Auric Pacific Group

[ghchua]

It is a difficult question to answer and it really depends whether you trust the majority shareholders (i.e. their motives and whether the company can continue to grow under them as an unlisted entity). Although there might not be another offer to buy out their shares, if the company can still grow and deliver, you can be sure that its NAV will continue to raise and the next offer that comes will be higher than the present one.

Of course, you cannot control whether there will be a next offer and whether they will continue to pay dividends. That is the risk of holding unlisted entity that one should be aware of as there is no market for your shares.

[holymage]

ghchua, do you have shares in unlisted companies? Would you mind sharing your experience?

Actually I am no longer vested in Auric. Sold off once the Riadys controlled over 90% stake. As the company is not minority shareholder friendly, I figured that it is not worth the risk and there are always opportunities. Just sharing to those still having a stake.

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[ghchua]

ghchua, do you have shares in unlisted companies? Would you mind sharing your experience?

Actually I am no longer vested in Auric. Sold off once the Riadys controlled over 90% stake. As the company is not minority shareholder friendly, I figured that it is not worth the risk and there are always opportunities. Just sharing to those still having a stake.

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The problem with unlisted entities is always limited disclosure. So, as I have mentioned above, it is really whether you trust the majority shareholders. It will be good if there is another outside shareholder holding more than 5% and staying with the unlisted company so as to "put pressure" on the majority shareholder.

Good and bad experiences with unlisted companies on a whole. Some of them do continue to pay dividends after they had been delisted but some stopped altogether. Just ask shareholders of Goodwood Park Hotel. They are comfortable holding onto the shares of the company when it was delisted and ultimately got a very good exit offer many years down the road.

[karlmarx]

Old news. Auric sold its distribution business for about 11x EBIT. The CHF 160 million sale price, at CHF/SGD 1.35, meant that Auric received about S$207m. Auric was privatised at a market cap of about s$210m. Auric still has the bakery and food court business, which might be worth another S$200m. I suppose, on hind sight, the privatisation of Auric helped the Riadys to redirect cash towards their other troubled companies.


The consumer goods distribution business of Auric Pacific generates net sales of around CHF 185 million with an operating profit (EBIT) of approximately CHF 14 million. DKSH is acquiring 100% of this business in Singapore and Malaysia for a consideration of around CHF 160 million.


http://www.dksh.com/th-en/home/media/new...973.digest