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This privatisation offer is attractive to recent or new shareholders, for they will be sitting on gains on some >50%.
But for the majority of shareholders who bought in during the earlier periods, the offer is not very compelling. For these earlier shareholders from between 2011 to current period, they would have bought at prices from between $1.00 to $1.15 per share. They have sat through years of falling revenues, profits and dividends. It's only recently that some of the initiatives are starting to bear fruit, e.g. redevelopment and leasing for Kim Chuan and Genting Lane. Earnings (and dividends) are only starting to recover.
The oil and gas sector (and construction) went through a rough patch for a few years, but like all market cycles, it should recover in due time. In its heyday, Hupsteel was raking in revenues in excess of $300m. Today because of circumstances, the revenues are lower at around $50m.
Is the founding family delisting on the cheap and short-changing these long suffering shareholders? They are not even offering a price that matches the NAV per share, which according to their 3QFY2019 financial statement (unaudited) stood at $1.34 per share as at 31 Mar 2019.
The Offeror has secured irrevocable undertakings representing 54.16% of the total number of shares. Will they get 90% of the shares and succeed in their maiden attempt to delist the company? What recourse do the dissenters have?
But for the majority of shareholders who bought in during the earlier periods, the offer is not very compelling. For these earlier shareholders from between 2011 to current period, they would have bought at prices from between $1.00 to $1.15 per share. They have sat through years of falling revenues, profits and dividends. It's only recently that some of the initiatives are starting to bear fruit, e.g. redevelopment and leasing for Kim Chuan and Genting Lane. Earnings (and dividends) are only starting to recover.
The oil and gas sector (and construction) went through a rough patch for a few years, but like all market cycles, it should recover in due time. In its heyday, Hupsteel was raking in revenues in excess of $300m. Today because of circumstances, the revenues are lower at around $50m.
Is the founding family delisting on the cheap and short-changing these long suffering shareholders? They are not even offering a price that matches the NAV per share, which according to their 3QFY2019 financial statement (unaudited) stood at $1.34 per share as at 31 Mar 2019.
The Offeror has secured irrevocable undertakings representing 54.16% of the total number of shares. Will they get 90% of the shares and succeed in their maiden attempt to delist the company? What recourse do the dissenters have?