Singapore Court of Appeal Clarifies that Third-Party Offers for Shares Not Invariably Best Evidence of Fair Market Value

21 May 2019 CaseWatch

The Court of Appeal has clarified that, while the court should take into account evidence of a genuine third-party offer to acquire shares in determining the fair market value of the shares, the offer is not invariably the best evidence of the shares’ fair market value. Appropriate weight must in each case be ascribed to the offer based on its specific terms and nature: Abhilash s/o Kunchian Krishnan v Yeo Hock Huat and another [2019] SGCA 14.

This update takes a look at the Court of Appeal’s decision.

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