Suspect the sell down and distribution by proxy share owners to fund the election campaign is still not complete as got long queues of sellers at 29.5 - 30 sens today?

Btw Can't understand how the restructure will benefit VT? since his direct shares in BJcorp only increased 0.07% after 6 months of share purchase from November 2017 - April 2018?

5/11 (22.78% direct shares)
23/4 (22.85% direct shares)

Suspect the earlier selling is almost done by proxy share owners to fund the election campaign.
btw just wondering why Dimensional Fund Advisors LP a US based Investment firm suddently increase their stake to 19,846,999 BJland shares just recently? Is it because they know something is brewing?
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=3182643

Also the argument on rich people don't holds water...as would it be cheaper to buy at 38 sens to achieve similar results...as only pay 1/2 sens more per share rather than paying 18 sens instead to convert warrants to share...we think the stingy perception is still there...

As of 10 Jan. HSS only got 72.85?..with 2 market days left to 12 Jan..still can't reach 75%...how to achieve 90% to achieve dream of listing in SGX or HKEX?, if still not willing to buy from open market at even 38 sens?

1. Original HSS shareholding as of 10 Oct.: 33.72%
2. Fajar Astoria Shareholding as of 2 Jan.: 39.13%

https://klse.i3investor.com/insider/substantialShareholder/7213/10-Jan-2018/417453_921382860.jsp

Jan 12 is only the closing date for HSS's Voluntary Privatisation Offer. You still have the option to trade on Bursa. They still have to announce at least 2 days before closing date (Jan 10) on the % they have received for the Voluntary Privatisation Offer before we decide on the next step.

If they achieved less than 75 to 90%, you can still trade on Bursa, only if they achieved 90% or more than can do mandatory acquisition and ask Bursa to delist...

Season's Greetings & Happy New Year to Everybody! :)

Quote" Yup..how to get 90%..to achieve dream of listing in SGX or HKEX?, if not willing to buy from open market at even 38 sens?

1. Original HSS shareholding as of 10 Oct.: 33.72%
2. Hovid Shares which have been transferred into FASB’s
Central Depository System Account up to 5.00 p.m.
(Malaysian time) on the Unconditional Date 21 Dec. = 0.39%
3. Fajar Astoria Shareholding as of 28 Dec.: 34.59%
https://klse.i3investor.com/insider/substantialShareholder/7213/28-Dec-2017/416527_1332139013.jsp

Total Offerors Hovid shareholding as of 28 Dec. 2017 = 33.72 + 0.39 + 34.59 = 68.70%"

We think Hovid is trying to emulate Haw Par and list in SGX or HKEK...famous for Tiger Balm and Kwan Loong just as Hovid is famous for Ho Yan Hor...

https://en.wikipedia.org/wiki/Haw_Par_Corporation

Debbie Leong and Perry Lye from CIMB Investment Bank, the bankers undertaking this voluntary takeover..the ones under the most pressure if this privatisation exercise fails..

As the OFFER is already "Unconditional" and anybody who accepts HSS's offer by 12 Jan is guaranteed to get 38 sens from the Offerors.

So all we have to do.. is to wait and see who blinks first.. :)

If one is Debbie the other must be Perry from CIMB...Anyway Happy New Year :)

以RM0.38获得一场比赛已成定局......问题是在圣诞节之后会有多高？

Why Hovid is an acquisition target for potential Big Phama to penetrate Asean & Malaysia Market

Hovid is one of Malaysia’s Top 10 Pharmaceutical Companies
In the 1940s, Hovid was birthed when Dr. Ho Kai Cheong created the Chinese Herbal Tea, Ho Yan Hor that has become popular today as a natural beverage to dispel body heat, cure indigestion and relieve common coughs and colds. From its humble beginnings of one core product, the company today produces over 400 products including generic drugs, dietary supplements and consumer products. Harnessing its strength in R&D and the export market, Hovid’s products are distributed to over 50 countries globally. Hovid is the first in the world to develop the commercial scale integrated process for extracting the Palm phytonutrients – carotenes (pro-vitamin A) and tocotrienols (vitamin E) – from locally harvested palm oil and convert them into natural health supplements. Hovid is also an approved supplier to UNICEF and UNRWA. With its facilities and practices conforming to the current Good Manufacturing Practice on the productions, including the halal-certified products, Hovid has evolved into an outstanding industry with excellent quality in both products and services under the leadership of Managing Director, David Ho.

