11-10-2013, 12:51 PM
(11-10-2013, 11:38 AM)yeokiwi Wrote:(11-10-2013, 11:26 AM)camelking Wrote: Why should Hiap Hoe minority shareholders vote against the offer?
They and the entire world know that the offer price is extremely low.
Even if they are also shareholders of superbowl, they will still vote for it knowing that a collapse of offer may result in a drop in Superbowl share price and quite likely, that of Hiap hoe too.
Vested
Because, once Hiap Hoe holdings gets the money, they may not have much incentive to increase the dividend.
Technically, HHL buy Superbowl on the cheap, but the money will mainly flow to HHH and HHH is the substantial shareholder of HHL. Essentially, it is like HHL is loaning money to pay HHH.
Well, they never paid good dividend in the first place i think.
So, with or without the offer, dividend policy won't change.
Yes, minority shareholders can deny the offer.
Will they get better dividend as an result? Probably not.
What will more likely to happen will be a plunge in HH and SB share price.
Then SB and HH will go back to the thinly traded counters they used to be.
The Teo family can always place out part of their shares to investors if they need some money. Still minority shareholders won't get their dividend.
Did i get it wrong? haha!
Big boys always win.