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Hello All,
I'm perplexed by the ~ 50% increase in Techcomp's share price over the last three trading sessions (including ~21% up today). While volumes in Singapore have been typically miserable (i.e. pharmaceutically small), volumes on the HKEX have been much more robust, e.g. over 500,000 shares traded today.
The HKEX share price (HK$ 2.40 at today's closing) equates to S$ 0.43. Some Singapore punters were willing to sell on the SGX at S$ 0.355 (with no takers). Such is the wonderful world of dual listed counters.
Difficult to see what catalysts are driving this share price hike - Techcomp's 2016 results were (IMHO) mediocre - zero dividend declared, European business being particularly poor. No recent public announcements or disclosures. I'm wondering if anything was said at the AGM?
Vested (for a long time)
RBM
RBM, Retired Botanic MatSalleh
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After another positive session of upward price movement of Techcomp's shares yesterday, a Trading Halt was announced before the HKEX/SGX opened this morning. The disclosure to the HKEX is a tad more revealing than the SGX notice...............
http://www.hkexnews.hk/listedco/listcone...523049.PDF
http://infopub.sgx.com/Apps?A=COW_CorpAn...ff297816a7
Vested, RBM
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18-01-2018, 02:41 PM
(This post was last modified: 18-01-2018, 02:42 PM by RBM.)
Pleasing to note the ~ 46% increase in Techcomp's share price in the last one and a bit SGX trading sessions. I can only presume (repeat: presume) this is driven by Techcomp's 16th January public disclosure. In summary this disclosure announced, inter alia, that the Possible Purchaser of Controlling Shareholder (and Company President) Lo Yat Keung's share in the Company is seeking imminent approval from PRC regulatory authorities to proceed with acquisition of his ~ 41% stake, which would trigger a G.O. for the remaining Techcomp shares.
Puzzling to note that some holders of Techcomp's Singapore quoted shares are today prepared to sell shares in the S$ 0.40 - 0.43 range. I say puzzling because the Hong Kong shares of this dual-listed counter are swapping hands today at HK$ 2.75, equivalent to S$ 0.47 (repeat S$ 0.47) at the current HK$:S$ exchange rate.
Vested (and for a long time - not one of my best performers)
RBM
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Techcomp shares soar to record high on news of pending split
By: Stanislaus Jude Chan
25/04/18, 04:52 pm
SINGAPORE (Apr 25): Shares of Techcomp (Holdings) surged as much as 78% to 66 cents on Wednesday, after the laboratory equipment manufacturer announced a proposed group reorganisation which would see it split into two parts.
This comes after Baodi International Investment Company, a firm linked to the government of China’s Yunnan province, last week agreed to buy over some 61.6% of the SGX Mainboard-listed Techcomp.
...
The reorganisation will see Techcomp break up into a “Remaining Group”, which will be controlled by Baodi, and a “Privateco Group”, which will be majority controlled by Techcomp president and executive director Lo Yat Keung.
On a combined basis, the transactions represent an opportunity for the shareholders to realise a part of or their entire investment in the company for an aggregate cash exit equal to HK$4.107 per share ($0.694),” Techcomp says in a filing to the SGX on Wednesday.
More details in
https://www.theedgesingapore.com/techcom...ding-split
Techcomp's share price ended the trading day at 60 cents sgd.
More details in
http://infopub.sgx.com/FileOpen/e_06550_...eID=500785
Specuvestor: Asset - Business - Structure.
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25-04-2018, 09:13 PM
(This post was last modified: 25-04-2018, 09:21 PM by RBM.)
Thank you Cyclone - this formal offer has been a long time coming ........ but for those who have been patient and held-on, it appears to have been worth the wait.
Rather complicated deal - I’m still wading through the documentation and I’ll need to read it again - but at first blush it looks like those who are vested can expect to receive a total of ~ SGD 0.695 per share if they wait to accept both of the formal offers. I’m therefore puzzled why anyone would accept materially less than SGD 0.695 per Techcomp share in the market, now that the Trading Halt has been lifted. Just before today’s SGX close, shares were trading in the SGD 0.59 - 0.60 range and earlier in the day shares were changing hands in the low SGD 50’s cents range. And the HKEX price of this dual-listed counter actually closed today above the combined value of the two offers. Why are Singapore investors so willing and in such a hurry to bail out at such a hefty discount to the price a) the acquirers are prepared to pay and b) HK investors will accept? May be I am missing something.
Vested, RBM
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29-04-2018, 01:27 PM
(This post was last modified: 29-04-2018, 02:11 PM by ghchua.)
Hi RBM,
As you might have understood, there are two parts in this offer. The distribution business and the manufacturing business. Since the offeror is only interested in the distribution business, the manufacturing business will be distributed out as dividend in specie in a form of private shares (worth HK$1.28 per share based on NAV). However, Mr Lo will only be offering private shareholders HK$0.84 per share.
After the re-organization and dividend in specie of private shares, the offeror will then make an offer for the remaining distribution business at HK$3.267 per share. The offeror, though intends to maintain the listing status of Techcomp on HKSE and SGX after close of offer.
Personally, I think Mr Lo offering private shareholders of Techcomp's manufacturing business at less than NAV seems a bit low to me, considering the fact they have put in effort in R&D, expanding product range and also manufacturing facilities. The result of these efforts might not have seen yet in the past few years.
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I received a cheque from StanChart HK for the private offer but my bank couldn’t bank into my HKD account in Singapore.
Does anyone else have the same problem?
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