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31-03-2013, 12:23 AM
(30-03-2013, 06:12 PM)Gaudente Wrote: With this new offer they have increased the post offer book value per share to 25 SGD cents , same as it was in 31.12.2012 consolidated financial statement.
Can't say to be happy with it , however, considering I had bought my 100,000 shares in Nov 2010 at 27 cents for their high dividend yield , dividend that last year suffered an unjustified 90% cut in spite of a much smaller reduction in earnings.
Besides, even if the most logic thing to do with a cash only company would be to disband it and distribute the cash to its shareholders, we have no assurance that's going to happen so we can't say the shares are worth their 25 cents of cash either.
Whatever way you look at it, it's a bad rip off
Well the minorities can still block the deal by voting at the EGM. One can do this by attending it personally, nominate a proxy to vote on one's behalf or vote via post. The minorities can hope to delay as long as possible, cash would continue to accumulate but your money would be stuck, therefore an opportunity cost especially in a market that is rising. If the status quo is maintained, LTHB can still choose not to give out dividends to frustrate the minorities into giving in later. Wonder what the independent directors would be doing. It is a test of their credibility. But in the end, there must be an exit plan for all minorities with regard to the shell company. The cash hoard will still shrink if left by itself to pay staff and other overheads, especially when there is no revenue generated or if not reinvested. My other question is what happens to Grob Holz. Will it be a liability to the shell company? The questions, they keep coming.
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