Anyway...let's wait for HSS's offer revision latest by 15 December if any...
Refer slides for an independent opinion on The future of Generic Drugs and HSS' Takeover Offer, details click on link below:
https://drive.google.com/file/d/1Ng3ZXNarGoC5gCj-AxpOh0qoyWqgr2J6/view

Those who have transferred their shares earlier to HSS has been held to ransom since the date for HSS offer has been extended to 29 December! It's better to get your shares back first from Tricor...at least you can trade freely at Bursa...

Note:
1. In order to delist Hovid, HSS needs at least 90% of the shares.
2. If HSS really obtained 75% of the shares by 29 December, they still can't apply to delist Hovid automatically. What is means is only Bursa would consider delisting if the public spread is not met. However according to TheEdge, Quote 'According to the latest annual report, Hovid’s shareholding is rather fragmented with each shareholder owning no more than 1.3% stake in the company', what it means is the public spread is rather large and so don't meets Bursa conditions for delisting.
3. What it only means is that those who has transferred their shares to HSS by 29 December, will be paid 38 sens (if the offer price is not revised), 10 days after the Privatisation offer turns unconditional (Lol next year 2018!)
4. Those shareholders who has not transferred their shares to HSS can continue to trade on Bursa. Since HSS has paid for the shares at 38 sens each, it is in their interest to protect their capital investment by keeping the share price at a min. of 38 sens or more.

Read this presentation...future value of Hovid can be 76 sens or more due to earning potential in 2018 onwards from patents cliff and Hovid registration of new generic drugs...

THE FUTURE OF GENERIC DRUGS & HOVID BERHAD TAKEOVER OFFER
Author: ValinV | Publish date: Fri, 1 Dec 2017, 12:07 AM

https://klse.i3investor.com/blogs/fixmy/140068.jsp

At the rate HSS is qoing, we don't think HSS will obtain 75% by 7 Nov, since 10 million units of Hovid equals about 1%..HSS needs to revise his offer asap to convince the institutional shareholders who collectively already holds more than 10% to sell..Anyway HSS needs to "showhand" either today or by tomorrow...

Nature of interest Direct Interest
Direct (units) 193,377,406
Direct (%) 23.557
Indirect/deemed interest (units)
Indirect/deemed interest (%)
Total no of securities after change 193,377,406
Date of notice 29 Nov 2017
Date notice received by Listed Issuer 29 Nov 2017

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5620541

HSS original shareholding 33.72%
Fajar Astoria shareholding 23.56% (as of 19 Nov)
33.72 + 23.56 = 57.28%

Looks like those who transferred their shares to HSS earlier, is in for a long wait for their cash...also the open market acquisition @RM0.37 selling volume has dropped on a daily basis...if HSS wants to achieve at least 75% by 7 Dec...he needs to increase the buying price asap!...
https://klse.i3investor.com/insider/substantialShareholder/7213/29-Nov-2017/414056_3320218458.jsp

2. wat happens if the sp suddenly drop after dec 7 (assuming david ho acquire 75% by dec 7)??
tq

If you refer to 4.3 Rights of Dissenting Holders & 2.4 Closing of the Offer this question doesn't arise as you can still sell the the shares to HSS at HSS's offer price at that time. Quote " the Offer will remain open for acceptances for at least 14 days from the date on which the Offer becomes and is declared unconditional (e.g. 7 Dec) which, in any event, shall not be later than the 60th day from the Posting Date.)

*note: Those shareholders who has not transferred their shares to HSS can continue to trade on Bursa. Since HSS has paid for the shares at 38 sens each, it is in their interest to protect their capital investment by keeping the share price at a min. of 38 sens or more.

and page 19 Closing of Offer
closing date of the Offer. Notice of such extension will be posted to you accordingly.

2.4 Closing of the Offer
(a) Where the Offer has become or is declared unconditional (i.e. if HSS managed to obtain more 75% shares on 7 December) as to acceptances on a day falling on or before the 46th day from the Posting Date, the Offer will remain open for
acceptances for at least 14 days from the date on which the Offer becomes and is declared unconditional which, in any event, shall not be later than the 60th day from the Posting Date.

