E&E's parent company, Kingboard Chemical Holdings Limited (Kingboard), is seeking to privatise E&E for US$63.3million.
It will offer shareholders of E&E cash of US$1.20 per share or 0.45 new Kingboard shares at an issue price of HK$20.50 each. Shareholders can also choose to receive a combination of both.
For example, if you own 1 lot of E&E shares, you can choose to receive:
(1) US$1,200 in cash
or (2) 450 new Kingboard share
or (3) US$600 and 225 new Kingboard shares.
However, in the event of non-clearance by the Hong Kong Stock Exchange, E&E shareholders can only receive cash.
The proposal requires at least 75% approval from E&E shareholders during the EGM. Kingboard already owns 71.1% in E&E and major or controlling shareholders do not need to abstain from voting. The offer will not be conditional upon the minimum number of acceptances received.
Main reasons for the delisting include prolonged undervaluation of E&E shares, low trading volume and "no necessity to access the capital markets".
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Sigh... I can only say... major sianz...
REIT Posts of the Week @ 18 May 2024
3 hours ago
5 comments:
Any idea course of action to take, or it is obviously no choice but to take up the offer? I have been holding them for quite a while and the dividends been really good.
But how come the share price is trading at 1.25? Isn't it better to just sell it off?
Sorry if I am blabbering away, coz I am really lost at what to do with them.
I guess the only way is to be vote against the resolution during the EGM.
According to the listing manual, the application to delist can only be approved if it has not been voted against by at least 10% of the total number of issued shares held by the shareholders present and voting, either in person or by proxy at the meeting.
The other substantial shareholder is Value Partners Limited (VPL) which holds an interest of slightly less than 9%. VPL has been a shareholder since 2004, so I think its cost should be high too. If VPL is going to vote against the resolution, there may be a chance of the offer being blocked by the effort of minority shareholders.
If voting against it works, I'd definitely do it. Hopefully there are enough votes to stop it....
I also hold the share in the Elec & Eltek international Company too. The dividend yield is very high and it is one of few company that offer such high dividend yield in SGX.
I wrote to Value Partner asking thier stand on the EEIC delisting, and no respond.
Wrote to SGX, but this regulatory also no respond. Maybe sgx only works towards profit, as commented by David J Lawrence from Wheelock Properties.
IFA for Kingboard Chemical(KC) has advise its shareholder to support the privatisation & report is out on Jun 11, in page 20
http://www.kingboard.com/kbeng/pdf/announcement/E090611.pdf
KC's IFA said offer is 37% discount to its NAV USD 1.90
But IFA of EEIC has no advice and still SLEEPING for almost 2 months..maybe kelong with Kingboard Chemical. BIG fish eats small prawn like us.
CIMB in a June 19 research report says: "E&E’s parent company, Kingboard Chemical, recently made a takeover bid for E&E at US$1.20 per share, valuing the latter at only 0.6x historical P/BV. We consider this price unattractive, and would advise shareholders to reject the offer.
"Business appears to have stabilised since March, with average utilisation improving beyond 70% in the first two months of 2Q09 from 60% in 1Q09. E&E’s Kaiping HDI plant is expected to ramp up gradually in 2H09. We have kept our FY2009-2011 profit estimates unchanged. We retain our target price of US$1.89, at 1x P/BV, which we deem reasonable given its leading market position in China, strong free cash flow business, and consistent dividend record. MAINTAIN OUTPERFORM."
Source: http://www.theedgesingapore.com/component/content/5338.html?task=view
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