Fraser & Neave (F & N)

[CityFarmer]

A bad news for those hoping for special dividend?

http://info.sgx.com/webcoranncatth.nsf/V...500431F58/$file/Announcement_ThaiBev_TCCA_vote_at_EGM_260912_FINAL.pdf?openelement

THAIBEV AND TCC ASSETS TO VOTE AGAINST F&N’S PROPOSED CAPITAL REDUCTION

Further follow-up report from TODAY

http://www.todayonline.com/Business/EDC1...ction-plan

The capital reduction proposal requires the approval of 75 per cent of shareholders to proceed. ThaiBev and TCC Assets have an aggregate stake of about 30.66 per cent in F&N. It is already done deal that the proposal will be voted out tomorrow.

[CityFarmer]

A bad news for those hoping for special dividend?

http://info.sgx.com/webcoranncatth.nsf/V...500431F58/$file/Announcement_ThaiBev_TCCA_vote_at_EGM_260912_FINAL.pdf?openelement

THAIBEV AND TCC ASSETS TO VOTE AGAINST F&N’S PROPOSED CAPITAL REDUCTION

Further follow-up report from TODAY

http://www.todayonline.com/Business/EDC1...ction-plan

The capital reduction proposal requires the approval of 75 per cent of shareholders to proceed. ThaiBev and TCC Assets have an aggregate stake of about 30.66 per cent in F&N. It is already done deal that the proposal will be voted out tomorrow.

The capital reduction has been voted out, confirmed by the announcement

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Let's see the reaction from Mr Market when trading resume @ 3.30pm today

[wsreader]

From the total number of shares voted, it seems possible that Kirin had abstained from voting, not that it matters anyway.

[FFNow]

A bad news for those hoping for special dividend?

http://info.sgx.com/webcoranncatth.nsf/V...500431F58/$file/Announcement_ThaiBev_TCCA_vote_at_EGM_260912_FINAL.pdf?openelement

THAIBEV AND TCC ASSETS TO VOTE AGAINST F&N’S PROPOSED CAPITAL REDUCTION

I don't think it's bad news. F&N proposed capital reduction to return the proceeds back to shareholders anyway. They need to find other ways to return the proceeds back to loyal shareholders. One of them might be by special dividends.

[CityFarmer]

A bad news for those hoping for special dividend?

http://info.sgx.com/webcoranncatth.nsf/V...500431F58/$file/Announcement_ThaiBev_TCCA_vote_at_EGM_260912_FINAL.pdf?openelement

THAIBEV AND TCC ASSETS TO VOTE AGAINST F&N’S PROPOSED CAPITAL REDUCTION

I don't think it's bad news. F&N proposed capital reduction to return the proceeds back to shareholders anyway. They need to find other ways to return the proceeds back to loyal shareholders. One of them might be by special dividends.

I did not follow it closely. Since the GO is officially announced, does it mean dividend declared after then will be discounted from the offer price of $8.88?

[CityFarmer]

The acceptance of the TCC offer is not well-accepted. Till today is only 31.53%, merely 1.17% more from the announcement day, about half a month ago

http://info.sgx.com/webcorannc.nsf/Annou...endocument

At the same time, other parties are acquiring via open market @$8.89 and above

IMO, TCC is likely to increase offer price, otherwise the offer might lapse

[camelking]

1. Shareholders including myself only received the letter last friday.
2. Pointless for shareholders to sell through open market at 8.88 due to brokerage unless the offer price is say 8.91 which TCC can't offer without triggering a renew offer price

As for the increase of offer price, why should they offer an higher price when a likely scenario, if and after the offer lapses, is a collapse of trading price to below 8.88.

When the above scenario happens, they could offer a much lower price 2 or 3 yrs down the road. Alternatively, they could use the cash to expand the business with the peace of mind that comes with 30% in control.

[CityFarmer]

1. Shareholders including myself only received the letter last friday.
2. Pointless for shareholders to sell through open market at 8.88 due to brokerage unless the offer price is say 8.91 which TCC can't offer without triggering a renew offer price

As for the increase of offer price, why should they offer an higher price when a likely scenario, if and after the offer lapses, is a collapse of trading price to below 8.88.

When the above scenario happens, they could offer a much lower price 2 or 3 yrs down the road. Alternatively, they could use the cash to expand the business with the peace of mind that comes with 30% in control.

The short answer to your doubt is

- higher opportunity cost to offer later, even with much lower price.

[camelking]

ha!...nevermind...

[CityFarmer]

It may be interesting to monitor the progress of TCC's GO

Up to yesterday, the holding % is 31.88%, vs 30.36% on announcement day.

At the mean time, existing substantial shareholders (e.g. Prudential Plc) is off-loading gradually at higher price than $8.88 to other(s)

The possibility of counter-offer or revised-offer might create an opportunity for arbitration

Of course, will not deny the risk of GO lapse, due to remain conditional at the end of the day, which is still a possible outcome