Penguin International

[dydx]

Hi weijian, I didn't write and respond to donmihaihai to "dismiss" him or what he wrote or his opinion. As far as how I see it, all of us investors are "outsiders" with our own views based on how we interpret information and events; the "insiders" in this case are the people behind the Offeror and those who prepared the results announcement and other documents and disclosures. I asked donmihaihai whether he knows Penguin's Chairman or MD personally, is just to verify his independence.

Obviously, in investment, what are the real facts - if one can have them - are perhaps more important than other "facts" or accounting numbers given. And please note the real facts can be the same as the "facts" given, but sometimes they can be different.

[weijian]

hi dydx,

Thanks for the clarification. Sometimes a lot of meaning is lost in translation, especially when we are only communicating through reading. As VB Moderator, I just want to communicate the message that discussions well supported by facts/figures/rationality are welcomed, regardless of whether one is vested or not.

Moderator

[specuvestor]

Agree with weijian that sometimes spectators that are less emotionally involved may have a clearer picture so we shouldn't base comment on vestedness cause there is no verification anyways

Investing is interesting cause one don't need a ticket to learn as a spectator. The caveat is that I think comments have to be substantiated by facts and research and based on that everyone can have an opinion what the real truth is. (Truths have to be based on facts; but facts might not lead to truth) In this sense this is what made this VB forum great vs the one liner forums. Hopefully we keep it this way.

That said my personal observation is also that those companies that will be or going through privatisation tend to have weak results.

Hi donmihaihai, since you don't hold Penguin shares now, and you may not have communicated with Penguin's Chairman or MD before, I don't think you would be able to appreciate very well how some remaining minority shareholders feel about the current situation of their investment.

hi dydx,

There is this thing called an "outside view". I probably do not have as much experience as you do, but my sufficient experience tells me that "outside views" are often more important than "inside views".  So let's not dismiss another VB who has spent time to crunch some numbers and write down a post, just because he/she didn't have direct communication to the Mgt OR isn't vested.

Also, how shareholders feel is one thing, what are the facts is another. I like what John Chambers, ex CISCO CEO said in his memo - Respond to emotional situations by focusing on facts. Respond to facts by looking at the emotional impact.

[header]

I manage to read the financials again in closer details. The key reasons for the decline in profits is due to reduction in "Other income". The breakdown is stated in note 6.1. They key reasons for decline in Other income is the absence of consideration for early relocation from Tuas and Covid 19 govt grants received last year. There is also higher profits from sale for fixed assets last year. All these items add up to about $5m. If you adjust for these items, underlying "results from operating activities" would have increased from last year $3.8m (reported $7.8m) to this year $4.8m, a 26% increased.

So in summary, Dydx is correct that the operations are really doing well.
Donmihaihai is also correct as Penguin is facing margins pressure as stated in the results announcement. However, Penguin can still generate underlying profit growth although it will be lower than its revenue growth.
Penguin shareholders can continue to sleep well and there is no pressure to sell the shares

[donmihaihai]

Hi donmihaihai, since you don't hold Penguin shares now, and you may not have communicated with Penguin's Chairman or MD before, I don't think you would be able to appreciate very well how some remaining minority shareholders feel about the current situation of their investment.

hi dydx,

There is this thing called an "outside view". I probably do not have as much experience as you do, but my sufficient experience tells me that "outside views" are often more important than "inside views".  So let's not dismiss another VB who has spent time to crunch some numbers and write down a post, just because he/she didn't have direct communication to the Mgt OR isn't vested.

Also, how shareholders feel is one thing, what are the facts is another. I like what John Chambers, ex CISCO CEO said in his memo - Respond to emotional situations by focusing on facts. Respond to facts by looking at the emotional impact.

Did my best trying not to get labelled but I got one. hat off. dydx is a skilled operator. And of course I excused myself and let dydx continue his operation.

[dydx]

Healthway Medical - soon to be absorbed into OUE Healthcare - has just issued its 1H results and a letter each from auditors E&Y and Xandar Capital (the appointed IFA)..
https://links.sgx.com/FileOpen/HMC_1H-20...eID=769183 [results announcement]
https://links.sgx.com/FileOpen/Report%20...eID=769185 [E&Y letter]
https://links.sgx.com/FileOpen/Independe...eID=769184 [Xandar Capital letter]

It doesn't look like Healthway Medical's shareholders have much to complain. We can use this as a comparison with Penguin's case..

[dreamybear]

OPMIs need to continue the resistance ....

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Privatisation offer for Penguin International extended for fifth time to Aug 31
https://www.businesstimes.com.sg/compani...ime-aug-31
"THE closing date for the offer to take Penguin International private has been extended for the fifth time to 5.30 pm on Aug 31, the shipbuilder announced in a bourse filing on Wednesday (Aug 16).....

As at 6 pm on Wednesday, Aleph Tav had a resultant shareholding of 88.81 per cent of Penguin International, comprising valid acceptances of the offer, as well as shares owned, controlled or agreed to be acquired by the offeror and concert persons...."

[dydx]

It is interesting and important to note that from the previous extension announcement on 2Aug (the fourth extension) of the closing date till 17Aug, to today's (16Aug) extension announcement by another two weeks (the fifth extension) of the closing date till 31Aug, the Offeror managed to garner an additional just 274,126 shares in the last 14 days, raising their position from 88.68% to 88.81%..
https://links.sgx.com/FileOpen/Fairy%202...eID=769520

While the remaining minority shareholders are holding the line, this GO game by the Offeror is getting outrageous!

[lonewolf]

I have been tracking the acceptance level of the Penguin offer from the disclosure and have tabulated the progression of shares acquired (in % term)



While there has been a slight increase in the share acquisition since the last extension, at the current rate, the offeror will probably need a few more extensions to reach the mythical 90% 

[dydx]

Hi lonewolf, many thanks for compiling the above useful table. Please note the first announcement of the GO was actually on 4May23. It is also useful to note that the Offeror started actively buying Penguin shares from the open-market the very next day on 5May23, and by the time the formal offer document was issued on 25May23 - a full 21 days (limit allowed under the Code) after 4May23 - allowing acceptances by minority shareholders, the Offeror had already garnered an additional 1.48% mainly from open-market purchases, paying the full GO price. By the time the 1st extension of the closing date - from 22Jun23 to 6Jul23 - was announced on 21Jun23, the Offeror managed to garner another 3.35% - comprising 0.11% from additional open-market purchases, and 3.24% from acceptances. Very aggressive market actions indeed!

Notwithstanding the first 4 extensions, the rate of acceptances have fallen sharply since 21Jun23. In fact, acceptances since the announcement of the 3rd extension on 17Jul23 have come to a trickle. So the remaining minority shareholders are not budging!