(b) Where the Offer has become or is declared unconditional as to acceptances on a day falling on any day after the 46th day from the Posting Date, the Offer will remain open
for acceptances for at least 14 days from the date on which the Offer becomes and is declared unconditional which, in any event, shall not be later than the 74th day from
the Posting Date.

Without prejudice to Sections 2.4(a) and 2.4(b) and subject to Section 2 above, the Joint Offerors shall give no less than 14 days’ notice in writing to the Holders before closing the
Offer.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5585609

To answer your questions read page 7, Rights of Dissenting Holders (those who did not accept HSS offer on 7 Dec) and page 19 Para 2.4 Closing of Offer.

4.3 Rights of Dissenting Holders
(i) Notwithstanding the above and in the event the Joint Offerors decide to revise the
level of the Acceptance Condition to a lower level, if the Joint Offerors receive
acceptances from the Holders resulting in the Joint Offerors and persons acting in concert with them holding not less than nine-tenths in the value of the Shares
(including Shares already held at the date of the Offer by the Joint Offerors and
persons acting in concert with them) or Warrants (including Warrants already held at
the date of the Offer by the Joint Offerors and persons acting in concert with them) on
or before the Closing Date, a Dissenting Holder may exercise his rights, under
Section 223(1) of the CMSA, by serving a notice to require the Joint Offerors to
acquire his Offer Shares or Offer Warrants on the same terms as set out in this Offer
Document or such terms as may be agreed by the Joint Offerors and the Dissenting
Holder concerned.
(ii) If a Dissenting Holder exercises his rights under the provisions of Section 223(1) of
the CMSA, the Joint Offerors will acquire such Offer Shares or Offer Warrants in
accordance with the provisions of the CMSA, subject to Section 224 of the CMSA. In
accordance with Section 224(3) of the CMSA, when a Dissenting Holder exercises
his rights under Section 223(1) of the CMSA, the court may, on an application made
by such Dissenting Holder or by the Joint Offerors, order that the terms on which the
Joint Offerors shall acquire such Offer Shares or Offer Warrants shall be as the court
thinks fit.
(iii) Section 223(2) of the CMSA requires the Joint Offerors to give the Dissenting Holders
a notice in the manner prescribed under the rules of the rights exercisable by the
Dissenting Holders under Section 223(1) of the CMSA (“Notice to Dissenting
Holders”), within 1 month of the time the Joint Offerors have received valid
acceptances from the Holders resulting in the Joint Offerors and persons acting in
concert with them holding not less than nine-tenths in the value of the Shares
(including the Shares already held at the date of the Offer by the Joint Offerors and
persons acting in concert with them) or Warrants (including Warrants already held at
the date of the Offer by the Joint Offerors and persons acting in concert with them).
(iv) A Notice to Dissenting Holders under Section 223(2) of the CMSA may specify the
period for the exercise of the rights of the Dissenting Holders and in any event, such
period shall not be less than 3 months after the Closing Date.

'All for one and one for all, united we stand divided we fall.'

Is Hovid’s takeover valuation too low?

Hovid Bhd, a pharmaceutical manufacturer that is the target of a takeover effort, has had fund managers and some shareholders miffed about its valuation.

According to them, the offer price of 38 sen per share and 20 sen per warrant, though considered fair and reasonable, has not taken into consideration the future earnings potential of the company.

As a result, one fund manager says the offer price has severely undermined the future earnings potential of Hovid.

Some shareholders are also claiming they have yet to receive any dividends as they have agreed to plough back its earnings to grow the company. Hence, the takeover attempt has had many of them feeling unhappy.

