LTC Corp (prev. Lion Teck Chiang)

[ghchua]

Hi dydx,

I share your views on LTC Corp's potential and I do not think they can secure 90% of the shares at the close of GO. But with delisting EGM, it is another different ball game altogether as stated by me earlier. Every vote counts in the delisting EGM and minorities cannot just stay put as in the GO case. Minorities have to come out and vote against the delisting resolution to keep LTC Corp listed.

As TTTI had stated, we are not here to correct the wrongs and it is not a fair world. It will be a tough fight but I guess it is worth fighting if minorities could make enough noise to get the rule makers noticed. We might be losing this battle but if it is for future good and possibly better minorities protection, I guess it is worth a shot. Let's see how it goes.

[brattzz]

is there a minority interest group? figure it would make sense to rally all together in an group and keep each other updated for the long fight ahead...

[TTTI]

It's not a fair world. The rules are not in the favor of MI. 
But as investors, we aren't here to correct the wrongs. Don't try to fight a battle you can't win.
And if you wanna fight, it takes a lot more than making "protest" decisions when you reach a cross road.
If I had seen evidence of MI convalescing and cooperating at the start of the GO, then there POSSIBLY may be a better outcome.
Right now, it's just totally bleak.
I'm speaking with the experience of some previous delistings.
It's just not worth the fight.

I can agree that this is not a fair world, but I just cannot agree to sell my prized LTC shares at $0.925/share to the Chengs, as I am convinced that each LTC share is worth much more than its latest (31Mar18) corresponding NAV/share of $1.6616. It is quite easy to understand that LTC's industrial property sitting on a large freehold land plot located next to the MacPherson MRT interchange station (on Circle and Downtown lines) is ripe for redevelopment and should be worth much more that its stated BV of $118.0m. If a redevelopment on the land plot is carried out at a higher plot ratio or for alternative uses - including as an large integrated project similar to what has happened around the one-stop away Paya Lebar interchange station (on Circle and East West lines) - the realisable value of the land plot could well be a few times of $118.0m. I am inclined to believe that URA should be supportive of such a redevelopment project, or may even nudge LTC to redevelop the land plot, as it is good for SG. It will be a waste of the precious land plot and a big pity if the existing 4 old industrial buildings remain untouched in the next 5 or 10 years. I am also inclined to believe that the huge potential gain from the redevelopment of the land plot is the main motivation and reason behind the Chengs launching a GO with a view to privatise LTC for their own benefit.

Based on the fact that the Chengs only managed to raise their stake in LTC by another 0.2% from 25Apr to 11May (16 days) to now 86.24%, I remain optimistic that there are enough minority shareholders out there who understand the above commercial logic and would hold on to their prized LTC shares to see it through that the huge hidden value in the land plot is realised in a potential redevelopment project.

Oh trust  me, I fully agree with everything that you have just said about the undervaluation.

Which was why I did my version of "test balloons"...
https://thumbtackinvestor.wordpress.com/...ion-offer/

But now, we are talking about a different matter altogether.
If there was someone with deep enough pockets that came in ala Icahn style, I'd gladly swing to the opposite, load up to high heavens and support. I'm definitely all for minority power.
But if there's nobody, knowing the investor apathy of the local investing scene, I'd have to rely on my practical side,assess the situation and act based on probabilities, not on ideals.
The Chengs may have failed to garner 90%.... but stopping a voluntary delisting is a different ballgame as it requires action on the part of the minorities.
Sitting passively on their part, is a win for the Chengs itself.
The odds are 50-50 at best, that the MI would turn out in full force to stop them.
And those odds are simply not good enough for me.

[TTTI]

PAGING ALL LTC CORPORATION MINORITY SHAREHOLDERS WHO HAVE NOT TENDERED...

I have been contacted by Business Times regarding this, they may want to do a feature story about minority investors who have been holding out against delistings of late (LTC, Vard, Tat Hong)
Since I've tendered my stake, I'm not in a position to comment. (And it's also not appropriate for me to be identified)
Those of you who are still holding out, and want to be interviewed / don't mind being identified, pls drop me an email and I'd patch you up with BT.
THIS IS A GOOD CHANCE FOR MASSIVE PUBLICITY TO YOUR CAUSE.
I can't think of a better opportunity to drive MI to revolt during the EGM.

thumbtackinvestor@gmail.com

[dydx]

OCBC has just issued another update that as at today (17May) market close, the Offeror and its Concert Parties (including valid
acceptances of the Offer) now hold 134,959,178 shares in LTC, representing a total interest of approximately 86.26%..
http://infopub.sgx.com/FileOpen/Mountbat...eID=506384
This update arose purely because of Cheng Zhi Wei, an associate and concert party of the Offeror, added 1,000 LTC shares today.

It is interesting to note that when compared with a similar update issued yesterday (16May)..
http://infopub.sgx.com/FileOpen/Mountbat...eID=506192
there was no new acceptance today.

If this pattern persists, there is a good chance that LTC will remain listed, as it appears the remaining minority shareholders are resolute towards this.

