Challenger Technologies

[ghchua]

If Mr loo has given up, it's a bad sign on sg market and that cost of business is spiraling out of uncomfortable control, quite sad

The Offeror is a special purpose vehicle incorporated in the Cayman Islands and it is a 70% owned by Loo SPV and 30% by PE.
https://links.sgx.com/1.0.0/corporate-an...190320.pdf

So, to answer your question, Mr Loo didn't gave up. The Loo SPV is teaming up with private equity, Dymon Asia to buy out minorities and delist the company.

[Big Toe]

Given up? Quite the opposite. Loh family sees it as something much more valuable than 56ct hence decided to take it private with private equity funds. If i own 100% a company similar to challenger now, there is no reason to having it listed. Dont need funds, dont need the listing publicity(SGX is not the best place to list anyway, see Razer), low valuations on traded shares and the cost of staying listed and having to be accountable for results and dividends. What for??? All pain and no gain.

[weijian]

These guys (Dymon Asia PE) seems to be the same folks who teamed up Mgt to do a management buyout of Select Group 3 years ago.

https://www.valuebuddies.com/thread-7381.html

Challenger has no borrowings now. So according to PE's playbook, believe it may do a "Courts Asia" (delisted with little/no debt, declare dividend, borrow money and list) in future? So far, i think there is no action at Select Group to indicate what may happen to Challenger in future.

[valueinvestor]

Given up? Quite the opposite.  Loh family sees it as something much more valuable than 56ct hence decided to take it private with private equity funds. If i own 100% a company similar to challenger now, there is no reason to having it listed. Dont need funds, dont need the listing publicity(SGX is not the best place to list anyway, see Razer), low valuations on traded shares and the cost of staying listed and having to be accountable for results and dividends. What for??? All pain and no gain.

But are MAS and SGX aware of these ?

[pianist]

Sgx should do more education for retail on this area and effect its proposals protecting minority in that consultation papers quickly. Mano bid in ltc failed because the paper still not effect

[AQ.]

The Loos currently own 54.6% of total 345mio shares i.e. it needs 0.454*345*56c = $87.7mio to buy out remaining minorities.

But since there is $63mio of cash on balancesheet as Dec18, the net outlay from their own pockets is just ~25mio i.e. ~16c/share

[ghchua]

The Loos currently own 54.6% of total 345mio shares i.e. it needs 0.454*345*56c = $87.7mio to buy out remaining minorities.

But since there is $63mio of cash on balancesheet as Dec18, the net outlay from their own pockets is just ~25mio i.e. ~16c/share

I don't think the Loos will be footing the whole bill, since Dymon Asia also has a 30% stake in the offeror.

[cif5000]

The Loos currently own 54.6% of total 345mio shares i.e. it needs 0.454*345*56c = $87.7mio to buy out remaining minorities.

But since there is $63mio of cash on balancesheet as Dec18, the net outlay from their own pockets is just ~25mio i.e. ~16c/share

I don't think the Loos will be footing the whole bill, since Dymon Asia also has a 30% stake in the offeror.

Seems to me that Ng Leong Hai was the one who wanted to exit. Being a long time partner of Loo, NLH could have sold his stake to Loo. At $0.56 a share, it would cost Loo $46.5m and not result in any practical advantage for himself. Instead, Dymon came in, supplied the cash, helped NLH exit, and became the new partner.

[ghchua]

Value fund house, Pangolin Investment Management, holding a 2.94% stake in Challenger Technologies, is calling on other shareholders to reject the delisting offer.
https://www.theedgesingapore.com/challen...nd-payouts

[challengerSH]

Hi all, I' m a minority SH, and agree fully with Pangolin that Challenger' s offer is low and we deserve better!  Let' s join the fight with Pangolin in demanding a fairer deal.  We need to hit 10% to veto the resolution so please reach out to  challengershareholders@gmail.com if you are keen.  Thanks.