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Challenger
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brchkho1
Master |
28-Jun-2019 15:06
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Challenger is being challenged. 
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Belteshazzar
Master |
28-Jun-2019 08:25
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Good
Minority shareholders block $183m exit offer for Challenger The buyout of local IT retailer Challenger was stymied as the level of opposition at yesterday's meeting exceeded 10 per cent. Its chief executive Loo Leong Thye, who was part of the buyout team, said he respected the shareholders' decision and appreciated support for the company. ST PHOTO: KUA CHEE SIONG PUBLISHED 3 HOURS AGO Firm fails to delist as 11.4% of those at EGM reject offer price of 56 cents a share as too low Seow Bei Yi Business Correspondent Minority shareholders, disgruntled at what they regarded as a cheapskate offer for their stock, shot down an $183 million buyout of local IT retailer Challenger at a dramatic meeting yesterday. The investors, representing 11.4 per cent of voters present, rejected the offer price of 56 cents a share. Because the level of opposition was above 10 per cent, it was enough to stymie the buyout despite 88.6 per cent of those present and voting at the extraordinary general meeting (EGM) backing it. The remarkable outcome - one rarely seen in corporate Singapore - means the exit offer will lapse and the offerors will not be able to make another bid for 12 months. Challenger chief executive Loo Leong Thye, who was part of the buyout team, said after yesterday's vote that he respected the shareholders' decision and appreciated support for the company. Mr James Hay, director of fund manager Pangolin Investment Management - which has long argued against the buyout - said he was delighted at the outcome. 70 Number of voters present at the extraordinary general meeting. 88.6% Percentage of voters who backed the offer price of 56 cents a share. He believes his firm made a difference, in part because it rallied minority shareholders to reject the deal. "The offer was way too low, and it just kind of upset people," he said after the EGM at Challenger TecHub in Ubi Link that was attended by about 70 shareholders. "In the case of most shareholders, they felt there was nothing left on the table for them." Lawyer Robson Lee of Gibson Dunn, whose expertise is in mergers and acquisitions, said the result shows minority shareholders are now better informed about their right to reject an exit offer, adding that those looking to delist should be aware that this group "cannot be browbeaten into accepting a delisting exit offer that is not perceived to be fair and reasonable". Shareholders who opposed the buyout were quick to put their point across at the meeting. Mr Hay of Singapore-based Pangolin, which holds 2.94 per cent of Challenger, told the gathering: "This is far too cheap to be selling an excellent company, which we will be shareholders in for a long time." Pangolin believes the fair value of the shares should be at least $1.15, contending that Challenger holds too much cash on its balance sheet. Another investor, who identified himself only as K.C., said he first invested in the firm when Mr Loo was a young man. "I never sold my shares and am happy to hold it for my children... I look at (Mr Loo) as my partner." To get the best value, Mr K.C. suggested that Challenger consider selling the company on the international market. Challenger chief financial officer Tan Wee Ko replied that this was not a situation where the business, or part of it, was being sold to another company. He added that some minority shareholders supported the deal, despite others saying the price was not right. Another shareholder, Mr Chua G.H., 46, said he was hoping the company would not be delisted, and urged it to be more "proactive" and try to maximise the use of its cash. The path to yesterday's showdown was a contentious one. Challenger announced on March 20 that it intended to delist, with Digileap Capital - a partnership between Mr Loo and his family and Dymon Asia Private Equity - making a cash offer of 56 cents a share. This valued the company at $183 million. Mr Ng Leong Hai and four members of the Loo family, including Mr Loo, hold 78.64 per cent of the shares and backed the delisting. But investors, including Pangolin, questioned whether the exit offer was "fair and reasonable", as assessed by independent financial adviser Deloitte & Touche Corporate Finance. Despite shareholder pressure, Challenger said in its delisting circular that Digileap Capital would stick to its offer price, a stance that appeared to galvanise some investors into opposing the deal. Mr Loo put a positive spin on yesterday's outcome. "I am heartened that many shareholders do not want to see us go and would like to remain invested in Challenger," he said. "While the retail business environment is challenging, we will continue to do our best and grow the company." |
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destinykraze
Elite |
12-Jun-2019 22:58
Yells: "Reality is only a matter of perception" |
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Challenger may have to up their offer abit . not at $1.15 though, that would pretty hard.
