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That's a significant gamble that Chieu would be playing if he did back down if the majority was not forthcoming and wait to see IF the share price dropped further. Plus he would have to pay fees twice to enact such a share purchase...............i just don't see it happening. Moreover if the share price were to continue to drop or even stay where it is, the BOD leave themselves open to predators as a takeover target which will only see the SP increase significantly
I think this link will explain the push to become private..... http://www.bloomberg.com/news/2014-12-18/vitol-raises-bet-on-china-s-energy-industry-with-fortune-oil-bid.html Vitol will increase its share in the consortium to near 44% in Fortune Dynasty after this deal goes through....There will be some huge economy of scale saving and cost reduction for CGH with Vitol becoming a bigger player in CGH.... I believe Taylor is the driving force behind this, hence the fact that Vitol is financing the deal from there own means!!!
Del44, once again you have given an interesting insight into the FTO proposed buyout. Looking at the financial position of this company and bearing in mind the Armenian adventure and its porential impact on future balance sheets; this must still be quite a viable company, otherwise the Chui brothers would not wish to take it inhouse and increase their burden of risk. Could it be that they are doing this in order that some bigger company does not try to obtain the 44% sometime in the future. They would stilll be the majority shareholders, however it does not mean they have full control of the company e.g as in our postion where they need 75% acceptance to achieve their objective. Something is not right here. Perhaps I am being too much of a drama queen and looking for some conspiracy that is not there. I know that my former company was always sensitive to keeping its share price high in order to deter outside predators seeking inroads.
But Chieu could still be in a win win position....Yes he wants to take FTO private and before the real value of CGH starts flowing through. But unless it is expressly in the interest of Fortune Dynasty to do so quickly, I cant help but feel that another year in public hands, could see the sp back down in the low single figures. In which case a lower bid could be made. Pure conjecture at the moment. Of course the opposite could also happen. That is to say, that the real underling value becomes apparent and the sp remains buoyant after a lapsed bid, in anticipation of an increased bid this time next year..... Either way, I don't expect to be around to see it....LOL...
Del, whilst you are quite right for pointing out the potential downside to a no vote, i think the chances of this happening are extremely slim. It is not in Chieu's interest for this buyout to fail, he would stand to lose both from the fees incurred in the process and any possible slide in share price. It would be in his interests to offer more to push through as we all know this share is worth significantly more, particularly Chieu, otherwise he wouldn't be trying to take it private
We need to find out the legal position regarding the failing of getting the 75% acceptance level..... In the event the bid fails and is withdrawn, then the sp may probably slide and settle lower, much lower and indeed with no increased bid, this is a likely scenario to be considered by all investors. While any investor who decides to vote no must bare this in mind. Further down the line, the company may come back and make a reduced bid based on the sp a year from now, which may not be near 10p.. It is just a scenario to think about. THE DEGREE OF CONTROL, IN WHICH WE DO NOT HAVE OVER THE CGH SHARES HAS BEEN A REVELATION TO ME. I am very disappointed with this only been announced recently. Why? So weather an increased bid would be forthcoming from the consortium if they felt the need to get the vote through, is in my opinion, been optimistic. As we stand, I would take the offer if 75% acceptance is reached and would sell to the company rather then into the market. But thats only as things stand at the moment... Still expect twists and turns ahead....
You are assuming FTO is a dead donkey; I think it is very much alive and thriving. Would the Chui brothers buy a dead donkey?
Anyone might lose a fiver on some silly bit of chinese electronics, and lose a few hundred quid on some silly chinese oil and gas company, or maybe even more, but as we are all meant to be grown up and understand it is pretty much a gamble on such stocks, isn't it time to throw in the towel, count our blessings and move on, unless of course, one has nothing better to do in life than thrash a dead donkey.
Between all the bb, there seem to be very, very few who are happy with the possible offer. It would seem that the cvrs have rather annoyed most investors. I think mainly because not to many investors have any confidence in Daniel Chieu and his end game strategy, which seems to exclude current minority shareholders. VSA, until quite recently, were posting a price target of the mid 20p level and giving good reason for that target. That has changed to10p advice to the independent directors...... The market as usual, doesn't believe or has zero confidence in the Chieu brother's utterances on anything to do with FTO..... I expect we may eventually get some "lead" as to how FIL and the others may vote, when we get publication of the offer. The bid at 9.60p is probably as high as it will go as to move it any higher will trigger AT. We have very little information on the scheme other then the rns of the 18th Dec....BUT we do know it can be changed in the intervening time....or it can even be dropped and replaced by an outright offer, which can be tweaked. I would also be keeping an eye on CGH's sp as well, as they had over 54 million shares traded on Christmas eve, compared to a daily average of around 5/8 million shares. Rather strange development that.....
Filter or simply ignore...
Being the font of all knowledge and not at all condescending why did you not contact your credit card company when you had a problem with your Chinese company ? Oops, perhaps you sent cash? For one so insightful, who always makes money you must be a very wealthy man. Another happy and very prosperous new year :~)
DoubleD7 you have beaten me to this scenario well done, I have just posted a thread on broadly what you are intimating. I am 100% behind you, I do not want to roll over on my back like a dog and feel grateful for this morsel that has been offered; it is derisory and an insult to us private investors; it is what I term corporate mugging.
I have to say that this buyout process of the small shareholders in FTO is becoming quite stimulating; I always believe that one can trawl some positives out of a negative situation and reading and deliberating over the various inputs into the foregoing has enriched me no end. Indeed it is helping me to become a better private investor. What if the outcome is NO; I would be very interested in peoples views in terms of what may happen e.g. increased bid, potential takeover by a third party, who could be waiting in the wings?, would the the Chui brothers sell at 10p per share as they feel it is a fair offer to us, et al. I appreciate this is speculation but investing is largely speculation anyway and a post NO event should be addressed to help complete the picture.
