Hanwell Holdings (formerly: PSC Holdings)

[weijian]

Sam Goi just offered $0.40 for PSC(formerly Hanwell)
Sam Goi is the Popiah King and now the super low ball king.
You dont get any lower than this.

A few key points.
Why did Sin Huat Company Limited agree to sell its stake for a loss @ $0.40?
Cash and near cash equivalent exceeds offer price.

If offer becomes mandatory, and if Sam Goi eventually sweep up enough shares to consider going private/delist, Sam Goi is getting the best deal in recent memory+ control over another profitable company(Tat Seng). Still trying get my head over this ridiculous offer, it has a very small impact on my portfolio as I do own a minuscule stake in PSC but still pisses me off greatly.

Hi Big Toe,

There are plenty of reasons to sell and also not to sell (for example "this is my grandfather's company"). So unless we have some insider knowledge of the Chengs from Prima Group, else one is none the wiser. But I think we can be pretty sure that the decision maker/s who decide to sell their ~11% PSC stake just bought over 4 years ago for a slight capital loss, are not prone to sunken costs/loss aversion biases  Looking at Prima Group's diverse interests, I am tempted to suggest that the capital allocators at HQ have their sights on projects (in which they can control) that will generate much higher IRR.

Finally, did Popiah king reached royalty status by making popiah or did he achieved fandom via his astute investments? So the next question is, how can the OPMI invest alongside Popiah King and benefit?

[Big Toe]

I would think that it is the personal relationship that enabled the sale of the stake. The value/benefits of doing this favor for Sam is > than the potential monetary reward in the future. Both had roots in food manufacturing

While Sam did well this time to acquire the stake, Sin Huat did badly, they should have at least asked for a better price(higher than what they acquired it for), even if it is for a favor. And it likely would have worked.

Buffet used coupons to save money at Macdonalds. His investing principals also applies to daily living/spending habits. Always trying to maximize value. It takes great discipline to be able to do that and is the foundation of his success. Sin Huat clearly lacks this discipline.

[Dosser]

Sam Goi just offered $0.40 for PSC(formerly Hanwell)
Sam Goi is the Popiah King and now the super low ball king.
You dont get any lower than this.

A few key points.
Why did Sin Huat Company Limited agree to sell its stake for a loss @ $0.40?
Cash and near cash equivalent exceeds offer price.

If offer becomes mandatory, and if Sam Goi eventually sweep up enough shares to consider going private/delist, Sam Goi is getting the best deal in recent memory+ control over another profitable company(Tat Seng). Still trying get my head over this ridiculous offer, it has a very small impact on my portfolio as I do own a minuscule stake in PSC but still pisses me off greatly.

Possible chain offer for Tat Seng at $0.899:

https://links.sgx.com/FileOpen/TSP%20Pos...eID=851578

Also not over the moon about the possible offer, despite a relatively small holding.

[Big Toe]

Tat Seng is a relatively easier target. PSC direct stake is higher and you have the Tat Seng CEO holding significant stake. Also it has much higher pure cash level relative to its current share price compared to PSC. And it would be an even more ridiculous offer @89.9cts. I would be extremely keen to take Tat Seng private @ 90cts, but unfortunately Toe no money.

[wj1984]

Sam Goi just offered $0.40 for PSC(formerly Hanwell)
Sam Goi is the Popiah King and now the super low ball king.
You dont get any lower than this.

A few key points.
Why did Sin Huat Company Limited agree to sell its stake for a loss @ $0.40?
Cash and near cash equivalent exceeds offer price.

If offer becomes mandatory, and if Sam Goi eventually sweep up enough shares to consider going private/delist, Sam Goi is getting the best deal in recent memory+ control over another profitable company(Tat Seng). Still trying get my head over this ridiculous offer, it has a very small impact on my portfolio as I do own a minuscule stake in PSC but still pisses me off greatly.

Hi Big Toe,

There are plenty of reasons to sell and also not to sell (for example "this is my grandfather's company"). So unless we have some insider knowledge of the Chengs from Prima Group, else one is none the wiser. But I think we can be pretty sure that the decision maker/s who decide to sell their ~11% PSC stake just bought over 4 years ago for a slight capital loss, are not prone to sunken costs/loss aversion biases  Looking at Prima Group's diverse interests, I am tempted to suggest that the capital allocators at HQ have their sights on projects (in which they can control) that will generate much higher IRR.

Finally, did Popiah king reached royalty status by making popiah or did he achieved fandom via his astute investments? So the next question is, how can the OPMI invest alongside Popiah King and benefit?

oh if sin huat is owned by prima then maybe their new factory / plant in Singapore is expensive so they sold it to fund the construction rather than borrowing from the banks?

and the next post on favor; maybe tee yih jia will buy more flour from prima once their new factory is built near jurong port... a win-win?

*wink wink*