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Indeed, Private Equity loves financial engineering but that is only done when the target is in their pocket and such balance sheet optimization work is executed in anticipation of a future exit. Doing something now in Penguin sounds like putting the cart before the horse?
Dymon Asia owns 40% of the vehicle that owns 80% of the company - so that is a 32% effective stake. So it is quite obvious he is there to represent Dymon Asia's interests in the company, before they decide their next move (figure out an exit or try another take over in future)
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11-06-2021, 07:57 AM
PIL@64
Agreed 100%.
1. PIL had stopped giving out dividend this FY despite it's strong financial result.
2. PIL officially given lots of reason more $$$ is needed for strategic growth.
3. Jeffery and team wanted to delist PIL.
4. They had already gotten > 80%.
With this in mind, PIL share price would likely go down bit by bit, day by day.
When the price is good enough, then likely the delist offer will come.
Meanwhile, if there is any financial engineering, the one who benefits would definitely be Jeffrey and team. 
Stay home and stay safe, everyone.
The competition is heated up.
PIL has a need for speed!
Thanks for reading.
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(11-06-2021, 07:57 AM)¯|_(ツ)_/¯ Wrote: With this in mind, PIL share price would likely go down bit by bit, day by day.
When the price is good enough, then likely the delist offer will come.
Meanwhile, if there is any financial engineering, the one who benefits would definitely be Jeffrey and team.
Since the close of offer on 21Apr21, Penguin has remained at the $0.65 level, waiting for the next major corporate action to happen. Of course, the share price may go up or down, driven by buyers and sellers.
If and when the Offeror EMET GRACE LTD makes another attempt to privatise Penguin by way of an offer to the remaining minority shareholders for the balance 19.95%, the terms offered should not be worst off than the previous offer. Otherwise, they will not stand a fair chance, so why border to do it.
As Penguin is not geared financially and still holds a large cash reserve, any measure to improve financial return - ROE, EPS, dividends, etc. - to benefit shareholders should be welcomed by all shareholders.
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11-06-2021, 10:36 PM
PIL@64cents
Thank you dydx san.
I'm in 100% agreement with you.
I had been monitoring PIL every trading day and it's true that PIL had remained at the 65 cents level.
EMET Grace Ltd will definitely made another attempt to privatise PIL and I'm very sure the term likely will be better than 65cents.
PIL is financially sound with large cash reserve and I had to agree that any measure to improve financial return eg. given out large dividend etc will be welcomed by all shareholders.
We are all in sync.
Question is what would be the incentive for Jeffrey and team to encourage OPMI holding dearly to their* shares?
* "their" refers to Jeffrey and team. Eventually, when privatised successfully, all PIL shares would belongs to Jeffrey and team.
Especially if Jeffrey and team has the need to privatise PIL as quickly as they could to capture the up-and-coming sustainable energy trends, why would they want to incentivise OPMI to hold on to their* shares?
That's my thought went I figured out that Jeffrey and team won't be able to get the mandate for compulsory acquisition and sold out in the market.
Moving forward, I had to agree with you that PIL price will move up and move down, depends on the demand and supply.
As time go by, I wish all PIL shareholder good luck.
From their past performance/action, we know that Jeffrey and team is very smart.
They know what they want and the question is how they want to achieve their objective.
I hope it would be a win-win for all (including OPMI).
Delist is definitely coming and hope it come soon.
Thank you everyone for helping me in PIL.
It's a great investment journey for me.
Gratitude.
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12-06-2021, 10:22 AM
(This post was last modified: 12-06-2021, 10:23 AM by weijian.)
Jeffrey and team are patient and permanent capital.
Dymon Asia are patient but probably not as permanent, depending on the source of money used in this acquisition (ie. the mandate of their fund where the money came from)
Mr Market seems to have priced in that Jeffrey has to eventually buy out Dymon Asia, or would it be both Dymon Asia + Jeffrey trying again (but to do that, they have to wait for an opportunity, which is uncertain and dependent on future market conditions).
