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Asked ChatGPT
For japfa shares privatisation, the company is offering to buy shares at $0.62 a share, why are people selling their shares at $0.61 or $0.615 on stock market?
ChatGPT said:
ChatGPT
This phenomenon often occurs due to a combination of the following factors:
1. Transaction Costs
Investors who sell their shares on the open market avoid potential costs and delays associated with the privatisation offer. For instance:
Brokerage Fees: Selling directly in the market might incur lower costs compared to tendering shares.
Timeliness: Market transactions are immediate, whereas privatisation offers often have a settlement period that can take weeks or months.
2. Uncertainty of Offer Completion
Some investors might perceive a risk that the privatisation offer may not go through due to conditions such as:
Regulatory approvals.
Minimum acceptance thresholds. To avoid holding shares in a less liquid company if the offer fails, they sell at a slightly lower price.
3. Liquidity Needs
Investors might prefer the immediate liquidity of selling on the market at a slight discount rather than waiting for the offer to be completed.
4. Arbitrage by Speculators
Speculators might be buying shares at $0.61 or $0.615 to tender them later at $0.62, pocketing a small but virtually risk-free profit. The difference reflects the cost of capital, time value, and perceived risks.
5. Market Forces and Supply/Demand
Some investors might not be aware of or fully understand the privatisation offer, while others may simply accept the best bid available in the market at the time due to urgency or lack of negotiation.
In summary, the small discount reflects the balance between the convenience of immediate liquidity and the potential benefits of waiting for the privatisation payout.
For japfa shares privatisation, the company is offering to buy shares at $0.62 a share, why are people selling their shares at $0.61 or $0.615 on stock market?
ChatGPT said:
ChatGPT
This phenomenon often occurs due to a combination of the following factors:
1. Transaction Costs
Investors who sell their shares on the open market avoid potential costs and delays associated with the privatisation offer. For instance:
Brokerage Fees: Selling directly in the market might incur lower costs compared to tendering shares.
Timeliness: Market transactions are immediate, whereas privatisation offers often have a settlement period that can take weeks or months.
2. Uncertainty of Offer Completion
Some investors might perceive a risk that the privatisation offer may not go through due to conditions such as:
Regulatory approvals.
Minimum acceptance thresholds. To avoid holding shares in a less liquid company if the offer fails, they sell at a slightly lower price.
3. Liquidity Needs
Investors might prefer the immediate liquidity of selling on the market at a slight discount rather than waiting for the offer to be completed.
4. Arbitrage by Speculators
Speculators might be buying shares at $0.61 or $0.615 to tender them later at $0.62, pocketing a small but virtually risk-free profit. The difference reflects the cost of capital, time value, and perceived risks.
5. Market Forces and Supply/Demand
Some investors might not be aware of or fully understand the privatisation offer, while others may simply accept the best bid available in the market at the time due to urgency or lack of negotiation.
In summary, the small discount reflects the balance between the convenience of immediate liquidity and the potential benefits of waiting for the privatisation payout.
easywin ( Date: 27-Jan-2025 09:07) Posted:
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Offered price 0.62 why sell 0.61?
Why sell below offer price?
Every Japfa shareholders don't sell your share wait for better
Offer price. They will up the offer price definitely 😁
Maybe got higher offer.
Just my thoughts
Just my thoughts
early Ang Pow HUAT AH
05:29 PM EST, 01/26/2025 (MT Newswires) -- Japfa (SGX:UD2) received a proposed privatization offer via a scheme of arrangement, offering shareholders SG$0.62 in cash per share, representing a 34.8% premium to the last traded price on Jan. 15, according to a Friday filing on the Singapore Exchange.
The offer also provides premiums of up to 93.1% over various historical VWAPs and 12.7% above its net asset value as of Sept. 30, 2024.
The joint offerors - TAC 1 Pte. Ltd. and TAC 2 Pte. Ltd. - comprise entities owned by Renaldo Santosa, Gabriella Santosa, and Rachel Anastasia Kolonas. The scheme, targeting 18.33% of Japfa's outstanding shares, excludes holdings by controlling shareholders, who own 81.67%.
