Silverlake Axis

[weijian]

Hi weii,

The offeror cannot buy at more than 36c per share (since they said that the offer price is final). Based on the trading price of Silverlake for the past few days, it had been more than 36c. Therefore, those who bought Silverlake shares at above offer price are likely to accept the combination offer of cash plus RPS. Which further reduces the free float to move it towards the 75% acceptance level for delisting.

It seems like those who bought in the past few days are more likely to block the delisting than to accept cash plus RPS. They are likely long-term investors in Silverlake who believe it is worth more than $0.48. By blocking it, Silverlake will have the obligation to restore free float and stay listed on SGX.

hi weii,

I wonder what is the basis for your thinking that those who bought at prices above 36cents (cash offer) on the open market, are "likely long term investors who are also likely to block the delisting"?

For sure, SLA could be worth more than 48cents. But I am quite that OPMIs wouldn't get full price (at least for the value they think SLA has) too.

When I look at the Top20 list from AR24, there is no other SSH that owns >5%. All the named individuals (ie. non-custodians) own collectively ~4% as of 16th Sept. When the level of acceptances was first done on 18th Sept, Chairman Goh's ownership only +1.4% and so it is quite clear none of these folks had accepted it then.

I am more inclined towards ghchua's assumption - ie. some of these folks, long term investors whom have more faith in Chairman Goh are getting the cash+RPS option.
Matter of fact, the deeply pocketed ones may actually buy more shares on the open market to increase their RPS exposure, since the RPS option is only 17% (6cents/36cents) of the asset allocation. For example, if one wants to increase their RPS to 34% or even 50%, then they need to double and triple their existing share count, and then accept the offer. This works in tandem.