[TTTI]

PAGING ALL LTC CORPORATION MINORITY SHAREHOLDERS WHO HAVE NOT TENDERED...

I have been contacted by Business Times regarding this, they may want to do a feature story about minority investors who have been holding out against delistings of late (LTC, Vard, Tat Hong)
Since I've tendered my stake, I'm not in a position to comment. (And it's also not appropriate for me to be identified)
Those of you who are still holding out, and want to be interviewed / don't mind being identified, pls drop me an email and I'd patch you up with BT.
THIS IS A GOOD CHANCE FOR MASSIVE PUBLICITY TO YOUR CAUSE.
I can't think of a better opportunity to drive MI to revolt during the EGM.

thumbtackinvestor@gmail.com

https://www.businesstimes.com.sg/compani...-delisting

"At S$0.925 per share, the Chengs' price is 44 per cent lower than LTC's revalued net tangible asset value (RNTA) per share of S$1.66. A good 34 per cent of LTC's asset base comprises four freehold rent-collecting industrial properties at Arumugam Road, near the MacPherson MRT interchange station.
On the other hand, the Chengs have pointed out that the last time LTC shares traded above S$0.925 was in the year 2000. So anyone who bought shares over the last 18 years and cashed out now would be in the money.
In fact, the offer price represents a 49.4 per cent premium over the volume-weighted average price (VWAP) per share in the 12 months leading up to the day the offer was launched.
LTC's appointed independent financial adviser (IFA) has flagged that its RNTA is not necessarily a realisable value. Justin Tang, head of Asian research at United First Partners, agreed: "I see a few HDB flats in Commonwealth for sale at an agent assessed valuation of S$1.5 million. While it is possible, it is not probable that they realise a transaction at that sale price.""

"The pattern of shareholder hold-outs is a trend worth noting as Singapore's share investors wise up to the delisting playbook.
Yet, even when retail investors have their revenge, there's no saying how long they may have to wait before a better exit offer presents itself.
While waiting, they remain at the mercy of the largest shareholders, stuck in a "value trap" of a uniquely Singaporean make."

[dydx]

The Offeror has again extended the the closing date - supposedly to be today, 31May18 - to 25Jun18 (Monday) as the Final Closing Date..
http://infopub.sgx.com/FileOpen/Mountbat...eID=508137
The previous closing date was 11May18.

More interestingly, it is important to note that the Offeror and its Concert Parties managed to raise their combined shareholdings in LTC from 86.24% as at the close of 11May18..
http://infopub.sgx.com/FileOpen/Mountbat...eID=505346
to 86.65% as at the close of 30May18 (yesterday) - i.e. a mere 0.41% in the last 19-day period ..
http://infopub.sgx.com/FileOpen/Mountbat...eID=508054

There is every reason now to believe LTC will remain listed. As well, the multiple extensions of the closing date also confirm the Chengs' keenness to want to buy up all the LTC shares from the remaining minority shareholders - short of raising the GO price this time round. Conceivably, the Chengs will have to be prepared to pay a much higher price in Round 2.

[pianist]

strange, why was my last post deleted?
was trying to recap the umpteen rounds of incredible one-sided extensions applied and granted by the company, advisers, relevant bodies and authority and the trees, papers and time wasted.
the last holding held by the acquirer was around 87.14%.
i'm fully vested (action taken easily, just aim/shoot the paper straight to the bin). nil shares sold to-date.

[weijian]

hi pianist,

I have moderated your last post at my discretion. IMO, it contains some personal attacks that does not add value to the thread. Apologize for not sending you a PM informing u on it. But normally a PM comes with a last warning or a time ban.

A call out to all VBs to focus on topic and avoid getting personal/offensive on vb.com.

Moderator

[BlueKelah]

The Offeror has again extended the the closing date - supposedly to be today, 31May18 - to 25Jun18 (Monday) as the Final Closing Date..
http://infopub.sgx.com/FileOpen/Mountbat...eID=508137
The previous closing date was 11May18.

More interestingly, it is important to note that the Offeror and its Concert Parties managed to raise their combined shareholdings in LTC from 86.24% as at the close of 11May18..
http://infopub.sgx.com/FileOpen/Mountbat...eID=505346
to 86.65% as at the close of 30May18 (yesterday) - i.e. a mere 0.41% in the last 19-day period ..
http://infopub.sgx.com/FileOpen/Mountbat...eID=508054

There is every reason now to believe LTC will remain listed. As well, the multiple extensions of the closing date also confirm the Chengs' keenness to want to buy up all the LTC shares from the remaining minority shareholders - short of raising the GO price this time round. Conceivably, the Chengs will have to be prepared to pay a much higher price in Round 2.

Not if a recession comes around or a big stock market correction. In which case many shareholders will sell down the stock. Back down to 40c or 50c level is not that far. During gfc was below 30c. 

By then is easy for them to just offer 20% premium to 30 or 40c and privatise.  Boss just have to wait a bit. Markets are very toppy liao, big correction just a matter of time. 

Better to lock in big gains and wait for next round or look other stockz