(according to latest 2017 Annual report, Hovid still has retained earnings of RM70, 395,000, Reserves of RM39,748,000 and Cash & Deposit of RM15,864,000). If all the retained earning & reserves are capitalised as Bonus shares, based on 820.889,000 shares issued, each ordinary share is entitled to RM0.1341 of the Retained Earnings and Reserves!
http://www.focusmalaysia.my/Mainstream/is-hovid-s-takeover-valuation-too-low

Actually for those who have changed their minds and wanted their shares back from HSS before he accepts your offer (turns unconditional) before 7 Dec., can do so in person from Tricor Investor & Issuing House Services Sdn. Bhd. at Vertical Business Suite, Avenue 3, Bangsar South, No. 8 Jalan Kerinchi, KL...

Quote" (c). withdraw his acceptance within 8 days of notification by the Joint Offerors of a revision of accepting condition"

Since the notice of revision of accepting condition from 90% reduced to 75% announced on 23 November, you have 8 days until 30 November to withdraw your acceptance (get back your shares) in person from Tricor Investor & Issuing House Services Sdn. Bhd. KL
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5612045
Refer Hovid Conditional Voluntary Take-over Offer Document Para 3 (Rights of Withdrawal by an Accepting Holder) Page 20 dated 30 Oct. 2017

Some answer to your questions...
Why HSS want to delist...to maximise his ROI..
Q1. Now since the Manufacturing licence has been reinstated and manufacturing capacity has increased by 200%,, I can only see growth and profitability for Hovid for 2018 and beyond! otherwise Tael Partners would not has identified Hovid's as a growth oriented investment ripe for acquisition camouflaged as "Privatisation Exercise". Once they successfully acquire Hovid at a bargain price, they will sell their shares profitably to the highest bidder or relist again as a new entity in one to 2 years time.
https://edgemarkets.s3-ap-southeast-1.amazonaws.com/pictures/Hovid_Chart_fd_161017_theedgemarkets.jpg

According to CIMB, the Chemor plant extension could raise Hovid’s existing tablet and capsule capacity by 70% (from the original capacity). But this will happen gradually.
The new capacity will translate into stronger earnings growth in future for Hovid when things are falling in place. This may be why Fajar Astoria is keen on pouring in money to take Hovid private — a deal that will cost them about RM243.1 million.
Hovid’s production facilities include the 20-acre (8.09ha) Chemor plant with softgel packing, effervescent dosage and oral solid dosage facilities, while its three-acre Ipoh plant, where its headquarters are in, produces softgel encapsulation, oral liquid, penicillin products and its heritage Ho Yan Hor herbal tea.
Aside from the manufacturing plants, Hovid has a research and development centre in Penang which is dedicated to bioequivalence studies.
With a market capitalisation of RM295 million, which is less than US$85 million, Hovid does appear to be an attractive merger and acquisition (M&A) target for foreign pharmaceutical giants that are looking for capacity expansion in this part of the world.
http://www.theedgemarkets.com/article/hovid-inflection-point

Potential Benefits:
1. Dividends when declared
2. Bonus & Rights Issues (according to latest 2017 Annual report, Hovid still has retained earnings of RM70, 395,000, Reserves of RM39,748,000 and Cash & Deposit of RM15,864,000)
3. If all the retained earning & reserves are capitalised as Bonus shares, based on 820.889,000 shares issued, each ordinary share is entitled to RM0.1341 of the Retained Earnings and Reserves!
4. Potential capital appreciation if a big Pharma invest in Hovid etc.

So paying a premium of 6 sens versus a gain of 13.41 sens is simply not fair to minority shareholders!

Q2. Emergency Funds...wait until 2 days before 7 December before deciding...
The date extension to 7 December didn't change anything...
Let HSS's side "showhand" on the 4 or 5 November first and then decide...
* Note: HSS will only pay those who has transferred their shares to HSS, 10 days after the Privatisation offer turns unconditional. I think HSS's offer will only turns unconditional after they achieved at least 75%. For those "Fence Sitters" it pays to wait until the last day on 7 December, before deciding, as there is no advantage to transfer their shares early, only to be trapped without the ability trade their shares on Bursa (no liquidity) in case there is a price increase in the open market from a competing offer or from new developments.

