GP Batteries International

[ngcheeki]

I read the annoucement from Q3 that vectrix incur impairment loss. Didnt see anywhere that vectrix has been sold. If sold, there should also be announcement on the consideration.

Please guide me if it sold indeed

Hi Ken,

Base on my understanding Vectrix group is in the process of winding down and not sold yet. Hopefully, the 45% owned Vectrix Group will be sold to the other partners.

"The Vectrix Group failed to raise additional capital. The other shareholders of Vectrix decided not to fund the projects further because of significant cost overrun and their commercial viability. The Group did not have the required resources to continue the projects alone. Accordingly, Vectrix’s management team was in the process of discussing with concerned parties to wind down its operations. As a result, the Group fully provided for its investment in and receivables from Vectrix Group of companies."

Some news of Vectrix from the net.

"Shutdown of US operations
According to a Spanish news magazine, by January 2014 Vectrix will cease all US operations.[2] After numerous manufacturing problems resulting in failed batteries and nonfunctioning scooters, Vectrix's parent company Gold Peak, a Chinese battery manufacturer, decided to close down all Vectrix's US facilities as of December 31, 2013.[2] The report indicates that Vectrix will maintain its Poland fabrication plant in order to continue to supply parts for its joint venture with Daimler's Smart division.[2]"

http://en.wikipedia.org/wiki/Vectrix#cit..._digital-2

Hi ngcheeki,

Thank for the information. Ultimately, i believe once vectrix is sold, there will be another adjustment on gain/loss from the disposal.

Can anyone confirm for me that if they reach the recent 50% holding, GPI will need to give an offer to the public??? Is it because right is not finalise that why there are no amnouncent?

For the reason of issuing right, my guess is they decided to privatise GPB by acquring as much excess as possible and give out bad news of impairment loss for vetrix to lower down the market share price. Right issue also give a hugh discount of 0.485 and 1 for 2 instead of 1 for 1.
Haha my guess only.

Hi Ken,

In the take-over code for companies, there is no requirement for companies to make mandatory offer when cross 50%. In fact, once crossed 50%, GP Batteries can acquire as many share as they like. The following is extracted from the GP Batteries OIS document.

GPB OIS wrote:
The Company is incorporated in the Republic of Singapore, and is subject to Sections 138, 139 and 140 of the SFA and the Code. The Code regulates the acquisition of ordinary shares of public companies, including the Company. Unless exempted, any person acquiring an interest, either on his own or together with parties acting in concert with him, in 30.0%or more of the voting rights in the Company or if such person holds, either on his own or together with parties acting in concert with him, between 30.0% to 50.0% (both inclusive) of the voting rights in the Company, and acquires additional Shares representing more than 1.0% of the voting rights in the Company in any six-month period, must extend a take-over offer for the remaining Shares in the Company in accordance with the provisions of the Code.

Shareholders who are in doubt as to their obligations, if any, to make a mandatory take-over offer under the Code as a result of any acquisition of Rights Shares pursuant to the Rights Issue should consult the Securities Industry Council of Singapore and/or their professional advisers.

As at the Latest Practicable Date, GPIL holds 54,616,096 Shares, representing approximately 49.71% of the shareholdings in the Company. Consequently, by acquiring less than 1.0% of the shareholdings in the Company, GPIL will be able to hold more than 50% of the shareholdings in the Company and not be required to extend a take-over offer for the remaining voting shares of the Company."

As for the privatize theory by GP Batteries, a few of the experts here are guessing that's their ultimate intention too