In the EGM held on 18 Feb 2013, proposed resolution to expand into property development was duly passed.
So considering that huge capital outlay you will need to venture into property, the rationale for the capital reduction to 'to return to shareholders of the Company (“Shareholders”) surplus capital of the Company in excess of its needs' does not really add up.
In the latest FY FS, Datapulse is currently sitting on 30.982 million or about 5.21c per share. Its cash balance for the last 10 yrs has been in excess of 30 million (average 36 million). Its FCF has also been positive (not bad for a sunset industry company). So if nothing has really change in the capital structure all these years, I wonder why there is a need to 'achieve a more efficient capital structure' now.
The board of directors (“Board”) of Datapulse Technology Limited (the “Company”) wishes to inform Shareholders that the Company has on 25 January 2018 appointed Ernst & Young Solutions LLP (“EY”), to conduct a strategic review (“Strategic Review”) to advise the Company on the options available for Wayco Manufacturing (M) Sdn Bhd (“Wayco”) to develop its sales and distribution capabilities, following the Company’s acquisition of Wayco on 15 December 2017.
Looks like the new board is scrambling to deflect its decision to acquire Wayco without doing proper due diligence. And of cos the 1c Special Dividend really does smells like its trying to win over minority shareholders.
Meanwhile, Ascapia Capital Private Limited has posted an open letter to all Datapulse Minority Shareholders.
I think the open letter addressed many of the same questions that any reasonable person will also be asking if they have been following recent development in Datapulse.
I'm not sure what Ms Ng Siew Hong and Mr Ang Kong Meng are trying to do with Datapulse. Whatever it is, they haven't been smart or being patient about it.
30-01-2018, 09:55 PM (This post was last modified: 30-01-2018, 10:02 PM by lonewolf.)
More drama. Clarifications that seems to provide more ammo for the opposing shareholders. It was obvious that the update was directed at the open letter released by Ascapia Capital Private Limited. The CEO having to resign because of pre-existing illness aggravated by recent development in the company. I would laugh if a man's health isn't in peril.
The problem with the new update is that while some of what the board is trying to explain is true, it does nothing to deflect criticisms that the acquisition was done in haste, without proper due diligence and worse of all, appears to be carried out to enrich associates of the controlling shareholder. And realistically, the issue of the company becoming a cash company really isn't that urgent as the update makes it out to be.
This was the single worse paragraph in the statement released: "In view of the foregoing, to question the bona fide of the Board’s decision based on the sole factor of the high multiple based on historical profits represented by the purchase consideration amount may be incomplete and misleading."
Be that as it may, the update does not adequately explain why Wayco deserved such high multiples. Have any of you heard of any of Wayco products namely “GoodLook” and “Glorin” line of hair products? If you goggled for it the packaging may look vaguely familiar but I doubt many used the products.
(30-01-2018, 09:55 PM)lonewolf Wrote: More drama. Clarifications that seems to provide more ammo for the opposing shareholders. It was obvious that the update was directed at the open letter released by Ascapia Capital Private Limited. The CEO having to resign because of pre-existing illness aggravated by recent development in the company. I would laugh if a man's health isn't in peril.
The problem with the new update is that while some of what the board is trying to explain is true, it does nothing to deflect criticisms that the acquisition was done in haste, without proper due diligence and worse of all, appears to be carried out to enrich associates of the controlling shareholder. And realistically, the issue of the company becoming a cash company really isn't that urgent as the update makes it out to be.
This was the single worse paragraph in the statement released: "In view of the foregoing, to question the bona fide of the Board’s decision based on the sole factor of the high multiple based on historical profits represented by the purchase consideration amount may be incomplete and misleading."
Be that as it may, the update does not adequately explain why Wayco deserved such high multiples. Have any of you heard of any of Wayco products namely “GoodLook” and “Glorin” line of hair products? If you goggled for it the packaging may look vaguely familiar but I doubt many used the products.
Another thing that might have been easily overlooked by many is that the company really thinks that the average retail shareholder is gullible enough to believe the "risks" of becoming a cash company. There is no risk there. We have seen time after time again that there are handful companies listed on SGX that are cash companies and has ample time to be allowed to look for companies. The company is trying very hard to justify its hasty decision but shareholders need to look past the smokescreen.
(30-01-2018, 09:55 PM)lonewolf Wrote: More drama. Clarifications that seems to provide more ammo for the opposing shareholders. It was obvious that the update was directed at the open letter released by Ascapia Capital Private Limited. The CEO having to resign because of pre-existing illness aggravated by recent development in the company. I would laugh if a man's health isn't in peril.