Note:
1. In order to delist Hovid, HSS needs at least 90% of the shares.
2. If HSS really obtained 75% of the shares by 7 December, they still can't apply to delist Hovid automatically. What is means is only Bursa would consider delisting if the public spread is not met. However according to TheEdge, Quote 'According to the latest annual report, Hovid’s shareholding is rather fragmented with each shareholder owning no more than 1.3% stake in the company', what it means is the public spread is rather large and so don't meets Bursa conditions for delisting.
3. What it only means is that those who has transferred their shares to HSS by 7 December, will be paid 38 sens (if the offer price is not revised), 10 days after the Privatisation offer turns unconditional.
4. Those shareholders who has not transferred their shares to HSS can continue to trade on Bursa. Since HSS has paid for the shares at 38 sens each, it is in their interest to protect their capital investment by keeping the share price at a min. of 38 sens or more.

Q3. See profitability trend
below for Hovid:
2013 Profit of RM20.327 million
2014 Profit of RM18.084 million
2015 Profit of RM20.909 million
2016 Profit of RM17.896 million
2017 Loss of RM1.528 million (loss incurred is an anomaly due to revocation of manufacturing licence and not loss due to lack of demand)

Rough ride in Hovid’s privatisation

Quote "The weak response the major shareholders of Hovid Bhd

have received for their offer to privatise the healthcare provider and pharmaceutical company suggests that the offer price of 38 sen per share is too little.

After the first cut-off date on Nov 20, Fajar Astoria Sdn Bhd (FASB), the company proposing to take Hovid private, received an additional 13.16% acceptance and another 8.57% that has not been verified.

In total, it has so far received 55.46% acceptance, way below the 90% acceptance level that FASB seeks to take the company private.

FASB is offering 20 sen for each Hovid warrant and the acceptance so far is 71.64%.

Another issue that makes this privatisation uncertain is the uncertain cut-off level that would make the offer unconditional."
https://www.thestar.com.my/business/business-news/2017/11/22/rough-ride-in-hovid-privatisation/

To increase the acceptance rate form Hovid shareholders, HSS should consider the following options:

1 USD = RM4.12
e.g.
1. If they raise the offer price to 41 sens, the extra 3 sens payable (RM0.03 x 544,085,171) only cost extra RM16.32 million, in USD only $3.96 million.

3. If the offer price to 45 *sens, (32 Sens based on 5 Days VWAP + 13.41sens - share of retained earnings + reserves) the extra 7 sens payable (RM0.07 x 544,085,171) only cost extra RM38.05 million, in USD only $9,24 million

* Note:
Why the offerors gave a higher premium of 45.02% for Warrants compared to only 20.55% for Ordinary Shares?, why the disparity in premium offered for Warrants & Ordinary Shares?, if they offer the same premium of 45.02% for Ordinary Shares, the offer price should be 45 sens.

Potential Benefits:
1. Dividends when declared
2. Bonus & Rights Issues (according to latest 2017 Annual report, Hovid still has retained earnings of RM70, 395,000, Reserves of RM39,748,000 and Cash & Deposit of RM15,864,000)
3. If all the retained earning & reserves are capitalised as Bonus shares, based on 820.889,000 shares issued, each ordinary share is entitled to RM0.1341 of the Retained Earnings and Reserves!
4. Potential capital appreciation if a big Pharma invest in Hovid etc.

So paying a premium of 6 sens versus a gain of 13.41 sens is simply not fair to minority shareholders !

In the meantime those who still has Hovid share can continue to trade...good example is bjland , major shareholder already owns 78.8%, but the shares continue to be traded as meets public spread requirements

Actually, if they can't achieve 90% or more they can't delist...if they managed to get 75% only, the offer becomes unconditional and those who has transferred their share to HSS earlier only gets paid 10 day later...

