(09-02-2017, 05:42 PM)Quickbeam Wrote: Crappy Price. Should at least be 1SGD given recurring earnings, cash position and growth potential. What is the likelihood of a higher bid?
*vested*
The announcement says the offeror does not intend to increase the price. So unless there is a third party that shows up with a better price, it is take it or leave it.
It is a scheme of arrangement, which means all-or-nothing. It needs:
i. a majority of shareholders present and voting, representing at least 75% of the shares among those present and voting; and
ii. Court sanction
Court sanction is probably a given. So to block the scheme a shareholder would need to have over 25% of the shares among those present and voting, or get a majority of those present to vote against the deal.
If there are 100 shareholders at the meeting with 20m shares, and among them there is one shareholder with over 5m shares, that one shareholder can block the scheme. Likewise if there are 51 shareholders against the deal, even if they only own 100,000 shares out of the 20m shares present and voting, they will block the deal.
So if you don't like the deal, either own a truckload of shares, or rally an army of small shareholders to your cause. Yeo Seng Chong is the only large non-Tan shareholder disclosed in the annual report, so if he can be persuaded to vote against the deal, that is likely to block it. On the other hand, the Tans would probably have checked with him in advance on whether he would block a deal, so it's not likely that they would have proceeded if he'd signaled opposition.
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