The US funds having Super Group' s shares cannot prevent/ block other shareholders from tendering their shares to the offeror. They themselves can choose not to tender their shares if they do not wish to. The condition of Sapphire receiving more than 50% of Super Group' s issued shares can be said to have been met even though the offical transaction have not taken place yet. By the SSH giving an irrevocable commitment to tender their shares which amount to 60% of the issued shares, we know that likely they will not change their mind. And there is a statement in the annoucement letter which even states that the SSH will not accept a higher offer than $1.30 even if another contender comes along to compete for the take over of Super Group.
There are still other pre-conditions and conditions which need to be fulfilled. If all the conditions are fulfilled, the formal offical offer will be announced in due time (not later than 3 May 2017 which the offer will laspse) and the form of acceptance to tender the shares to offeror mailed to the shareholders.
Thank you, Owl793 and jeremyow, for your explanations. So am I correct to say given the 60% irrevocable pledge from SSH, the condition of " Sapphire receiving more than 50% of Super Group" is already met, and Sapphire MUST buy from any seller who is willing to sell at $1.30.The 90% is just a threshold for it to force buyout any remaining shares from shareholders who might want to hold on. In other words the 2 US funds holding 13% can only remain as shareholders at most, and cannot play any part in preventing the $1.30 share exchange from willing sellers?
wi1) 60% of shares is already done deal. It' s irrevocable, meaning the seller cannot back out.2) Pre-condition is approval by relevant authority, anti-trust body etc which will not be a problem for coffee makers, unless they are making missile or B2 bombers.
3) If the buyer can garner 90% shares (incl. the 60% done deal) it will be delisted. If e.g. they only get 87% at the end closing in May 2017, then Super Group will continue to be listed with a major shareholder (Jacob) holding 87%.
4) $1.26 closing vs $1.30 may be explained by retailers cashing out & getting cash in hand now vs later on.
5) There are 2 big US funds holding 13% which have not be reported. Their invested cost was higher than $1.30. What they will do we don' t know yet.
Haha, Send some spy in....LOL
If this $1.30 offer can approve, I believe those main big fish could have some other under-table benefits sweet sweet .Need to monitor closely.
Can monitor ThaiBev too !!
I guess Yeo Hiap Seng Ltd itself may be the next takeover target.YHS made $138m profit from selling its11.69% shares in Super Group which is really a small change to Far East Group. This means FE is not interested in keeping F& B businesses. If ever YHS is up for sale then PepsiCo has right of 1st refusal. PepsiCo awarded the bottling contract to YHS on this condition.
on my watchlist. missed the boat on this : (
I guess Yeo Hiap Seng Ltd itself may be the next takeover target.
YHS made $138m profit from selling its11.69% shares in Super Group which is really a small change to Far East Group. This means FE is not interested in keeping F& B businesses. If ever YHS is up for sale then PepsiCo has right of 1st refusal. PepsiCo awarded the bottling contract to YHS on this condition.
If this $1.30 offer can approve, I believe those main big fish could have some other under-table benefits sweet sweet .
Need to monitor closely.
This gem is definitely worth more than $1.3 in the long term. Dutch company is buying (at a steep discount of course) into Super' s and Owl' s branding, distribution networks, supply chain, as well as strong knowhow in manufacturing instant coffee and various other non-dairy creamer.
Therefore, it beats me why founder and other major shareholders think that their company is worth only $1.3. This is a good growth company with continuous innovation and a resilient business model. Given more time, it should be worth at least $1.8. Now that 60% has sold (including founder), wonder how will Super fare in the coming months towards May next year.
If I' m not wrong, I still remember few years back this Super during the price before bonus issue where it range $4 to $5
There are rumours flying round some Big Co. interest on Super.
Hopefully, the take over price could topping up !
Thank you, Owl793 and jeremyow, for your explanations. So am I correct to say given the 60% irrevocable pledge from SSH, the condition of " Sapphire receiving more than 50% of Super Group" is already met, and Sapphire MUST buy from any seller who is willing to sell at $1.30.
The 90% is just a threshold for it to force buyout any remaining shares from shareholders who might want to hold on. In other words the 2 US funds holding 13% can only remain as shareholders at most, and cannot play any part in preventing the $1.30 share exchange from willing sellers?
wi1) 60% of shares is already done deal. It' s irrevocable, meaning the seller cannot back out.2) Pre-condition is approval by relevant authority, anti-trust body etc which will not be a problem for coffee makers, unless they are making missile or B2 bombers.
3) If the buyer can garner 90% shares (incl. the 60% done deal) it will be delisted. If e.g. they only get 87% at the end closing in May 2017, then Super Group will continue to be listed with a major shareholder (Jacob) holding 87%.
4) $1.26 closing vs $1.30 may be explained by retailers cashing out & getting cash in hand now vs later on.
5) There are 2 big US funds holding 13% which have not be reported. Their invested cost was higher than $1.30. What they will do we don' t know yet.
