Challenger Technologies

[pianist]

What the purpose of reaching out to that designated email? Organise attending kopi session? I join challenger membership mainly because of chance to be shareholders, otherwise I will stop patronising their stores

[challengerSH]

What the purpose of reaching out to that designated email? Organise attending kopi session? I join challenger membership mainly because of chance to be shareholders, otherwise I will stop patronising their stores

It's totally up to you as it's your vote, but the closer we get to 10%, the stronger we are.  

http://www.pangolinfund.com/news_detail.php?id=207

http://pangolinfund.com/sysadmin/images/...202019.pdf

[brattzz]

If can get 10%, can block the buy-out! 😅

[challengerSH]

Q:  Does the offer price of 56 cents include the 2 ct dividend? if it does, the offer is effectively only 54 cents.

Seems like there's confusion based on queries sent to challengershareholders@gmail.com.  Here's my understanding:

- If the delisting resolution is passed successfully at an EGM before the dividend ex-date, Challenger will receive the 2 ct dividend.  Hence, the offer is effectively only 54 cents.
- Last year, Challenger's AGM was held on 26th April 2018.   If Challenger organises this year's AGM also in April 2019, and passes the EGM delisting resolution we will get only 54 cents.
- Last year, Challenger's dividend ex-date is 3 May 2018 vs this year's dividend ex-date of 15th May 2019.    It seems that Challenger has delayed the dividend ex-date this year by two weeks to avoid paying it in addition to the 56 cents offer.

Conclusion:  It seems like our offer is effectively only 54 cents.   Sneaky!!!


Link:  https://links.sgx.com/FileOpen/Joint%20Press%20Release%2020190320.ashx?App=Announcement&FileID=548008 
 
The Exit Offer Price has been determined on the basis that the Offer Shares will be acquired with the right to receive any and retain all dividends, rights and other distributions ("Distribution") that may be declared, paid or made by the Company on or after the Joint Announcement Date. As stated in the announcement by the Company dated 15 February 2019, the directors of the Company ("Directors") have proposed that a final one-tier tax exempt dividend of S$0.02 per Share be paid for the financial year ended 31 December 2018. If the settlement date falls after the books closure date for the determination of entitlements to the Distribution, the Exit Offer Price shall be reduced by an amount which is equal to the amount of the Distribution in respect of each Offer Share. 




Q:  I'm a minority shareholder.  How do I support Pangolin's fight for a more reasonable offer?

- We need 10% shareholding to veto the delisting resolution.  
- Pangolin started off with 2.94%.  Now they are at 6.6%, expecting to exceed 7% in the next 3 days.  
- Calling all minority shareholders, every share count !!!   
- If you support a more reasonable offer, please let Pangolin know how many shares you have - write in at http://www.pangolinfund.com/contact.php.    
- Big thank you to Pangolin for helping us coordinate centrally, let's help them help us!

[pianist]

Re Yr point 2, what do u mean now pangolin now is at 6.6%, how did they make other pledge so faithfully to them?
Re Yr point 1 clarification which seems equally confusing, I read the announcement differently to mean - if the settlement/resolution is passed before the X date, the offer would be 56cent, otherwise its 54cent.

[challengerSH]

Re Yr point 2, what do u mean now pangolin now is at 6.6%, how did they make other pledge so faithfully to them?
Re Yr point 1 clarification which seems equally confusing, I read the announcement differently to mean - if the settlement/resolution is passed before the X date, the offer would be 56cent, otherwise its 54cent.

No problem, happy to clarify what I meant: 


Point 1 - What I'm trying to say is that Challenger is not offering us 56 cents (3 cents premium compared to last traded 53 cents) but is instead offering us only 54 cents as the 2 cents dividend already rightfully belongs to us cos dividend was announced more than a month ago before the de-listing announcement came out.  So Challenger is only giving us 54 cents vs last traded price of 53 cents, a premium of less than 2% over last traded, so I found it very sneaky that they pretend they are giving us a much higher delisting premium than it actually is.

