Spindex Industries

[hh488]

But how do we know today volume bidded up by Mr Tan, the offeror?

Will only know the next day is it?

[Quickbeam]

Oh, I dont know. I am just curious to know whether or not it is actually allowed.

[weijian]

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.

I remember the recent OSIM saga where the brokerage (on behalf of Mr Sim) errorenously bought in at above the offer price and had to revise the offer price to the new purchase price.

IIRC, it is not allowed and after appeal, the issue was resolved with a revised offer.

[Quickbeam]

thanks for the reply. Very useful.

[julianbream]

Tan Choo Pie is really something - he managed to convince seasoned, astute, professional shareholders like Yeo Seng Chong (and perhaps, presumably, Lie Khin Sin) to sell to him at the cheap price of 85cents. Now, having crossed the 50% mark, all he needs to do is stand his ground and tell the 3 interested parties he is not going to sell to them at any price. The 3 parties will be very likely discouraged from making any offer as a result, when they know that they cannot get the whole company.
Then, Tan Choo Pie, having crossed 50%, will simply acquire all of Spindex compulsorily from everyone, under the GO. As far as I'm concerned, the case is pretty much closed, thanks to these guys who did off-market deals with Tan Choo Pie.

I met Tan Choo Pie and his son more than once at AGMs. They seemed really nice. I guess where money and business is concerned, there's no need to stand on ceremony. Sigh... the big boys always win.

[julianbream]

I forgot to add this - but if, in the coming days, it is revealed that one or more of the 3 interested third parties has been buying Spindex at above 85cents despite Tan Choo Pie crossing 50%, then there just might be a faint glimmer of hope, because it will mean that the third party/ parties might still be keen on making an offer nonetheless.

Why would smart value investors like Yeo Seng Chong part with their shares for 85cents? I cannot fathom the reason.

[weijian]

I have just deleted a post that has a direct accusation against certain group of people.

I implore everyone new to VB.com to read the posting guidelines, which is the first thread. For those who have been here some time, do read it as a refresher as well.

Moderator

[(cy)]

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.

actually, of the volume transacted, 22.5m shares are from married deals all done at $0.85/share.

[Quickbeam]

ok, then I guess we will see how it pans out going forward.

[Quickbeam]

Innovalues was bought out at 12x ev/ebit by Northstar. If that is a fair price for Innovalues, why shouldn't 10x ev/ebit be fair for spindex? The current offer for the bid is at 3.5x EV/EBIT.