Spindex Industries

[julianbream]

In the next few days, I also expect to see some names of top 20 shareholders being disclosed as having sold off their shares to Tan Choo Pie. All smart, well-to-do individuals who are inexplicably willing to part with their Spindex stake at 85 cents. Either they are missing something or I am.

[julianbream]

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.

Quickbeam, 

It should be 10x ev/ ebit for Spindex, and it will be. But only after the Tans have compulsorily acquired your and my shares for 3.5x ev/ebit.

[dydx]

I will be very surprised if the Tans can cross the all-important 90% mark by sticking to their $0.85/share GO offer and eventually privatise Spindex. Just based on today's closing at $0.89 - giving a market cap of $102.7m now - to fully privatise Spindex, the Tans will have to be prepared to pay more, bearing in mind arch-rival Innovates (with a similar operation of about the same size but with higher profitability) is near the final closure of a successful privatisation by Northstar Equity Partners at a market cap of $331.4m, or close to 3.4x 31Dec16 NAV at $98.5m.

On the other hand, I won't be at all surprised if the Tans would choose to sell their now majority and controlling stake at a good price to a friendly party. In such an event, it should be a boon even for the remaining minority shareholders.

[opmi]

In the next few days, I also expect to see some names of top 20 shareholders being disclosed as having sold off their shares to Tan Choo Pie. All smart, well-to-do individuals who are inexplicably willing to part with their Spindex stake at 85 cents. Either they are missing something or I am.

when you hold more than 5-10% of small-mid cap, the only situations to get out is either an offer or a bubble....or slowly sell (painful)

[Quickbeam]

or you could just let your intrinsic value compound. Unless so you have a forced capital call, there is no real need to dispose at far below intrinsic value.

[julianbream]

http://www.straitstimes.com/business/com...-questions

Things are looking fishy, according to the article, and not so promising for minority shareholders.

[HitandRun]

When the Tan family were mopping up the shares, were they aware of a potential/competing offer?

Did they disclose this information to the SIC when they applied to convert the proposed scheme of arrangement to a mandatory offer?

Is DBS a party to all those activities? Interesting stuff.....

[BlueKelah]

Actually so what if the tan failure to disclose? Kena fine? Go to jail? I think not. A failure to disclose by any company would probably just mean a fine at worse. They have already stated 85c and no one force opmi to sell. So what if boss has two other company interested. They could have been interested becoz spindex privatisation plans may have somehow been leaked.

Some investors may have mop up shares hoping for higher offer. Then realised they might not get it after all so sell it off again.

No use complain this and that, spindex listing is a business, not a charity.

The boss is member of parliament leh, I dun think he will risk his reputation. The tan have run this company conservatively and solidly. Think they deserve to delist at 85c if they want to. I rather they delist now, rather than hold on and increase directors fee and decrease dividend., Making us hold the baby.

As an opmi, when buying small caps, we have to buffer for things like cheap privatisations. Hence why it's always better to be buying when company is at lows and not at highs.



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[Quickbeam]

Does anyone know where one can file a complaint to the singapore securities exchange?

[(cy)]

Does anyone know where one can file a complaint to the singapore securities exchange?

would love to know about this as well. might be worthwhile to get SIAS to pressure them?

there was a report by DBS Vickers on 4 Nov 2016 which indicated that fair value would be $0.99.

Steady growth, strong financials
 Integrated solution provider of precision machined components
 Steady growth; 8-year pretax profit CAGR of 13%
 Strong financials; much cheaper than peers
 Fair value of S$0.99 offers potential upside of 32%

attached the report for everyone's review.