Four undertaking shareholders, including Japfa's chief executive officer and chief financial officer, have committed to vote in favor of the proposal, collectively representing 4.44% of shares.
The joint offerors tapped DBS Bank to be the sole financial adviser with respect to the acquisition and thew scheme, while W Capital Markets was appointed to be the independent financial adviser to the scheme shareholders.
The offer also provides premiums of up to 93.1% over various historical VWAPs and 12.7% above its net asset value as of Sept. 30, 2024.
The joint offerors - TAC 1 Pte. Ltd. and TAC 2 Pte. Ltd. - comprise entities owned by Renaldo Santosa, Gabriella Santosa, and Rachel Anastasia Kolonas. The scheme, targeting 18.33% of Japfa's outstanding shares, excludes holdings by controlling shareholders, who own 81.67%.
Four undertaking shareholders, including Japfa's chief executive officer and chief financial officer, have committed to vote in favor of the proposal, collectively representing 4.44% of shares.
The joint offerors tapped DBS Bank to be the sole financial adviser with respect to the acquisition and thew scheme, while W Capital Markets was appointed to be the independent financial adviser to the scheme shareholders.
Anyone selling japfa tmr?
at offer price
at offer price
Haven' t but will sell soon
no point keeping
can sell on poems
no point keeping
can sell on poems
I din do anything abt it cos dunno how to sell...bro smarty did u sell yours?
Smarty ( Date: 25-Jan-2025 13:20) Posted:
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Their associate Austasia share price is still depressed
the stock was listed in HKSE and given free to Japfa shareholders
the stock was listed in HKSE and given free to Japfa shareholders
Those who bet on privatisation of japfa huat arh...
Japfa' s controlling Santosa family makes 62 cents per share privatisation offer
The Santosa family which controls agri-food company Japfa is making an offer of 62 cents per share to privatise the company, which runs chicken and pig farming operations in Indonesia and Vietnam.
The offer is made to public shareholders who hold 18.33% of the shares.
Other related parties who control Japfa shares via other entities are excluded from the offer.
The offer price of 62 cents is at a premium over Japfa' s shares over the past four years.
The company had on Jan 16 flagged about this possible deal.
Japfa was listed back in 2014 at 80 cents. Its share price has seen its share of swings in line with the company' s earnings, which is regularly affected by market dynamics and currency fluctuations.
According to the offerors, the scheme is an opportunity for the other shareholders to realise their investment at a premium to prevailing market prices.
" The joint offerors believe that privatising the company will provide the joint offerors and the company&rsquo s management with greater flexibility to manage and grow the existing business of the company.
" This will allow the company to pursue longer-term business strategies which may otherwise contrast or conflict with the shorter-term expectations of the public market," the offerors add.
DBS Bank is the sole financial adviser to the offerors and W Capital Markets has been appointed as the independent financial adviser.
Unlikely because the offer is considered reasonable based on the standard benchmarks of LTP, VWAP and NAV
Smarty ( Date: 25-Jan-2025 10:06) Posted:
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The offer price of 0.62 is unfair to IPO holders
japfa is poised to make more than US$90m profit for the FY and would have declared generous dividend' accompanied by further price upside if privatisation was not considered
japfa is poised to make more than US$90m profit for the FY and would have declared generous dividend' accompanied by further price upside if privatisation was not considered
I still have some Japfa shares bought around 0.80-0.90 few years back. All-time high was 0.98
have been averaging down and trading the stock last few months and with the privatisation offer of 0.62 managed to make profits on japfa
have been averaging down and trading the stock last few months and with the privatisation offer of 0.62 managed to make profits on japfa
Huat Ah! 62 cents not bad for recent investors but bad for IPO shareholders
Any possibility of an independent body like SIAS who usually fight for minority shareholders would give their take on the offer price and recommend accept or reject if offer price too low
Ya. Bought some at ,54 and price retreated
this is one rare instance where no insider trading spotted
this is one rare instance where no insider trading spotted
Friday make me 😡 why people selling to 0.525 low my last batch
Was 0.54 until after my mahjong session see the take over news 0.62
Only 3 words to describe HENG ONG HUAT Ah to Chinese new year 🙏 🤑 👍 🎉