The Hour Glass

Hi Choon,

The announcement is basically to inform shareholders that with the share buyback going on, there is a chance that TYC could become a immediate holding company of The Hour Glass. A holding company is a company holding more than 50% of its subsidiary.

And yes, since TYC and parties acting in concert with them currently holds more than 50% of The Hour Glass, mandatory takeover will not be triggered even if their combined interests increased more than 1% within the 6 months period because of the share buybacks.

But it doesn't mean that they will not make a voluntary takeover offer to take The Hour Glass private, if they wishes to.

The Tays founded the THG business, and grew and guided it to the present scale under an exemplary listed enterprise of good repute. If the Tay Family now wishes to bring it private, and offers the minorities a fair and attractive enough cash exit price, I believe most would not oppose to it. A bit more generosity to the local shareholders - including the retirees - during this tough period of Covid should be welcomed by all.

Most likely is that THG will just continue to buy-back (upper limit $2?) without intention to delist/privatize for next few years, until they reach close to 90%...then followed by a fair/reasonable offer and success delist! and re-list again at later stage!!

I'm hoping the higher the buy back price, the better for the final offer when the time comes... but if market turns, another story lah... seen so many low-ball offers from founders/owner themselves...

looks like Tays are already preparing for the next step already.... abit it will take some time (10% yearly) and $ to achieve that close to 90%.... what goes up must come down... next best move will come when market goes down again...

Will the offer be generous? well... i am guessing not generous lah... rich people always say, being generous to other people means being stingy with yourself!!

heehee..

Oh well, the Tay Family is rich, charitable, and why not also generous to minorities who have been their long-term partners?

(13-09-2021, 12:38 PM)brattzz Wrote: Most likely is that THG will just continue to buy-back (upper limit $2?) without intention to delist/privatize for next few years, until they reach close to 90%...then followed by a fair/reasonable offer and success delist! and re-list again at later stage!!

I'm hoping the higher the buy back price, the better for the final offer when the time comes... but if market turns, another story lah... seen so many low-ball offers from founders/owner themselves...

looks like Tays are already preparing for the next step already.... abit it will take some time (10% yearly) and $ to achieve that close to 90%.... what goes up must come down... next best move will come when market goes down again...

Will the offer be generous? well... i am guessing not generous lah... rich people always say, being generous to other people means being stingy with yourself!!

heehee..

I would say they have behaved very gentlemanly.

If they had wanted to lowball, they wouldnt have had the coy do share buybacks.

(13-09-2021, 11:42 PM)Choon Wrote: I would say they have behaved very gentlemanly.

If they had wanted to lowball, they wouldnt have had the coy do share buybacks.

That is one point of view. Another point of view might be they are using the company's money to indirectly increase their stake in the company, since shares will almost certainly be bought from minorities and other non-controlling shareholders.

(13-09-2021, 03:54 PM)dydx Wrote: Oh well, the Tay Family is rich, charitable, and why not also generous to minorities who have been their long-term partners?

I certainly hope so too!  let's wait it out (3-5 years) and see what happens!

IFA's "Fair and Reasonable", usually does not come with "Generous" !  

(14-09-2021, 01:05 PM)ghchua Wrote:

(13-09-2021, 11:42 PM)Choon Wrote: I would say they have behaved very gentlemanly.

If they had wanted to lowball, they wouldnt have had the coy do share buybacks.

That is one point of view. Another point of view might be they are using the company's money to indirectly increase their stake in the company, since shares will almost certainly be bought from minorities and other non-controlling shareholders.

already a corporate form of "privatization" happening... bit by bit...    
-> since TYC and parties acting in concert with them currently holds more than 50% of The Hour Glass

https://links.sgx.com/1.0.0/corporate-an...28d1f59177

I think the share price at that time was almost similar to current share price.
Do you think this will happen again?

Clearly circumstances have changed, THG no longer needs a stock-split to enhance market value and liquidity further.