Superior Multi-Packaging

[cif5000]

If I guess correctly, Crown has just passed 90% ownership, and this stock will be suspended soon. 15 Aug will be exactly 12 months from the last offer, and Crown will likely succeed in delisting the company this time.

I have the same feeling.

The last offer closed on 28 Nov 2012 and the restriction on offeror buying above the offer price is 6 months from the close.

From the top 20 SH list, there's only one SH with 13m+ shares and the transaction yesterday should be him selling out. Plus the 5m+ shares transacted today, that would allow Crown to cross 90% if they were indeed the buyer.

Beautiful move.

[dydx]

Finally cleared my lot of shares today, at an extra $0.045/share above the last GO price of $0.14/share. This SupPack experience has reinforced my doggedness and patience as a value investor.

[brattzz]

congrats dydx! YES! DOGGEDNESS is needed very much indeed at these trying times!!

[Devil]

Crown got 90.53% of the shares. Compulsory acquisition seems imminent.

I wonder what are the grounds available to contest such acquisition.

and since subsequent offer has to be as good as any previous purchase, can shareholders now ask for more than 0.185 due to time value of money?

someone might also want to do some legwork, to verify that crown did not purchase any shares above 0.185? There were some trades at 0.187. the average price of crown purchase is 3599500.79/19459000=0.1849787

[opmi]

For CA, it is 90% of shares o/s (EXCLUDING the shares already owned by offeror before CA).

so to do CA, Crown may need to have more than 90%. Unless they use another takeover vehicle.

[corydorus]

How you have the Gut to holdout that long is beyond me. Yes, a Beautiful Move indeed.

[opmi]

At time of offer, isn't there any other investment opportunity that can give >30% at the same level of conviction???

[Devil]

For CA, it is 90% of shares o/s (EXCLUDING the shares already owned by offeror before CA).

so to do CA, Crown may need to have more than 90%. Unless they use another takeover vehicle.

Where a scheme or contract involving the transfer of all of the shares to another company has, within 4 months after the making of the offer in that behalf by the transferee company, been approved as to the shares whose transfer is involved by the holders of not less than 90% of the total number of those shares (excluding treasury shares), the transferee company may at any time within 2 months, after the offer has been so approved, give notice in the prescribed manner to any dissenting shareholder that it desires to acquire his shares

a simplified version from section 215 of companies act.

The act uses 90% of all issued shares, excluding treasury shares.

crown last offer ended 28 Nov 2012, so that is at least 4 months away. To initiate a CA, they indeed probably have to use another company, which is easy.

[opmi]

It is easy to set up. But what is the tax implications? Mainly capital gains on sale of original takeover vehicle to the second takeover vehicle?

Is it worthwhile?

[Devil]

crown may be able to avoid paying such capital gain tax using approved special purpose vehicle, qualifying as approved asset securitisation transaction.

Even if they are unable to avoid the capital gain tax:
SAC Capital has a RNAV of 0.2955 for Suppack on 30 june 2012

Crown has to pay 17% on capital gain, which on 327,018,243 shares, for $0.045, is $2.5 million
Using an offer price of 0.185, the gain, calculated using RNAV, from eliminating the minority shareholders, is 29349502 shares*0.115, is 3.37 million. So they still make a profit.

Furthermore, they get to eliminate other shareholders, cutting down on the compliance costs.