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Hmm.. on closer reading, its seems that Mr Chou Cheng Ngok and his wife (via their holdings in World Holdings) are considered concerted parties in the offer.
As such after crunching the no, I arrived at the following:
Total # Popular Shares = 797,090,755
90% level for delisting = 717,381,680
What Offeror had before launch of offer = 488,239,075 (61.3%)
What Offeror need to delist Popular = 229,142,605 (28.7%)
Remaining Shares not owned by Offeror = 308,851,680 (38.7%)
90% level required for compulsory acquisition = 277,966,512 (34.9%)
Total Shares Offeror need for Compulsory Acquisition = 766,205,587 (96.1%)
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(14-01-2015, 08:26 PM)lonewolf Wrote: Hmm.. on closer reading, its seems that Mr Chou Cheng Ngok and his wife (via their holdings in World Holdings) are considered concerted parties in the offer.
As such after crunching the no, I arrived at the following:
Total # Popular Shares = 797,090,755
90% level for delisting = 717,381,680
What Offeror had before launch of offer = 488,239,075 (61.3%)
What Offeror need to delist Popular = 229,142,605 (28.7%)
Remaining Shares not owned by Offeror = 308,851,680 (38.7%)
90% level required for compulsory acquisition = 277,966,512 (34.9%)
Total Shares Offeror need for Compulsory Acquisition = 766,205,587 (96.1%) This offer came very suddenly. There was no sharp increase in price or volume prior to offer. The offeror really managed to keep the offer very secretive!
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Based on outstanding shares not owned by the concerted parties, at $0.32 it is essentially around $100m deal for investment bankers assuming full loan drawdown which can be easily financed by rental of remaining unsold units. Again a reminder that we live in a world awash with cheap money... on to look for next M&A target.
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What do U mean by easily financed byrental ofunsold units
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They could rent out remaining unsold units of Ei8ht Raja to cover some or all the interest payments assuming this is a 100% debt funded acquisition. Definitely better than paying QC charges.
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The offer is pretty decent in my opinion especially so considering that property may bite them down the road. Whilst I thought that Popular was undervalued at $0.20+, at the offer price of $0.32, I think it is fair and given that it is highly unlikely that Popular's price can ever reach $0.32 in the near future, I will definitely be accepting the offer. I don't see much difficulty for the offeror to be obtain the requisite 90%.
I agree with one thing - kudos to management and third parties with privy information in keeping the information confidential. The price clearly shows that the price sensitive information was kept under wraps very well unlike some others I have seen.
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I remember attending the AGM 2 or 3 years ago when one of the shareholders pointed out correctly that one of the newly appointed directors coming on board could imply a delisting. The management did well to keep this news under cover. Of course, at the current price and market conditions, it is a good time for companies like Popular to be delisted. Mr Chou could have paid a lower price by buying from the market quietly over time , however, I am glad that he did this fair action for the minority shareholders.
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Agree that Mr Chou could have paid a much lower price of probably below 20c by acquiring from open market. If not for the company share buy-back, the share price could have dropped below 20c after a few quarters of bad results. I would conclude that he is a good man which we seldom find in listed companies.
Also, he could have offered 1c or 2c above NAV of est. 27.83c but he chose to offer 15% higher means he is serious and urgently seeking delisting.
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(15-01-2015, 01:56 PM)a74henry Wrote: I remember attending the AGM 2 or 3 years ago when one of the shareholders pointed out correctly that one of the newly appointed directors coming on board could imply a delisting. The management did well to keep this news under cover. Of course, at the current price and market conditions, it is a good time for companies like Popular to be delisted. Mr Chou could have paid a lower price by buying from the market quietly over time , however, I am glad that he did this fair action for the minority shareholders.
Hi, could you kindly enlighten as to why a "newly appointed director coming on board could imply a delisting"...
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(15-01-2015, 09:43 AM)MOV Wrote: They could rent out remaining unsold units of Ei8ht Raja to cover some or all the interest payments assuming this is a 100% debt funded acquisition. Definitely better than paying QC charges.
Their 3 years for ei8ht raja is up real soon? Interesting... What is their QC charge at 8% for first year for Mr Chou to move this?
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
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