Powermatic Data Systems

[Dosser]

Request for a trading halt, pending announcement

https://links.sgx.com/1.0.0/corporate-an...a708d7c6bc

[Squirrel]

Request for a trading halt, pending announcement

https://links.sgx.com/1.0.0/corporate-an...a708d7c6bc

Very positive news! What most people have been waiting for here. Congrats fellow shareholders that the Harrison property can finally be monetized and unlock value for shareholders.

https://links.sgx.com/FileOpen/PM_DIS.as...eID=670941

[¯|_(ツ)_/¯]

Thanks Squirrel,
Extracted more details on the Dividend in Specie (DIS):

The Proposed DIS will be effected by the distribution by the Company of all the Harrison Shares, which are to be issued by Harrison to the Company in satisfaction of the Consideration (as defined below) as well as all Harrison Shares already held by the Company upon completion of the transfer of the Investment Property to Harrison, to Entitled Shareholders by way of a dividend in specie on the basis of one (1) Harrison Share for every one (1) Powermatic Share as at the Record Date.

For illustrative purposes, an Entitled Shareholder who holds: 
(a) 1,000 Powermatic Shares as at the Record Date, would receive 1,000 Harrison Shares; 

(b) 10,000 Powermatic Shares as at the Record Date, would receive 10,000 Harrison Shares; and 

© 100,000 Powermatic Shares as at the Record Date, would receive 100,000 Harrison Shares.

the dividend to be declared for each Powermatic Share is expected to be approximately S$1.12.

For the avoidance of doubt, the Proposed DIS will not take place and accordingly the dividend shall not be paid if there is no fair and reasonable Cash Alternative.

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

powermatic@324
Corrigendum
https://links.sgx.com/FileOpen/Corrigend...eID=673601



Stay home and stay safe, everyone.

[Dosser]

A review of the proposed Dividend in Specie to address regulatory issues, with potential changes to the structure bing considered:

https://links.sgx.com/FileOpen/PMD_Updat...eID=681743

[Dosser]

1H2022 results out:

https://links.sgx.com/FileOpen/PM_1H_FY2...eID=690620

Solid performance, with profit per share increasing to 14.63c. Interim dividend of 5c/share.

[weijian]

A review of the proposed Dividend in Specie to address regulatory issues, with potential changes to the structure bing considered:

https://links.sgx.com/FileOpen/PMD_Updat...eID=681743

Would be interesting to understand what is the actual regulatory issues for learning purposes.

FURTHER UPDATE ON THE PROPOSED DIVIDEND IN SPECIE

The Board wishes to inform Shareholders that having considered alternative options and structures to effect the Proposed DIS (including the Cash Alternative), the Cash Alternative (which is a key component of the Proposed DIS) is not feasible and it is accordingly not possible to proceed with the Proposed DIS.

The Board will nevertheless continue to explore options relating to the Group’s capital and asset structure in order to maximise shareholder value.

https://links.sgx.com/FileOpen/PMD_Furth...eID=696138

[BlueKelah]

A review of the proposed Dividend in Specie to address regulatory issues, with potential changes to the structure bing considered:

https://links.sgx.com/FileOpen/PMD_Updat...eID=681743

Would be interesting to understand what is the actual regulatory issues for learning purposes.

FURTHER UPDATE ON THE PROPOSED DIVIDEND IN SPECIE

The Board wishes to inform Shareholders that having considered alternative options and structures to effect the Proposed DIS (including the Cash Alternative), the Cash Alternative (which is a key component of the Proposed DIS) is not feasible and it is accordingly not possible to proceed with the Proposed DIS.

The Board will nevertheless continue to explore options relating to the Group’s capital and asset structure in order to maximise shareholder value.

https://links.sgx.com/FileOpen/PMD_Furth...eID=696138

Sounded complicated when they proposed it but I think probably if you dont want stock for the sale of the property ( which was to the bosses) then the company would payout cash to you directly (which I think will means for this payout which shareholders like me will choose, there will be no taxation)

Personally its only one property and even though it makes the company look "asset heavy", I think they should just keep it as it is and just do another big dividend payout if they have too much cash or just do share buybacks which will help to pump the price up and make it easier to GO the company in the future.

[weijian]

I thought it sounded complicated because they were probably executing some work arounds (possibly for tax savings from the company's standpoint?)

It is entirely possible to do a sales/leaseback (to an industrial REIT or something) if the need arises in future. But if that "need" arises, it probably means the company would be in trouble!

Dr Chen Mun is 73years old now and with a much younger successor (with no familial ties) in place. He takes more in from dividends than in salary. Everyone is getting "paid modestly" (compared to many listed F&B towkays and their family members), with no siblings/spouses/children working in the company (at least not >100k per annum and need to be disclosed).

I am not sure if G.O. would be the end game especially with the succession coming up in place. I get a feeling that Dr Chen Mun may help to bump up the holdings of his successor, to give her more skin in the game at the expense of his, and translates into better stewardship for his own stake. Also the abandonment of this DIS does no favors to improve the ammunition for the majority shareholder to make any future move. It would be interesting to observe what happens next.

[BlueKelah]

I thought it sounded complicated because they were probably executing some work arounds (possibly for tax savings from the company's standpoint?)

It is entirely possible to do a sales/leaseback (to an industrial REIT or something) if the need arises in future. But if that "need" arises, it probably means the company would be in trouble!

Dr Chen Mun is 73years old now and with a much younger successor (with no familial ties) in place. He takes more in from dividends than in salary. Everyone is getting "paid modestly" (compared to many listed F&B listed towkays and their family members), with no siblings/spouses/children working in the company (at least not >100k per annum and need to be disclosed).

I am not sure if G.O. would be the end game especially with the succession coming up in place. I get a feeling that Dr Chen Mun may help to bump up the holdings of his successor, to give her more skin in the game at the expense of his, and translates into better stewardship for his own stake. Also the abandonment of this DIS does no favors to improve the ammunition for the majority shareholder to make any future move. It would be interesting to observe what happens next.

So long their 5g related business goes well I dont really care  They will continue to be a cash cow and valuation will just keep increasing. The property they have will be a good inflation hedge as well. 

I expect when he retires boss will just sell his whole stake to Qualcomm and they may take the chance to delist the company.