And would Penguin eventually have to up pay some cash as dividends so that EMET GRACE LTD gets some returns to pay down the loans (it probably took) to acquire 80% of Penguin.
Barring the market conditions, these are exciting times for Penguin lovers and OPMIs to observe and learn!
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(12-06-2021, 10:22 AM)weijian Wrote: Jeffrey and team are patient and permanent capital.
Dymon Asia are patient but probably not as permanent, depending on the source of money used in this acquisition (ie. the mandate of their fund where the money came from)
The 3 parties worked together and formed a consortium and launched a GO, which ended with a super-majority 80.05% interest. Did they expect to end up with this position, may be, and may be not. Did they expect to cross 90% and privatise Penguin, I doubt so. If they really wanted to, they would have raised the offer before the end by another say $0.10, and with some luck they could have gotten it. But they didn't.
It is reasonable to believe that before they joined hands together, the 3 parties would have thought through their combined exit plans - Plan A, Plan B, Plan C..
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12-06-2021, 11:56 AM
Penguin Lover?
When someone says they love Penguin, do they prefer it to be steamed or grilled?
I am not vested and I'm definitely looking to vest again when the price is reasonable.
As a Penguin Lover (need to be patient - I reminded myself), I really hope that the delist come sooner than later.
However, in my playbook, the longer the delist come, the higher chance that I could vest at a lower price.
Now, it's clear that a lot of OPMI expecting the delist to come and hence the price is hovering around 65.
In addition, OPMI is also anticipating that Penguin payout it's cash pile thru a (fat) dividend would certainly keep the price near 65 too.
No doubt and this is what's in my playbook:
If Penguin actually announce a (fat) dividend, then I tell myself to be very patient and wait a longer time to be vested. Likely scenario is the price will be keeping up strong, again near 65.
Exactly opposite, my chance will come when Penguin Lover expected a (fat) dividend but it did not happen, then that would be an exciting moment.
I am still learning and as a Penguin Lover for so many years, it had teaches me to be patient.
With (fat) dividend, the wait will be longer to delist.
Without any dividend, plus the frequent complaint by OPMI, will means the wait will be shorter.
I extract the following from Fairy offer document on the rationale of delist:
1. Greater Management Flexibility
The Offeror is making the Offer with a view to delisting the Company from the Mainboard of the SGX-ST and exercising any rights of compulsory acquisition that may arise under Section 215(1) of the Companies Act. The Offeror believes that privatising the Company will give the Offeror and the management of the Company more flexibility to manage the business of the Company, optimise the use of its management and capital resources and facilitate the implementation of any operational change.
2. Low Trading Liquidity of Shares
The trading volume of the Shares has been low, with an average daily trading volume1 of approximately 173,350 Shares, 104,798 Shares, 120,123 Shares and 279,521 Shares during the respective one (1)-month period, three (3)-month period, six (6)-month period and twelve (12)-month period up to and including 18 December 2020 (the “Last Trading Day”), being the last full Market Day immediately before the Company released the announcement in respect of a possible transaction involving the Shares on 21 December 2020 (the “Holding Announcement Date”). Each of these represents less than 0.13% of the total number of Shares for any of the aforementioned relevant periods. The Offer therefore provides Shareholders who find it difficult to exit the Company as a result of the low trading volume of the Shares with an opportunity to liquidate and realise their investments in the Shares at a premium over the prevailing market prices which would otherwise not be available given the low trading liquidity of the Shares.
Will the low liquidity happen again?
Is Jeffery and team happy with their current management flexibility?
Most important, the cash is piling up and a (fat) dividend for EMET Grace and vested Penguin Lover MUST happen!
Gratitude.
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Some big fluctuation in prices lately. Seems like those who are not willing to sell during GO at 65, they are aiming much higher price. But who is buying, Jeffrey and James?
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Enjoy - (from BBC) Rockhopper Penguins Hop to the Top..
https://www.youtube.com/watch?v=lVD1WaMaqDc
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05-08-2021, 11:10 PM
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