I also found that management is unreasonable to reduce dividend by 6% from 3.3 cents in 2017 to 3.1 cents in 2018 despite profit increasing from 16.1m to 19.6m  and despite cash before WC increasing from 22m to 26m.   To me, it seems like management is trying to paint us a story that the business is worsening so they had to reduce dividend and preparing us for a very low and unreasonable delisting offer.  It is very sad that Mr Loo, whom I respected as a smart businessman needs to resort to doing such things ...


"If the settlement date falls after the books closure date for the determination of entitlements to the Distribution, the Exit Offer Price shall be reduced by an amount which is equal to the amount of the Distribution in respect of each Offer Share."  In the detailed announcement (https://links.sgx.com/FileOpen/Joint%20A...eID=548007), Page 3 illustrates that assuming: (i) the settlement date in respect of the Offer Shares validly tendered in acceptance of the Exit Offer falls after the Books Closure Date in respect of the FY2018 Dividend; and (ii) the amount of the FY2018 Dividend is S$0.02 per Share, the Exit Offer Price received by an accepting Shareholder shall be S$0.54 for each Offer Share."   



Point 2 - Everybody needs to decide and exercise their own vote at the end of the day.   What I meant is that the additional 3.7% (Pangolin's 2.94% + 3.7% other minority shareholders = 6.6%) have contacted Pangolin in writing to say they support Pangolin's cause and will vote against the delisting resolution, so if the current offer remains, I think these 3.7% will vote against the resolution.



In any case,  I am always happy to hear what other value buddies have to say!    (I think fellow valuebuddies - Hayden, MOV, Scg8866t have written about this in previous posts?)

[weijian]

Point 1 - What I'm trying to say is that Challenger is not offering us 56 cents (3 cents premium compared to last traded 53 cents) but is instead offering us only 54 cents as the 2 cents dividend already rightfully belongs to us cos dividend was announced more than a month ago before the de-listing announcement came out.  So Challenger is only giving us 54 cents vs last traded price of 53 cents, a premium of less than 2% over last traded, so I found it very sneaky that they pretend they are giving us a much higher delisting premium than it actually is.

The 2cts dividend was announced on 15th Feb. If the market is sufficiently efficient, it would have built in a "2ct dividend" premium and so the last traded price of 53cents would have incorporated this premium. So from a neutral perspective, i wouldn't think it is fair to frame that the premium is only 1 cent.

For example, let's assume share price does not change post 15th Feb and continues to be at 53cent until XD date. At the same time, the takeover is not announced (nor leaked) between 15th Feb to XD date. After XD date, the share price would drop to 51cent. If the take over is immediately announced after XD date at 54cents, the premium would be 3 cents.

[challengerSH]

Good news.  Pangolin has managed to contact 7.4% minority shareholders voting NO to the delisting offer, up from 6.6% last Friday.  Let's keep the momentum.  

Please spread the word and encourage all with shares to write in to Pangolin using the 'Contact Us' page.  

Even if you cannot attend the EGM, we can help with your proxy vote, so please write in! Thank you very very much for working towards our collective good.

http://www.pangolinfund.com/news_detail.php?id=207

[pianist]

the loo consortium is also keeping up with their momentum everyday buying in at 0.56 in a big way

[challengerSH]

the loo consortium is also keeping up with their momentum everyday buying in at 0.56 in a big way

An additional 4.5% minority shareholders has come forward to Pangolin since the announcement, so it's approximately 15,500,000 shares vs  1,830,700 for shares purchased by Challenger.

So, momentum for minority shareholders is much faster.  Please keep spreading the word to all minority shareholders!

I encourage all minority shareholders to reach out to Pangolin if you have not.    Use the Contact Us page.

If you can't attend the EGM, we can help with your proxy voting.

http://www.pangolinfund.com/news_detail.php?id=207