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REJECT ROLY INT EXIT OFFER
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level13
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19-Mar-2007 12:57
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It doesnt always have to be a sad ending for minority shareholders. i have been following the story all along and i believe that Moon Capital will also be rejecting the offer. The evidence can be found in their buying px, buying date, % stake and also Rule 1306 of the SGX-ST Listing Manual. In the event that the delisting offer is unsuccessful, there is a great chance that roly share px will head upwards taking into consideration the changes implemented in the company currently and the private equity investors that are on board. CHEERS! |
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scotty
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19-Mar-2007 10:59
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Shareholders will always get the short end of the straw lah.... that's life... that's the risk of investing in small cap stocks. |
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level13
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18-Mar-2007 23:23
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On 12 Dec 2006, RI Special Holdings Bermuda Limited (?RI Special?) a company set up jointly by Mr Wang (46.09%), APGF V (45.9%), FAT Capital (0.8%), CFM (6%) & Titan I (1.2%) has made a proposal (?Delisting Proposal?) to seek the voluntary delisting (?Voluntary Delisting?) of the Company from the Official List of the Singapore Exchange Securities Trading Limited (?SGX-ST?) pursuant to Rule 1306 of the SGX-ST Listing Manual.
The consideration payable for each Share in respect of the Exit Share Offer by RI Special will be S$0.35 in cash.
I will now illustrate to roly shareholders why they should reject the exit offer.
From the circular that was issued recently, APGF V, FAT Capital, CFM & Titan I are all private equity funds. As most understand, when private equity funds decided to put their money in an investment, they are looking at a rate of return in excess of 35% (I may be conservative). As such, it is clear that the share px is currently undervalued. One of the reasons given for the exit offer is that for long periods of time, the share px does not reflect the true value of the company. I must admit that the business of roly is not easily understood. But nevertheless, the private equity funds can see the value of roly and are willing to pay $0.35 for each share. By not accepting the exit offer, the minority shareholders can also enjoy the gains that come about with the private equity now on board.
As the latest financial report suggest, the NAV per share of roly is S$0.5. If u r a shareholder, why wld u wan to sell at $0.35?
Also, take note that since the announcement date in dec last yr, one fund management company called Moon Capital management has increased its stake from below 5% to more than 10% at a px of around S$0.34. I do not think that the fund managers are in for a 1 cent gain. Instead, I believe that they will also reject the exit offer.
So to sum up, the private equity investors and fund managers have clearly seen that value of roly. Minority shareholders will get the short end of the straw if they choose to accept the exit offer.
There are 2 things that minority shareholders should do:
1) Reject the delisting proposal by voting at the SGM on 26th march
2) Reject the exit offer of S$0.35.
VESTED
CHEERS!
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