(01-01-2022, 09:48 AM)header Wrote: [ -> ]If not many willingly to see, BWL can always do anorger equal access scheme at higher price and test the shareholders again.
Hi header,
Not sure whether you have read my previous post #1125. Is there any motivation for them to try at a higher price ? ( Of course, as a shareholder, I would most welcome more $.
)
Take for example a scenario like this :
2021 - $1.36 buyback offer : lacklustre response from minority shareholders.
2022 - no dividends or token dividends. Try $1.36 again : response maybe a bit better since getting something is better than nothing especially after so long.
2023 - no dividends or token dividends. Try $1.36 again : response probably better/much better.
2024 - no dividends or token dividends. Try $1.36 again : response ? by now, minority will probably get the idea - better take $1.36 else get nothing again.
2025 thereafter - wait till cross 90%, G.O. $1.36
Barring unforeseen circumstances, @ a price of $1.36, it is most likely that there is no need for external funding, and the company has enough existing cash to fund this exercise even if it has to stop its China business tmr. The DS business for its other countries are sustainable. In other words, it is a super safe option for the mgmt : they get to own the company "for free"(no need to fork out own $) ?
Now, the question is the above in violation of any rules ? If not, then why not ?
If the acceptance responses are better than expected, G.O. may be initiated even sooner.
What about trading resumption ?
The issue hasn't been resolved for 2+ years. Furthermore, based on the expertise/experiences of D2/HBC in the DS industry, the expertise/experiences of the independence directors in the area of law/regulations, if there is a good chance for trading resumption in the near future, it is unlikely for the mgmt to initiate this equal access offer at this pt in time.
Sep 2021 : AGM Q&A Pt 11 in response to questions on resumption -
Despite MOFCOM not resuming accepting licence, BW has been working with SGX on suspension issue.... explore all available options .....
https://links.sgx.com/FileOpen/2021%2009...eID=685327
Nov 2021 : Future Plans Update - BOD consider delisting.
https://links.sgx.com/FileOpen/2021%2011...eID=690473
As for the China authorities side, the filings acceptance stopped in 2018 but will it resume soon ? No one knows but given incidents like these happen now and then, the authorities may want to take a cautious approach.
https://finance.yahoo.com/news/taiwanese...00211.html
At the end of the day, I always try to think from the angle of the controlling shareholders.