Challenger Technologies

[dreamybear]

@dydx - thx for sharing your insights on the moat of Challenger.

@brattzz - do u happen to know is Dymon a passive investor or do they work with Challenger (e.g. Novo Tellus/ISDN) ? There's a Dymon representative in the BOD, wonder if any shareholder ever ask in AGM what does Dymon see in Challenger and what is their plan moving fwd(other than privatization) .... wonder if there are business strategies Challenger is contemplating which are more suited if it was a private company ....

----------------------

physical stores are still relevant.

Singapore shoppers blur lines between online and offline retail: report
https://www.businesstimes.com.sg/startup...ail-report
"....The data and analytics company on Wednesday (Jun 14) reported that nearly half (or 48 per cent) of shoppers browse in physical stores before buying online, while the other half (or 49 per cent) browse online before buying in a physical shop...."

[brattzz]

"@brattzz - do u happen to know is Dymon a passive investor or do they work with Challenger (e.g. Novo Tellus/ISDN) ? There's a Dymon representative in the BOD, wonder if any shareholder ever ask in AGM what does Dymon see in Challenger and what is their plan moving fwd(other than privatization) .... wonder if there are business strategies Challenger is contemplating which are more suited if it was a private company ...."

dreamybear : Dymon is NOT a passive investor...Keith Tan is Chairman of the Dymon Asia Private Equity Investment Committee and a founding partner of Dymon Asia Capital, and he is buying in regularly!.. they have taken on a board seat to supervise/direct their holding % in challenger, (whether they like it or not....don't think they like to run challenger as a biz too...leave it to Loo Family best!)

it is not in the interest of Dymon to tell/show OPMIs what they see in challenger, as they are the main beneficiaries should privatization is success! (the more they say, the more OPMIs will not sell, the higher price they have to pay!

Let us look over the past 5-8 yrs of challenger's biz model and markets.... there is already a trend...a digital supply trend...of a bigger e-commerce modelmarket...

so Dymon's biz is "get it privatized cheap, dress up the books and sell at huge tech valuation profit! huat har!

[dreamybear]

"@brattzz - do u happen to know is Dymon a passive investor or do they work with Challenger (e.g. Novo Tellus/ISDN) ? There's a Dymon representative in the BOD, wonder if any shareholder ever ask in AGM what does Dymon see in Challenger and what is their plan moving fwd(other than privatization) .... wonder if there are business strategies Challenger is contemplating which are more suited if it was a private company ...."

dreamybear : Dymon is NOT a passive investor...Keith Tan is Chairman of the Dymon Asia Private Equity Investment Committee and a founding partner of Dymon Asia Capital, and he is buying in regularly!.. they have taken on a board seat to supervise/direct their holding % in challenger, (whether they like it or not....don't think they like to run challenger as a biz too...leave it to Loo Family best!)

it is not in the interest of Dymon to tell/show OPMIs what they see in challenger, as they are the main beneficiaries should privatization is success! (the more they say, the more OPMIs will not sell, the higher price they have to pay!

Let us look over the past 5-8 yrs of challenger's biz model and markets.... there is already a trend...a digital supply trend...of a bigger e-commerce modelmarket...

so Dymon's biz is "get it privatized cheap, dress up the books and sell at huge tech valuation profit! huat har!

Thanks for your reply ! 

If privatization is their priority and not engaging in promoting the company, the converse is also true - it is likely that the share price will remain range-bound. 

Speaking of the past years' performance, the earliest AR available was 2014 ( https://www.challengerasia.com/?page_id=193 ). I gathered that the revenue jump from $200m to $300m level was during the years 2010 -> 2011. If I am not mistaken, apart from the effects of Covid, the PAT has usually been below $20m.

According to AGM responses*, FY2021 revenue approx : (a) retail stores sales 88% (FY2020: 83%); (b) online sales 4% (FY2020: 9%). Thus, it may take some time for  e-commerce to grow to a more significant portion ?

If I am not wrong, I think the current Challenger is past the era of physical store expansion, if we were to look at how far it has come :  https://ir.zaobao.com/challenger/reports...070907.pdf Moving fwd, I think it is more likely to "rationalize"(open new ones & close underperforming ones) stores than outright aggressive expansion ?

