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I was reading through Cityneon's Results of Rights Issue and I noted that following the issue of the rights shares, the public float will only be 6.3% with the majority of shares owned by Laviani Pte Ltd, a subsidiary of Star Media Group Bhd. As a result, the shares will be suspended from 28 September 2015.

What I am particularly interested in is what is going to happen next - whether they intend to maintain their listing or is there a possibility of a delisting on the cards.

ECS faced a very similar situation recently and they took the path of delisting at a premium to the last traded price. Could this be a likelihood for Cityneon as well taking into consideration that Star Media Group will not need to fork out much to take over the company?

I sense a potential opportunity here although of course there are risks involved as the stock will be suspended in the interim of awaiting a decision.
Proposed Placement of Up To 40,000,000 Ordinary Shares in the Capital of CityNeon Holdings Limited at a Placement Price of S$0.55 per Share

Use of Net Proceeds :
1. New immersive attraction sets builds 47.2%
2. Business expansion into China 28.3%
3. General working capital (including expansion of management and creative team) 24.5%
Marvel 'AVENGERS S.T.A.T.I.O.N.' Exhibition Will Be In Singapore Come October 2016!

AVENGERS S.T.A.T.I.O.N. (Scientific Training And Tactical Intelligence Operative Network), is proudly presented by Victory Hill Exhibitions, Science Centre Singapore and The Walt Disney Company Southeast Asia.

The travelling immersive attraction, has made its way from New York, Seoul and Paris and will take visitors in Singapore on an immersive experience into the Marvel Cinematic Universe.

Featuring the Marvel characters Captain America, Thor, Hulk, Black Widow and Iron Man, the exhibition promises to take visitors on a sensory adventure deep into the world of these superheroes. Throughout the interactive experience, visitors will become recruits and interactively assemble an in depth knowledge on each of the characters in order to become part of a combat support network for The Avengers team.

Victory Hill Exhibitions is a 100% subsidiary of Cityneon Holdings Limited.

<not vested>
Quote:Star Media Group gets expression of interest for its Cityneon stake

Star Media Group Bhd has received an expression of interest to buy its 52.51% equity interest in Singapore-listed Cityneon Holdings Ltd.

In a filing with Bursa Malaysia, the company said its wholly-owned subsidiary, Laviani Pte Ltd, was today (Friday) notified by Bird & Bird ATMD LLP, a legal firm in Singapore, that its client was interested in purchasing Laviani’s 128.46 million shares in Cityneon. 

“Pursuant to the above, the board will deliberate the abovementioned and an appropriate announcement will be made in due course,” it said.

Earlier in the day, Cityneon had requested for immediate suspension of its share trading on the Singapore Exchange from 3.02pm.

Its shares were last traded at 95.5 Singapore cents, giving the company a market capitalisation at S$233.6mil (RM722.0mil). Based on this, Star's 52.51% stake is worth about S$122.7mil (RM378.8mil).

Cityneon, a full service ideas agency, has five business segments - events, exhibitions, experiential environment, interior architecture, and intellectual property rights (IPR).

The IPR segment was created through the acquisition of immersive attractions company Victory Hill Exhibitions Pte Ltd in 2015, which has the rights to hold the successful Marvel Avengers S.T.A.T.I.O.N interactive exhibition.

The IPR segment, with its 75.5% gross profit margin, fuelled a 43.0% growth in Cityneon’s gross profit to S$33.32mil (RM102.93mil) for the financial year ended Dec 31, 2016.

Quite curious as to what the potential buyer's valuation of Star Media's stake in Cityneon is. And if the deal goes through, it will be interesting to see what happens next - will the new owners delist the company? The free float right now is 26%.
For sure, a mandatory general offer will be triggered and the potential buyers have to extend at least a similar offer price to what it is going to pay Star Media Group. Their intentions will then be clearly stated in the offer document.
(06-05-2017, 04:14 PM)weijian Wrote: [ -> ]For sure, a mandatory general offer will be triggered and the potential buyers have to extend at least a similar offer price to what it is going to pay Star Media Group. Their intentions will then be clearly stated in the offer document.

Thanks! I haven't had much experience with companies I'm vested in getting taken over (except Nobel Design, which also happened recently) so I looked this up after seeing your post. Pasting what I found here for reference.

From a law firm's guide to takeovers and mergers in Singapore:

Quote:What is a Mandatory Offer?
This is triggered under Rule 14 of the Code when an offeror and parties acting in concert with it acquire shares of the target in amounts crossing the threshold prescribed in Rule 14. The offer is conditional upon the offeror obtaining a minimum level of acceptance which has the offeror and parties acting in concert with it holding shares that carry more than 50% of the voting rights of the target.

When is a Mandatory Offer triggered?
Under Rule 14 of the Code, a mandatory take-over offer is required to be made if: a) A person acquires, whether by a series of transactions over a period of time or not, shares which (taken together with shares held or acquired by persons acting in concert with him) carry 30% or more of the voting rights of a company; or b) A person who, together with persons acting in concert with him, holds between 30% and 50% of the voting rights in the Target Company and such person, or any person acting in concert with him, acquires in any 6-month period additional shares carrying more than 1% of the voting rights of the Target Company.  
The company has requested for an extension of the trading halt pending the release of a material announcement, which is expected to be released before the Market re-opens on 15 May 2017
Pre-conditional Mandatory General Cash Offer : S$0.90 in cash for each share.
5.75% discount over the last transacted price on 5 May 2017 of S$0.955.

More details in
Cityneon announced that the company is included by Morgan Stanley Capital International ("MSCI") as a constituent of the MSCI Global Micro Cap Indexes - Singapore Index on 15 May 2017.
Possible Mandatory Unconditional Cash Offer for Cityneon Holdings Limited

The board of directors of Teamway International Group Holdings Limited wishes to inform shareholders of Cityneon Holdings Limited  that Teamway has today issued an announcement on The Stock Exchange of Hong Kong Limited relating to the memorandum of understanding dated 6 November 2017 entered into between Mutual Power International Limited, an indirect wholly-owned subsidiary of Teamway, and Massive Right Investments Limited in relation to the proposed acquisition, pursuant to which Mutual Power, as purchaser, intends to acquire and Massive Right, as vendor, intends to dispose of, 76% of the equity interest in Lucrum 1 Investment Limited and all shareholders’ loans owing by Lucrum 1 to Massive Right.

As stated in the MOU Announcement, if the Proposed Acquisition materialises, Mutual Power and Teamway will, upon completion of the Proposed Acquisition, own 84.5% equity interest in and acquire statutory control of Lucrum 1, and Mutual Power will, subject to and upon completion of the Proposed Acquisition, be required, pursuant to the chain principle in note 7 to Rule 14.1 of the Singapore Code on Take-overs and Mergers, to make a mandatory unconditional cash offer to acquire all the issued and paid-up ordinary shares in the capital of Company, other than those already owned, controlled or agreed to be acquired by Mutual Power.

There is no certainty or assurance that the Proposed Acquisition and/or the Possible Chain Offer will eventually materialise.
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