A reasonable offer is given in the example below:
1. If they raise the offer price to 41 sens, the extra 3 sens payable (RM0.03 x 544,085,171) only cost extra RM16.32 million, in USD only USD$3.92 million.
2. If the offer price is 45 sens, the extra 7 sens payable (RM0.07 x 544,085,171) only cost extra RM38.05 million, in USD only USD9.13 million

But don't delay too long with the revised offer, since Malaysia GDP has gone up to 6.2% and crude oil price is increasing, the RM will strengthen further and the Offerors may end up paying more if the Privatisation Exercise drags into next year! They may end up penny wise but pound foolish...

Mbfh is the best example...the privatisation initially failed eventhouth they already have 87% until the offeror increased the offer price. read more at link below:

Quote "Ninian had owned 87% of MBFH when he offered to buy the remaining shares of the firm at RM1.50 each on February 6 this year. "

https://klse.i3investor.com/servlets/stk/ta/1236.jsp

The date extension to 7 December didn't change anything...
Let HSS's side "showhand" on the 4 or 5 November first and then decide...
* Note: HSS will only pay those who has transferred their shares to HSS, 10 days after the Privatisation offer turns unconditional. I think HSS's offer will only turns unconditional after they achieved at least 75%. For those "Fence Sitters" it pays to wait until the last day on 7 December, before deciding, as there is no advantage to transfer their shares early, only to be trapped without the ability trade their shares on Bursa (no liquidity) in case there is a price increase in the open market from a competing offer or from new developments.

Note:
1. In order to delist Hovid, HSS needs at least 90% of the shares.
2. If HSS really obtained 75% of the shares by 7 December, they still can't apply to delist Hovid automatically. What is means is only Bursa would consider delisting if the public spread is not met. However according to TheEdge, Quote 'According to the latest annual report, Hovid’s shareholding is rather fragmented with each shareholder owning no more than 1.3% stake in the company', what it means is the public spread is rather large and so don't meets Bursa conditions for delisting.
3. What it only means is that those who has transferred their shares to HSS by 7 December, will be paid 38 sens (if the offer price is not revised), 10 days after the Privatisation offer turns unconditional.
4. Those shareholders who has not transferred their shares to HSS can continue to trade on Bursa. Since HSS has paid for the shares at 38 sens each, it is in their interest to protect their capital investment by keeping the share price at a min. of 38 sens or more.
http://www.theedgemarkets.com/article/hovid-mds-takeover-bid-extended-dec-4

p.s Had plenty of experience from MBFH privatisation offer (successful - as they increased the offer price) & Asia Brands privatisation offer (unsuccessful - since they didn't increase the offer price)

From 1USD = RM4.16 on 19/11, RM has strengthened to 1USD = RM4.116 today (an appreciation of 4.44 sens already)...things don't looks good for HSS & Tael Partners Investment Fund if they have not moved their US denominated funds from overseas.

It's better they announce the revised offer asap to entice more shareholders to sell to them to make this Privatisation exercise successful...

The Notice of Extension of Offer from CIMB to 4 December already out today!
As of 17 November, according to CIMB, HSS only managed to obtain 55.46% Hovid Ordinary Shares and 71.64% of Warrants. This means HSS only managed to obtain (55.46 + 71.64 = 121.1/ 2 = 63.55% of Shares). Looks like those shareholders and warrant holders who transferred their shares early to HSS is stuck without their shares & cash, if the Privatisation exercise drags on...
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5607201

Ringgit already strengthened to RM4.145 to 1 USD today, the Offerors may end up paying more if the Privatisation Exercise drags into next year! They may end up penny wise but pound foolish...

One reason why HSS & Tael Partners wants to privatise Hovid, which specialise in production of generic medicines...

