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well said
governor ( Date: 16-Jun-2024 19:44) Posted:
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Wolf Money(Death of the Singapore Stock Market-My view on the final offer for Great Eastern Holdings)
Great Eastern Holdings(extract from end of month portfolio update)
Today we are here to attend the funeral of the Singapore stock market. Besides the low valuation suffered by our market participants, investors of our market have to navigate the complexity of low ball offers from majority shareholders. Continue in the link.
https://lonewolfinvestor.blogspot.com/2024/06/wolf-moneydeath-of-singapore-stock.html
your comment only fortify my position to own shares and accumulate further if it drop below $25.60
aragosta ( Date: 16-Jun-2024 17:57) Posted:
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@ aragosta say whatever you want, we will know on 12 july
aragosta ( Date: 16-Jun-2024 17:57) Posted:
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Based on your logic that once cross 90% mark, like it or not, we need to surrender our share for the shark to do their compulsory acquisition. So why should we offer our share now to help them to gain the 90% mark?all the more we should not surrender our share right?
" To delist under the SGX rule."
ihatebigbully ( Date: 16-Jun-2024 16:12) Posted:
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Mudt becareful of water army from the offerer. Aragosta and YSH for sure are their army.
GO read and understand Boustead case then come inand talk
GO read and understand Boustead case then come inand talk
Your English not good or you don' t have common sense? To delist under the SGX rule, the offer must be fair and reasonable. Which part of this English you don' t understand?
aragosta ( Date: 16-Jun-2024 10:02) Posted:
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If unsure sell first supposed this is what many guru tell their clients.....wait till everything clear clear sometime may lose out opportunity.
ysh2006 ( Date: 14-Jun-2024 20:31) Posted:
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Boomers like him scared this scared that. First to run road. Pls go ahead sell great eastern shares! Haha
Shuuuuuu. Should let those scared boomers sell first. Secret 🤫
ysh2006 ( Date: 15-Jun-2024 05:01) Posted:
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Extracts from The Edge:
A market watcher points out that Boustead Projects AVM 0.00% went through a similar journey. In February 2023, Boustead Projects was the subject of a privatisation offer from its major shareholder, Boustead Singapore F9D 0.99% , for 90 cents. EY, which was the IFA, had stated that the offer was &ldquo not fair but reasonable&rdquo .
Subsequently, SGX said: &ldquo If free float is lost during an offer, the offeree company&rsquo s securities will be suspended at the close of the offer. Thereafter, the company is obliged to restore free float, failing which SGX RegCo may direct the company to delist and provide an exit offer in compliance with the listing rules on delisting. The independent financial adviser must opine that the exit offer is both fair and reasonable.&rdquo
In September 2023, SGX directed the boards of both companies to delist Boustead Projects but to also make an exit offer that was both fair and reasonable. Boustead Singapore made a new exit offer of $1.18. However, the higher offer price was not extended to shareholders that accepted earlier.
Wong Hong Sun, who is listed as GEH&rsquo s third largest shareholder and whose grandfather was chairman of GEH, is unlikely to accept the offer. He says: &rdquo The offer price is reasonable for OCBC but not for me. I don&rsquo t think buying a stock at half price is reasonable. I plan to hold on to my shares and if the price goes down, below the offer price, I will buy some more GEH shares.&rdquo
A market watcher points out that Boustead Projects AVM 0.00% went through a similar journey. In February 2023, Boustead Projects was the subject of a privatisation offer from its major shareholder, Boustead Singapore F9D 0.99% , for 90 cents. EY, which was the IFA, had stated that the offer was &ldquo not fair but reasonable&rdquo .
Subsequently, SGX said: &ldquo If free float is lost during an offer, the offeree company&rsquo s securities will be suspended at the close of the offer. Thereafter, the company is obliged to restore free float, failing which SGX RegCo may direct the company to delist and provide an exit offer in compliance with the listing rules on delisting. The independent financial adviser must opine that the exit offer is both fair and reasonable.&rdquo
In September 2023, SGX directed the boards of both companies to delist Boustead Projects but to also make an exit offer that was both fair and reasonable. Boustead Singapore made a new exit offer of $1.18. However, the higher offer price was not extended to shareholders that accepted earlier.
