Adampak

[dydx]

I'm just dreaming here - I think Unisteel was privatized for $1.95. Do you think that it is far-fetched to hope for such a high offer price for Adampak?

I think your hope that Adampak could be privatized by an offer at $1.95/share is really a dream! May be a deal at such a high price could happen after Adampak chalks up another 5 to 8 years of consistent, solid growth?

At today's (5Jan11) closing price of $0.35, and based on Adampak's 263.635m issued shares, market cap. now stands at $92.27m. IMHO, this is not too high at all, when compared with the present scale of the business - revenue, profits and FCF - and bearing in mind the business is of very high-quality and growing nicely, and there is a large nett cash reserve within the company. Any party making an offer to privatize Adampak must recognize all the above, and needless to say Adampak's controlling shareholders should understand the same very well.

Usually a privatization offer from a 3rd-party happens only to high-quality and well-managed businesses, and I believe that Adampak certainly meets this key criterion.