Spindex Industries

[Kaimin]

To me the biggest risk in investing in spindex is the low ball offer from the majority shareholder.
Obviously there is nothing illegal.
But, if you & some other minority shareholders own a passive 30% stake in company with your active biz partner who owns 70% and yet from the experience your partner did offer you some low ball price to acquire your stakes. Luckily to you, the offer was failed.
However, history tends to repeat itself. He just has to keep trying to increase the stakes and voila, sooner or later you are out by another low ball.
No matter how appealing the numbers are, the structure and “incentive” of the Management (from track record) is not aligned with minority shareholders.
<used to be vested>

But takeover bids are made at a premium to the current price, usually a good one (ie 21% for spindex this Feb).