Eastern Holdings

Thanks opmi, I guess I dun really understand how a RTO works... Is it equivalent to using the shell sale $$ to help pay the minority shareholders?

I think got wat u mean after thinking about it. Something like this?

1) MBT buys everything from EHL except it's net cash, for $50 mil (includes EPL. Grove, publishing, selfstorage, etc)
2) EHL is left with $70 mil cash + $50 mil receivable from MBT (assuming proceeds from Bryton received)
3) EHL gives $120 mil dividend and hence become a shell
------- MBT supposed to receive 82% of $120 mil = $98.4 mil
------- Then net off the $50 mil it owns EHL, MBT gets $48.4 mil
------- Minority shareholders receive $21.6 mil = 40 cents
4) EHL issues shares to RTO buyer for $10 mil
------- MBT receive $8.2 mil
------- Minority shareholders receive $1.8 mil = 3.3 cents

Seems like a win-win for everyone...

Pt. 4. EHL shell buy assets from Seller by issuing lots of shares. Seller ends up being the biggest shareholder post transaction. Existing minority shareholders will still owns their existing shares. Which they can sell or keep.

Example of RTOs will be Ezyhealth-Wilmar or EngWah-Transcu.

Yes. Listed shell is worth some money. And EHL is a Mainboard stock.

(15-06-2013, 05:33 PM)opmi Wrote: Pt. 4. EHL shell buy assets from Seller by issuing lots of shares. Seller ends up being the biggest shareholder post transaction. Existing minority shareholders will still owns their existing shares. Which they can sell or keep.

Example of RTOs will be Ezyhealth-Wilmar or EngWah-Transcu.

Yes. Listed shell is worth some money. And EHL is a Mainboard stock.

Got it! Thanks!

Hmmm... some recents posts to this thread seems to have gone missing...

Last day to hold AGM is 31 July by SGX rules.

AGM need 21 days notice. EGM need 14 days notice. Excluding the day of notice and day of AGM.

So the latest possible date to give notice of AGM will be 8 July 2013. So watch out for the resolutions.
Esp the re-nomination of the directors.

(29-06-2013, 07:10 PM)opmi Wrote: Last day to hold AGM is 31 July by SGX rules.

AGM need 21 days notice. EGM need 14 days notice. Excluding the day of notice and day of AGM.

So the latest possible date to give notice of AGM will be 8 July 2013. So watch out for the resolutions.
Esp the re-nomination of the directors.

Is it supposed to be 14 days for AGM if no special resolutions? The last two EHL AGMs were not given 21 days notice, I think.

Yes. If no Special Resolution (>75% vote FOR to pass), then only need 14 days notice.

I have a wish - Eastern Holdings declares a total of $0.15/share in Final & Special dividends when the company posts its for AGM/EGM. The possibility is there as the company has the cash, but am I just dreaming?

(30-06-2013, 10:08 PM)dydx Wrote: I have a wish - Eastern Holdings declares a total of $0.15/share in Final & Special dividends when the company posts its for AGM/EGM. The possibility is there as the company has the cash, but am I just dreaming?

It does seem like the most straightforward way for ST to get the cash so all depends on whether he needs the cash, I guess.