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Starship
Supreme |
12-Jun-2019 18:21
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Good to have white knights to fight for retailers' rights..................... ![]() Challenger&rsquo s delisting faces roadblock as minority shareholder group puts up challenge 12 JUNE, 2019 SINGAPORE &mdash IT retailer Challenger looks to be facing an uphill battle in its privatisation deal, as a faction of shareholders has come out to say it is poised to block the move in a critical vote later this month. On Wednesday (June 12), the homegrown company announced that it has received a final cash exit offer by Digileap &mdash a partnership between the Loo family that founded Challenger and Dymon Asia Private Equity &mdash at 56 cents apiece, equal to a net offer of 54 cents after dividends are paid out. This price is final, said Digileap in a statement to the media. Challenger, in a separate filing to the Singapore Exchange (SGX) the same day, also called for shareholders to vote yes to the buyout at an extraordinary general meeting on June 27. But they face a hurdle. A breakaway bloc of minority shareholders, led by Pangolin Investment Management, have argued that a fair valuation for the share buyback should come at S$1.15, more than twice the offer price. With the votes more than two weeks away, the battle lines have already been drawn. The Loo family and majority shareholder Ng Leong Hai, who want to delist, hold 78.64 per cent of the company&rsquo s total shares. Collectively, the opposing group only holds 9.8 per cent, Pangolin&rsquo s director James Hay told TODAY. But this is enough to block the deal, he said. At least 75 per cent of shareholding must approve the delisting and not more than 10 per cent of shareholding can oppose it in order for the company to return to private hands. &ldquo Ten per cent is enough to formally reject this offer and we&rsquo ll easily get this. Digileap are wasting time and money proceeding at 54 cents,&rdquo said Mr Hay, a Briton. https://www.todayonline.com/singapore/challengers-delisting-faces-roadblock-minority-shareholder-group-puts-challenge |
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fundamentalhero
Veteran |
02-Apr-2019 22:15
Yells: "I NEED HONEYS AND MONIES" |
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so what if you agree. if the report come out say reasonable you also have to suck it up. next is that court' s offer was unfair but reasonable. LOL heck it went through also. it is like saying. eh don' t need to be fair to the customer by applying lemon law or rules of trading. just be " reasonable" can already. give poly student also can write until the offer becomes " reasonable" at day' s end, if you are small fish. be good stay still lay down turn over raise your bottoms and hehehehe. welcome to this shhty bourse. hotel california. no way out. except like midas/hyflux or lowball offers " perceived"
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bayduck
Member |
02-Apr-2019 10:31
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Not vested, but I agree that the offer is unreasonable. A business that' s doing 20% ROE (assuming the economics can persist) is definitely worth more than 110% NTA. Valuation is not as simple as offer higher than NTA = reasonable, offer lower than NTA = unreasonable. Let' s say person A bought a $100 chocolate ice-cream machine that makes $20 a year in profits. Person B bought a $100 strawberry ice-cream machine that makes $5 a year in profits. By your argument, a $110 offer (10% above NTA) is reasonable for both types of assets, which is wrong. I would definitely pay more for the chocolate ice-cream machine than the strawberry ice-cream machine. Many SGX-listed companies are earning returns that' s below cost of equity, which is why an offer above NTA is generally reasonable. However, Challenger is not one of those companies. So the same standards cannot be applied to the firm.
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challengerSH
Member |
01-Apr-2019 22:59
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Good news. Pangolin has managed to contact 7.4% minority shareholders voting NO to the delisting offer, up from 6.6% last Friday. Let' s keep the momentum. Please spread the word and encourage all with minority shareholders to write in to Pangolin using the ' Contact Us' page. Even if you cannot attend the EGM, we can help with your proxy vote, so please write in! Thank you very very much for working towards our collective good. http://www.pangolinfund.com/news_detail.php?id=207 |
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challengerSH
Member |
27-Mar-2019 20:36
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http://www.pangolinfund.com/news_detail.php?id=207 http://pangolinfund.com/sysadmin/images/uploads/files/Challenger%20James%2027th%20Mar%202019.pdf
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challengerSH
Member |
25-Mar-2019 11:57
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Hi all, I' m a minority SH, and agree fully with Pangolin that Challenger' s offer is low and we deserve better!  Let' s join the fight with Pangolin in demanding a fairer deal.  We need to hit 10% to veto the resolution so please reach out to  [email protected] if you' re keen.  Thanks.   |
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runaway
Senior |
22-Mar-2019 19:32
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If Pangolin is right, and Challenger is serious about taking it private, there will be many rounds of offers, with each offer price higher than the previous. If the above assumption is correct, than go in and tikam. The final price may not be Pangolins price, but anything in between is a pleasant gain,   |
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Starship
Supreme |
22-Mar-2019 18:53
