Spindex Industries

[opmi]

^^^ should complain to SGX. Buying or selling with possession of material info is an offence.

[Quickbeam]

Well this is interesting. Who in their right mind is now going to accept at 85c. Two-three different parties, that is likely to increase the bid price to at least fair value instead of the very silly price currently on offer. Assuming a run-rate of 20mln EBIT (2x H1 results) valuing that at a modest multiple of 8x EBIT + net cash position of of 20 mln, you arrive at a value of 180mln. This compares to a bid of 100mln. A PE fund could get away with offering 8x, levering it up slightly and still get IRR's of 15-20%. The bid needs to move at least 50% higher.

[BlueKelah]

thing is boss has much more majority now, so if you dun sell he can just drag on the offer, or just continue to hold. 

Other parties interest may have been a trigger for him to try to privatise, but if he can't get enough @ 85c to delist, there is nothing to stop him from just holding on and tell the interested parties the company is not for sale. In which case, there is going to be even less lots for trading and liquidity would dry up. 

And should US Auto market take a turn for the worse like before, share price could go back to 30-40c(yep that's how I had a chance to pick this up from 25-30c many years ago)

Do have to take note that US Auto loans now is getting to become like subprime liao and interest rate going up, anytime can kaboom. And if EV success in US, Spindex business as a supplier to the current auto market could be affected quite significantly.

-n v-

[Quickbeam]

True that could be the play. This business is definitely worth more than 85c, also taking into account the cyclicality of the end markets. This year might show peak profits, it may not, but 4x ev/ebit is not a fair price, whichever way you look at it. The market may de-rate the shares if we go into a downturn.

[Quickbeam]

Oh the company had net-cash of 30mln, not 20mln.

[dydx]

Oh the company had net-cash of 30mln, not 20mln.

Based on the latest (31Dec16) B/S, Spindex's net cash stood at $31.17m, or a cool $0.27/share....
http://infopub.sgx.com/FileOpen/SpindexI...eID=438439
Spindex's B/S is rock-solid and so liquid, with only $3.32m in short-term bank debts. Bearing in mind quite a big portion of the $28.75m trade receivables - mainly from high credit quality customers, and which will be eventually settled and added to cash - is actually funded by Spindex's own equity, net cash adjusted for this may well be closer to $40.0m, equivalent to approx. $0.35/share.

Meanwhile, Star Engineering Limited (“Star”), a subsidiary of Northstar Equity Partners IV Limited, an investment fund advised and managed by Northstar Advisors Pte Ltd, has just issued another announcement on their intention to consider making a bid for Spindex....
http://infopub.sgx.com/FileOpen/Star%20-...eID=442214
This may just push the 2 other interested parties now talking to the Offeror to show their hands soon. A stage seems to be forming up for some explosive actions. 

[dydx]

Soon after the GO was converted last Fri (3Mar17) from a scheme of arrangement to a mandatory general offer instead....
http://infopub.sgx.com/FileOpen/Offer%20...eID=442179
DBS (Financial Advisor to the Offeror) has just made an announcement that Mr Tan Choo Pie, Spindex's Executive Chairman and a director and shareholder of the Offeror, managed to acquire on 5Mar17 (yesterday, a Sunday) 6,488,112 shares from certain shareholders at $0.85/share, which has helped the Offeror and parties acting in concert with it - i.e. the Tans - to raise their stake to now 50.30%....
http://infopub.sgx.com/FileOpen/Dealings...eID=442220

There is another announcement today by Mr Lie Khin Sin that he had sold all this 7,500,000 Spindex shares (equivalent to a 6.5% stake) on 3Mar17 (last Fri) at $0.85/share via an off-market transaction (i.e. married deal)....
http://infopub.sgx.com/FileOpen/_eFORM3V...eID=442228
His sale deal was crossed in the SGX market this morning at 09:05:56 hour. This Mr Lie must be a very unlucky man or just not thinking at all when he sold his Spindex shares, for he could have sold his shares this morning instead for as high as $0.94/share. The funny thing is that Mr Lie had been aggressively mopping up Spindex shares from the open-market from 10Feb17 (the very first market-day after the GO under the previous scheme of arrangement was announced on 9Feb15) till 15Feb17, and he paid as high as $0.845/share. It appears that some parties have helped the Offeror/the Tans crossed the important 50% mark, and they were happy to make only a very small profit for the trouble.

[holymage]

Interesting. Mr Lie Khin Sin disposed 7.5 million of his recently-acquired spindex shares at $0.85 each, in an off-market transaction. Wonder who acquired them. Would it be the Tans, or the 2 other separate parties. Guess we will know soon enough.

http://infopub.sgx.com/FileOpen/_eFORM3V...eID=442228

Lie Khin Sin's Acquisition as a substantial shareholder:
10 Feb, 1.88 million shares at $0.844 each
13 Feb, 1.04 million shares at $0.84 each
14 Feb, 0.53 million shares at $0.84 each
15 Feb, 0.05 million shares at $0.845 each

[Quickbeam]

A lot of volume above the offer price. Lets see.

[Quickbeam]

BTW. does anyone know whether a mandatory bidder is allowed to buy shares above the bid price? This in the case of the Tans bid. Today 25mln shares have traded, all above the bid price.