GP Batteries International

I have noticed this illiquid counter suddenly shot up $0.09 - or 8.5%! - to close at $1.15 today (20Feb13) and with an unusually high volume of 425 lots traded - equivalent to 0.39% of the latest (as at 31Dec12) total 109.871m issued shares. Something positive coming up?

Perhaps it is timely to review the latest 3Q (ended 31Dec12) results of this well-established but marginally profitable business.....
http://info.sgx.com/webcoranncatth.nsf/V...90034B2B7/$file/GPBI_Dec_2012_Final.pdf?openelement [3Q results announcement]
http://www.gpbatteries.com.sg/ [corporate website]

GP Batteries Group (GPB) is reducing its 75% stake in Zhongyin (Ningbo) Battery (ZYNB) to 70%. The purchaser, partly owned by certain key staff of ZYNB, currently has a 25% stake in ZYNB.
The deal, according to GPB, is to foster stronger ties and co-operation with the purchaser and such key staff to ensure the smooth continuance of operations in ZYNB.
As the purchaser will pay RMB50m (or $10m) for the 5% stake in ZYNB, GPB's current 75% stake is worth $150m. The market cap of GPB, which has other subsidiaries and associated companies, is a mere $93m.

This time, both GP Batteries and GP Industries request trading halt. I am curious to know what will be announced. Probably a GO ?

possible. also possible is a one off special div from profit of sale of land in a taiwan listed company which gpi has a stake in.

(23-12-2013, 09:13 AM)gautam Wrote: possible. also possible is a one off special div from profit of sale of land in a taiwan listed company which gpi has a stake in.

launch GO and privatise before financial year endclose. No need to give special div. - path of least resistance...hahaha....

(23-12-2013, 09:33 AM)opmi Wrote:

(23-12-2013, 09:13 AM)gautam Wrote: possible. also possible is a one off special div from profit of sale of land in a taiwan listed company which gpi has a stake in.

launch GO and privatise before financial year endclose. No need to give special div. - path of least resistance...hahaha....

Oppss....all wrong...it's sucking more money from shareholders instead of giving shareholder money....

No X'mas present but call for cash from shareholders to shore up their balance sheet and strengthen its financial position as well as the Company’s investment in automation, brand building and distribution network in the near term.


"renounceable non-underwritten rights issue (the “Rights Issue”) of 54,935,584 new ordinary shares in the capital of the Company (the “Rights Shares”) at an issue price of S$0.486 for each Rights Share (the “Rights Issue Price”), on the basis of one (1) Rights Share for every two (2) existing ordinary shares in the capital of the Company"

http://infopub.sgx.com/FileOpen/Buffalo_...eID=268787

After the losses on Vectrix, parent company must come in to help and also at the same time try to increase its shareholdings above 49%.

Note as usual foreign shareholders may not be entitled if they do not have local address. Some foreign names in top 20 as well as Delta Lloyd Asset Management.

(23-12-2013, 09:00 PM)desmondxyz Wrote:

(23-12-2013, 09:33 AM)opmi Wrote:

(23-12-2013, 09:13 AM)gautam Wrote: possible. also possible is a one off special div from profit of sale of land in a taiwan listed company which gpi has a stake in.

launch GO and privatise before financial year endclose. No need to give special div. - path of least resistance...hahaha....

Oppss....all wrong...it's sucking more money from shareholders instead of giving shareholder money....

GPH has a direct holding of 82.9% of GPB. Dont think they are sucking retail holder money. GPH will take up all right if they are unsubscribe for.

However it seem surprise that they rather take equity injection rather then debt to par down their loan.

This right exercise can only get a peanut of 20mio plus with the expense of heavily dilute nta. Dont really understand why they choose this path.

(23-12-2013, 10:58 PM)MOV Wrote: After the losses on Vectrix, parent company must come in to help and also at the same time try to increase its shareholdings above 49%.

Note as usual foreign shareholders may not be entitled if they do not have local address. Some foreign names in top 20 as well as Delta Lloyd Asset Management.

is it very tough to get a local address?
usually for such arrangement, what is the % of foreign shareholders that will forgo the rights?