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Did the gohs just earlier announced full yr results with a 'suppressing' low dividends, and then this piece of go offer news?
The market price already trending at 0.151, somewhat oblivious to the lower offer price
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Relevant questions:
1) Since the Goh brothers already hold a 76.56% combined interest, why an unconditional offer, and not a conditional offer subject to min. acceptance hitting 90%?
2) If the offer at $0.145/share is inadequate, would the Goh brothers raise it later to increase their chances to secure more acceptances?
3) Why the Goh brothers choose not to have a financial advisor in their offer?
4) What is the main reason or driver behind the Goh brothers wanting to raise their combined interest via a GO, instead of they individually buying more shares from the open market?
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18-06-2024, 01:21 PM
(This post was last modified: 18-06-2024, 01:26 PM by ghchua.)
Hi dydx,
My responses to your questions:
1. While they wish to compulsory acquire the remaining minorities and delist the company, they might want to get as much shares as possible, in case they could not achieve their intentions this time round. There is always a next time. Same for OCBC. Their offer for Great Eastern Holdings is unconditional as well, although they hold more than 88% of the company at the time of the offer announcement.
2. That will depend on how desperate they are in achieving their intentions, the acceptance level going forward and also the opinion of the IFA on the offer. The offer price is not final yet, so things can change.
3. I am not sure about that, maybe to save costs?
4. Shares have low trading liquidity, so this offer is a good chance for them to raise their stake in the company, hoping that big blocks of minorities will tender their shares.