By on August 18th, 2011
CK Tang proposes capital reduction
CK Tang said on Thursday that it plans to cancel all remaining shares held by minority shareholders at $1.30 per share.
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CK Tang said on Thursday that it plans to cancel all remaining shares held by minority shareholders at $1.30 per share.
The capital reduction exercise should be addressing the entire shareholding of the company (majority and minority shareholders) and should not be offered just targetted to get rid of minority shareholders. Personally, the offer price $1.30 is not a fair value at all, as this was what minority shareholders asked for some 2 years ago when they took CK Tang private offering $0.83/share. Since then, the Singapore property market has skyrocketed so much over the last two years and I dont see how the valuation of $1.13/share is fair. Now that they are using the 75% voting rule to push this proposal through at the coming EOGM on 15 Sep 2011, I’m not sure what recourse minority shareholders have. Can someone please advise and recommend some justice here?
Yesterday I received a registered letter regarding Tang Unity informing CK Tang’s Board of Directors that they will pay S$0.70 per share to each minority share holder who agrees to the Capital Reduction of S$1.30 offered on 18th August 2011. I called Nina (tel: 63392883) for clarification, and she confirmed that the price of $0.70 is in addition to the $1.30 that was offered earlier. Thus, I feel that an exit offer of S$2.00 per share during this economy situation is a fair offer by Tangs.
Definitely, a fair valuation had not taken place. The property is grossly undervalued. And can you believe these years of running the business, Tangs is worth only at $8 million or so.
Lee, could we get into contact so that we could further see how to recourse at the EGM.
Get me at irismoxi@gmail.com
Don’t be misled by CK Tang management again that they have no plan to redevelop the property. Their eagerness in their successive offering from $1.30 to $2.00 in such short span shows that the property is a jewel and redevelopment planning is quite imminent, especially so when they have broken sewage problem just yesterday in their CK Tang’s basement. The property is really due for redevelopemnt. How can it not be ?
Also do note that CK Tang’s neighbour is Wheelock property and they are cash rich. Wheelock also had a S$350M bond issue just last month…. cash rich and S$350M bond issue…. sign that they are planning for a big aquisition, possibly CK Tang …. Wheelock has completed the Scott Square, which is just behind CK Tang and also lately they clear Border Bookshop from Wheelock place…. Therefore CK Tang may be on Wheelock’s radar system as well…. It make sense for Wheelock to marry CK Tang. So, I’m quite sure CK Tang redevelpment is imminent and in the plan. Hence, don’t approve the Capital reduction this Thursday at the EOGM…. you will regret it like those who guys who gave in back in 2009.
This morning’s 15th Sep 2011 AGM & GM was well attended. However, the EGM had to be adjourned and postpone to 27 Oct 2011, as the the CEO informed shareholders in attendence that CK Tang management has received a last minute call from the Security Regulator to bring in an independent financial adviser to do a review about the whole capital reduction exercise to buy out the minority shareholders particularly about the true and accurate valuation of the CK Tang property especially in consideration of being redeveloped enbloc to its full potential. There were also issues regarding voting rights of shareholders who bought shares using CPF, who were denied voting rights in today’s EGM. It is indeed great development since the management is now tasked to seek an independent financial advice to provide a more accurate advice to all shareholders. Stay tune.
CK Tang Board has appointed CIMB Bank Berhad, Singapore branch (the “IFA”) as the independent financial adviser to advise Shareholders in respect of the Selective Capital Reduction. They also
appointed Jones Lang LaSalle Property Consultants Pte Ltd as the valuer in connection with the Selective Capital Reduction to prepare a valuation report in respect of the portions of the property situated at 310 / 320 Orchard Road.