Wong Hong Sun, who is listed as GEH&rsquo s third largest shareholder and whose grandfather was chairman of GEH, is unlikely to accept the offer. He says: &rdquo The offer price is reasonable for OCBC but not for me. I don&rsquo t think buying a stock at half price is reasonable. I plan to hold on to my shares and if the price goes down, below the offer price, I will buy some more GEH shares.&rdquo
GEH-OCBC offer update: no requirement to announce level of acceptances
Some Great Eastern Holdings G07 0.04% (GEH) shareholders have asked both the offeror and GEH why there hasn' t been any update of acceptances by the offeror.
According to the reporting requirements under the Securities and Futures Act (SFA), an offeror is not required to disclose its acceptances under the Securities and Futures Disclosure of Interests Regulations.
Hence Oversea-Chinese Banking Corporation (OCBC), the offeror, is exempted from making substantial shareholding notifications in respect of any change in its interest in GEH shares as a result of acceptances received. OCBC would, however, be required to announce any market purchases of GEH shares.
Additionally, OCBC would be required to announce the level of acceptances of the offer by 8.00am on the market day immediately after the day on which the offer is due to expire, is revised or is extended.
Under Note 6 of Rule 28.1 of The Singapore Code on Takeovers and Mergers, an obligation to announce the level of acceptances would also arise if OCBC or any of its concert parties, advisers or agents makes any statement (either orally or in writing) about the level of acceptances of the offer, or if there is a loss of free float.
Shareholders and market watchers are keeping an eye out for GEH' s independent financial adviser (IFA), EY, to disclose its recommendation to GEH' s independent directors by this evening (June 14).
Great Eastern privatisation deal deemed &lsquo not fair but reasonable&rsquo OCBC says offer price &lsquo final&rsquo
The IFA advises the independent directors to recommend that shareholders accept the offer
OCBC&rsquo S privatisation bid for its insurance arm Great Eastern Holdings (GEH) is not fair but reasonable, the independent financial adviser (IFA) to the deal said on Friday (Jun 14).
Taking the factors it has considered, the IFA advises the independent directors to recommend that shareholders accept the offer.
After the IFA recommendation was put out, OCBC said in a separate announcement that its offer price was final and that it does not intend to increase it.
In May, OCBC made a voluntary unconditional general offer of S$1.4 billion for the remaining 11.56 per cent stake in GEH that it does not own.
The offer price of S$25.60 per share represents a 36.9 per cent premium over GEH&rsquo s last traded price of S$18.70 before the offer announcement, but a 30 per cent discount to GEH&rsquo s embedded value per share of S$36.59 as at Dec 31, 2023.
OCBC had the aim to delist GEH with the deal, but according to listing rules, the IFA must opine that the exit offer is fair and reasonable for a counter to be delisted from the Singapore Exchange.
In ruling the offer &ldquo not fair&rdquo , the IFA noted that the offer price of S$25.60 per share is lower than its derived range of values for GEH&rsquo s shares, of between S$28.87 and S$36.19.
The price-to-embedded value ratio implied by the offer price represents a 30 per cent discount to GEH&rsquo s embedded value of S$36.59, and does not ascribe a value to its value of one year&rsquo s new business, the IFA said.
The price- to-net asset value ratio of 1.5 times is also lower than the average and median of that of comparable transactions of 1.8 times and 1.9 times, respectively.
Meanwhile, the IFA said that the offer was &ldquo reasonable&rdquo due to reasons including GEH&rsquo s low historical trading price and liquidity. The IFA expects no other general offer will be capable of turning unconditional or succeeding, given OCBC&rsquo s 88.4 per cent shareholding in GEH. There is also a risk of trading suspension, given that it only takes around 1.56 per cent of total shares to be accepted, before GEH loses its minimum free float of 10 per cent.
The IFA is advising the independent directors to highlight that the current share price appears to be supported by the offer.
Shareholders should also note that GEH&rsquo s share price and liquidity levels may not remain at current levels after the close of the offer, and is not indicative of their future performance levels.
OCBC&rsquo s offer for GEH had come after a group of the insurer&rsquo s minority shareholders, led by former remisier Ong Chin Woo, raised concerns over GEH&rsquo s depressed share price and continued valuation decline.