Hi fellow investors, would anyone be kind enough to educate me on these abstracts from the news?" ..Sapphire has made a pre-conditional offer to acquire all the issued shares of Super Group, supported by irrevocable commitments received from shareholders representing 60% of Super Group&rsquo s issued shares to tender their shares in the offer. This includes an irrevocable commitment from YHS Investment, holding 11.69% of Super Group&rsquo s issued shares, whose undertaking to accept is subject to approval of its shareholders."
" ... The commencement of the offer is subject to the receipt of regulatory approvals. The offer will be conditional upon Sapphire receiving more than 50% of Super Group&rsquo s issued shares being tendered in acceptance of the offer. If Sapphire acquires 90% of the issued shares pursuant to the offer, Sapphire intends to exercise its right to compulsorily acquire the remaining shares and privatise Super Group."
From what I understand from the above (without much working knowledge of how the approval works), this would mean that Sapphire will offer the price of $1.30 once at least 50% of the shareholders accept the offer at $1.30 Sapphire. Since 60% of the shareholders (presumably institutional shareholders) already pledged to tender their shares at the offered price, why is there still a gap in the price today? Can anyone kindly point out things which I might be missing, and other potential risks?
Thank you! Hope to learn from this community (=
super = singapore
now super = unknown...its the branding...
There are still some gems in our Singapore stock exchange either as potential take over or delisting targets abeit the numbers are declining as one by one interesting and good ones are taken off the market. Just need to be observant to discover the gems. Haha!
Sad for Singapore market, more and more good and interesting companies are taken over and in the future, will left penny stocks still listing in SGX
There are still some gems in our Singapore stock exchange either as potential take over or delisting targets abeit the numbers are declining as one by one interesting and good ones are taken off the market. Just need to be observant to discover the gems. Haha!
Sad for Singapore market, more and more good and interesting companies are taken over and in the future, will left penny stocks still listing in SGX
Sorry. Typo errors in my previous post. The higher the uncertainty whether the take over deal will go through, the higher the difference in market traded price vs take over offer price.For Super Group, the substiantial shareholders (SSH) have irrevocably committed their shares which total up to 60% of the total issued outstanding shares to be tendered to the offeror, so there is a high chance that the deal will go through eventually, so the market traded price of $1.26 is near to the offer price of $1.30.
Note that this is not a hostile take over by offeror, so the chance of take over deal going through is high as there is generally high support for the take over unless another contender comes into the picture to counter offer at higher price which maybe unlikely as the value of the deal is more than $1 billion.
Sad for Singapore market, more and more good and interesting companies are taken over and in the future, will left penny stocks still listing in SGX
Sorry. Typo errors in my previous post. The higher the uncertainty whether the take over deal will go through, the higher the difference in market traded price vs take over offer price.For Super Group, the substiantial shareholders (SSH) have irrevocably committed their shares which total up to 60% of the total issued outstanding shares to be tendered to the offeror, so there is a high chance that the deal will go through eventually, so the market traded price of $1.26 is near to the offer price of $1.30.
Note that this is not a hostile take over by offeror, so the chance of take over deal going through is high as there is generally high support for the take over unless another contender comes into the picture to counter offer at higher price which maybe unlikely as the value of the deal is more than $1 billion.
Some retail and other institutional investors that does not have high amount of holdings want to cash out early to avoid uncertainty whether the take over will eventually go through, so there is a price differential such that the closing share price of $1.26 is lower than offer price of $1.30 per share. The higher the uncertainty that the take over deal will not go through, the higher the difference in the market traded price vs take over offer price.For Super Group, since 60% of the substianal shareholders (SSH) have irrevocably committed their shares to be tendered to the offeror, there is a high chance that the deal will go through eventually, so the market traded price of $1.26 is near to the offer price of $1.30.
Sorry. Typo errors in my previous post. The higher the uncertainty whether the take over deal will go through, the higher the difference in market traded price vs take over offer price.
For Super Group, the substiantial shareholders (SSH) have irrevocably committed their shares which total up to 60% of the total issued outstanding shares to be tendered to the offeror, so there is a high chance that the deal will go through eventually, so the market traded price of $1.26 is near to the offer price of $1.30.
Note that this is not a hostile take over by offeror, so the chance of take over deal going through is high as there is generally high support for the take over unless another contender comes into the picture to counter offer at higher price which maybe unlikely as the value of the deal is more than $1 billion.
Some retail and other institutional investors that does not have high amount of holdings want to cash out early to avoid uncertainty whether the take over will eventually go through, so there is a price differential such that the closing share price of $1.26 is lower than offer price of $1.30 per share. The higher the uncertainty that the take over deal will not go through, the higher the difference in the market traded price vs take over offer price.For Super Group, since 60% of the substianal shareholders (SSH) have irrevocably committed their shares to be tendered to the offeror, there is a high chance that the deal will go through eventually, so the market traded price of $1.26 is near to the offer price of $1.30.
wi1) 60% of shares is already done deal. It' s irrevocable, meaning the seller cannot back out.2) Pre-condition is approval by relevant authority, anti-trust body etc which will not be a problem for coffee makers, unless they are making missile or B2 bombers.