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Challenger Tech' s 2.94% shareholder says offer price too low, calls for higher dividend payouts 22/03/19, 05:03 pm SINGAPORE (Mar 22): Pangolin Investment Management, which holds a 2.94% stake in Challenger Technologies through its Pangolin Asia Fund, is calling on other shareholders to reject  Digileap Capital&rsquo s delisting offer  at the company&rsquo s upcoming EGM.   Pangolin says the offer price of 56 cents per share, which translates to a price-to-earnings ratio of 9.9 times, is too low and thus unfair to minority shareholders. In a letter sent to  The Edge Singapore  on Friday, Pangolin explains its reasons for strongly advising other Challenger shareholders to reject the offer, which it deems &ldquo derisory&rdquo . It starts off by highlighting Challengers superior fundamentals as an IT retailer with steady revenue stream, a cash-term business and no debt, and especially for the company&rsquo s strong sales and profitability amid growing competition and market challenges.   In particular, Pangolin believes Challenger has too much cash on its balance sheet and based on its circular to the SGX, has not carried out any cash-raising exercises from the capital markets since 2007 &ndash neither is it likely to do so in the foreseeable future, says the firm. As such, it argues that the company should be valued by its cash flow to investors as it is of the view that companies are rated by cash returns, while investors want balance sheet and operational efficiencies. &ldquo If Challenger increases payout, share price should be valued at $1.025 or 83% upside to current share price. In addition, they should return excess cash of $43 million or 12.5 cents/share as special dividend to shareholders. This will provide additional return of 22.3%,&rdquo illustrates the firm. Pangolin&rsquo s case for a higher dividend payout is based on the fact that dividend payout for Challenger has been around 50% for many years, with excess cash not paid out despite low capital expenditure requirement. In the firm&rsquo s view, Challenger can afford a 100% dividend payout ratio, as not much capital expenditure is needed in the near-term. &ldquo Once earnings are all paid out as dividend, the dividend yield will rise to 10%. The share price will naturally react to a higher payout as cash will be returned to shareholders on a consistent basis. We estimate that the share price should increase by 83% from current price of $0.56 to $1.025 so that the dividend yield will normalise to 5.5%,&rdquo says Pangolin. According to Pangolin, Challenger has an excessive amount of net cash which has been largely under-utilised, with a net cash balance of $63 million as at end-2018 now sitting in the bank and earning a &ldquo miniscule&rdquo 1% to 2% interest. The firm is urging Challenger to set aside at least $20 million for a rainy day fund or working capital, and pay out the rest of the cash, or $43 million, as a special dividend of 12.5 cents per share. &ldquo We reckon the fair value of the shares to be at least $1.025 based on recurring dividend returns every year plus an additional return of 22.3% if Challenger is paying out the excess cash on the balance sheet as special dividend. We strongly advise shareholders to reject this derisory offer during the upcoming EGM,&rdquo it adds. To recap, Digileap Capital is a joint venture between the Loo family, Ng Leong Hai and Dymon Asia Private Equity (S.E. Asia) Fund II (DAPE II). These major shareholders collectively own a 78.64% stake, and have given irrevocable undertakings to vote in favour of the offer. https://www.theedgesingapore.com/challenger-294-shareholder-says-offer-price-too-low-calls-higher-dividend-payouts |
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Belteshazzar
Master |
22-Mar-2019 08:58
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Paying 87.8m for the remaining shares , then can collect back 63m cash from company. 15m profit yearly. So smart.... | ||||
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fundamentalhero
Veteran |
21-Mar-2019 00:29
Yells: "I NEED HONEYS AND MONIES" |
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this is a reasonable offer with a premium unlike courts,vard and many others. so don' t complain. at the very least, you get back your investments and make some. welcome to SGX. Singaporeans Getting X' ed |
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nqing87
Supreme |
20-Mar-2019 23:34
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delisting at 56cents.. there goes another low p/e with high dividend counter.. we are leaving more and more counters in ICU that stay listed to suck money from retailers but give back little to shareholders | ||||
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tcctcc
Senior |
18-Mar-2019 15:14
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Halted. Good news coming ? Saw people start to queue to buy at $0.54. |
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chinton86
Master |
11-Feb-2019 18:19
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52Weeks high and aggressive buying had been seen. Guess there wont' t be a Bonus issues but maybe a high dividend on the way. | ||||
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chinton86
Master |
27-Jan-2019 14:44
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I think can buy now. | ||||
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lifeisgood
Supreme |
19-May-2017 22:54
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I used to own a lot of this stock but took profit. The reason: I checked out its Haichi.tech website. Never felt attracted to buy any stuff there. Compared to Lazada or ezbuy or Amazon. So I have big question mark on its online strategy. Maybe it is just me. And its retail outlets don't attract me either.
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mogambo
Senior |
19-May-2017 22:49
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From my research this is a cash cow for singaporean value buyers.... Look at the cash flow oh my god   it is positive and huge,   sad to see singaporeans neglected this.. Debt Free company (yes Zero Debt)... Price / Book is 1.9, and PE is only 13.5   so intellegently meets intellegent investors selection criteria.. Ownership is 80% held by promoters of the company and rest 20% with the public (Hidden gem ha aha aha) with good enterprise value and Assets.   agreed revenues and profits are on the downside   for the last few years, which is not huge for the   price drop erosion seen which I call a discounted buy fundamentally and technically.   ROE is quite good at 15% even though this looks run down compared to 2013 to 2015 highs of 25 to 30%..   Markets run after the   broker recommendations, Mutual funds, bank recommendations but this is Good value buy for retail investors as it is cheap , cheap cheap.   good to buy and hold for targets of 55 to 60 cents in the next 6 month to a year... It is a CPF counter, so I   feel we can get double the return which CPF pays its 4 to 5% interest.. I can say go for it   a Good appreciation for 10% appreciation it can give you over a period. Good Luck. | ||||
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FreedomAngelz
Veteran |
02-Aug-2016 21:08
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Dividend: 0.011 per shares, the way challenger put is misleading. |
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