I just received the offer this morning. Going to wait till the end of this week before i sell. Just to see their quarter results which should be out soon, if its bad then just sell if its good then might hold awhile more.
Basically, there will be a few scenarios likely to happen. First, if you accept the offer then just signed the accetance letter and send it back for 3.18. Second, if you ignore the offer and held on to the oldtown shares, then there are two scenarios likely going to happen. If Jacob managed to get 90% of oldtown then you will be forced to sell your oldtown share to them at 3.18 as well. If Jacob did not managed to get 90% (75%-80%). Then Jacob can either revised their offer higher than 3.18 hoping the remaining shareholders will sell them or they can absorb enough stock from open market by either pressing the price and slowly absorb or purchasing the remaining % at higher price than 3.18 and push up the prices.
I noted the buy-Q very high, worst scenario will still be at 3.18 right, just that, in that interim period of processing after the deadline of accept & transfer, one might have to wait for the $ if they are successful.
62.6% is still some way to go to reach 90%. If JDE hit 90% or more, then it becomes mandatory for JDE to offer to holders for cash.
Bursa rules require that at least 25% of its shares must be held by the general public for it to continue listing in Bursa. That means as long as JDE does not hold more than 75% of its shares, it can continue remain in public listing.
But taking OTB private can be a headache if there are still substantial shares held by the general public. The public can still hold on to its shares even if taken private.
I have sold all my shares but I do not understand the last part.
In the event OldTown is unable to comply with the public spread requirement as a result of acceptances received pursuant to the offer, the offeror has no intention of taking any steps to address the shortfall in the public spread requirement," it added. (The Edge)
What does , "the offeror has no intention of taking any steps to address the shortfall in the public spread requirement" mean?
KUALA LUMPUR (March 20): Jacobs Douwe Egberts Holdings Asia NL BV (JDE Asia) has received valid acceptances for 456.78 million OldTown Bhd shares, representing a 98.6% stake in the company, following the closing of its offer today.
In a filing to Bursa Malaysia, OldTown said the offeror will compulsorily acquire the remaining shares as provided for by the Capital Markets and Services Act 2007 (CMSA).
"The offeror will issue a notice in the form or manner specified by the Securities Commission Malaysia under Section 222 of the CMSA, informing the dissenting shareholders of the offeror's intention to compulsorily acquire their OldTown shares," it said.
The compulsory acquisition notice will be sent to the dissenting shareholders within two months from March 13.
In February, JDE Asia issued its offer for OldTown shares at RM3.18 per share, after receiving irrevocable undertakings from Old Town International Sdn Bhd, Lee Siew Heng and Mawer Investment Management Ltd, who collectively hold 238.32 million shares or 51.45% stake.
The initial closing date of the offer was on March 13 but was extended for one week to March 20.
The offeror intends to delist and privatise OldTown upon the acquisition, as this would provide both parties greater control and management flexibility in the implementation of any strategic initiatives or operational changes.
OldTown's share price fell 4 sen or 1.27% to close at RM3.12, giving a market capitalisation of RM1.45 billion.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Lew Chin Hoong
Posted by Lew Chin Hoong > 2018-02-02 10:38 | Report Abuse
the letter will be issue within 21 day after the notice (30Jan2018) http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=84952&name=EA_GA_ATTACHMENTS