Zagro Asia

A good effort to push for higher offer. Personally base on my past experience I am not optimistic. I have been down this path before and to no avail. If you analyse past failed GO, you can summise the following:

1. most impt is, is there a substantial minority shareholder that is willing to go against it. For Zagro I don't see it.

2. the IV as you have listed is not substantial enough. In my case it was a real low ball offer too. For K1 the low ball offer was really, really low...more than 100% below....GO failed.

3. lets be honest. Independent dir interest is not aligned with OPMI. Put yourself in their shoes. If they side with OPMI and if GO unsuccessful, they will probably we rotated out in next AGM. If GO successful, owner will take care of them in other areas. Sure ID has a role to ensure price paid is fair and reasonable. So the ID will defer to the IFA which will say reasonable(due to low liquidity for minority investors to exit at better then mkt price) but not fair. So GO still go through.

Other forummers may have more example than my experience.

Good luck...not vested

Hi Jacmar,

There are few deals that are deemed by the IFA as "not fair but is reasonable" that eventually goes through. The most recent one being Lizhong Wheel, whereby the offer undervalues the company as it is at a deep discount of 41.9% to the revalued NTA per Share but it is reasonable as the Offer Price is at a significant premium above the historical traded price of the Shares over the last one year prior to the Offer Announcement Date.

Ultimately, it is an uphill task for minorities to block takeover offers, unless we have a big block of shareholders holding more than 5% who are willing to fight for a better offer. IFA report is also important as it will give the independent directors something to work on and make their recommendation to shareholders. If the IFA report is not favourable, then minorities will have the bullet to substantiate their arguments and put more pressure to the board to come out with a better offer.

I have reached out to a few minority shareholders who have felt the transaction undervalues the company (not on the board).

Although its an uphill battle, its worth the effort.

I will contact SIAS to inform them of the situation.

天助自助者 (Translation: heaven helps those who help themselves)

My best wish to our vested fellow VB buddies

(not vested)

besides writing to sias, pl also write to sgx to put on its supervisory hat.
can I bring some rotten eggs to the coming egm?

(09-11-2015, 09:05 PM)pianist Wrote: besides writing to sias, pl also write to sgx to put on its supervisory hat.
can I bring some rotten eggs to the coming egm?

I wish VB buddies are rational enough, not to tackle issue with violence, not even verbally.

(09-11-2015, 09:12 PM)CityFarmer Wrote:

(09-11-2015, 09:05 PM)pianist Wrote: besides writing to sias, pl also write to sgx to put on its supervisory hat.
can I bring some rotten eggs to the coming egm?

I wish VB buddies are rational enough, not to tackle issue with violence, not even verbally.

aiyo u mistaken, I wanna pass rotten eggs to pbs as an alternative animal feeds subsitute. Hee

The letter has been syndicated to Nextinsight, Value Edge and The Fifth Person. It's a waiting game now to see what the BoD does in the coming weeks.

(09-11-2015, 04:32 PM)theasiareport Wrote: I have reached out to a few minority shareholders who have felt the transaction undervalues the company (not on the board).

Although its an uphill battle, its worth the effort.

I will contact SIAS to inform them of the situation.

Did you manage to get a reply from SIAS?

(11-11-2015, 11:36 PM)dahuai84 Wrote:

(09-11-2015, 04:32 PM)theasiareport Wrote: I have reached out to a few minority shareholders who have felt the transaction undervalues the company (not on the board).

Although its an uphill battle, its worth the effort.

I will contact SIAS to inform them of the situation.

Did you manage to get a reply from SIAS?

SIAS only 'speak up' for members only. You need to sign up for membership.