Steady la pj lim, 5 consecutive days of putting money where his mouth is and continue to buy shares

Scientex always change the name of its subsidiaries after acquiring them. Daibochi is already a couple years late.

If scientex wants to list their packaging biz seperately, they would have done it long time ago. Daibochi is only a part of their packaging business, wouldnt say its integral.

Many commentators always say scientex is not “investable” because of their lack of focus, ie borh a manufacturing and property company. well, its actually the twin turbo engine that is driving the company, its performance and its share price up. Those who doubt companies like this, just need to look at the biggest company in singapore, SEA limited. They own 3 distinct businesses and see how they are growing.

I sincerely hope those remaining holders of daibochi have diamond hands, with only 5% of the free float available now, it is already extremely illiquid. Wb no need to say, just pray something happens in the next 7 mths.

Ok back to my front seat chair.

So fast popcorn come already…

Change name, change div policy…

https://gfycat.com/uk/heartfeltignoranticelandgull-this-is-gonna-be-good-dis-gon-b-good-spectator

@itchyleg, what changed your mind? U seemed to already have a game plan earlier.

Posted by ITCHYLEG > Nov 9, 2021 10:57 PM | Report Abuse

I accepted the offer of my balance 590.30k last day (8.11.21)
the payment will receive on 18.11.21. The lst batch payment is on 11.11.21

Check the volume on 19 may. All i can say is, not all companies are built the same, u can have the brightest ppl to advise u, but u can still make admin mistakes/think u r the smartest/most influential/most (fill in blank yourself)….

Also, just cos u know someone robbed a bank (and its illegal) does not mean everyone else will rob the bank and flaunt with the rules

This entire acquisiton by sci is very interesting, and there are a lot more drama to unfold tmr and the coming months. Getting my popcorn bucket ready

@itchyleg, can u share how this warrant gearing ratio affect your decision to sell? I fail to understand how a high gearing ratio here affects anything as the ratio/warrant price is determined by the exercise price. Do u have a specific ratio you are benchmarking against?

Posted by ITCHYLEG > Nov 3, 2021 9:30 AM | Report Abuse

The gearing for warrant is 8.4375x. due to the budget is unfavorable , so i don't take the risk

If apollo/samarang rejects the rpt resos, this will show that its samarang/apollo’s ego talking. i see themselves shooting their own feet if they choose this route.

Premium to warrant was most likely cos a pac bought the warrants at 31.5c earlier so they are bound to offer to buy at that floor price. Can see from the daily queue that scientex does not even bother to buy any warrants at 32c, which sort of tells you which direction they are heading in terms of “revision of offer”

Posted by EVEBITDA > Oct 17, 2021 10:53 AM | Report Abuse

if apollo and samarang rejects RPT resolutions, Scientex cant capitalise their holding in Daibochi. no added value.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3200695

Independent Adviser deems offer FAIR and REASONABLE

Using DCF method only values diabochi at RM2.04 to RM2.17. Talks about counter being illiquid.

Good luck guys, i have already submitted my acceptance to scientex. I will consider revisiting this counter again once price goes nearer to the vwap/IA valuations.

So fast sold most of your wb already? At 40c i presume?



Posted by dragon328 > Oct 4, 2021 5:26 PM | Report Abuse

@iknownuts, thanks for the note on warrant.

I do not have much daibochi wb left in my portfolio but more mother shares for long term holding.

Just a note of caution to those who is betting/planning to bet on the warrant. Caveat Emptor!

IF there is an increased offer by scientex:

Page 26 of the offer doc says:

“Please note that each Daibochi Warrant is exercisable into 1 new Daibochi Share at an exercise price of RM2.50 per Daibochi Share payable in cash during a tenure of 5-year exercise period of up to 19 June 2022. As such, strictly for illustrative purpose, any revision to the Share Offer Price to RM2.83 or more will result in the corresponding increase to the Warrant Offer Price to RM0.33 or more after applying the "see-through" pricing set out in (a) above (for example, RM0.33 represents the excess of the illustrative revised offer price of RM2.83 over the exercise price of RM2.50 per Warrant). On the other hand, any revision to the Share Offer Price to the range of RM2.71 - RM2.82 will not result in the revision to the Warrant Offer Price of RM0.32.”

This means you need scientex to increased the offer to a price above 2.82 (for the mother share) for you to enjoy any subsequent offer increase in the warrant price.