The problem with the new update is that while some of what the board is trying to explain is true, it does nothing to deflect criticisms that the acquisition was done in haste, without proper due diligence and worse of all, appears to be carried out to enrich associates of the controlling shareholder. And realistically, the issue of the company becoming a cash company really isn't that urgent as the update makes it out to be.
This was the single worse paragraph in the statement released: "In view of the foregoing, to question the bona fide of the Board’s decision based on the sole factor of the high multiple based on historical profits represented by the purchase consideration amount may be incomplete and misleading."
Be that as it may, the update does not adequately explain why Wayco deserved such high multiples. Have any of you heard of any of Wayco products namely “GoodLook” and “Glorin” line of hair products? If you goggled for it the packaging may look vaguely familiar but I doubt many used the products.
Another thing that might have been easily overlooked by many is that the company really thinks that the average retail shareholder is gullible enough to believe the "risks" of becoming a cash company. There is no risk there. We have seen time after time again that there are handful companies listed on SGX that are cash companies and has ample time to be allowed to look for companies. The company is trying very hard to justify its hasty decision but shareholders need to look past the smokescreen.
Delist is not a bad option, better than acquiring companies without doing proper due diligence. Frankly with the current board, it would be better to delist than diworisification. The purchase price of Wayco is way above valuation, and I do not see growth potential for its product lines. The brand "Goodlook" and "Glorin" have been around for decades, one of the cheapest brand of hair products.
23-02-2018, 08:00 PM (This post was last modified: 23-02-2018, 08:00 PM by lonewolf.)
Finally, SGX acts!
Quote:Pursuant to Listing Rule 1405(1)(f), the Exchange required the Company to appoint independent professionals by Friday, 9 March 2018 to undertake an independent review of the Comapny's internal controls and corporate governance practices (the "Review").
(25-01-2018, 07:27 PM)lonewolf Wrote: COMMISSIONING OF STRATEGIC REVIEW
The board of directors (“Board”) of Datapulse Technology Limited (the “Company”) wishes to inform Shareholders that the Company has on 25 January 2018 appointed Ernst & Young Solutions LLP (“EY”), to conduct a strategic review (“Strategic Review”) to advise the Company on the options available for Wayco Manufacturing (M) Sdn Bhd (“Wayco”) to develop its sales and distribution capabilities, following the Company’s acquisition of Wayco on 15 December 2017.
Looks like the new board is scrambling to deflect its decision to acquire Wayco without doing proper due diligence. And of cos the 1c Special Dividend really does smells like its trying to win over minority shareholders.
Meanwhile, Ascapia Capital Private Limited has posted an open letter to all Datapulse Minority Shareholders.
I think the open letter addressed many of the same questions that any reasonable person will also be asking if they have been following recent development in Datapulse.
I'm not sure what Ms Ng Siew Hong and Mr Ang Kong Meng are trying to do with Datapulse. Whatever it is, they haven't been smart or being patient about it.
Datapulse directors are suing Ascapia Capital. Personally, i think this lawsuit is a distraction and the Board should focus on other more important priorities (ie. how to use its 90mil cash board meaningfully in the interest of all shareholders). The lawsuit case leaves a bad taste (in fact, a lingering one), and probably Prof Mak is right - the Board should use their own money and not that of the company.
VBs can click onto the "open letter" link by lonewolf again to read the lawyer letter and there is also a link to Prof Mak's letters.
Meanwhile, let's not forget that as per SGX directive, the board is supposed to appoint independent professionals by Friday, 9 March 2018 to undertake an independent review of the Comapny's internal controls and corporate governance practices.
Lastly, the SIAS dialogue session with Datapulse management is scheduled on 26th March 2018, Monday 7.30pm – 9.00pm.
However, the board has decided to extend the review date all the way back to 23 Nov 2000 (being the date on which the Company was transferred to the Main Board of the SGX-ST from SESDAQ)
Frankly, this appears to be another attempt by the current board to muddle the issue and complicate things for minority shareholders. It is obvious that the SGX directive was meant to be a review of the decision undertaken by the new board. The SGX directive makes no mention of any of the previous acquisitions made by the previous board, but detailed the events leading up to the acquisition of WayCo since the new board was appointed in Dec last yr. In fact, it was clear that the review was for new Board's approval for the acquisition of Wayco.
The widening of the review date is a blatant attempt taken against Ms Ng Bie Tjin by 'seeking clarification' on her decision to leave the company in 2014. I don't see how this is relevant to the review on the acquisition of Wayco.
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