Super Group

Super Group FY2015 result. In brief

Revenue is -6%
Gross PM is improved 1 percentage point to 36%
Net profit reduced by -31%

Super isn't doing well, I guess
http://infopub.sgx.com/FileOpen/Super_Gr...eID=390599

(not vested)

Another good company gone.
preconditional offer @ $1.30.

(03-11-2016, 07:06 AM)Bibi Wrote: Another good company gone.
preconditional offer @ $1.30.

The price is fair IMO.....

We could see another spate of acquisitions in the local F&B sector after the previous F&N - Thaibev deal...

Select Group was taken private recently too...

How mkt crash when there is a priviatisation every other week?

Any idea why market is trading at 1.24-1.245 range instead of next to 1.3 ?

(03-11-2016, 01:29 PM)corydorus Wrote: Any idea why market is trading at[Image: arrow-10x10.png] 1.24-1.245 range instead of next to 1.3 ?

on the assumption that the delist is not successful thought 60% shareholders already committed to the sale.

that is just fulfulling one of the 3 pre-conditions, the other 2 requires China and Philippines clearing anti monopoly may take some time.

* Perhaps now is a good opportunity to exit an erstwhile promising company whose future is not clear, whether the announced acquisition goes thro or not.

* Its not clear if the company's past good performance - high ROEs, free cash flows etc. - can be revived.

* The promoters & key shareholders holding 60%, by supporting the acquisition, seem to imply that the business revival, which hinges on significant capex on branding & geo expansion, cannot be done without outside support

* Its not clear yet if the acquisition will get required approvals before May 2017, which is a long wait to get $1.3 per share, just 5c above CMP. 

* Meantime, the company may not declare dividends even if its business suddenly starts doing well in next few quarters (which is equally uncertain), as the dividend payouts would be deducted from the acquisition price already announced.

So many uncertainties imply its better to exit.

Quote:http://www.channelnewsasia.com/news/sing...56458.html

SINGAPORE: Super Group is one step closer to being the next company to be delisted from the Singapore Exchange (SGX).
Dutch coffee maker Jacobs Douwe Egberts (JDE), announced that it wants to acquire all the issued shares of the the company behind supermarket staples such as OWL 3-in-1 coffee and Super Cup instant noodles.
Super earlier received a takeover offer of S$1.45 billion from JDE.
Through its investment vehicle Sapphire Investments, JDE is offering S$1.30 in cash for each share, which represents a premium of almost 35 per cent over the last traded price per share end October. That was when a trading halt was called and Super Group announced a pre-conditional cash offer, subject to regulatory approval. 
In a press release, JDE CEO Pierre Laubies said the company intends to delist and privatise Super Group. The Singapore food and beverage firm, which has operations across Asia, added that acquisition will allow the company to further strengthen its brand, business operations and product offerings.

Looks like it is going to happen after all.

-not vested

I unreservedly apologise for asking this question as I am unable to find answers despite repeated search.

I appreciate if someone can be so kind as to explain what happens if we don't accept the
general offer. ? Consequences. Any advantage to accept or not to accept?

Thank you.