Cheung Woh Technologies

[ghchua]

The Law's are reasonable and fair people, but I am certain the GO at $0.285/share is still below the intrinsic value and the RNAV, as Cheung Woh holds quite a few old industrial properties in Malaysia (Penang and Johor) and China (Zhuhai). So there should be some extra value left for them still..

Hi dydx,

I guess we have to wait for the IFA report to be out to have an idea of how much those industrial properties are worth. If their current value deviates a lot from their book value (which are accounted for under PPE using cost less depreciation/impairments), then there will be valuation done on them and we should have an idea on how much is its RNAV. However, do take note that these industrial properties are leasehold land/buildings and some of them are actually more than 30 years old already.

Having said the above, I do agree with your view that they are fair and reasonable people. Considering the fact that the free float of Cheung Woh is only 21% plus, they could actually offer a smaller premium from its last traded price to get another 10% of the shares out there and trigger compulsory acquisition to take out the remaining minorities. So, I guess from that viewpoint, they are offering quite a decent premium.

For those who would still like to remain vested with them, do take note that you still have an option to take the New Offeror Share instead of $0.285/share cash. However, do take note that the New Offeror Share will be in an unlisted private company.