In an attempt to &ldquo protect and preserve&rdquo shareholder value, the shareholders urged to table three resolutions at the insurer&rsquo s annual general meeting in April. These were calls to withhold directors&rsquo fees until GEH&rsquo s share price recovers to 0.8 times its embedded value to replace OCBC shares in GEH&rsquo s current executive share option schemes with GEH shares and to appoint an IFA to explore options to enhance shareholder value.
While the resolutions were not tabled due to legal reasons, GEH discussed the concerns at the meeting.
Minority shareholders&rsquo response
Wong Hong Sun, whose grandfather was chairman of GEH for nearly 20 years, told The Business Times that he does not intend to accept the offer. He owns more than 3.2 million shares in GEH.
Meanwhile, Ong said that he intends to retain some GEH shares. &ldquo Personally, I intend to retain some GEH shares as a commemoration of this significant journey we have walked together, even if GEH is delisted,&rdquo he added.
Ong noted that the group of minority shareholders &ldquo feel affirmed by the IFA&rsquo s statement that the offer is &lsquo not fair&rsquo &rdquo .
&ldquo We acknowledge OCBC&rsquo s right to maximise its self-interests within legal boundaries,&rdquo he added. &ldquo However, we believe that in accordance with principles of good corporate governance and leadership, OCBC could have done more for GEH minority shareholders, who are essentially its &lsquo junior partners&rsquo in the insurance business.&rdquo
Ong is hoping for an amicable resolution to the deal, and advises other shareholders to consider the IFA&rsquo s recommendations and consult with their financial advisers before making any decisions.
Ernst & Young Corporate Finance was the IFA appointment for the deal.
No need your sorry. Joke 😂
aragosta ( Date: 15-Jun-2024 12:12) Posted:
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Lee & Lee article.
Please read page 1 nd page 4
https://www.leenlee.com.sg/wp-content/uploads/2024/05/Writeup-Privatisation-LL-090524-1600-v4.pdf
Please read page 1 nd page 4
https://www.leenlee.com.sg/wp-content/uploads/2024/05/Writeup-Privatisation-LL-090524-1600-v4.pdf
Found my answer:
Offer raised from 90c to 95c and finally $1.18. So worth the fight.
https://www.straitstimes.com/business/companies-markets/boustead-singapore-shareholders-approve-acquisition-of-boustead-projects-shares-from-chairman-wong-fong-fui-and-children
Offer raised from 90c to 95c and finally $1.18. So worth the fight.
https://www.straitstimes.com/business/companies-markets/boustead-singapore-shareholders-approve-acquisition-of-boustead-projects-shares-from-chairman-wong-fong-fui-and-children
What was the final outcome on Boustead? Thanks
Can SGX require GEH to Maintain freefloat as in the case suggested for Boustead Project in the ST Article by Wong Pei Ting on 15 March 2023, which states:
Boustead Projects will be required to restore its free float should its parent company?s privatisation offer fall through, according to Singapore Exchange (SGX) listing rules and regulations.
A spokesman for Singapore Exchange Regulation (SGX RegCo) told The Business Times on Tuesday that in the event delisting conditions are not met and free float is lost, the company?s securities will be suspended.
All companies in such a situation are obliged thereafter to restore free float, for example, by way of a placement."
If possible, this could be publicized so as to this help prevent panicked selling orbacceptance of offer when the market opens on Monday.
Your comment on this matter is much appreciated.
Boustead Projects will be required to restore its free float should its parent company?s privatisation offer fall through, according to Singapore Exchange (SGX) listing rules and regulations.
A spokesman for Singapore Exchange Regulation (SGX RegCo) told The Business Times on Tuesday that in the event delisting conditions are not met and free float is lost, the company?s securities will be suspended.
All companies in such a situation are obliged thereafter to restore free float, for example, by way of a placement."
If possible, this could be publicized so as to this help prevent panicked selling orbacceptance of offer when the market opens on Monday.
Your comment on this matter is much appreciated.
Quite disappointing to note that IFA calls for shareholders to accept despite it being unreasonable.
Hope SIAS can come out to say otherwise.
Hope SIAS can come out to say otherwise.