 10 to obtain your final shareholdings after capital reduction
(iv) The difference between your existing shareholdings and the final shareholdings after capital reduction is the number of shares to be cancelled.
(Source:SingTel)
The table below shows the pre- and post-reduction number of SingTel shares for discounted SingTel shareholders who own the following number of SingTel shares:
| Before capital reduction |
1 in 20 cancelled |
After capital reduction |
| 650 |
(30) |
620 |
| 780 |
(30) |
750 |
| 910 |
(40) |
870 |
| 1,430 |
(70) |
1,360 |
| 1,560 |
(70) |
1,490 |
| 1,690 |
(80) |
1,610 |
You may wish to note that:
(i) No fraction of a SingTel share will be cancelled;
(ii) If you have fewer than 20 discounted SingTel shares, you will not be affected by the capital reduction; and
(iii) If your resultant shareholding following the rounding-up as described above is equal to your original discounted SingTel shareholding, then none of your discounted SingTel shares will be cancelled.
For further assistance, please use the on-line calculator provided by SingTel.
Q4.
You can click here to check your discounted SingTel shareholding after the SingTel capital reduction.
Q5.
The price of S$2.74 as cash distribution for each SingTel share cancelled was based on the average closing prices of SingTel shares traded on the SGX-ST from 24 April 2006 to 28 April 2006 (both dates inclusive) (28 April 2006 being the date prior to the announcement of the capital reduction on 4 May 2006).
Q6.
No, you need not do anything as this capital reduction exercise is handled by The Central Depository (Pte) Ltd. Your discounted SingTel shareholdings in your CPF Account will be updated by the Board automatically.
Q7.
Yes, it has been approved by the SingTel shareholders during SingTel’s extraordinary general meeting (EGM) held on 28 July 2006.
Q8.
As the majority SingTel shareholders have voted and approved the capital reduction exercise at the SingTel Extra -ordinary General Meeting (EGM) on 28 July 2006, you will not be able to reject the offer. Your discounted SingTel shares have already been automatically cancelled on 1 September 2006.
Q9.
The cash distribution will be credited into your CPF Ordinary Account by end September 2006. As the cash distribution will form part of your CPF savings, you can apply to withdraw this amount if you meet the existing CPF withdrawal conditions. (Please see section on “CPF Withdrawal” for more information.)
Q10.
You can withdraw the cash distribution if you are age 55 and above and meet the withdrawal conditions. (Please also see Q11)
Q11.
If you qualify for CPF withdrawal and have set aside the full Minimum Sum and Medisave Required Amount, you can withdraw the entire cash distribution.
If you qualify for CPF withdrawal but are unable to set aside the full Minimum Sum and/or Medisave Required Amount, you can withdraw half of the cash distribution credited while the other half will be transferred to top up the shortfall in your Retirement and/or Medisave Accounts.
Q12.
You can click here to apply to withdraw your CPF online.
Alternatively, you can also obtain a copy of the CPF withdrawal form from our website, at CPF counters or SingPost offices (selected branches).
If you have a withdrawal standing order with the Board, you need not apply for withdrawal. The cash distribution together with your other CPF monies will be paid to you on your next birthday.
Q13.
You can sell your discounted SingTel shares either at any of the SingPost office or through a stockbroker.
Please note that the sale service at SingPost office is only available till 31 Mar 2007. Thereafter, you will need to go to any of the stockbroker to sell your discounted SingTel shares anytime.
Q14.
You will need to bring your NRIC and the SingPost staff will assist you to complete a sale application form. Your discounted SingTel shares will be sold within 4 Singapore Exchange (SGX) trading days and the sale proceeds will be credited into your CPF Ordinary Account 3 days after the sale is effected. Please note that the sale proceeds will form part of your CPF savings and is subject to the existing CPF withdrawal conditions.
If you are unable to sell the shares personally at the SingPost office, you can authorize a 3rd party to sell on your behalf. The authorized person will need to first obtain the sale application form from SingPost office and you will need to sign on the form. Thereafter, he will need to bring his and your NRICs together with your signed sale application form to the SingPost office.
For more information on the procedures to sell your discounted SingTel shares at SingPost, please click here.
Q15.
The fee charged by SingPost is $17.95 (before SGX clearing fee and excess fee and GST) and the total fees will be automatically deducted from your sale proceeds by SGX. You do not need to pay the fees in cash at SingPost office.
Q16.
You can sell the number of discounted SingTel shares after the capital reduction as stated in the letter you have received from CPF Board. You can also click here to check the number of discounted SingTel shares you currently hold after the SingTel capital reduction.
Q17.
Yes, SingTel has made special arrangements with DBS Vickers and UOB Kayhian to facilitate SingTel shareholders ( including discounted SingTel shareholders) to sell odd lot shares (from 1 to 999) in a single contract at a reduced rate of $10 (excluding SGX fees and GST) from 30 Aug 2006 to 30 Sep 2006. The usual rate is $40, excluding SGX fees and GST. Please note that the rebate will be credited into your CPF Ordinary Account subsequently.
You will need to have a broking account with DBS Vickers or UOB Kayhian if you wish to use this sale arrangement.
Q18.
Generally for most shareholders in Singapore, the proceeds are likely to be regarded as capital in nature and capital gains are not taxable in Singapore. Relevant Shareholders are generally not subject to Singapore tax on a return of capital unless they are traders in securities, or have classified their investments as trading stocks, marketable securities or short-term investments or did not have the intention to hold their SingTel shares as long-term investments. (Source: SingTel)
Q19.
Your CPF Agent Bank will perform the share cancellation and credit the cash distribution into your CPF Investment Account accordingly. You will receive a letter from your Agent Bank. Please call your Agent Bank if you require more information .
(DBS Hotline: 1800-111 1111, OCBC Hotline: 1800-438 6088, UOB Hotline: 1800-538 8011)
Q20.
For matters on the SingTel capital reduction, you may visit SingTel website or call SingTel at 6877 7555.
For more information about your discounted SingTel shares, please click here. If you have any enquiries, you can also call us at 1800-227 1188 or e-mail us at investment@cpf.gov.sg.
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