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03-08-2012, 04:08 PM
Indeed dydx - good observation,
I believe that those unloading will predominantly be Zagro shareholders with CDP registered addresses outsuide Singapore. I personally know of two overseas based shareholders who are "less than pleased" (i.e. an understatement by some margin) that Zagro's decision makers explicitly excluded them from the Zuellig-Skopini offer. They have already unloaded their entire holdings - one of them, who was otherwise very keen on building his stake, had quite a significant holding. I presume this pair will be even more unhappy seeing today's last minute rush to buy units and the positive effect it has had on Zagro's share price.
I have quite some sympathy for their position. The beneficiary of their exclusion from the "32 for 100 at S$ 0.15" deal is Executive Chairman & CEO Poh who is able to pick up their un-acquired units at S$ 0.15. The chosen process is more than contrived and there were far simpler processes which could have been selected by Zagro's BoD, i.e. processes which would have given all minorities a fair crack of the whip, including foreign shareholders e.g. a) buying out Skopini's holding and cancelling the shares (Zagro's balance sheet would have supported that) and b) a rights issue available to everyone. I am very surprised the SGX did not look into this matter - it does not do the SGX's reputation any good whatsover, particularly overseas.
Zagro is a good little company that is well managed - but I know amongst some foreign shareholders the name leaves a sour taste in the mouth.
Vested,
I believe that those unloading will predominantly be Zagro shareholders with CDP registered addresses outsuide Singapore. I personally know of two overseas based shareholders who are "less than pleased" (i.e. an understatement by some margin) that Zagro's decision makers explicitly excluded them from the Zuellig-Skopini offer. They have already unloaded their entire holdings - one of them, who was otherwise very keen on building his stake, had quite a significant holding. I presume this pair will be even more unhappy seeing today's last minute rush to buy units and the positive effect it has had on Zagro's share price.
I have quite some sympathy for their position. The beneficiary of their exclusion from the "32 for 100 at S$ 0.15" deal is Executive Chairman & CEO Poh who is able to pick up their un-acquired units at S$ 0.15. The chosen process is more than contrived and there were far simpler processes which could have been selected by Zagro's BoD, i.e. processes which would have given all minorities a fair crack of the whip, including foreign shareholders e.g. a) buying out Skopini's holding and cancelling the shares (Zagro's balance sheet would have supported that) and b) a rights issue available to everyone. I am very surprised the SGX did not look into this matter - it does not do the SGX's reputation any good whatsover, particularly overseas.
Zagro is a good little company that is well managed - but I know amongst some foreign shareholders the name leaves a sour taste in the mouth.
Vested,
(03-08-2012, 12:40 PM)dydx Wrote: Today (3Aug12), Zagro Asia advanced $0.01 in the morning and last done $0.28. Having taken a quick look at the 'sell' queue, it looks like the supply of shares from those minority public shareholders not willing or unable to support the 32-for-100 Preferential Offering by Skopini Ltd/Zuellig Group at a discounted price of $0.15/share, will soon totally dry up.
RBM, Retired Botanic MatSalleh