3) If the buyer can garner 90% shares (incl. the 60% done deal) it will be delisted. If e.g. they only get 87% at the end closing in May 2017, then Super Group will continue to be listed with a major shareholder (Jacob) holding 87%.
4) $1.26 closing vs $1.30 may be explained by retailers cashing out & getting cash in hand now vs later on.
5) There are 2 big US funds holding 13% which have not be reported. Their invested cost was higher than $1.30. What they will do we don' t know yet.
Some retail and other institutional investors that does not have high amount of holdings want to cash out early to avoid uncertainty whether the take over will eventually go through, so there is a price differential such that the closing share price of $1.26 is lower than offer price of $1.30 per share. The higher the uncertainty that the take over deal will not go through, the higher the difference in the market traded price vs take over offer price.
For Super Group, since 60% of the substianal shareholders (SSH) have irrevocably committed their shares to be tendered to the offeror, there is a high chance that the deal will go through eventually, so the market traded price of $1.26 is near to the offer price of $1.30.
wi1) 60% of shares is already done deal. It' s irrevocable, meaning the seller cannot back out.2) Pre-condition is approval by relevant authority, anti-trust body etc which will not be a problem for coffee makers, unless they are making missile or B2 bombers.
3) If the buyer can garner 90% shares (incl. the 60% done deal) it will be delisted. If e.g. they only get 87% at the end closing in May 2017, then Super Group will continue to be listed with a major shareholder (Jacob) holding 87%.
4) $1.26 closing vs $1.30 may be explained by retailers cashing out & getting cash in hand now vs later on.
5) There are 2 big US funds holding 13% which have not be reported. Their invested cost was higher than $1.30. What they will do we don' t know yet.
Hi fellow investors, would anyone be kind enough to educate me on these abstracts from the news?" ..Sapphire has made a pre-conditional offer to acquire all the issued shares of Super Group, supported by irrevocable commitments received from shareholders representing 60% of Super Group&rsquo s issued shares to tender their shares in the offer. This includes an irrevocable commitment from YHS Investment, holding 11.69% of Super Group&rsquo s issued shares, whose undertaking to accept is subject to approval of its shareholders."
" ... The commencement of the offer is subject to the receipt of regulatory approvals. The offer will be conditional upon Sapphire receiving more than 50% of Super Group&rsquo s issued shares being tendered in acceptance of the offer. If Sapphire acquires 90% of the issued shares pursuant to the offer, Sapphire intends to exercise its right to compulsorily acquire the remaining shares and privatise Super Group."
From what I understand from the above (without much working knowledge of how the approval works), this would mean that Sapphire will offer the price of $1.30 once at least 50% of the shareholders accept the offer at $1.30 Sapphire. Since 60% of the shareholders (presumably institutional shareholders) already pledged to tender their shares at the offered price, why is there still a gap in the price today? Can anyone kindly point out things which I might be missing, and other potential risks?
Thank you! Hope to learn from this community (=
Looks like it' s gonna be at least 6 months before we can see our money.
Yup, you may be right, those who did not want to wait would probably sold off now, and that could explain the 4 or 5 cents ' premium' .
So, is it worthwhile to wait 6 months for 5 cents? If I did my maths correctly, that should be about 8% p.a. Of course that is not without risk.
Just my 2 cents
wi1) 60% of shares is already done deal. It' s irrevocable, meaning the seller cannot back out.2) Pre-condition is approval by relevant authority, anti-trust body etc which will not be a problem for coffee makers, unless they are making missile or B2 bombers.
3) If the buyer can garner 90% shares (incl. the 60% done deal) it will be delisted. If e.g. they only get 87% at the end closing in May 2017, then Super Group will continue to be listed with a major shareholder (Jacob) holding 87%.
4) $1.26 closing vs $1.30 may be explained by retailers cashing out & getting cash in hand now vs later on.
5) There are 2 big US funds holding 13% which have not be reported. Their invested cost was higher than $1.30. What they will do we don' t know yet.
Hi fellow investors, would anyone be kind enough to educate me on these abstracts from the news?" ..Sapphire has made a pre-conditional offer to acquire all the issued shares of Super Group, supported by irrevocable commitments received from shareholders representing 60% of Super Group&rsquo s issued shares to tender their shares in the offer. This includes an irrevocable commitment from YHS Investment, holding 11.69% of Super Group&rsquo s issued shares, whose undertaking to accept is subject to approval of its shareholders."
" ... The commencement of the offer is subject to the receipt of regulatory approvals. The offer will be conditional upon Sapphire receiving more than 50% of Super Group&rsquo s issued shares being tendered in acceptance of the offer. If Sapphire acquires 90% of the issued shares pursuant to the offer, Sapphire intends to exercise its right to compulsorily acquire the remaining shares and privatise Super Group."
From what I understand from the above (without much working knowledge of how the approval works), this would mean that Sapphire will offer the price of $1.30 once at least 50% of the shareholders accept the offer at $1.30 Sapphire. Since 60% of the shareholders (presumably institutional shareholders) already pledged to tender their shares at the offered price, why is there still a gap in the price today? Can anyone kindly point out things which I might be missing, and other potential risks?
Thank you! Hope to learn from this community (=
