ASTI Holdings

[beau]

ASTI Holdings Limited, an investment holding company, engages in the research, development, design, manufacture, and marketing semiconductor equipment. It operates in two segments, Back-end Equipment Solutions and Technologies; and Distribution & Services. The company provides solutions and technologies in the back-end arena, including assembly, test, and finishing; and engages in semiconductor application in consumer electronics, computer peripheral, and communication solution. It is also involved in the provision of semiconductor manufacturing services for surface mount technology components; fabrication of tooling, dies, and related molding of spare parts, as well as other related businesses; manufacture and distribution of carrier tapes and plastic reels; and property investment activities. In addition, the company develops chip packaging and related technologies; sells, distributes, and acts as a commission agent for equipment, materials, electronic components, and computer peripherals; designs and manufactures automatic molding machines and other back-ended assembly equipment; constructs antique wooden sea boats; communicates culture; and provides thermal coating, surface finishing, specialized electroplating, exhibition and conference services, etc. It operates in China, Singapore, Malaysia, the Philippines, Taiwan, Korea, India, Hong Kong, and internationally. The company was incorporated in 1999 and is based in Singapore.


P/B = 0.249
P/E = 4

Price has been beaten down within a year due to the market downturn. Net-net at 0.48x Net Current Asset Value. Their cash pile is 41m, while market cap is only 21m. Current price of 3.3 cents is near 52-week low, while 52 week high is 6.1 cents.

[brattzz]

from 61 cts to 3.3 cts??

sounds like game-over to me! :O

[beau]

Apologies for the typo. *6.1 cents

[beau]

Any insights on ASTI?

[cyclone]

Chinese Company in Advanced Talks with ASTI to Acquire ASTI’s Wholly-Owned Subsidiaries, STI Group

Highlights :
* Total consideration for the potential acquisition in the range of S$105 million to S$115 million, compared to ASTI’s current market capitalization of S$31 million
* An opportunity to realize the value that ASTI built in STI over years
* Potential to substantially increase ASTI’s cash balance and shareholder value, for it to grow and strengthen its other businesses and explore investment opportunities

More details in http://infopub.sgx.com/FileOpen/ASTI_STI...eID=471089

[crabcrab]

ASTI ($0.096) - Supposing if deal is successful at all cash consideration of S$115 mil and given the current number of shares issued is 645 million shares, it will translate to a realization of approximately $0.175 net cash per share. Other biz units at about another $0.05 per share. So intrinsic value per share should be about S$0.225 per share.

In addition, unlike other companies which made announcement at preliminary discussion stage, Asti had already executed a Term Sheet (a document which sets out certain terms of a transaction agreed in principle between parties, and is typically negotiated and signed at the beginning of a transaction.) Term sheets evidence serious intent although generally are not legally binding. So IMHO, likely this deal should go through.

(Good Luck.

(Caveat Emptor)

[CY09]

Asti selling their subsidiary for full cash with no need to repay debts on the subsidiary balance sheet?

[cyclone]

ASTI seals the deal for the disposal of its wholly-owned subsidiaries, forming STI Group, for S$90 million in cash

* In addition to the S$90 million to be paid in cash, a S$38 million dividends will be declared to ASTI in accordance with the terms and conditions in the SPA
* The deal realizes the value that ASTI built in STI over years, which is substantially higher than ASTI’s book value of S$50.6 million and market capitalization of S$47.8 million as of March 29, 2018
* The NAV per share is expected to increase by 104% to 14.44 Singapore cents and Cash per share will increase by 202% to 13.68 Singapore cents, compared to ASTI’s last trading price of 7.3 Singapore cents on 29 March 2018
* ASTI will capitalize on the enhanced financial resources to grow its other businesses and explore investment opportunities

More details in http://infopub.sgx.com/FileOpen/ASTI%20-...eID=495303

No special dividend for ASTI shareholders ?

[BRT]

no mention of special div.
http://infopub.sgx.com/FileOpen/ASTI%20A...eID=495302

section 4:
The estimated net proceeds from the Proposed Disposal, after deducting estimated expenses
to be incurred in connection with the Proposed Disposal of approximately S$17,200,000, is
approximately S$72,800,00 (the “Net Proceeds”). The Company intends to utilize the Net
Proceeds for general working capital requirements of the Group and to fund future business
expansions, investments and acquisitions when suitable opportunities arise. Pending the
deployment of the Net Proceeds for the purposes mentioned, such proceeds may be
deposited with financial institutions, invested in short term money markets and/or marketable
securities, or for any purposes on a short-term basis, as the Directors may deem appropriate
in the interests of the Group.

boomz

[BRT]

had a quick closer look. based on this release (http://infopub.sgx.com/FileOpen/ASTI%20A...eID=495302), and the press release which says "ASTI’s book value of S$50.6 million". section 5.2.3 says about the second payment:

"If 10% of the Consideration is less than the Net Assets Adjustments, then PDSTI does not
need to make the Second Payment to the Company. Instead, the Company shall make the
payment in cash equal to the aforementioned shortfall, being the difference between the net
Assets Adjustments and 10% of the Consideration, to PDSTI within ten business days upon
the date of completion of the Closing Audit."

does it mean the likelihood of the NAV being under 69M (got to read the link for context) is high, and consequently the event that ASTI needs to pay PDSTI is also high?