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16-02-2021, 08:48 AM
Your 3rd scenario is incorrect. >90% only means they can delist the shares. They can only compulsorily acquire the remaining shares from dissenting shareholders if they get 92.2%.
Why 92.2%? Read my post here where I break down all the numbers.
So this means the offeror get between 90 - 92.2%, they can delist Penguin but not compulsorily acquire the remaining shares.
This is exactly what happens during CK Tang's PO. The offeror got enough to delist but not enough to compulsorily acquire the remaining shares. It was years later before an offer was made to the dissenting shareholders (it was a much higher offer) and the Tangs brothers managed to buy back the remaining shares.
Personally, I won't bother with all the hassle. As with all PO, I will usually not tender my shares unless the 90% level is breached.
In this exercise, I doubt the acceptance level will be anywhere near 90%. I think it would probably clear 50% to make the offer unconditional. But I will be surprised if they end up with more than 65%.
Why 92.2%? Read my post here where I break down all the numbers.
So this means the offeror get between 90 - 92.2%, they can delist Penguin but not compulsorily acquire the remaining shares.
This is exactly what happens during CK Tang's PO. The offeror got enough to delist but not enough to compulsorily acquire the remaining shares. It was years later before an offer was made to the dissenting shareholders (it was a much higher offer) and the Tangs brothers managed to buy back the remaining shares.
Personally, I won't bother with all the hassle. As with all PO, I will usually not tender my shares unless the 90% level is breached.
In this exercise, I doubt the acceptance level will be anywhere near 90%. I think it would probably clear 50% to make the offer unconditional. But I will be surprised if they end up with more than 65%.