PNE Industries

[BlueKelah]

Hi BlueKelah,

PNE Ind distribute 82.4% of the proceed for dividend.
If they dispose the remaining shares at same price, roughly they will have S$4.3m proceed.

I think it is another sign that the company management may retire.
I do think they may possible (no guarantee) sell PNE Ind subsidiary or even sell PNE Ind.
Other options are
1) asking big investor to come in
2) Invest in other business with strategic partners

just took a look at the AR from 2009 and compared with 2013, shareholdings pretty much the same for top 10 holders and more than 80% owned by the Tans. Family controlled and likely to have next generation to continue run the business. Also too many family members so chance all retire same time?? Surely some must have children eager to take over??? and those who wanna retire can just sell or transfer their shares to brothers/relatives easily.

I would take it at face value that they are just taking the opportunity to rid loss making subsidiaries at a good price whilst the investment climate is still stable. PNE Micron, which isn't doing that well, is being sold off to others including Liew Nyok Wah from Jackspeed at a premium double price as well..

Something may be up, but perhaps they are just consolidating their companies. Dun think they will retire by selling their stakes, after all they can just slowly chug along. Being generous with dividends also decreases the likelyhood they are planning to retain cash and do a cheap delisting or sale.

Whatever they are doing, its bringing in the money to PNE Ind, so I am not complaining

Time will tell.

[kbl]

Good morning everyone.

This 1 i think is good news.

The Board of Directors of PNE Industries Ltd (the “Company”) wishes to announce that it has been
informed by some of its directors-cum-substantial shareholders, Messrs Tan Kong Heng, Tan Koon
Chwee, Tan Kong Leong, and Tan Kwong Soon, that they and their brothers (namely Mr Tan Kong Sin,
who is a substantial shareholder of the Company, and Mr Tan Kong Guan) (collectively, the “Vendors”)
have on 24 July 2014 entered into a sale and purchase agreement with an independent third party,
Hummer Investments Limited (the “Purchaser”) for the disposal of a total number of 97,500,000
ordinary shares of the Company (the “Sale Shares”) to the Purchaser at the price of S$0.30128 for
each Sale Share, held by them in aggregate, representing 29.05% of the total number of issued sharesof the Company as at the date of this announcement. Barring unforeseen circumstances, the sale and
purchase is scheduled to be completed on 8 August 2014 (the “Completion”).

http://infopub.sgx.com/FileOpen/AnnSaleo...eID=306832

<vested and pocket 2cts dividend><not a call to buy or sell>

[BlueKelah]

Gap up to 22 cents. will the price revalue to 30cents eventually? that would be a premium over the 24cent NAV as well as the earnings..

[Harvest Time]

I am happy my guess is correct, they sold stakes at 30.128 cents. The buyer become largest stake holder.
PNE Ind may have more news coming.

[BlueKelah]

Given that value is almost realised now, but buyer paid 30cents, what sort of news other than increased earnings or massive orders coming in that would cause further catalyst for this stock?

Anyone seen similar scenario where company is bought at higher price and premium later on moving higher?

[Dividend Hermit]

Previously sold 1/3 of my holding at 0.174.
Today gap up and remaining 2/3 is sold at 0.220.
Submitted my trade order ytd night and I missed the announcement today.
Trade fulfilled while I am having breakfast and surfing valuebuddies. In future, I need to have breakfast at much earlier time

[BlueKelah]

Previously sold 1/3 of my holding at 0.174.
Today gap up and remaining 2/3 is sold at 0.220.
Submitted my trade order ytd night and I missed the announcement today.
Trade fulfilled while I am having breakfast and surfing valuebuddies. In future, I need to have breakfast at much earlier time

its ok, you have already locked in your profits and though the shares were sold off at a premium there might not be any news at all in the future. May just be as simple as family retiring and sold off to investors at a premium.

Investors may be just happy to hold and maybe announce a special dividend next quarter to pay themselves a bit from the cash pile. This would not add any further value to the company.

Valuation wise, numbers are looking fairly valued now with some in overvalued range

[Harvest Time]

PNE Ind new SSH buy 29.05% stake
http://infopub.sgx.com/FileOpen/eFORM3V2...eID=306837

PNE Micron new SSH buy 11.18% stake
http://infopub.sgx.com/FileOpen/PNE_FORM...eID=303985


I think new PNE Ind SSH is a serious buyer.

[BlueKelah]

PNE Ind new SSH buy 29.05% stake
http://infopub.sgx.com/FileOpen/eFORM3V2...eID=306837

PNE Micron new SSH buy 11.18% stake
http://infopub.sgx.com/FileOpen/PNE_FORM...eID=303985


I think new PNE Ind SSH is a serious buyer.

He has some holdings in SES listed Teledata from AR 2011 which I googled from morningstar. Looks like bad investment there.

Serious buyer might not be able to add anymore value to the company, unless they own some other upstream electronics firm that needs PCB or unless they are building lots of property that need EXIT signs...

[Harvest Time]

I know but her stake at teledata is only 6m shares (around 0.49% stake) which is very small.
She cannot exert any influence/decision on teledata corporate action with such a small stake.

http://globaldocuments.morningstar.com/d...c/original