Spindex Industries

[ksir]

Looking at their current stakes. The main intention could be share accumulation and not delisting. Delisting could be a lucky by-product (good to have).

[Quickbeam]

is that even allowed? Are you allowed to do a partial bid?

[ksir]

They can buy the shares from market of course.
If they would to do purchase without offer, the trading volume was just too little perhaps.
So with this offer, they could buy from markets from whoever eager to sell intentionally or unknowingly.
I will not be surprised if some ppl just sell on the hike tomorrow without knowing the offer.

Anw, it is all my opinion only.
See my signature.

[se2037]

Not selling my holdings and urging other buddies not to. Latest published results are a proof Spindex can continue delivering value. 1.2 or 1.4 maybe...

Sent from my SM-N910G using Tapatalk

[se2037]

1.2 to 1.4

Sent from my SM-N910G using Tapatalk

[yeokiwi]

They can buy the shares from market of course.
If they would to do purchase without offer, the trading volume was just too little perhaps.
So with this offer, they could buy from markets from whoever eager to sell intentionally or unknowingly.
I will not be surprised if some ppl just sell on the hike tomorrow without knowing the offer.

Anw, it is all my opinion only.
See my signature.

Yes. The offer will mostly clamp the price of Spindex at 85cts.
I suppose there are enough spindex shares in hands of value investors that are unlikely to give up their shares for this offer. This implies that the probability of this scheme of arrangement will fail is high.

So, it is quite likely that their main motive is to accumulate spindex at a reasonable cost.

[header]

Not selling my holdings and urging other buddies not to. Latest published results are a proof Spindex can continue delivering value. 1.2 or 1.4 maybe...

Sent from my SM-N910G using Tapatalk

I think there is a misunderstanding here.  It is a scheme of arrangement, not GO.  If 75% of those present and voting approves the scheme, EVERYONE has to sell your shares.

[header]

Well, they are allowed to raise the price? It can imply all or nothing, but is there anything blocking them to raise the price. I unfortunately do not have the firepower to block the deal, as this is part of my PA account. Yeo Seng Chong is a value manager.  There are some other value managers in the register.

The initial announcement says they will not raise the price, therefore by Rule 20.2 of the Takeover Code, they CANNOT raise the price for this scheme. So shareholders will either get $0.85 for every share they own or they will get nothing and keep all their shares.

If the scheme is voted down, the Tan family can try again 12 months later, and at that later time they can offer a different price, whether higher or lower, and they can also keep their right to increase the price then.

Hi d.o.g and all
The Tans cannot raise the price.  But can the company pays a dividend of say $0.25 to all shareholders before the scheme is approved and takes effect?  They can insert a resolution to pay the dividends, contingent on the scheme of arrangement being approved.  In that way, all the minorities shareholder effectively get more.  Spindex has alot of surplus cash....

[brattzz]

why should they? the want to keep the surplus cash themselves rite!! hehe!

Good call dydx!! congrats!!! gong xi gong xi!!

*not vested 8)*

[AQ.]

well i'm voting no.

price is just slightly higher than book (but prob just ard book when you consider the proceeds from the sale of their Neythal Rd property and that's not considering the other plants), and a PE of <10 on ROE 10-15% even on a decent cash pile.

Going fwd, headwinds in the I&P sector should be compensated by the Appliances sector and they have a nice tailwind thru the stronger USD.

Tans own 25% so they effectively need 0.75*115mio shares*0.85 = $73.3mio for the rest of the shares, after which they can claim the entire 34mio of cash as of Dec16 (bank loans of 3mio can easily be offset thru the 4mio or so sale proceeds from Neythal), so they just need to fork out effectively 73.3-34= $40mio or so, which they can recover in 3-4yrs easily with 15mio of operating cashflows and 10mio accounting profits. 

Offer price is just too cheap.