Zagro Asia

(03-11-2015, 06:05 PM)dydx Wrote: CEO and controlling shareholder PBS must be wrongly advised on the GO price of $0.30/share. My take is that he has "ZERO" chance of success even under the prevailing weak SG stock market conditions.

Zagro Asia's latest (30Ju15) NAV/share at $0.3458 does not include the additional hidden value in the group's industrial properties, IPs and the "Zagro" brand. My own take is that the fair intrinsic value of each Zagro Asia share should be at least $0.50.

Like in all privatisation GO's by the controlling shareholder before this - who is obviously guided chiefly by his own interests - let the game begins, and may all stakeholders and minority shareholders be guided by wisdom, courage, and patience.

totally agree with you dydx!

i actually feel insulted by their offer

(03-11-2015, 06:05 PM)dydx Wrote: CEO and controlling shareholder PBS must be wrongly advised on the GO price of $0.30/share. My take is that he has "ZERO" chance of success even under the prevailing weak SG stock market conditions.

Zagro Asia's latest (30Ju15) NAV/share at $0.3458 does not include the additional hidden value in the group's industrial properties, IPs and the "Zagro" brand. My own take is that the fair intrinsic value of each Zagro Asia share should be at least $0.50.

Like in all privatisation GO's by the controlling shareholder before this - who is obviously guided chiefly by his own interests - let the game begins, and may all stakeholders and minority shareholders be guided by wisdom, courage, and patience.

Well - for the Chairman to launch the offer - he must have paid the bankers, lawyers, and IFA a fair bit of money. Guess one approach is the "wait and see" method- just don't accept the offer, then he will keep extending the offer period and hopefully up the offer price.

Ideally the IFA just says - not fair and not reasonable offer.

Perhaps it is timely to review Zagro Asia's latest FY14 (ended 31Dec14) AR.....
http://infopub.sgx.com/FileOpen/ZAL%20-%...leID=25408

Based on the Statistic of Shareholders (p76), I noted the "Top 20" shareholders include Teo Joo Kim (a senior director of Kuok Singapore Group), Meileen Choo (CEO of Cathay Organisation), and Cathay Organisation P/L itself. Certainly these parties are not going to be push-overs!

The offer is obviously a low-ball offer, which as dydx has pointed out, severely undervalues the company.

We own slightly under 0.5% of outstanding shares, and will definitely be voting against it.

I will be writing a post soon to highlight the problem to other minority shareholders to enlist their support.

(03-11-2015, 06:39 PM)dydx Wrote: Perhaps it is timely to review Zagro Asia's latest FY14 (ended 31Dec14) AR.....
http://infopub.sgx.com/FileOpen/ZAL%20-%...leID=25408

Based on the Statistic of Shareholders (p76), I noted the "Top 20" shareholders include Teo Joo Kim (a senior director of Kuok Singapore Group), Meileen Choo (CEO of Cathay Organisation), and Cathay Organisation P/L itself. Certainly these parties are not going to be push-overs!

Poh Beng Swee likely will learn a trick or 2 from Teo and Meileen.

Kuok are shrewed listing and delisting of companies... top class that hardly many MI can match while Meileen has previously delisted his listco while his relatively did a big time on GEMsTV after having lunch with Warren Buffet...

Its tough since they no longer bother for the longest time...

Thought I would miss out something positive since I have divested Zagro earlier this year. 
Lol, never expected such an offer. Let's see how it goes!

<Divested but Monitoring>

(03-11-2015, 08:08 PM)greengiraffe Wrote:

(03-11-2015, 06:39 PM)dydx Wrote: Perhaps it is timely to review Zagro Asia's latest FY14 (ended 31Dec14) AR.....
http://infopub.sgx.com/FileOpen/ZAL%20-%...leID=25408

Based on the Statistic of Shareholders (p76), I noted the "Top 20" shareholders include Teo Joo Kim (a senior director of Kuok Singapore Group), Meileen Choo (CEO of Cathay Organisation), and Cathay Organisation P/L itself. Certainly these parties are not going to be push-overs!

Poh Beng Swee likely will learn a trick or 2 from Teo and Meileen.

Kuok are shrewed listing and delisting of companies... top class that hardly many MI can match while Meileen has previously delisted his listco while his relatively did a big time on GEMsTV after having lunch with Warren Buffet...

Its tough since they no longer bother for the longest time...

Choo Meilieen's son had lunch with Buffett. On hindsight, it is a great buy. 

OPMIs - Dont count on others to fight your battle for u. U want something done, you have to do itself.

Zagro IPs/brands - u guys out there know how to value meh?

Vested. Will vote against that low-ball offer from Mr Poh.

I suppose to protect their interests, all minority shareholders should bear in mind the following:

1) Very likely PBS through RHB Securities Singapore will start buying more shares from the open-market from tomorrow to try to raise his stake above his existing 66.72%. Therefore, minority shareholders who choose to sell their shares in the open-market will end up helping PBS, and will also forgo their rights to any increase in the GO price later. For those who are prepared to accept the GO at $0.30/share, it is better and more prudent to do so by way of the formal acceptance forms later, because it will allow you to preserve your rights to any increase in the GO price should it happen at the later stage of the offer period.

2) Minority shareholders should find time to review the coming circular which will contain the opinions of the IFA and recommendations of the IDs, and to attend the coming EGM to vote on the Delisting Resolution. We can reasonably assume PBS will try many ways to garner the required at least 75% of the total shares to vote in favour of the Delisting Resolution. However, if there are enough minority shareholders with 10% or more of the total number of shares present and voting who choose to vote against the Delisting Resolution, then Zagro Asia will remain listed, and PBS would end up face down.

To me, this GO plan incorporating the requirement to have an EGM first to vote for a Delisting Resolution is more like a threat to the minority shareholders by PBS. But I suppose minority shareholders who like to see Zagro Asia continues its listing or find the GO price of $0.30/share unfair or unattractive at all, can simply unite together to vote against the Delisting Resolution and PBS.

(03-11-2015, 09:05 PM)dydx Wrote: I suppose to protect their interests, all minority shareholders should bear in mind the following:

1) Very likely PBS through RHB Securities Singapore will start buying more shares from the open-market from tomorrow to try to raise his stake above his existing 66.72%. Therefore, minority shareholders who choose to sell their shares in the open-market will end up helping PBS, and will also forgo their rights to any increase in the GO price later. For those who are prepared to accept the GO at $0.30/share, it is better and more prudent to do so by way of the formal acceptance forms later, because it will allow you to preserve your rights to any increase in the GO price should it happen at the later stage of the offer period.

2) Minority shareholders should find time to review the coming circular which will contain the opinions of the IFA and recommendations of the IDs, and to attend the coming EGM to vote on the Delisting Resolution. We can reasonably assume PBS will try many ways to garner the required at least 75% of the total shares to vote in favour of the Delisting Resolution. However, if there are enough minority shareholders with 10% or more of the total number of shares present and voting who choose to vote against the Delisting Resolution, then Zagro Asia will remain listed, and PBS would end up face down.

To me, this GO plan incorporating the requirement to have an EGM first to vote for a Delisting Resolution is more like a threat to the minority shareholders by PBS. But I suppose minority shareholders who like to see Zagro Asia continues its listing or find the GO price of $0.30/share unfair or unattractive at all, can simply unite together to vote against the Delisting Resolution and PBS.

Absolutely agreed. I will attend and reject the Delisting Resolution in the EGM. 
Certainly will not sell in the market.

I encourage other minority to do likewise.