KUALA LUMPUR: The increase in Health Ministry’s (MOH) 2018 budget allocation clearly shows the government gives priority to the healthcare needs of the Rakyat.
Health Minister Datuk Seri Dr S.Subramaniam said the ministry’s allocation for 2018 is RM26.58 billion which is 9.5 per cent or 1.7 billion increase compared to what it received in the 2017 budget.
https://www.nst.com.my/news/nation/2017/10/296500/2018-budget-priority-given-rakyats-healthcare-needs

Nearly 60pct medicine at public hospitals, clinics is generic: Health Ministry
https://www.nst.com.my/news/nation/2017/10/297461/nearly-60pct-medicine-public-hospitals-clinics-generic-health-ministry

Extracted & translated from E-Nanyang "As of Friday, the largest shareholder of (HSS) already holds 455,243,006 shares or 55.46% (Ordinary Shares) and 230,3856,349 warrants or 71.64% Warrants). Since the they have not achieved 75% much less 90% for mandatory offer, it pays for the remaining shareholders to wait for their next extension and offer probably announced by 30 November since 1 December is a Public Holiday (2 days before the 2nd closing date on 4 December).

Not only Tael Partners (foreign fund) will be trapped but those Hovid ordinary shareholders who transferred their shares to HSS early will also be trapped (without their shares and cash) and ability to trade on Bursa should the share price increase on the expectations of a revised offer or higher rival bids for the remaining free floating Hovid shares.

Currently 1USD = RM4.16
e.g.
1. If they raise the offer price to 41 sens, the extra 3 sens payable (RM0.03 x 544,085,171) only cost extra RM16.32 million, in USD only USD$3.92 million.
2. If the offer price is 45 sens, the extra 7 sens payable (RM0.07 x 544,085,171) only cost extra RM38.05 million, in USD only USD9.13 million

But don't delay too long with the revised offer, since Malaysia GDP has gone up to 6.2% and crude oil price is increasing, the RM will strengthen further and the Offerors may end up paying more if the Privatisation Exercise drags into next year! They may end up penny wise but pound foolish...

The premium for the Ordinary Shares (with voting and dividend rights & no expiry date) is only 20.55% to 5 days the VWAP i.e from 31.5 sens to 38 sens, while the Warrants (no voting and dividend rights expiry date 5 June 2018, exercise 18 sens (1:1) to convert to Ordinary Share) gets a premium of 45.02% to the 5 days VWAP i.e from 13.5 sens to 20 sens.

Hovid Warrants B - expiry date 5 June 2018, exercise 18 sens (1:1) to convert to ordinary share.
http://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=7213WB

Why the offerors gave a higher premium of 45.02% for Warrants compared to only 20.55% for Ordinary Shares?, why the disparity in premium offered for Warrants & Ordinary Shares?, if they offer the same premium of 45.02% for Ordinary Shares, the offer price should be 45 sens.

e.g.
1. If they raise the offer price to 41 sens, the extra 3 sens payable (RM0.03 x 544,085,171) only cost extra RM16.32 million, in Singapore Dollars only $5.94 million.
2. If the offer price is 45 sens, the extra 7 sens payable (RM0.07 x 544,085,171) only cost extra RM38.05 million, in Singapore Dollars only $12.55 million

Mind you this is a privatisation exercise, meaning the medium and the long-term shareholders would be deprived of the future benefits through better share price and dividends in future should the privatisation be successful and their shares are taken over through a mandatory offer, if they achieve 90% at the current offer price of 38 sens for ordinary shares.


Quote "Ho is the single-largest shareholder of Hovid, with an equity interest of 33.72%. He is also Hovid’s managing director.

Fajar Astoria is a special-purpose vehicle incorporated to undertake the offer with Ho. It was set up by TAEL Two Partners Ltd.

“The joint offerers (Ho and Fajar Astoria) offer to undertake a conditional voluntary takeover offer to acquire 544,085,171 ordinary shares not already held by them, representing about 66.28% of the total shares.

“In addition, the joint offerers wish to acquire 181,841,209 units of outstanding five-year warrants, representing about 56.43% of the total warrants,” the announcement said.

The offer price for the remaining ordinary shares represented a premium of 20.55% to the adjusted five-day volume-weighted average market price (VWAP) of the shares until Oct 6.

As for the warrants, the offer price stood at a premium of 45.02% to the five-day VWAP until Oct 6"

https://www.thestar.com.my/business/business-news/2017/10/10/hovid-receives-voluntary-takeover-offer/

You can verify with PenguinDad?

