Spindex Industries

[wj1984]

Even though profits have fallen... cash is accumulating... now sitting on 50m cash... owners hold 75% of the total no. of shares (115m) ... 25% of 115m shares at 0.85 = 24-25m sgd... say offering a 35% premium base on 0.85, which is 1.15 per share it would only cost the coy 33m to buy out. Don't even need a 3rd party...

The Tan Family last attempted privatisation in 2017 by way of an unconditional cash offer at $0.85/share and managed to raise their stake to the present 75.3%. If the Tan Family wishes to succeed in another attempt, they better be prepared to pay a reasonable premium over the current NAV/share at $1.10, as the scale of Spindex's regional business operations is now much larger and sustainable profits higher.

It is still likely that the Tan Family may opt to sell their majority stake or the entire business to the highest bidder.

But sadly in SGX rarely do firms get buy out over their NAV i.e. LTC. Don't think the TAN family will sell out as his son is the current de facto leader and is still relative young.