What to do for privatization offers for overseas holdings?

Hi all,

Has anybody participated in a privatization offer for your overseas stocks before? If the shares are acquired compulsorily then its very easy. But in the event I want to tender my shares just in case the delisting is not successful. I would like to hear about your experience and how the entire procedure is done, please.

Some of my questions are:

1) Will the company send the offer documents to my broker?

2) If broker wont send me documents and since my shares are held in my broker nominee accounts, I need to authorize my broker to accept the offer. Then how do I go about with accepting the offer?

3) Are there any extra fees that I need to pay? How much are these fees? (Some of the offer documents I have read so far mentioned transfer fees and taxes will be paid by the non-resident shareholder)

Thanks in advance!!

(05-04-2014, 01:23 AM)grubb Wrote: Hi all,

Has anybody participated in a privatization offer for your overseas stocks before? If the shares are acquired compulsorily then its very easy. But in the event I want to tender my shares just in case the delisting is not successful. I would like to hear about your experience and how the entire procedure is done, please.

Some of my questions are:

1) Will the company send the offer documents to my broker?

2) If broker wont send me documents and since my shares are held in my broker nominee accounts, I need to authorize my broker to accept the offer. Then how do I go about with accepting the offer?

3) Are there any extra fees that I need to pay? How much are these fees? (Some of the offer documents I have read so far mentioned transfer fees and taxes will be paid by the non-resident shareholder)

Thanks in advance!!

Let me try to answer you base on HK stock experience. not sure about other countries but should not be too far off.

1) yes the company will send it to your broker
2) your broker will inform you as to what you plan to do; accept , reject or partial accept etc If they are not doing that then they are not doing their job.
3) fees will no more be the usual transactional fees like your sale of shares. If it is US I think there is some capital gains tax; not sure on this. Best is to check with your broker.

(05-04-2014, 02:01 PM)Jacmar Wrote: Let me try to answer you base on HK stock experience. not sure about other countries but should not be too far off.

1) yes the company will send it to your broker
2) your broker will inform you as to what you plan to do; accept , reject or partial accept etc If they are not doing that then they are not doing their job.
3) fees will no more be the usual transactional fees like your sale of shares. If it is US I think there is some capital gains tax; not sure on this. Best is to check with your broker.

Hi Jacmar,

Thanks for sharing. Can I just ask how long after the announcement of the offer did you receive the documents? I'm asking because my overseas dividends usually take about 1 month to reach me, and it seems that the deadline for privatization offers is usually only 20 days.

(05-04-2014, 02:33 PM)grubb Wrote: I'm asking because my overseas dividends usually take about 1 month to reach me, and it seems that the deadline for privatization offers is usually only 20 days.

A bit off-track, but one month for dividends is way too long. Something is broken in your custodial chain somewhere. I know Phillip (POEMS) credits HKSE dividends the same day, and the other local brokers generally within a week or so. This is my experience, at least with nominee accounts where the stockbroker holds your shares. If you own the HKSE shares directly via CCASS it should be even faster.

(05-04-2014, 02:33 PM)grubb Wrote: Hi Jacmar,

Thanks for sharing. Can I just ask how long after the announcement of the offer did you receive the documents? I'm asking because my overseas dividends usually take about 1 month to reach me, and it seems that the deadline for privatization offers is usually only 20 days.

It depends from broker to broker and which country you are referring to. In any case there should be still ample time for you to make the decision on the offer.
for dividends mine is under DBS Vickers and it is like the next day I see it. For Malaysia mine is under Kim eng and it takes a bit longer but usually within a week.

(05-04-2014, 02:46 PM)d.o.g. Wrote:

(05-04-2014, 02:33 PM)grubb Wrote: I'm asking because my overseas dividends usually take about 1 month to reach me, and it seems that the deadline for privatization offers is usually only 20 days.

A bit off-track, but one month for dividends is way too long. Something is broken in your custodial chain somewhere. I know Phillip (POEMS) credits HKSE dividends the same day, and the other local brokers generally within a week or so. This is my experience, at least with nominee accounts where the stockbroker holds your shares. If you own the HKSE shares directly via CCASS it should be even faster.

I went to check and I realised I have been really dumb! I was calculating from the XD date. From the payment date, my Malaysia dividends usually take 2 weeks. The HK and US ones take a week or less. Thanks d.o.g. for pointing it out.