Good decision...actually the hint for a better offer from the Offerors is already up there...last count most of the institutional shareholders, both local and foreign already owns more than 10% of the shares excluding Cold Eyed...mark my words there will be a revised offer and extension of time...

Wait for the official announcement by CIMB...anyway if the offerors offer to buy from open market at 41 sens...I am very sure there will be more sellers. Last check Cold Eyed is still keeping his shares :)

The first closing date is 20/11, the joint offerors may announce a new closing date if they have not achieved 90% acceptance from the shareholders at least 2 days before the closing date, that is Friday 17/11. The 2nd closing date will be extended at least 14 days from the first closing date that is 4 December with the revised offer.

Just raise my shareholdings in Hovid during its moments of weakness...expect the 2nd offer to be RM0.41 or more!

Hovid bounced back very fast...The latest quarter to quarter profits increase by 133.5% to RM2.155 million which is a sign of recovery...the next few quarters will show even better profitability once the extra capacity from Chemor plant is ready by December, as the factories are running at 24 hours which means plenty of orders to meet!

13-Nov-2017 30-Sep-2017 49,657 2,972 2,155 2,130 4.34% 1.07% 0.26 0.00 0.2436 133.50%
https://klse.i3investor.com/servlets/stk/annqtyres/7213.jsp

I am keeping my shares until a better offer comes along, actually the 1st offer of 38 sens was the the share price around October last year before the suspension of Hovids' manufacturing license so there was actually no premium at all for medium to long term investors. See profitability trend
below:
2013 Profit of RM20.327 million
2014 Profit of RM18.084 million
2015 Profit of RM20.909 million
2016 Profit of RM17.896 million
2017 Loss of RM1.528 million (loss incurred due to revocation of manufacturing licence and not loss due to lack of demand)

Now since the Manufacturing licence has been reinstated and manufacturing capacity has increased by 200%,, I can only see growth and profitability for Hovid for 2018 and beyond! otherwise Tael Partners would not has identified Hovid's as a growth oriented investment ripe for acquisition camouflaged as "Privatisation Exercise". Once they successfully acquire Hovid at a bargain price, they will sell their shares profitably to the highest bidder or relist again as a new entity in one to 2 years time.

https://edgemarkets.s3-ap-southeast-1.amazonaws.com/pictures/Hovid_Chart_fd_161017_theedgemarkets.jpg

Points for Minority Shareholders consideration:

Now, for minority shareholders who were unfazed by the suspension of production in January and have held onto their shares, should they take up the takeover offer to exit at this point of time? But it may be worth noting that the company posted earnings per share of 2.24 sen for FY16.
https://edgemarkets.s3-ap-southeast-1.amazonaws.com/pictures/Hovid_Chart_fd_161017_theedgemarkets.jpg

There is a wild card that minority shareholders should not neglect — the new capacity which has been delayed. The extension of capacity is expected to come on stream by year end, according to a fund manager.

According to CIMB, the Chemor plant extension could raise Hovid’s existing tablet and capsule capacity by 70% (from the original capacity). But this will happen gradually.

The new capacity will translate into stronger earnings growth in future for Hovid when things are falling in place. This may be why Fajar Astoria is keen on pouring in money to take Hovid private — a deal that will cost them about RM243.1 million.

Hovid’s production facilities include the 20-acre (8.09ha) Chemor plant with softgel packing, effervescent dosage and oral solid dosage facilities, while its three-acre Ipoh plant, where its headquarters are in, produces softgel encapsulation, oral liquid, penicillin products and its heritage Ho Yan Hor herbal tea.

Aside from the manufacturing plants, Hovid has a research and development centre in Penang which is dedicated to bioequivalence studies.