Del44 - in response to an earlier question you posed re. the threat of de-listing the share, that view is the same as mine - if the 75% is not reached then the BOD cannot proceed with the de-listing due to lack of support. They would either have to increase their offer, which most people would care for, or leave the share trading. I think it is clear they would take the former option of increasing their offer as even at 15p they have a bargain. They would not go to all this effort if the end game was to see the share continuing to trade on the stock exchange
What is wrong with 10p is that it significantly undervalues the company and many shareholders like myself will make nothing from years of investment in this. An extra 2-3p would eke out significant profit and is worth striving for regardless of whether or not you've made a good return on this share. I find your posts rather condescending; we get the picture that you've done well out this share by playing it with market but if that's the case sell up and be done in the share and this board and let the longer term investors, who were seeking to see this share reach it's potential, fight the measly offer put forward by the BOD
nickyg there is nothing wrong in general on your take on FTO in my opinion, however I do not agree with your position in this situation. You could say "A bird in the hand is worth two in a bush", it depends on what you are prepared to settle for. I will fight to the bitter end to get more out of this company because I feel that we have not got a fair deal as some more astute investors than me have concluded from their thorough financial analysis of the balance sheet et al; even though I am comfortably in the money and I mean comfortably. It is not true that there were no big boys in it, Legal and General held a stake in FTO and sold after FTO went from Premium LSE listing to Standard status. I do not consider Legal and General a small boy so to speak. Have a good 2015 nickyg and I would like to extend this goodwill to all my fellow private investors.
What is wrong with 10p? A good many shareholders ought to be delighted to take a decent profit, even at such a low level, and those who bought at the top ought to have known better. The owners of FTO were never in it for our benefit right from the start, and most of us knew it, and the big boys kept out of it because if something sounds too good to be true, it invariably is. It seems a great waste of time trying to get some extra penny or so out of the company. I remember complaining bitterly to some electronics company in China, and receiving copious e.mails back, offering everything but a refund. The product was cheap for a reason, and I took a punt. So did we all with FTO. I am sorry to be so negative and thoughtless at this time of year, and wish that everyone here could get out with huge profits, but it ain't going to happen. A New Year beckons, and there are other companies like FTO to invest in, should one wish.
So, taking everything into account as the Offer stands at present,,what would be the catalyst/s that might sway the BOD to amend/improve this offer? Or is it a done deal,already cast in stone?
First to Chris. OK I shall vote against. Get rich quick. There are no new shares In Fortune Dynasty which is an unquoted company. The offer is cash only. For the contingent payment it is specified on earlier posts on this board.
Good afternoon, A good friend of mine has some shares in FTO and he's slightly puzzled with regards to a letter that he has received. He is under the impression that he is going to receive a payment for his shares, which I understand the acquisition is around 10-pence. He has owned these shares since they were 7-pence in around 2005-ish. I would have thought, what often occurs in T/O's is, he would receive equal value shares in the new buyers company (Fortune Dynasty) With regard to the 'contingent' 5-pence. Does anyone know what the contingency is, or is this simply a dangling carrot encouraging the vote to go ahead only for it never to come about? Regards.
Hope all had a good Christmas....all points of view are welcome. Yes, I agree that the 10p is a low ball offer and would hope that Fto will come back with an improved offer but they don't give a stuff about the pi's and unless they are backed into a corner it ain't going to happen ! Del, that is quite a list.... In and around 13% ! It might be a case that in the coming weeks the vote counters in Fto will have worked out where they stand, if they don't already know and the 5p red herring will be discounted for an improved offer...in reality the 5p was never going to happen. If they reckon that they can carry the vote then 10p it is.. Still plenty of time for fun and games..
intergalatic: Keep the input on sale of FTO coming and no apologizing as you go..:-) We need views to this offer and information and input from all and sundry.......The board have drawn a wedge between their view and the minority shareholders of whom, many of us thought, would keep us in mind as the end game neared...The potential offer has proven, they have not..... Some of the posts I have put up this evening are different views and are still worth considering from someones point of view.....regardless of weather I agree or disagree with it... Just putting it out there....to help others as well as myself come to an informed view....
Some readers to this chat line may well be getting fed up with my inputs on the sale of FTO. for which I apologise to those that feel that way. I do not disagree with the buyout in fact I will be glad to see the back of FTO. Howeve this consotium is not offering a fair price with respect to the value and potential of this company. If we vote no do you think they will walk away ? I don't think so.
Barclays Bank Plc (Private Banking) as of 01 Oct 2014 67.03m 2.59% FIL Investment Management (Hong Kong) Ltd. as of 31 Oct 2014 61.33m 2.37% TD Direct Investing (Europe) Ltd. as of 01 Oct 2014 51.39m 1.99% FIL Investments International as of 01 Oct 2014 49.20m 1.90% Hargreaves Lansdown Asset Management Ltd. as of 01 Oct 2014 34.51m 1.33% Premier Fund Managers Ltd. as of 18 Dec 2014 31.50m 1.22% Talos Securities Ltd. as of 01 Oct 2014 24.66m 0.95% HSBC Global Asset Management (UK) Ltd. as of 01 Oct 2014 22.29m 0.86% Nikko Asset Management Asia Ltd. as of 01 Oct 2014 18.33m 0.71% Bank of Singapore Ltd. as of 01 Oct 2014 11.00m 0.43% Main Institutional Holders.....
I think the threat of De- listing is worrisome to some. I stand to be corrected with regards to this point. But if the 75% is not reached and the scheme/offer lapses, then the DE-listing can not go a head as they would not have sufficient votes to proceed with the Reduction of Capital... Anybody care to shed some light on this point?