Malaysia’s healthcare system was recently rated as the third best out of 24 countries in the American publication International Living’s 2014 Global Retirement Index. This is due in no small part to the pharmaceutical industry which is divided into two broad streams – home-grown companies that specialises on traditional medicine, food supplements, vitamins, generics and over-the-counter (OTC) drugs; and multinationals which brought in numerous globally tested and accepted quality drugs into the country. Both streams are regulated by the Ministry of Health’s Drug Control Authority (DCA) and together, they help eradicate potentially destructive diseases. New developments such as the production of high-value bio-generics and the potentially lucrative halal drugs market promise an exciting and bright future for this industry.
http://top10malaysia.com/main/malaysias-top-10-pharmaceutical-companies/

当事态变得艰难时，艰难的事情就会开始 Agree..for those who has not taken up the Offer or sold yet..the open market price might surge..just keep a lookout for the next 14 market days to January 12.

From your recent words and actions...we are beginning to think whether your are still with us or have gone over to the dark side?...just like Darth Varder in Star Wars... :)

So HSS has achieved 68.2% and their Offer has becomes unconditional, so everybody who has accepted their Offer earlier will be paid 38 sens for each share 10 days later i.e. by 2nd January?

Since their Offer has becomes unconditional at 68.2%, the privatization execise has failed/ ended, so we can continue trading at Bursa and prepare for round 2 of privatisation in 1 to 2 years time?

That's the "Million dollar question?" But here is the probable answer:

"Loss Leader" by HSS & Proxies...sell some at 37.5 sens and hope the majority will also sell at this price but if you look at the queue today, there are 8,392,900 buyers at 37.5 sens but only 212,500 sold. Conclusion, this strategy is not working - HSS should buy in open market all those is willing to sell at 38 sens (3,052,700 sellers) and get his proxies to buy some at 38.5 sens to make up the shortfall to 67%.
那是“百万美元的问题？” 但是这里是可能的答案：

HSS＆Proxies公司的“损失领导者”以37.5的价格卖出一些，希望大多数也会以这个价格出售，但是如果你今天看到排队的话，那么有379.29万买家，但是只有212,500卖出。 结论是，这种策略是行不通的 - HSS应该在公开市场上买入所有愿意以38敏感（卖出3,052,700）卖出的人，并让他的代理人以38.5敏感的价格买入一些，以弥补67％的不足。

1.（投资基金不愿意提高发售价格，因为他们想要更好的投资回报，而不是因为他们付不起）

2.（Hovid仍然具有价值和盈利能力，由于38股灵敏度的基准价格已经由大股东制定，因此市场将给予股票适当的定价）

3.（确认HSS在12月29日前将获得67％的奖励，因此在12月29日之前已经接受了他们的邀请的人将在12月29日之后的10天内获得38个薪水）。由于不能达到75％或90％，中长期股东将没有退市和好消息，但在Hovid盈利更多，发行价格将高得多的情况下，准备在1到2年的第二轮时间。
http://www.theedgemarkets.com/article/hovid-offerors-say-they-cant-afford-raise-offer-price

True..share buyback is a tool to defend the share price of a company (Hovid) and not a tool to be used by the major shareholder (HSS) to achieve his objective as there is the "veil of incorporation" according to the the Companies Act. 真实的股票回购是捍卫公司（Hovid）的股价的一种工具，而不是大股东（HSS）用来达到目的的工具，因为有“公司的面纱”公司法。

No need to guess..must be Fong Siling, the one still holding 10 million Hovid shares...

1% = approx10 million shares, to move from 62% to 67%, you need 50 million shares or 7 million daily...to move from 62% to 75% you need 130 million shares or 18.6 million daily...is there 7 million or 18.6 million shares currently in the sell queue as price is not right?

The other side must be getting worried...can see many agent provocateurs are coming out of the woodwork... 对方一定很担心...可以看到很多代理挑衅者正在从木制品中走出来...

If you refer to 4.3 Rights of Dissenting Holders & 2.4 Closing of the Offer this question doesn't arise as you can still sell the the shares to HSS at HSS's offer price at that time. Quote " the Offer will remain open for acceptances for at least 14 days from the date on which the Offer becomes and is declared unconditional (e.g. 29 Dec) which, in any event, shall not be later than the 60th day from the Posting Date.)

Means even after achieving 67% on 29 Dec. (turn unconditional) " the Offer will remain open for acceptances for at least 14 days from the date on which the Offer becomes and is declared unconditional (e.g. 29 Dec) which, in any event, shall not be later than the 60th day from the Posting Date.) "

*note: Those shareholders who has not transferred their shares to HSS can continue to trade on Bursa. Since HSS has paid for the shares at 38 sens each, it is in their interest to protect their capital investment by keeping the share price at a min. of 38 sens or more.

