TeckWah

[dydx]

Based on the quarz straits Times news, they wish to see the company grow organically to serve its big ticket customers
, and has given a fair value of 66cent based on a 25% discount

I believe the 25% discount Quarz prescribed refers to stock market discount mainly because Teckwah is an illiquid second-liner stock, and a portion of their determined fair value is related to hidden value in Teckwah's HQ premises property (Pixie Red located in Tai Seng). Adding back the 25% discount, Quarz's fair value estimate would be $0.88, vs. Teckwah's latest 30Jun20 NAV/share at $0.681. This could well be conservative still, as Teckwah's logistics business which is a good earner has pretty good long-term growth potential, and therefore there should be good extra value in this business segment.

For the Offeror - which is a consortium comprising the 3 largest shareholders including the management - to offer the minorities $0.65/share, surely they are not looking at just an upside with a value of $0.88. It should be more, especially since they are prepared to spend quite a bit for this privatisation attempt, including having to borrow quite a chunk from OCBC and carrying the related risk and interest burden until they can tap on Teckwah's cash reserve to pay off the loan. At the end of day, good business logic must prevail in this kind of major move.

[pianist]

received the interim dividends recently and pleased to know that it will not cause a reduction to the offer price of 65cents
separately, just read the IFA report and its advice that says .."fair & reasonable"..."accordingly, we advise to recommend to accept the offer, unless shareholders are able to obtain a price higher than the offer price on the open market"...

this typical kind of written motherhood advice, to me, is not value adding at all

[julianbream]

Does anyone know why the SGX page for Teckwah does not give a daily update of the latest Offer acceptance level?

I'm trying to gauge the response leading up to the Offer deadline.

It can't be that absolutely no one has tendered acceptance, so there should at least be some movement in the % owned by the offeror right?

[SLC81]

Well, goodbye My darling Teckwah. Giving me some good coffee money.

[pianist]

Well, goodbye My darling Teckwah. Giving me some good coffee money.

So u have accepted the offer?

[weijian]

At the close of offer on 29th Sept, it did not hit the 90% threshold for unconditional and compulsory acquisition. Interestingly, in just 1 day since then 4% of shares subsequently tendered and it has hit the unconditional and compulsory acquisition threshold.

29th Sept (hit 86.77%) https://links.sgx.com/FileOpen/Extension...eID=633367

30th Sept (hit 90.76%)
https://links.sgx.com/FileOpen/Offer%20U...eID=633584

[julianbream]

It's the end of story for dissenting shareholders now, right? Done deal, since they crossed 90%?

[pianist]

Saved my efforts for mailing out the letter just wait for monies to come in without any trading costs,

[weijian]

It's the end of story for dissenting shareholders now, right? Done deal, since they crossed 90%?

Yes, they have crossed the compulsory acquisition threshold (in this case, it is 90%) and this gives them the choice and they will exercise it according to Section 251(1) of the Companies Act.

[julianbream]

It's the end of story for dissenting shareholders now, right? Done deal, since they crossed 90%?

Yes, they have crossed the compulsory acquisition threshold (in this case, it is 90%) and this gives them the choice and they will exercise it according to Section 251(1) of the Companies Act.

So sad, I would have liked to hold on to my Teckwah shares.