Notwithstanding new business initiatives mentioned in the recent ARs, if I may ask for your view(and also those of VB), what wld likely be the business catalysts(potential "game changer") that cld help Challenger achieve the next level of revenue / PAT(i.e. $400m/$20m range) henceforth ? Thanks !

*https://links.sgx.com/FileOpen/Challenger%20-%20Responses%20to%20Questions%20from%20Shareholders.ashx?App=Announcement&FileID=712495

[brattzz]

https://links.sgx.com/FileOpen/20230623%...eID=763281

2. LOSS OF PUBLIC FLOAT
2.1. The Company wishes to refer to the 22 June Dealings Announcement where it is stated that, as
at 6.00 p.m. (Singapore time) on 22 June 2023, the total number of (a) Shares owned, controlled
or agreed to be acquired by the Offeror and persons acting in concert with it; and (b) valid
acceptances of the Offer, amount to an aggregate of 285,662,704 Shares, representing
approximately 71.10% of the total number of Shares in the Company.

3. APPLICABLE SGX-ST RULES
3.1. Under Rule 724(1) of the Listing Manual, if the percentage of the Shares held in public hands
falls below 10.0%,
(a) the Company must, as soon as practicable, announce that fact;
and (b)
the SGX-ST may suspend trading of all the Shares. Rule 724(2) of the Listing Manual states that
the SGX-ST may allow the Company a period of three (3) months, or such longer period as the
SGX-ST may agree, to raise the percentage of the Shares held in public hands to at least 10.0%,
failing which the Company may be removed from the Official List of the SGX-ST.

3.2. Further, Rule 1303(1) of the Listing Manual provides that if the Offeror succeeds in garnering
acceptances exceeding 90.0% of the total number of issued Shares (excluding any Shares held
in treasury), thus causing the percentage of the total number of issued Shares (excluding any
Shares held in treasury) held in public hands to fall below 10.0%, the SGX-ST will suspend
trading of the Shares only at the close of the Offer.

suspension at close of the Offer, Company owning 71% currently!

[brattzz]

https://links.sgx.com/FileOpen/Extension...eID=764896

EXTENSION OF CLOSING DATE
Accordingly, UOB wishes to announce, for and on behalf of the Offeror, that the closing date of
the Offer is extended from 5.30 p.m. (Singapore time) on 11 July 2023 to 5.30 p.m. (Singapore
time) on 25 July 2023 (or such later date(s) as may be announced from time to time by or on
behalf of the Offeror) (the "Closing Date").

RESULTANT SHAREHOLDING
Accordingly, as at 6.00 p.m. (Singapore time) on 10 July 2023, the total number of (a) Shares
owned, controlled or agreed to be acquired by the Offeror and persons acting in concert with it
and (b) valid acceptances of the Offer, amount to an aggregate of 307,852,876 Shares,
representing approximately 76.63% of the total number of Shares in the Company.

LOSS OF PUBLIC FLOAT AND OFFEROR'S INTENTIONS TO DELIST
With reference to the announcement issued by the Company on 23 June 2023 in relation to,
inter alia, the loss of public float of the Company, a copy of which is available on the website of
the SGX-ST at www.sgx.com, the percentage of Shares held by the public is less than the
requisite 10% of the total number of issued Shares (excluding treasury shares) as required
under Rule 723 of the Listing Manual.
As stated in the Offer Document, the Offeror does not intend to maintain the listing status of the
Company. Accordingly, the Offeror, if and when entitled, intends to exercise its rights of
compulsory acquisition under Section 215(1) of the Companies Act and does not intend to take
any step for the public float to be restored and/or for any trading suspension of the Shares by
the SGX-ST to be lifted in the event that, inter alia, less than 10% of total Shares (excluding
any Shares held in treasury) are held in public hands.

[brattzz]

https://investors.sgx.com/company-disclo...HHVT3ORATX

LEVEL OF ACCEPTANCES OF OFFER : representing approximately 97.46% of the total number of Shares in the Company

COMPULSORY ACQUISITION

LOSS OF PUBLIC FLOAT

Bye bye Challenger!