With a market capitalisation of RM295 million, which is less than US$85 million, Hovid does appear to be an attractive merger and acquisition (M&A) target for foreign pharmaceutical giants that are looking for capacity expansion in this part of the world. In fact, CIMB said that it would turn more positive on Hovid upon a stronger-than-expected recovery in sales volume and earlier delivery of the extension of its Chemor plant.

http://www.theedgemarkets.com/article/hovid-inflection-point

You guys must be promoters from HSS's side...nobody will not accept if the price is right!...the main idea is to force HSS and Tael Partners Ltd the principal investment firm specializing in growth oriented investments (whose main target is : Merger/Acquisition of Hovid Berhad thorugh this privatisation exercise) to offer us a better price than 38 sens before they can achieve 90% by 20th November which is only the first deadline...so they will up the offer price and extend the deadline for acquisition just like MBFH case...

https://klse.i3investor.com/servlets/stk/ta/1236.jsp

Don't worry if the acquisition is succesful i.e. HSS & partner achieved 90% shares...they will activate mandatory acquisition and buy the shares from you without you doing anything...

the main thing is to force them to offer us a better price than 38 sens before they can achieve 90% by 20/11 which I think is not possible...so they will up the offer price and extend the deadline for acquisition just like MBFH case...

Don't worry they will try to make it successful since Tael Partners has identified Hovid's as a growth oriented investment ripe for acquisition camouflaged as "Privatisation Exercise". Once they successfully acquire Hovid at a bargain price, they will sell their shares profitably to the highest bidder or relist again as a new entity in one to 2 years time. If they can't achieve 90%, they will sweetend the offer by raising the offer price. If they achieved 90% there will be a mandatory acquisition.

If their offer is not successful...Mr. Market already knows the true value of Hovid which is RM0.38 sens and above, otherwise a market savvy investor like Cold Eyed would not have bought 10 million shares in Hovid...

Quote"
HSS partner Tael Partners Ltd is a principal investment firm specializing in growth oriented investments.

Their Target is:
Merger/Acquisition
October 9, 2017 Hovid Berhad "

Quote "Hovid appears to be an attractive merger acquisition target for foreign pharmaceutical giants looking for capacity expansion in this part of the world and Tael Partners may sell their share of Hovid should the acquisition be successful to the highest bidders at a handsome profit"

http://www.theedgemarkets.com/article/hovid-inflection-point

Some Case Studies on Merger & Acquisition for bedtime reading
http://governanceforstakeholders.com/wp-content/uploads/2013/03/Corpor...

Looks like the takeover response is not too good... otherwise we won't have promoters here for HSS...anyway PJdev is not a good example as is in a different industry segment...one is property development which is in a slowdown, while Hovid is in medical & health industry which is defensive...even in bad times it is still profitable so will be even better in good times

Actually there should be no hurry to sell...as there is still the Independent Advice Circular to be received no later than 9 Nov. before deciding and you don't have to take any action if decided not to accept the offer of RM0.38 per share.

20 Nov is only the first closing date, or any other closing date the Joint Offerors may decide as may be announced by CIMB at least 2 days before the closing date i.e. 18 Nov.

This is only the first deadline...if the required threshold not achieved as HSS only holds 34%, he will extend the offer date as the case of MBFH...an indication of whether threshhold achieved or not? will be the movement of Hovid share price and its volume...

Quote from MBFH privatisation case study"
From The Star:
KUALA LUMPUR: MBf Holdings Bhd (MBf) major shareholder, Tan Sri Dr Ninian Mogan Lourdenadin has raised his takeover offer price for the remaining shares and warrants following opposition from minority shareholders.

Ninian and parties acting in concert with him announced on Thursday the offer shares were revised from RM1.50 to RM1.70 and the warrants from 50 sen to 70 sen.

Most importantly, shareholders who had accepted the original offer would also benefit from the higher revised offer and they would receive the incremental increase within 10 days.

MBf said the revised offer would be kept open for acceptances until 5pm on April 3, which is the extended closing date.

At midday, MBf shares rallied 18 sen to RM1.70 and the warrants gained 16.5 sen to 66 sen. "

https://klse.i3investor.com/servlets/stk/ta/1236.jsp

still have 105k shares, will keep until better offer then rm0.38 from Hovid. like mbfh was forced to make a better offer last time to take it private