Adampak

[ken]

Delisting may be good and bad.

Well, congratulations for those who manage to make money
out of this company.

Have a cold beer, reward yourself for your hardwork
and look for another good company.

Many properous returns to you, value buddies.

[FFNow]

This Navis Capital had privatised my 2 cashcows. Now Adampak and in 2006 Mentor Media. Really good in searching for good cashflow target man.

Does Navis Capital have a website? I can't seem to find it in google.

[setan]

I'm not sure whether they have website.

[julianbream]

Ok, sgmystique, thanks and noted. Any other forummers would be keen?

I was also wondering - if Navis manages to garner more than 50% but less than to 90% of the shares, and the company thus remains listed, it means that it remains listed without Anthony Tay Song Seng, Soh Chun Seng, Ong Hock Leng etc as Directors right? (because they have accepted the $0.42 offer).

If so, is there a chance that the new directors brought in will mess with remaining shareholders by eg, incurring debt on the B/S, lousy dividend payments, etc?

I am rather new to this kind of situation and so I called Primepartners Corporate Finance to ask a few questions. They confirmed that since the major shareholders (> 50% shareholding in total) have already given irrevocable undertakings, it is likely that the offer will become an unconditional offer. If so, if I accept the 42 cents, there is no turning back - I will lose my Adampak shares forever - even if the takeover is not successful (i.e., Adampak remains listed). So I think I am going to wait and see. Should we forummers meet and confer to see if we have enough to hold out against the 42 cent offer?

I am game to meeting up. Though I am quiet a small shareholder in Adampak it is really heartening to note the privatisation attempt. Many thanks to dydx for bring Adampak into my investment radar a couple of years back...

[pianist]

with 3% shareholding in adampak, ceo chua cheng song would probably net about less than 5 million which is not so enticing..i wonder why he wanna accept the offer from navis?

meantime S&P report today said..."Although the company continues to diversify its customer base, Adampak’s revenue is primarily driven by the HDD market. If the demand for tablets increases at the expense of notebooks/netbooks, we believe that the HDD suppliers (including Adampak) may suffer financially due to a lower demand for the HDD products.

Additionally, Adampak is dependent on suppliers of raw materials that
are usually specified by customers. The group buys the bulk of its adhesives from 3M, which is a global leader in that area..."

[honeyclover]

è prices between ssd and hdd still diff by quite a wide gap. Yet to see servers going full ssd, All è increasing data still have to store somewhere. Navis buyover adampak only prove there is a bigger market, and potential opportunities. Else it wouldnt have decide to buy adampak in è first place. So if theres vote and if minority vote NO still gt chance? Cos è announcement è directors/management > 50%
Just think that è price is nt right.

[Pursuitofknowledge]

CEO Chua Cheng Song and the management may feel that navis capital can help Adampak to propell to a whole new level with their financial backing. However i share the same sentiment with some of the forummers that the offer price of $0.42 seem to be fairly price only. To make me let go of this cash cow they should definitely pay a premium!

[Musicwhiz]

The Straits Times
Apr 3, 2012
Companies
Navis makes $110.7m offer for Adampak

PRIVATE equity firm Navis Capital Partners has made a $110.7 million voluntary cash offer for mainboard-listed Adampak, which makes labels, seals and other precision die-cut components.

Substantial shareholders, who collectively hold a 52.28 per cent of Adampak's 263.63 million shares, have already said they will accept Navis's offer of 42 cents a share.

That is a premium of around 22 per cent over the stock's last traded price of 34.5 cents.

The substantial investors who have accepted the offer are non-executive director Anthony Tay Song Seng, chief executive officer Chua Cheng Song, regional business development director Chua Hook Beng, and other shareholders Ong Hock Leng and Soh Chun Seng.

The bid is being made through investment holding company Safe Label Group.

Navis intends to use Adampak's cash flow to rapidly grow its business, which may affect Adampak's ability to pay dividends, Navis said in a statement yesterday.

It also wants to make Adampak a wholly owned subsidiary and take it private.

Privatisation can occur if more than 90 per cent of Adampak's shareholders accept the Navis offer.

Navis noted it reserves the right to seek a voluntary delisting of Adampak from the Singapore Exchange.

Mr Jean-Christophe Marti, a partner at Navis Capital in Singapore, said the firm was keen on buying Adampak because of its 'extensive customer base'.

It 'provides solutions to a number of industries, including electronics, pharmaceutical and consumer products (and is) already in four Asean locations plus China,' Mr Marti said, calling it 'a regional player that we believe we can build upon and expand further organically and through acquisition'.

'We are sector-agnostic and keen to partner with strong management teams of companies which have (a) good and defensible competitive position,' he added.

'The privatisation of Adampak will allow it to save on additional expenses relating to the maintenance of its listing status and focus its resources and capital on business operations.'

This is Navis's fourth buyout of a Singapore-listed company.

It was part of a consortium that paid $167.1 million in total to acquire supply chain management firm Mentor Media in 2006.

It also made a voluntary offer for industrial footwear maker King's Safetywear and privatised it in 2008. The firm paid around $100 million, then sold its stake to Honeywell International for $430 million last year.

Navis paid $77.44 million for container services provider Eng Kong Holdings in 2010 and then took it private.

Trading in Adampak's shares was halted last Friday but will resume today.

MELISSA TAN

[Some-one]

This entire delisting thing is something new to me. I have a few things to ask.

1. Am I right to say that I would be receiving a certain documentation that would request me to sell the shares before it gets delisted?
2. I'll like to wait till Adampak xD to collect the dividend before selling it. Is it possible to wait till it xD before I sold it?
3. If I do not want to sell and keep the stock with me even after it gets delisted, what is going to happen? If I hold a stock that is privately held, does that mean I would not be able to sell it again in the future?

[setan]

Hi Some-one,

As regarding your questions,

1) You will receive a document for stating whether you accepting the offer.

2) Based on the announcement, if you wait for the delisting you will entitle for the dividend as it is declared before the offer. Any dividend announced after the offer, you will not entitled.

3) As to you do not accept the offer, I guess you will holding to a private company after the delisting. Thereafter, I do not have the experience as I do not decline any delisting offer before.

setan

---

Hi Some-one,

As regarding your questions,

1) You will receive a document for stating whether you accepting the offer.

2) Based on the announcement, if you wait for the delisting you will entitle for the dividend as it is declared before the offer. Any dividend announced after the offer, you will not entitled.

3) As to you do not accept the offer, I guess you will holding to a private company after the delisting. Thereafter, I do not have the experience as I do not decline any delisting offer before.

setan