Armstrong Industrial Corporation

[heifien91]

Company just requested for a trading halt today, hopefully its good news!

(Vested)

[Louhan]

Still no announcement .... Looks like the privatization news is coming true....

[psolhawk]

40 cents! Pretty decent.
http://info.sgx.com/webcoranncatth.nsf/V...F0031F463/$file/JointAnnouncement.PDF?openelement

[Trader88]

Another company taken private.

BUSINESS TIMES
PUBLISHED JULY 06, 2013
Armstrong to delist with exit offer of 40 cents per share
BYNG ZHUO YANG NGZY@SPH.COM.SG

THE Ong family of Armstrong Industrial Corporation and a Japanese group have teamed up to take the mainboard-listed company private.

A joint announcement yesterday by Armstrong and AGP Asia Holding Pte Ltd said the latter will seek the voluntary delisting of Armstrong with an exit offer of 40 cents per share.

AGP - set up to undertake the proposed delisting and exit offer - is 65 per cent owned by Gilbert Investment Corporation Pte Ltd (GCPL) and 35 per cent by Polyfoam Asia Pte Ltd.

GCPL belongs to the Ong family, which owns 46.54 per cent of Armstrong. Polyfoam is wholly owned by Japan's INOAC Corporation, which is engaged in, among other things, the development and supply of materials based on urethane, rubber, plastic and synthetic materials.

The offer is conditional on AGP garnering a stake in Armstrong of at least 72 per cent.
The delisting is also subject to the approval of Armstrong shareholders.

The Ong family has undertaken to accept AGP's offer.

The announcement said that delisting gives shareholders the opportunity to realise their investments for a cash consideration at a premium over historically-transacted prices as Armstrong's shares have not transacted at or above the exit offer price of 40 cents in the past two years.

Armstrong's low trading liquidity was also cited as a reason to take it private.

Armstrong will be appointing an independent financial adviser to advise its directors on the exit offer. Its shares were last traded at 37.5 cents on Tuesday.

[felixleong]

wow 40 cents, huat for shareholders
seems like small caps that are undervalued are getting more buy outs, really rewards investors that invest away from the crowd that are crazy over reits

[PkNanas]

Another company taken private.

BUSINESS TIMES
PUBLISHED JULY 06, 2013
Armstrong to delist with exit offer of 40 cents per share
BYNG ZHUO YANG NGZY@SPH.COM.SG

THE Ong family of Armstrong Industrial Corporation and a Japanese group have teamed up to take the mainboard-listed company private.

A joint announcement yesterday by Armstrong and AGP Asia Holding Pte Ltd said the latter will seek the voluntary delisting of Armstrong with an exit offer of 40 cents per share.

AGP - set up to undertake the proposed delisting and exit offer - is 65 per cent owned by Gilbert Investment Corporation Pte Ltd (GCPL) and 35 per cent by Polyfoam Asia Pte Ltd.

GCPL belongs to the Ong family, which owns 46.54 per cent of Armstrong. Polyfoam is wholly owned by Japan's INOAC Corporation, which is engaged in, among other things, the development and supply of materials based on urethane, rubber, plastic and synthetic materials.

The offer is conditional on AGP garnering a stake in Armstrong of at least 72 per cent.
The delisting is also subject to the approval of Armstrong shareholders.

The Ong family has undertaken to accept AGP's offer.

The announcement said that delisting gives shareholders the opportunity to realise their investments for a cash consideration at a premium over historically-transacted prices as Armstrong's shares have not transacted at or above the exit offer price of 40 cents in the past two years.

Armstrong's low trading liquidity was also cited as a reason to take it private.

Armstrong will be appointing an independent financial adviser to advise its directors on the exit offer. Its shares were last traded at 37.5 cents on Tuesday.

I am curious on condition of receiving acceptance of more than 72%.
Isn't that to delist, they should aim at 90% acceptance?

[CityFarmer]

I am curious on condition of receiving acceptance of more than 72%.
Isn't that to delist, they should aim at 90% acceptance?

The minimum acceptance in the Exit Offer is 72%, and the aim is still 90% to exercise its right of compulsory acquisition under Section 215(1) of the Companies Act.

IMO, the reason for 72% minimum acceptance, is due to the Ong Family's existing holding of 46.5% in the Company. The Ong Family's holding 65% in AGP Asia Holding Pte. Ltd, the Offeror. It doesn't make sense with an acceptance of below 72% which is effectively lower than the Ong Family's existing holding. (72% x 65% ~= 46.5%)

I attached the Exit Offer here for easy reference

http://infopub.sgx.com/Apps?A=COW_Corpor...cement.PDF

[pumpkin]

Can anyone kindly explain why it is still traded below the offer value?

[felixleong]

maybe because 40cents is not a sure thing?
so the 2 cent difference is like a margin of safety for the buyers

[CityFarmer]

maybe because 40cents is not a sure thing?
so the 2 cent difference is like a margin of safety for the buyers

Yes, it is a conditional offer, rather an unconditional one.

There is still chance not able to hit 72% acceptance, and failure to obtain shareholders' approval.