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Spindex Industries
12-01-2018, 06:44 AM,
Post: #281
Spindex Industries
(12-01-2018, 12:33 AM)Kaimin Wrote:
(11-01-2018, 11:27 PM)ksir Wrote: To me the biggest risk in investing in spindex is the low ball offer from the majority shareholder.
Obviously there is nothing illegal.
But, if you & some other minority shareholders own a passive 30% stake in company with your active biz partner who owns 70% and yet from the experience your partner did offer you some low ball price to acquire your stakes. Luckily to you, the offer was failed.
However, history tends to repeat itself. He just has to keep trying to increase the stakes and voila, sooner or later you are out by another low ball.
No matter how appealing the numbers are, the structure and “incentive” of the Management (from track record) is not aligned with minority shareholders.
<used to be vested>

But takeover bids are made at a premium to the current price, usually a good one (ie 21% for spindex this Feb).

Because our valuation is based on intrinsic value and if at current price you think that it is underpriced, the offer price was damn underpricing the minority shareholders?
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".

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12-01-2018, 08:52 AM, (This post was last modified: 12-01-2018, 05:24 PM by dydx.)
Post: #282
RE: Spindex Industries
In the last GO, the Tans managed to raise their interest from 25.47% to 72.4% by acquiring 54.14m shares at a low-ball offer of $0.85/share - i.e. the Tans spent a total of $46.02m (before professional fees). Conceivably, a big portion of the amount spent was borrowed from DBS Bank, as based on the latest Statistics of Shareholdings the entire of the Tans' interest is held under the name of DBS Nominees. With 72.4%, it is now quite easy for the Tans to negotiate with potential suitors interested in the whole Spindex business for a reasonable fair market valuation.

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