China Auto Electronics

[dydx]

CAE requested for a trading halt this morning, after the counter spiked up $0.028 - a solid 27.5%! - yesterday. Something positive coming?

[ghchua]

Might be privatisation?

[cyclone]

Might be privatisation?

Wah. zhun. Take over at  SGD0.16 per share. 
Mandatory Unconditional Cash Offer by THB AUTO ELECTRONICS LIMITED.

[dydx]

Announcement of mandatory unconditional cash offer by THB Auto Electronics Limited - ultimately owned by management/controlling shareholders of CAE including 2 institutional investors of the previous $60.0m of unsecured convertible bonds, presently holding a combined stake of 74.43% in CAE - to acquire the remaining 25.57% at $0.16/share.....
http://infopub.sgx.com/FileOpen/Offer%20...eID=426039

Is the offer at $0.16/share good enough?

[zz...]

share price always moves before privatization announcement, so many times already

[dydx]

Announcement of mandatory unconditional cash offer by THB Auto Electronics Limited - ultimately owned by management/controlling shareholders of CAE including 2 institutional investors of the previous $60.0m of unsecured convertible bonds, presently holding a combined stake of 74.43% in CAE - to acquire the remaining 25.57% at $0.16/share.....
http://infopub.sgx.com/FileOpen/Offer%20...eID=426039

Is the offer at $0.16/share good enough?

Following the release last evening of a very positive 3Q result.....
http://infopub.sgx.com/FileOpen/CAEG%20-...eID=431018


, today Mr Market is now willing to pay $0.161 - $0.001 higher than the announced GO of $0.16 - for each CAE share. 

Having already secured 83.74% - including 3.81% acquired from the open-market since the Offer Announcement (on 24Oct16) - as at the close of yesterday (28Nov16).....
http://infopub.sgx.com/FileOpen/Dealings...eID=431007


, conceivably the Offeror is now facing the additional pressure that it would not be able to continue mopping up more CAE shares from the open-market at or below the stated GO price of $0.16. If this persists and most of the remaining minority shareholders choose not to accept the GO, the Offerer will sooner or later have no choice but to seriously consider revising the GO price upwards.

Based on CAE's 30Sep16 NAV of RMB 1044.3m, and adding to it the proceeds from the conversion of the SGD 60.0m (equivalent to RMB 293.22m, based on the 30Sep16 SGD/CNY exchange rate of 4.887) convertible bonds into 666.667m new CAE shares - i.e. resulting in the latest issued share base of 1348.267m CAE shares outstanding - each CAE share is now actually backed by RMB 0.992 (or SGD 0.203) in NAV/share. Based on this, and the improving business performance, it is quite clear that the intrinsic value of CAE shares should be higher than the stated GO price of $0.16/share.

[dydx]

Today (30Nov16), CAE again traded and closed above the GO price of $0.16, with all 3,126,000 shares transacted at $0.161 and $0.162, and the counter closed at $0.162.

Acceptances of the GO by remaining minority shareholders have also slowed down, with only 1,208,000 shares tendered in today, raising the Offeror's total stake in CAE by a meagre 0.09%, to 84.19% at the close of today.....
http://infopub.sgx.com/FileOpen/Dealings...eID=431428

I appears now rather unlikely that the Offeror would secure the psychologically important 90% mark by the stated closing date at 5.30 p.m. (Singapore time) on 6Dec16.

Let's hope the Offeror would revise the GO price upwards and also extend the GO on 6Dec16.

[ghchua]

The offeror had said that the offer price of 16cts per share is final and they does not intend to revise the offer price.

[cyclone]

Loss of Free Float

The Board wishes to inform shareholders of the company that, as at 5.00 p.m. (Singapore time) on 12 December 2016, the percentage of the total number of shares which are held in public hands is approximately 9.74% (the total number of issued shares being 1,348,266,667 shares) and, accordingly, the company no longer meets the free float requirement prescribed by Rule 723 of the Listing Manual.

Pursuant to Rule 1303(1) of the Listing Manual, in a take-over situation, where the Offeror succeeds in garnering acceptances exceeding 90% of the company’s total number of issued shares (excluding treasury shares), thus causing the percentage of the company’s total number of issued shares (excluding treasury shares) held in public hands to fall below 10%, the Singapore Exchange Securities Trading Limited (“SGX-ST”) will suspend trading of the shares only at the close of the take-over offer.

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Rule 723 :
An issuer must ensure that at least 10% of the total number of issued shares excluding treasury shares (excluding preference shares and convertible equity securities) in a class that is listed is at all times held by the public.

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Rule 1303

The Exchange may at any time suspend trading of the listed securities of an issuer in any of the following circumstances:—

(1) If the percentage of an issuer's total number of issued shares excluding treasury shares held in public hands falls below 10%, as provided in Rule 723. In a take-over situation, where the Offeror succeeds in garnering acceptances exceeding 90% of the issuer's total number of issued shares excluding treasury shares, thus causing the percentage of an issuer's total number of issued shares excluding treasury shares held in public hands to fall below 10%, the Exchange will suspend trading of the listed securities of the issuer only at the close of the take-over offer;

[cyclone]

Tthe Closing Date for the Offer is 5.30 p.m. (Singapore time) on 20 December 2016.
The Offeror has no intention of extending the Offer beyond the Final Closing Date.