Penguin International

[brattzz]

show hand move, just take away the pie and eat it ourselves, anyway, since there is nothing other shareholders can do.., :O

[pianist]

Just buy more from open market and vote them out in the coming agm, I been queuing 0.65,
They are also buying in market to gain control

[xlandjy]

Just buy more from open market and vote them out in the coming agm, I been queuing 0.65,
They are also buying in market to gain control

Vote them out?  They already have 40% plus ...  how to vote them out?

[touzi]

The top institutional shareholders account for 1.4% of the shares. Mr Ng Koh Wah has about 1.8% and Keppel 6.2%.

Hopefully none of them will agree to the offer.

[weijian]

The top institutional shareholders account for 1.4% of the shares. Mr Ng Koh Wah has about 1.8% and Keppel 6.2%.

Hopefully none of them will agree to the offer.

Keppel's stake in Penguin is minuscule to them. From Keppel Corp's strategic review released in Sept2020 and its announcement to wind down KOM in end Jan2021, I suspect it is a given that Keppel will sell out their (minuscule) stake in Penguin in view of recycling their capital towards their new priorities.

In fact, for the fund manager employed by Keppel Corp and in charge of making the decision, I suspect he will never have an easier decision to make to meet his KPI.

[Corgitator]

Always amuses me when minority shareholders grumble about privatization offers being too low.

First, if if you truly believe that a company is severely undervalued at $0.65, then my question is did you buy more of it before the offer was announced (i.e. when it was languishing at $0.40?). I'm quite confident majority of those complaining did not. So you don't buy more when it's even more undervalued, but now you complain that the offer is low ball.

Second, everyone is selfish. We as minority shareholders want a big offer. Buyers want a low offer. I'm kind of certain that if we were to be placed in their position, we would have made the same decision as well. So it smells of hypocrisy if we think that things are only fair if they swing our way. Of course, I'm speaking in generalities, you might be that rare morally upright, unselfish person that is generous to others. I applaud you if you are.

Third, this is not the first (and won't be the last time) privatization offers are deemed as too low. If it's been happening for so long, shouldn't a good investor try to price this phenomenon as part of their valuation methodology? In other words, you may say something like the intrinsic value of the business is $2, but given that minority shareholding structure is fragmented, and MBO seems likely, we should apply a X% discount etc. Maybe once that is part of your framework, you would avoid more of these situations. Many at times, we cannot force the world to change to our liking, but we should, as good investors, adapt our approach to survive in a market filled with sharks.

[Ben]

First, if if you truly believe that a company is severely undervalued at $0.65, then my question is did you buy more of it before the offer was announced (i.e. when it was languishing at $0.40?). I'm quite confident majority of those complaining did not. So you don't buy more when it's even more undervalued, but now you complain that the offer is low ball.

There is such thing as unknown unknown. For example, in year 2018 or early 2019, no one knows what is Covid 19, or would have factor in such an event into their investment decision. As it turns out, Covid 19 created huge havoc and the effect is still being played out. So even if one knows that Penguin at $0.40c is an undervalued company, whether to buy more and how much more really depends on individual circumstances and individual outlooks of the future, taking into consideration factors beyond the control of the company. Not an easy things to evaluate, imo.

I did buy some more when Penguin was trading at 40c plus. Should I have bought more when the price was depressed? Of course I should, but that is on hindsight.

However, I have also let go of everything at the offer price of 65c. I made very nice profit from this counter over the years, and I shall move on to look for other more potential counters. Hopefully I can spot one like Penguin.

[Corgitator]

First, if if you truly believe that a company is severely undervalued at $0.65, then my question is did you buy more of it before the offer was announced (i.e. when it was languishing at $0.40?). I'm quite confident majority of those complaining did not. So you don't buy more when it's even more undervalued, but now you complain that the offer is low ball.

There is such thing as unknown unknown. For example, in year 2018 or early 2019, no one knows what is Covid 19, or would have factor in such an event into their investment decision. As it turns out, Covid 19 created huge havoc and the effect is still being played out. So even if one knows that Penguin at $0.40c is an undervalued company, whether to buy more and how much more really depends on individual circumstances and individual outlooks of the future, taking into consideration factors beyond the control of the company. Not an easy things to evaluate, imo.

I did buy some more when Penguin was trading at 40c plus. Should I have bought more when the price was depressed? Of course I should, but that is on hindsight.

However, I have also let go of everything at the offer price of 65c. I made very nice profit from this counter over the years, and I shall move on to look for other more potential counters. Hopefully I can spot one like Penguin.

And that's exactly my point. Hindsight bias should not be a thing in our investment process.

So before offer was made = a lot of uncertainty so even at $0.40 it may not be a good deal - I am in this camp as well. My average price is $0.50, and I did not average down because of the uncertainty.

After offer was made = suddenly the offer is very low and minority shareholders got fleeced.

Fundamentally, nothing has changed about the business pre and post offer. But the behavior of minority shareholders has changed drastically.

[dydx]

Fellow ValueBuddies should take a look into the case of Lum Chang's failed privatisation exercise which closed on 18Jan21 at 79.22%, and the declaration of dividends totalling $0.05/share soon after on 9Feb21 in conjunction with the half-year results announcement. Those who did not accept the low ball offer at $0.38/share must be very happy now, as the share price hit a 5-year high of $0.46 today.

The same could well happen to Penguin, as the Offeror is likely borrowing to fund the privatisation exercise, and would have to tap Penguin's cash reserve to repay such borrowings. The value of Penguin is the underlying well-established business and its assets, including the cash reserve. Unless shareholders get a fair deal, many will choose to hold on to their Penguin shares.

[touzi]

The top institutional shareholders account for 1.4% of the shares. Mr Ng Koh Wah has about 1.8% and Keppel 6.2%.

Hopefully none of them will agree to the offer.

Keppel's stake in Penguin is minuscule to them. From Keppel Corp's strategic review released in Sept2020 and its announcement to wind down KOM in end Jan2021, I suspect it is a given that Keppel will sell out their (minuscule) stake in Penguin in view of recycling their capital towards their new priorities.

In fact, for the fund manager employed by Keppel Corp and in charge of making the decision, I suspect he will never have an easier decision to make to meet his KPI.

I thought they are just exiting the oil rig business.