Also, note that it is highly likely scientex offered 0.32 for the warrant in the first place because chua lay peng, a PAC (see pg 45) bought 5000 warrants at 0.315 in 14/4/21 (within 6 months from the offer), so scientex is obligated to offer to buy the remaining warrants at a higher price.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3197862

If you accept the offer from scientex via this method, if there are any subsequent increased scientex offer, you will also get the increased price

Adoi pls, dont simply spew misleading info again. Today is the day the offer document goes out la. Means today is also the day scientex first accepts offer from the public

Again, pls post responsibily…

Posted by dragon328 > Oct 4, 2021 11:36 AM | Report Abuse

Today 4th Oct 2021 is the last day to accept the take over offer from Scientex. Given that Scientex did not announce any extension of the offer by 2nd Oct, the current privatisation offer will not be extended so today is the last day to submit your acceptance form to Scientex. I do not know the exact procedure of submission as I do not have any intention to accept the offer, hence do not bother reading the procedure.

https://www.theedgemarkets.com/article/david-vs-goliath-ccb-privatisation-stalemate

I respect david for putting money where his mouth is. He valued ccb at 4.65 and fought all the way!

@observatory

Nope my view point has not changed. Also, i did not advise anyone to do anything. I am not a licensed person anyway to advise anybody. What i said in my earlier postings is for investors to think about all possibilities instead of just seeing the mainly rosy points painted here. Whilst we post here anonymously, we still need to post responsibily (Well, for me anyway)

I have a position in daibochi, and i do intend to accept the offer from scientex, but if the price keeps going up, i will continue to sell in the open market. I have already started offloading some on friday.

Now why do i offload now instead of waiting? If scientex ups their offer, i can also enjoy the upside, right?
Ok, my cost basis is very low, i am already contented with the roi. Instead of waiting/praying for a higher offer, the question i asked myself was, what if scientex does not up their offer? Now we are stuck with a floor price of 2.7/0.32. But when the offer lapses and no increased offer is forthcoming, what happens if i keep the shares/warrants? the liquidity will be much lower than before. Scientex will mop up to around 70-80% (they are already at 66%+ now), existing shareholders samarang 5%+, apollo 10%+, pbb funds 5%+, which leaves retails to anything <10%. I can tell you for sure the privatisation will fail. But why would i want to be stuck with an illiquid counter with only <10% of the shares being traded? On the issue of delisting, i think someone mentioned earlier that will take a long time, so i guess thats not really a factor for now. Why i brought up CCB and yeelee in my comments earlier, was to show those companies price action after a failed privatisation (i wasn’t ref to their business). Jardine is now moping up CCB shares below 2.2 when their offer price was 2.4.

Ok some will say but what about the intrinsic value of rm3+, analyst price Rm4+ or etc etc with higher valuation? justified with whatever growth/projections/fwd PE. I definitely agree with you. But the most important factor is PRICE. mr market had priced daibochi at rm2.30 (vwap for 3 month) before scientex’s offer. If investing is that easy and price follows valuation/analyst reports, everyone will be mega millionaires by now lol. I wished there was this much discussion on the potential of this counter when daibochi was hovering around the 2.20s/0.10s.

Nothing has changed 1 month ago before the offer came in, except we have a floor price now. Opportunist will ask hey scientex, show you are a man and up the damn offer! Don’t waste anybody’s time. But what if they don’t? They don’t owe the minority daibochi shareholders anything anyway. Their responsibility is to their own shareholders.

At the end of the day, be true to yourselves. I wish you the very best to whichever route you choose.

Posted by observatory > Oct 1, 2021 5:23 PM | Report Abuse

@iknownuts, you're back?

No, I don't hate anyone or any company. Hate is the biggest enemy to investment success.

I recalled your first comments here. You advised not to go against the big bro less get stuck in a counter not meeting market spread requirement. Instead can swap Daibochi with Scientex. But now cheering the price up?

No offense here. Just wonder if you've changed your position?

2.78 and 0.345 wow. Lets go!

doesnt seem like there is going to be any level headed discussion here anytime soon…

I wont post here anymore til it cools down a bit later on.

On a lighter note, do u guys hate scientex and pj lim that much? I see his name come up so often but not the management of daibochi. What happens if daibochi changes its name to scientex daibochi bhd? Lol

Also, i wish u guys the best in deciding whichever way u go. Cheers!

