HTL

All precedent conditions has been satisfied, 50.45% undertaken, pretty much a done deal @ SGD 1. However Mr market is trading at 90 cts, did I miss out anything?

(23-06-2016, 09:42 AM)desmondxyz Wrote: All precedent conditions has been satisfied, 50.45% undertaken, pretty much a done deal @ SGD 1. However Mr market is trading at 90 cts, did I miss out anything?

The threshold is 75% if I am not wrong.
So still need to have 75% approval, not done deal yet

(23-06-2016, 10:27 AM)TTTI Wrote:

(23-06-2016, 09:42 AM)desmondxyz Wrote: All precedent conditions has been satisfied, 50.45% undertaken, pretty much a done deal @ SGD 1. However Mr market is trading at 90 cts, did I miss out anything?

The threshold is 75% if I am not wrong.
So still need to have 75% approval, not done deal yet

Theoretically yes, but in reality who will reject this offer?

Home-grown sofa maker HTL files for insolvency protection, cites cash flow problems


https://www.businesstimes.com.sg/compani...w-problems



I was shocked to read this. HTL was a company I invested heavily my time and efforts in the past and I believe it was in good health at the time Yihua acquired it.

"Attempts were made to reach out to Yihua, but no funding has been provided to date, he added."

I am still vested currently. Got a sofa half paid lying in local warehouse waiting for delivery.

Jin sad, the depression was self infected in a certain way by govts, its time for govt to take actions

"He asked for "breathing space" from its creditors, so that judicial managers can consider a potential deal for Mr Phua Yong Tat - who is not a shareholder - to buy out the company."

It seems the Phua family might be buying back the company.
No numbers reported now. From my memory, it was bought out at a valuation of around SS$400M. Market cap was around S$100M+ or so when an offer was first reported in end 2015. So much must have changed in the few years since taken private. The Phuas were suppose to stay on for a while after delisted. The deal includes some form of profit guarantee by the Phuas over 3 years. They had second gen Phuas in the company for quite a while just before selling out. So I wonder if it was really due to the high offer price that the chinese were willing to pay. If they now don't even care then it must have been a bad investment for them, unless they had other motivations.

US and EU retailers are in trouble, and are delaying their payments to (Asian) manufacturers.

Asian manufacturers depend a lot on US and EU markets for sales. So the lockdown in those economies has affected not just sales for manufacturers, but also raises the probability of their customers defaulting on their payables.

https://www.cnbc.com/2020/05/05/lord-tay...s-say.html

There will be more HTLs, though not all of them will be given press coverage.

If economic activity does not resume fast enough, there will be more credit defaults.

I am sharing this Business Times (dated 10 Aug 2023) article that I saved here instead of the AGM thread where we started talking about HTL again recently. 

The Phuas bought back HTL for 100m, injected 20m and expanded into India with 80m. Maybe we will see HTL in SGX again someday since the 2nd gen Phuas seem to be quite into running it now. 

I bought my third set of HTL sofa last year.