On 7th June 07, Singapore Retail Group Limited has acquired 54.16% in Courts Singapore from Courts Group International Limited for S$0.645. This trigger a general takeover by SRG at S$0.645 (inclusive of dividend payable), else it will be S$0.608.
The offer ended on 16th Aug 07, with SRG acquiring a total stake of 69.07% stake in Courts Singapore.
From that day onwards, SRG has been buying stake from other shareholders and open market, and increased its stake to 86.99% as of 29th May 08.
So, what is the next move?
My guess is that
A privatization exercise will take place to delist Courts Singapore. Asia Retail Group Limited being the ultimate shareholder of Courts Singapore will benefit synergy economics of scale, by merging the business if they are able to take Courts private. To take Courts private, with only 3.01% more to hit the trash-hold of 90%, Asia Retail Group will attempt to take Courts private.
NTA of Courts is $0.7057, my take is that any attempt will be offering a price near to its NTA.
The offer ended on 16th Aug 07, with SRG acquiring a total stake of 69.07% stake in Courts Singapore.
From that day onwards, SRG has been buying stake from other shareholders and open market, and increased its stake to 86.99% as of 29th May 08.
So, what is the next move?
My guess is that
A privatization exercise will take place to delist Courts Singapore. Asia Retail Group Limited being the ultimate shareholder of Courts Singapore will benefit synergy economics of scale, by merging the business if they are able to take Courts private. To take Courts private, with only 3.01% more to hit the trash-hold of 90%, Asia Retail Group will attempt to take Courts private.
NTA of Courts is $0.7057, my take is that any attempt will be offering a price near to its NTA.
Comments
This amount is less than what i expected thou