@dragon328

erm…. So u knew scientex was NEVER involved in the payment of the 4.9m to snr management, and yet you posted this earlier, implying scientex in 2018 paid off the management and will pay off the management again in 2021. Wow

You also attacked new forumers just bcos they do not agree with your viewpoint?



Posted by dragon328 > Sep 30, 2021 3:24 PM | Report Abuse

The current privatisation offer from Scientex is not doing any good to Daibochi nor its shareholders.

Recap that the senior management of Daibochi was rewarded with RM4.9 million for making through the acquisition of controlling stakes by Scientex in 2019.

As anti_colonialists and Investor420 seem to be speaking for Scientex, can you both please reveal to us how much reward will be paid to the senior management of Daibochi or parties in concert for making this privatisation deal through?

Please make sure any of such reward money should come from Scientex, and not charged to the accounts of Daibochi. It is a complete waste of money and time to Daibochi for such a non-sense privatisation offer to appear and drag on.

As shareholoders of Daibochi, we would be grateful for Scientex to withdraw its offer soonest and maintain the listing status of Daibochi.

@dragon328 i agree with what you said. This is just me thinking out aloud:

- if what you said re this 4.86m being paid by daibochi to snr management is true, it was done on or before 31/12/18. Scientex completed the share sale agreement on 19/3/19. So this was paid by daibochi to their management before scientx came into the picture. Meaning, the ex shareholders of daibochi (which was also the main decision makers in daibochi then) sanctioned this payout, and effectively screwed the shareholders of diabochi?

- as we all know when we sell a business, or even a normal property transaction, the seller always pay commission to a middleman/agent. Scientex bought daibochi shares from the ex shareholders in 2019 at RM222,500,425.60. Assuming a standard 2% commission, this equates to rm4.45m. Assuming other costs of legal, IA fees etc etc of 400k, could this be the “m&a” fee of rm4.86m you mentioned earlier? If this is true,why are the ex shareholders not paying out from their pocket, but instead from the books of daibochi?


Posted by dragon328 > Sep 30, 2021 9:22 PM | Report Abuse

A good bonus could be rewarded to the senior management for a job well done in integrating MPP and delivering the revenue & profits growth, and possibly so for expanding the capacity by 60% within budget and delivering another wave of revenue & profit growth in next few quarters.

But it should have not been rewarded for selling the company controlling stakes to Scientex at RM1.60 in 2019 then, and now for helping Scientex to privatise it at again another sub-par offer price.

@dragon328 thank you for confirming this. I assume you are part of the select 40 analyst/fund managers, hence access to this “inside info”? Or you could be an existing/ex employee in diabochi? ;)


Posted by dragon328 > Sep 30, 2021 9:12 PM | Report Abuse

@iknownuts, yes the reward payment of RM4.86m was mentioned in this bursa announcement.

That reward payment (which was labelled as M&A transaction cost) was questioned by fund managers during the result briefing on 25 Feb 2019 attended by 40 analysts and fund managers. Such reward was rather unusual to the senior management of a company for selling the company controlling stakes at way below market price. That payment effectively dragged Daibochi into a loss for that quarter. What an outrage to Daibochi shareholders then.

@dragon328 are u referring to this announcement when u say Rm4.9m was paid to snr mng?

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=2929856

Posted by dragon328 > Sep 30, 2021 3:24 PM | Report Abuse

The current privatisation offer from Scientex is not doing any good to Daibochi nor its shareholders.

Recap that the senior management of Daibochi was rewarded with RM4.9 million for making through the acquisition of controlling stakes by Scientex in 2019.

Apollo has accumulated the following since the offer was tabled:

15/9 - 524300 shares
17/9 - 1606800 warrants
20/9 - 728600 warrants

As of yesterday, Apollo’s total warrant holdings is 18% of the entire float. This morning session another 675100 units were transacted. These are big volumes considering there are not many warrants in circulation.

Apollo is definitely bullish on the prospect of this company, and optimistic on a revised offer coming in. Buying into the warrant also gives the highest returns percentage wise. Perhaps this is the reason they stopped buying shares?

