Dutech Holdings

[noon]

The offer is unconditional so it will be wise to sit tight for now rather than throw in the towel and let Liu laugh all way to the bank

[Chiefdododetective]

The offer is unconditional so it will be wise to sit tight for now rather than throw in the towel and let Liu laugh all way to the bank

I agree with you. Recent offer by Cheung Woh is 20% above its NAV even though it is lost making!

[ghchua]

Dear all,

An interesting saga had emerged after IFA report had been out:
https://links.sgx.com/1.0.0/corporate-an...rcular.pdf

IFA opinion is that the offer is not fair but reasonable and advice IDs to recommend shareholders to accept the offer. Normally, all the IDs will concur with IFA opinion but that is not the case here. Two directors (independent of the offeror, but representing Droege Group which holds around 8.8% of the shares) disagree with the advice given by the IFA and recommend that shareholders reject the offer.

What's next? If Droege Group reject the offer, the offeror will possibly not able to compulsory acquire all the remaining shares out there since they would not be able to acquire 90% of the shares so easily. Even if the offeror seeks the voluntary delisting route after the offer closes, they would not be able to do so at current offer price as the exit offer must be deemed "fair and reasonable".

I guess the only way for the offeror to get out of this deadlock is to increase the offer price. Otherwise, the company will stay listed (whether it is under suspension due to insufficient free float or can be freely traded) after the offer closes.

[dydx]

With Droege Group objecting, Chairman Dr. Johnny Liu will now have to sit down with Dr. Hedda Juliana im Brahm-Droege (non-executive director representing Droege Group) to have a cup of tea, to discuss a fair and reasonable price for Droege Group's 8.8%, and UOB Kay Hian and lawyers advising Dr Liu will be there to help secure Dr Brahm-Droege's written undertaking to sell once a mutually agreeable price has been reached. And that price shall become the revised offer price, which hopefully will be good enough for Robert Stone (6.47%) and other minority shareholders.

I do see a likely positive development emerging.

[Yoyo]

Question: If I accept the offer of 40c now, and the offeror subsequently revised the offer price upwards to said 44c, do I get to first receive the 40c payment upfront and later another 4c payment? Or, do I receive 40c only. Are early offer acceptance eventually compensated for the price revision?

Today trade volume of 720k at 40.5c

This means that one can pay a small premium of 0.5c to partake on any potential offer price revision which are deemed probable as the offer is seem as not fair but reasonable.

Just to join the fun, I took a small bite of 150k today. Thanks to all for your posting.

Vested

[ghchua]

Question: If I accept the offer of 40c now, and the offeror subsequently revised the offer price upwards to said 44c, do I get to first receive the 40c payment upfront and later another 4c payment? Or, do I receive 40c only. Are early offer acceptance eventually compensated for the price revision?

Hi Yoyo,

I refer you to the relevant portion of the takeover code.

© Revision

Pursuant to Rule 20.1 of the Code, the Offer, if revised, will remain open for
acceptance for a period of at least 14 days from the date of despatch of the
written notification of the revision to Shareholders. In any case, where the terms
of the Offer are revised, the benefit of the Offer (as so revised) will be made
available to each of the Shareholders, including those who had previously
accepted the Offer.

Therefore, the answer to your question in your example is that you will receive 44c in total.

[Yoyo]

Hi ghchua

Loud and clear. Thanks for your clarification.

[Coco]

Based on ghchua & dydx excellent posts above, can we conclude that buying at 40.5 cents now makes sense as the offer price has to be revised higher? Would anyone?

[¯|_(ツ)_/¯]

Well, I read both Sifu Chua and dydx posts and after some thought, it does make sense to me.


nextinsights says the same things too:
https://www.nextinsight.net/forum/3-sgx-...over-offer


However, due to the recent tech stocks declined, I had decided to give Dutech a missed and looking into US and China/HK tech stocks instead.

Wish me luck and wish those who plan to vesting in Dutech lucks too.

Victory:


Stay home and stay safe, everyone.

[Shiyi]

Well, I read both Sifu Chua and dydx posts and after some thought, it does make sense to me.


nextinsights says the same things too:
https://www.nextinsight.net/forum/3-sgx-...over-offer


However, due to the recent tech stocks declined, I had decided to give Dutech a missed and looking into US and China/HK tech stocks instead.

Wish me luck and wish those who plan to vesting in Dutech lucks too.

Victory:


Stay home and stay safe, everyone.