Dutech Holdings

[SLC81]

Hi Dydx, I have no good feeling about Dutech same as with Eratat and the rest of China originated listed companies in Singapore. I could have been stubborn to avoid them but it had really saved me from losing lot of money

[dydx]

Dutech's share price has been inching up quietly since Nov13, and this morning (27Mar14) the counter is accelerating its ascent, so far up $0.012 or 6.9% with last done at $0.185…..
http://sg.finance.yahoo.com/q/bc?t=1y&s=...=l&c=&ql=1

Against the STI, Dutech has already out-performed the overall SG market by over 35% in the last 6 months.

[kelvesy]

http://www.nextinsight.net/index.php/sto...th-s-chips

Slight mention of Dutech and how management of S-chips plays an important role.

[hh488]

Hmm,

Share price suddenly shot up +3ct.

Something brewing?

[changwk]

hi,

Dutech declared an interim dividend of $0.01 after the 2014 quarter 1 announcements.

http://infopub.sgx.com/FileOpen/Dutech_1...eID=296981

[portuser]

There has been no discussion on the arrangement to compensate Droege, who received 28,536,000 Dutech shares for selling Format in 2011, in the event of Droege selling his Dutch shares, later, below certain price. Dutech’s circular dated 10 June 2011 set out the formula as follows:

An = number of Consideration Shares sold × (Euro 5,000,0000 ÷ 28,536,000 - net proceed per Consideration Share in Singapore Dollar (“SGD”) ÷ exchange rate)
Total Compensation B = the sum of An
The Company shall compensate the amount of B (the sum of An) to Droege, subject to B being positive.

Yesterday, Dutech announced some changes to the arrangement as follows:

(a) amending the 6 month validity period starting on October 1, 2014 and ending on March 31, 2015 to a period starting on October 1, 2019 and ending on March 31, 2020 (“Validity Period”);
(b) amending the compensation formula under clause 2.1 of the Compensation Deed such that dividends are deducted from the calculation of An as follows:
For any transaction during the Validity Period:
An = number of shares sold × (EUR 5,000,000 ÷ 28,536,000 − net proceed per share in SGD ÷ Exchange Rate − the sum of dividends received per share in SGD during the period starting on January 1, 2014 and ending on March 31, 2020 ÷ Exchange Rate as of the date of the payment of the respective dividend, to the extent that the aggregate dividend per share during the period does not exceed of € 0.053).

The revised terms seem more favourable to Dutech as the risk of Dutech share being below 30c during the validity period of 1 Oct 2019 and 31 Mar 2020 is quite small.

Do those who have been tracking Dutech agree that this inference is correct?

[dydx]

Based on today's (1Aug14) announcement, it appears that Dutech has made yet another value accretive acquisition in Germany…
http://infopub.sgx.com/FileOpen/Ann_Acqu...eID=307899

Dutech is paying only EUR 1.0m for a 60% stake in Deutsche Mechatronics GmbH (founded 1947) - with a NAV net tangible asset of EUR 13,674,000 as at 31Mar2014 - which is engaged in design, manufacture, and assembly of drying solution for graphics and printing industries, intelligent terminals, visual quality control machines, and other sheet metal products. In addition, Dutech through its wholly-owned German subsidiary Tri Star GmbH will provide a one-year shareholder loan of EUR 1,000,000 bearing an interest
rate of 3% to Deutsche Mechatronics.

More info on Deutsche Mechatronics…..
http://www.deutsche-mechatronics.de/homepage.html

[MrValue]

It's puzzling why a co with NTA of €13,674,000 would be sold for so much less..
The co is probably loss making with other constraints on its ability to realise it's NTA?

[changwk]

Based on today's (1Aug14) announcement, it appears that Dutech has made yet another value accretive acquisition in Germany…
http://infopub.sgx.com/FileOpen/Ann_Acqu...eID=307899

Dutech is paying only EUR 1.0m for a 60% stake in Deutsche Mechatronics GmbH (founded 1947) - with a NAV net tangible asset of EUR 13,674,000 as at 31Mar2014 - which is engaged in design, manufacture, and assembly of drying solution for graphics and printing industries, intelligent terminals, visual quality control machines, and other sheet metal products. In addition, Dutech through its wholly-owned German subsidiary Tri Star GmbH will provide a one-year shareholder loan of EUR 1,000,000 bearing an interest
rate of 3% to Deutsche Mechatronics.

More info on Deutsche Mechatronics…..
http://www.deutsche-mechatronics.de/homepage.html

How does this new acquisition fit into the overall business? It sounds like a new business all together.

[boochap]

http://www.deutsche-mechatronics.de/current-issues.html

EUR 1m for 60yrs worth of German technology. Cheap lah!