OneApex (formerly: Chew's Group)

What does that imply

(09-06-2018, 10:45 AM)pianist Wrote: What does that imply

Basically, it means that the controlling shareholder is selling off the listed entity and leaving some cash in the company for the buyer. Most likely, the buyer might have some plans on their own for the listed entity but their intention is not clear at this moment.

But for the deal to go through, the company have to pay another round of dividend of not exceeding S$8.5m, which translates to around 10cts per share. That leaves around 19cts per share in NAV (around S$16m) of mostly cash in the company, which is buyer is prepared to pay around 21cts per share for a controlling stake. There will also be a GO and minorities can decide whether to stay with the company with a new controlling shareholder with possibly a new business or accept the offer.

There are still some more things to be sorted out yet so it is not a done deal. However, if the deal do comes through, minorities should be happy to realize more than NAV of Chew's Group plus some premium for the listed shell if they accept the offer.

The market is currently trading at around 28.5cts, which is pretty close to 31cts (which is the sum of 10cts dividend plus 21cts offer).

Thanks for the insights
This is incredible to able sell till the last drop of remaining nav. In this case in excess based on what u said.
Rarely see any other controlling shareholder treat minority shareholder so well. On a separate note, do u know if this potential buyer is the same buyer as the earlier one? Seems like this company is sexy get to have a number and series of buyers one after another in nicely fit different span of times.
What stops the company from announcing these series of potential deals in one single go for greater transparency n convenience to minority shareholders to make rationale decisions

Hi pianist,

Quite unlikely that the buyer would be the same as the one earlier who bought their Singapore egg business. If they wanted to buy the whole group in the first place, they would have done a GO for the whole Chew's Group and not only buying its Singapore egg business.

So this new buyer is actually buying a shell with cash company. Why are they overpaying in excess of nav for a cash company? This is puzzling..

(12-06-2018, 01:36 PM)pianist Wrote: So this new buyer is actually buying a shell with cash company. Why are they overpaying in excess of nav for a cash company? This is puzzling..

Because they can make use of its listing shell to inject new business and also raise funds via share issue. Basically, the listed shell have some value which is why they are paying above NAV for it.

off track a bit but can't help but noticing the pun on "shell" with this company

Just wondering why there has been no updates since the last announcement on 8-6-3018. I thought they mentioned that the negotiation toward a definitive agreement was within 2 weeks? Then again if the non binding deal is off I guess they would have make an announcement. Or is the purchaser waiting for SIC clearance? Hope the company can issue some clarification soon.

Pre-Conditional Mandatory Cash Offer

On 8 June 2018, Goldhill Trust Pte. Ltd ("Offeror") and Fenghe Investment Holding Pte. Ltd. ("Fenghe") entered into a non-legally binding term sheet for the proposed acquisition by the Offeror from Fenghe of 57,580,341 ordinary shares, representing approximately 68.14% of the total issued and paid-up share capital of the Company at the price of S$0.2107 per Sale Share, for a total of S$12,132,177.85 to be satisfied in cash.

For each Share: S$0.2107 in cash.

27.3% DISCOUNT over Last transacted price of the Shares on SGX-ST on 21 August 2018, being the last trading day prior to this announcement.

26.0% DISCOUNT over Volume-weighted average price ("VWAP") of the Shares traded on the SGX-ST for one (1) month period up to and including the Last Trading Day.

The Offer will not be made unless and until satisfaction of the Pre-Conditions have been fulfilled (or waived).

More details in http://infopub.sgx.com/FileOpen/GTPL%20-...eID=522487

Any1 can share why they offering below trading price?