18-05-2022, 07:16 PM
There have been some major developments at Procurri in the last couple of weeks.
- Last week the company announced that they "in recent months received non-binding indications of interest from several third parties for the purchase of certain assets of the Company and its subsidiaries": https://links.sgx.com/1.0.0/corporate-an...c160bb56b9
In light of Park Place's offer from 2019 that I mentioned in my previous post, this looks like a very interesting development. Is there again interest in the company's Third Party Maintenance (TPM) division? And will it lead to a definite transaction this time? If a sale of a division takes place while minority holders are still at the table alongside Novo Tellus and DeClout, this seems quite positive. My worry was that Novo Tellus / DeClout would attempt to buy out minorities at a low price first.
- Today a filing was released that showed very large insider buys by DeClout: https://links.sgx.com/1.0.0/corporate-an...3dd50656ce.
They bought 12.2m shares in recent days, taking their stake from ~22.0% to 26.1% of the outstanding shares. I was a bit surprised that DeClout is allowed to buy during a time when there are ongoing discussions with third parties, since DeClout is also on Procurri's Board of Directors. But to see them buying so aggressively at these prices IMO clearly shows that they see a lot of value here.
The downside for minorities is that DeClout's buys further secures Novo Tellus' and DeClout's position as the controlling shareholders. Overall, I'd say these latest developments are quite positive though.
- Last week the company announced that they "in recent months received non-binding indications of interest from several third parties for the purchase of certain assets of the Company and its subsidiaries": https://links.sgx.com/1.0.0/corporate-an...c160bb56b9
In light of Park Place's offer from 2019 that I mentioned in my previous post, this looks like a very interesting development. Is there again interest in the company's Third Party Maintenance (TPM) division? And will it lead to a definite transaction this time? If a sale of a division takes place while minority holders are still at the table alongside Novo Tellus and DeClout, this seems quite positive. My worry was that Novo Tellus / DeClout would attempt to buy out minorities at a low price first.
- Today a filing was released that showed very large insider buys by DeClout: https://links.sgx.com/1.0.0/corporate-an...3dd50656ce.
They bought 12.2m shares in recent days, taking their stake from ~22.0% to 26.1% of the outstanding shares. I was a bit surprised that DeClout is allowed to buy during a time when there are ongoing discussions with third parties, since DeClout is also on Procurri's Board of Directors. But to see them buying so aggressively at these prices IMO clearly shows that they see a lot of value here.
The downside for minorities is that DeClout's buys further secures Novo Tellus' and DeClout's position as the controlling shareholders. Overall, I'd say these latest developments are quite positive though.