Fischer Tech

[dydx]

This morning's announcement on a possible transaction involving Fischer Tech Ltd...
http://infopub.sgx.com/FileOpen/FTL%20Ge...eID=446298

I suppose it is a given that the largest (57.2%) shareholder - Harmony (S) Holdings Pte Ltd, substantially owned and controlled by CEO Tan Choon King - will not do a deal with the third party (name undisclosed) unless the price offered and other terms are attractive enough, and hopefully he is doing so with the blessing and support of the 2nd-largest (19.5%) shareholder, Univac Precision Engineering Pte Ltd/Venture Corp.

It is still too early to declare "Ho Say Liao" but I am hoping to do.

[Big Toe]

Fundamentally little has changed. It is the same fischer tech when it was trading below $1.00 not too long ago (or below 0.20 before consolidation of 5 to 1, a no brainer then) and now at close to $2.50. A superb return for those vested early. Myself, I vested early and got out early once my fair value is reached, recycling cash before it turns stale. Incidentally, the toe(myself) mentioned the takeover of Fischer Tech as a comparison to Miyoshi thread on 3rd mar 17. Talk about coincidence...

Would I have known that the share price will go up so much in such a short period? No, but the odds are very good when it was very much cheaper. But accumulating the shares was extremely difficult due to low trading volume then.

Would I have known the news of takeover? No way. I stuck to my plan and unexpected events, good and bad, will occur every now and then. That is no way to prepare for it.

Did I do the right thing? I did as I stuck to my rules and kept strict discipline.

[dydx]

Today, Fischer Tech managed to close at a new record high of $2.47. Apparently there are still people out there who are prepared to pay such a seemingly high price for Fischer Tech shares, believing that an even higher offer price in a GO is forthcoming. Such bets will require the skill to determine the intrinsic value of this stock and of the underlying business together with a strong belief in the estimate being right, or knowing something in the serious negotiations that could be going on between the interested parties involved in any coming transaction.

I shall simply sit on the fence and wait for any coming announcements.

[dydx]

It has been coming to 3 weeks since the 5Apr17 announcement on a possible transaction involving the shares of the Company and the ongoing discussions between the Company’s largest shareholder and the interested third party.

[dydx]

This evening's update announcement.....
http://infopub.sgx.com/FileOpen/2017%200...eID=452061

It appears that there are more than one outside parties interested to buy the entire Fischer-Tech business, and Fischer-Tech's controlling shareholders are now having exclusive discussions with the second outside party.

Fischer-Tech's share price closed at a record high of $2.50 today.

[dydx]

Backed by seemingly steady accumulation by certain parties, Fischer-Tech's share price continues to climb since the last announcement and has reached another new record high of $2.64 today.

[cyclone]

Financial Results for the Financial Year ended 31 March 2017 ("FY2017")

Highlights :
1. Revenue of S$178.1 million in FY2017 as compared to S$187.9 million in FY 2016, down 5.2%
2. FY2017 Gross profit increased by 0.7% or S$0.2 million to S$39.6 million
3. Gross profit margin increased from 20.9% to 22.2% in FY2017
4. The Group generated net cash from operating activities of S$17.6 million, a decrease of S$2.8 million as compared to FY 2016 
5. Net cash used in investing activities of S$16.7 million for FY2017
6. The Group’s cash and cash equivalents increased by S$1.6 million from S$39.0 million as at 31 March 2016 to S$40.6 million as at 31 March 2017
7. Final cash dividend 3 cents per share + Special cash dividend 3 cents per share.

More details in http://infopub.sgx.com/FileOpen/FT%20Ann...eID=455879

[dydx]

Shareholders should be jumping high and low, and popping champagne.....
http://infopub.sgx.com/FileOpen/FTL%20Sc...eID=464392

The announced GO at $3.02/share - if inclusive the total declared dividends of $0.06/share, the proceeds shall be $3.08/share - via a Scheme of Arrangement has already secured a 75.48% support from shareholders (including CEO Tan Choon King/Harmony (S) P/L and Univac/Venture Corp), so it is reasonable to assume that it is as good as a done deal.

[Dosser]

Shareholders should be jumping high and low, and popping champagne.....
http://infopub.sgx.com/FileOpen/FTL%20Sc...eID=464392

The announced GO at $3.02/share - if inclusive the total declared dividends of $0.06/share, the proceeds shall be $3.08/share - via a Scheme of Arrangement has already secured a 75.48% support from shareholders (including CEO Tan Choon King/Harmony (S) P/L and Univac/Venture Corp), so it is reasonable to assume that it is as good as a done deal.

Wonderful result for shareholders. Many thanks for flagging this gem up originally, and keeping the thread regularly updated.

[angelzsoul]

Under schedule 1 note 12 (pg 20) :

"The Acquisition is conditional upon the following: ....
12. Major Customers: between the date of the Implementation Agreement and the Relevant Date, there being no loss of any Major Customer or any written notice given by any Major Customer indicating that it wishes to cease being a customer of the Group. For the purpose of the Implementation Agreement, a "Major Customer" refers to a major customer that had, together with such customer's contract manufacturers, contributed (in aggregate) ten per cent. (10%) or more to the gross revenue of the Group for the financial period ended on the Accounts Date as shown in the Accounts. For the avoidance of doubt, an individual contract manufacturer is not deemed to be a Major Customer for the purposes of the Implementation Agreement. "

As seen from their annual report 2017 note 33, 
"Information about a major customer: Revenue from one major customer amount to $27,651,000 (2016: $25,147,000), of which $26,385,000 (2016: $24,448,000) arises from the plastic injection segment and $1,266,000 (2016: $699,000) from the tooling segment"

which is > 10% for both 2016 and 2017.

Should we be concerned about it?