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I thought the court has already ordered KC to buy the shares from the minority and this is before E& Y has completed the study.
KC is appealing against the court order ... but as the E& Y' s report is not favourable, it is highly unlikely that the court will reverse the decision. This order to buy back will also extend to all minority shareholder. Since it is highly unlikely that they will be succesful, instead of spending more time/ money, i think they will just make an offer. The question is how high is the offer....
dataminer ( Date: 03-Mar-2017 11:33) Posted:
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U can read the report from E&Y. It did say they are not able to get full disclosure on the dealings that Harvest and KC.
There are many issues raised on the audit committee and its dealings. While it does not look good for KC, it does not mean the court will force KC to be privatised. But having KC privatised serves KC better as it does not have to deal with public disclosure of its biz.
KC has also recently passed the resolution for share buy back. Therefore, even if the court rules in KC favour, there is going to be support for the share price.
There are many issues raised on the audit committee and its dealings. While it does not look good for KC, it does not mean the court will force KC to be privatised. But having KC privatised serves KC better as it does not have to deal with public disclosure of its biz.
KC has also recently passed the resolution for share buy back. Therefore, even if the court rules in KC favour, there is going to be support for the share price.
" Release of a possible material and price sensitive announcement from the controlling shareholder of the Company" sounds like the buyout scenerio...
Keep fingers crosssed...
A buyout for the shareholders??
KINGBOARD COPPER FOIL: Best case, worst case scenarios for court appeal outcome
Written by Lotustpsll
Published: 19 February 2017
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Best case scenario &ndash Rejection of KC&rsquo s appeal by the Appeals Court and the Supreme Court decisions are upheld. This may mean a buyout of all minority shareholders. The likely formula for calculating the buyout price is: &diams Shareholder equity divided by number of issued shares plus loss of earnings due to the Harvest Licence Transaction. The Court may add a punitive cost for &ldquo abuse of court process&rdquo by the appellant for challenging (without merits) the Supreme Court decisions. Note: Shareholder equity per share based on latest reported financials is about 67 cents. (This is substantially higher than the 29 cents that Kingboard Copper Foil stock recently traded at). Worst case scenario &ndash Appeals Court accepts the appeal and rejects the earlier Supreme Court decisions. Legal dispute may then drag on. |
The Company will continue with the trading halt pending the release of a possible material and price sensitive announcement from the controlling shareholder of the Company, Excel First Investments Limited (" Excel" ), affecting the securities of the Company, which is currently being finalised by Excel and its professional advisers.
Any idea what is happenning??