Right on cue… both shareholders up their stakes.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3193170

Posted by iknownuts > Sep 16, 2021 5:29 PM

Its a no brainer for samarang and apollo to up their stakes. Their upside is huge (if sci ups their offer), but downside is limited to only transaction costs (accept offer at 2.70). Also, upping their stakes will influence other shareholders to play hardball since they are afterall the majority shareholders. It would surprise me if these 2 funds do not buy more shares.

Its a no brainer for samarang and apollo to up their stakes. Their upside is huge (if sci ups their offer), but downside is limited to only transaction costs (accept offer at 2.70). Also, upping their stakes will influence other shareholders to play hardball since they are afterall the majority shareholders. It would surprise me if these 2 funds do not buy more shares.

The main test now is actually the much anticipated QR announcement which is expected by this month. in fact, mr market is generally also expecting good results following stellar results by tguan and bpplas, which has resulted in spike in prices for quite a few other plastic packaging related counters. It is also important to note that even with the highly anticipated ”good” QR announcement, the volume weighted average market price (vwap) in the last 3 months (since last QR) for daibochi is only Rm2.30.

So for everyone’s sake, just hope the results of daibochi is up to expectation. But if they do badly or pull something like tomypak, this is where the problems will start, esp if sci do not up their offer but manages to hit >75% shareholding and no longer meets public spread requirements.

U dont have to sell if u feel u can fight/beat the big bro. In fact can buy more too.

But if the big bro dont want to play ball with you, you may end up like CCB (see price now), or even worse like yee lee later.

There is no way the 3 major funds will accept the offer in 2019. The shares were trading at rm2 then (before announcement) and the offer was at rm1.6.

Also rm1.6 was a negotiated deal as the existing majority wished to cash out. There is no way they can unload their enbloc shares at a premium. So those other shareholders suffered bcos of the cashing out shareholders selling at 1.6 and scientex needed to subsequently do a MGO. To compare why the offer is now 2.7 vs 1.6 then is not fair

Anyway, we shall see in the coming weeks how these funds will react

Daibochi has not been doing exceptionally well, until scientx came into the picture. Being owned by scientex has unlocked many of its potential, exposure and synergy. Look at daibochi’s share prices in the last 5 years, it does not seem to be going anywhere. Explosive growth has only come in the last 2 years.

Is the offer reasonable? Depends…. If you bought the share above 2.7, probably not. But if you have gotten in say at the price of 2.2 - 2.4 (which was what mr market has been pricing it for the last few years), or during the covid crash or even when those majority sellers cashing out in 2018, this is a no brainer

For those who gotten in at a higher price/do not want to sell, do u want to risk being stuck in a counter which will be even more thinly traded and high likely to not able to meet mkt spread requirement? Scientex already confirmed they are not going to maintain daibochi’s listing status.

For scientex, this acquisition makes perfect sense. Fully privatising daibochi means being able to fully concentrate on expanding the daibochi’s capacity and piggybacking on scientex’s already burgeoning reputation.

Those who think daibochi is undervalued and can progress much further, how about swapping daibochi with scientex shares. Rather than fighting the taiko who is already one foot in your door, it makes sense to be part of the taiko moving fwd

Giving opinion is fine, but giving factually wrong info is bad. Luckily @destinyL is just a keyboard warrior, if in real life talk like that sure get fired from a corporate job lol

Paid up capital and retained earnings of a company doing a bonus issue does not change after ex date or post listing. Dont take my word for it, take these examples from listed companies who has done it/ will be doing it:

Top glove (see page 6)
https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/AGM/1.%20Circular%20to%20Shareholders_18082020.pdf

Scientex (see page 14)
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=204768&name=EA_DS_ATTACHMENTS

So conclusion is, company’s ability to pay dividend from retained earnings is UNAFFECTED from a bonus issue. Its business as usual, and IMO public bank will continue to pay good dividends in the coming quarters

Dividendmagic’s blog is wrong on the info for bonus shares. This info is true many years ago but no longer relevant now. Nowadays there is no longer par value for a companies’ shares, when a company issue bonus shares there is no payment from retained profits. So whoever that said no dividend from PBB next quarter (because of this) is not correct.

PJ has been MD in scientex since 2001, check the price of scientex since 2001 and then gauge how he has done so far. If you have held your shares for 3 years, and your shares have almost doubled, why has this considered “not done well”? Are you expecting returns like other cyclical stocks? Scientex is not a cyclical counter and has no pandemic tailwind. This counter will continue to grow with or without any pandemic