Poh Tiong Choon Logistics

[choya]

"Accordingly, based on information available to the Offeror, as at 5.00 p.m. (Singapore time) on 25
October 2017, the Offeror owned, controlled or has agreed to acquire (including by way of valid
acceptances of the Offer) an aggregate of 178,357,900 Shares, representing approximately 84.15% of
the total number of issued Shares."

Getting too close for comfort

[choya]

"Accordingly, based on information available to the Offeror, as at 5.00 p.m. (Singapore time) on 6
November 2017, the Offeror owned, controlled or has agreed to acquire (including by way of valid
acceptances of the Offer) an aggregate of 183,675,300 Shares, representing approximately 86.66% of
the total number of issued Shares."

To convince those still holding out to throw in the towel?

[choya]

http://infopub.sgx.com/FileOpen/Update_L...eID=478233

Offer declared UNCONDITIONAL in all respects

Based on information available to the Offeror, as at 5.00 p.m. (Singapore time) on 6 November
2017, the Offeror owned, controlled or has agreed to acquire (including by way of valid
acceptances of the Offer) an aggregate of 183,675,300 Shares, representing approximately
86.66% of the total number of issued Shares.

The following statement is interesting:
"As stated in the Offer Document, the Offeror intends to privatise the Company and does not intend
to preserve the listing status of the Company."

Yes the offeror intend to privatise but they can't do anything till the acceptance cross 90%.  Still 3.34% (approx 7.1m shares) short....

[ghchua]

Yeah. But the problem is that what if they follow Vard example? That is, offer lapsed and one year later do a delisting offer at the same price. Minorities could only block the delisting resolution if more than 10% voted against, since they already own more than 75% of the shares and obviously will vote for it.

[choya]

Hi ghchua,

Yes they could and I will be surprised if they don't keep trying.  
Of all the industry/sector in Singapore I think logistic, especially chemical logistics is one where there is "moat" due sizable local knowledge requirement.  Therefore there are strong interest in this sector:

Alibaba in Singpost
Cosco in Cogent
HNA in CWT
?? in Poh Tiong Choon.  Not certain if the owner intends to sell to another party after he privatise. It could even be a pre-emptive strike. Who knows?

No doubt PTC PE seems rich and offer price seems reasonable based on current environment. What will happen if Singapore successfully transformed into regional chemical logistic hub, where PTC is the leading player?

[ghchua]

Hi choya,

Yes. It seems that a few of these players in chemical logistics had been taken out. In this Poh Tiong Choon case, the IFA had already cited that the offer is fair and reasonable. However, I do notice that the offeror had not been able to buy more shares in the market because there had been buyers blocking the bid price at $1.31. Obviously, the offeror cannot buy at above the offer price unless he is prepared to up the offer.

It remains to be seen whether the offeror will up the offer and get it over and done with. Otherwise, he can continue to extend the deadline again until he secure 90% of the shares. Or maybe try again one year later.

In any case, even if it is still listed after the offer closes, minorities might be left with a company with low free float. Doesn't seem to be in favour of minorities right now.

[choya]

Hi ghchua,
"However, I do notice that the offeror had not been able to buy more shares in the market because there had been buyers blocking the bid price at $1.31."
I noticed that too. Regardless, hostile takeover is no longer possible. Shrewd move by the major shareholder.

"minorities might be left with a company with low free float. Doesn't seem to be in favour of minorities right now."
Yes, this is a big risk especially if there is a major correction in the market 1 year from now.

[lonewolf]

All the arguments are moot now. The 90% threshold has been achieved and offeror will exercise right of compulsory acquisition.

The closing date has been extended to next week 27 Nov 5.30pm. I guess I will post in my acceptance form tomorrow.  

Voluntary Conditional Cash Offer - Right of Compulsory Acquisition

 As at 5.30 p.m. on 20 November 2017, the Offeror has received valid acceptances pursuant to the Offer which, together with the Market Purchases, amount to 90.17% of the total number of issued Shares (other than those already held by the Offeror, its related corporations or their respective nominees as at the date of the Offer and excluding any Shares held in treasury).

Accordingly, the Offeror is now entitled to, and will, exercise its right under Section 215(1) of the Companies Act to compulsorily acquire all the Shares of Shareholders who have not accepted the Offer (the "Dissenting Shareholders"), at a price equal to the Offer Price of S$1.30 in cash for each Share.

[choya]

Hi lonewolf,
Yeah. Game over.  Can't complain though as they have treated minority investors fairly well.

BTW, noticed you are a fan of logistic play as well.  Not many logistics play left in SGX listing (excluding REITs).

[lonewolf]

Hi lonewolf,
Yeah. Game over.  Can't complain though as they have treated minority investors fairly well.

BTW, noticed you are a fan of logistic play as well.  Not many logistics play left in SGX listing (excluding REITs).

PTC is my best performing stock ever. It's a multi-bagger that pays regular dividends over the years. So I am sad to see it goes.

I am not really a fan of logistic play. I think it's just coincidental that those I owe are (or being) taken private.