已经可以猜测的结果，更好地节省汽油钱一顿好饭 :)

The other side must be getting worried...can see many agent provocateurs are coming out of the woodwork...

和气生財...

你敢有聽著咱的歌
https://www.youtube.com/watch?v=4jWwpc_a_fo

"We will only cross the bridge after HSS has proven that he is able gather 67% first, next hurdle 75% and last hurdle 90%)"

Quote "I'm telling that if HSS got more than 75% of shares at the end of this offer period, Bursa will suspend without minority's approval. Dont get me wrong, suspension and delisting is two different thing. If a company's public spread is less than 25%, company itself must come out a plan to make sure spread is above 25% otherwise it would remain suspended, minority cannot do anything with it. Minority can vote against on delisting if EGM is held. *I admit my fault on lack of knowledge on delisting on my comment earlier.* "

Let's go for a win win situation...让我们去争取一个双赢的局面

We all know HSS will try to get 67% by hook or crook comes 29 December...so things will take care by itself from tomorrow onwards...

Depends on how desirous HSS would be, few outcome would happen after the offer period:
1. If acceptance rate is lower than 75%, market price free flow, if fall HSS might purchase at lower price...
"The offer price at 38 sens is already low and will not free fall as Hovid has demonstrated a quick return to profitability is the last Qtr. and will definitely shows * better returns in the next few quarters (we are also prepared for temporary disruptions from short-term speculators in the event if HSS fails to achieve 67%(definitely not 75%, otherwise they would not have , then the shares have to be returned to shareholders but that is also a slim possibility...as HSS already has 62.32 as of 15/12 and will not simply give up after spending so such time, money and efforts...)"

*See profitability trend
below:
2013 Profit of RM20.327 million
2014 Profit of RM18.084 million
2015 Profit of RM20.909 million
2016 Profit of RM17.896 million
2017 Loss of RM1.528 million (loss incurred due to revocation of manufacturing licence and not loss due to lack of demand)

Now since the Manufacturing licence has been reinstated and manufacturing capacity has increased by 200%,, I can only see growth and profitability for Hovid for 2018 and beyond! otherwise Tael Partners would not has identified Hovid's as a growth oriented investment ripe for acquisition camouflaged as "Privatisation Exercise". Once they successfully acquire Hovid at a bargain price, they will sell their shares profitably to the highest bidder or relist again as a new entity in one to 2 years time.

Hovid bounced back very fast...The latest quarter to quarter profits increase by 133.5% to RM2.155 million which is a sign of recovery...the next few quarters will show even better profitability once the extra capacity from Chemor plant is ready by December, as the factories are running at 24 hours which means plenty of orders to meet!

13-Nov-2017 30-Sep-2017 49,657 2,972 2,155 2,130 4.34% 1.07% 0.26 0.00 0.2436 133.50%
https://klse.i3investor.com/servlets/stk/annqtyres/7213.jsp

2. If acceptance rate is higher than 75%, HSS opt for delisting, forcing you to compromise with him.

"HSS has to compromise with the minority (to get their consent for delisting according to Bursa rules) and not the otherway round as in the improbable event of getting 75% for this first round."

PART C – WITHDRAWAL OF LISTING AND DE-LISTING BY THE EXCHANGE
16.05 Withdrawal of listing
(1) The Exchange may grant a listed issuer’s request for withdrawal from the Official List.
(2) The Exchange will notify the SC of any decision to approve a request for withdrawal from the
Official List.
16.06 Request for withdrawal
(1) Subject to paragraph 16.07, a listed issuer may not request to withdraw its listing from the
Official List, unless -
(a) the listed issuer convenes a general meeting to obtain its shareholder or unit holder
approval and a separate meeting for the approval of the holders of any other class of
listed securities, if applicable and the circular sent to the shareholders or unit holders
and the holders of any other class of listed securities includes the information set out
in Part A of Appendix 16A. The draft circular must be submitted to the Exchange
together with a checklist showing compliance with Part A of Appendix 16A;
(b) the resolution for the withdrawal of its listing is approved by a majority in number
representing three fourths (75%) in value of the shareholders or unit holders and holders of
any other class of listed securities, if applicable, present and voting either in person or
by proxy at the meetings and provided that such shareholders or unit holders and
holders of any other class of listed securities who object to the withdrawal is not more
than 10% of the value of the shareholders or unit holders and holders of any other
class of listed securities present and voting either in person or by proxy. Where the
constituent document of the listed issuer imposes a stricter condition in respect of the
votes required to approve the withdrawal of listing, such stricter condition will apply in
substitution of the foregoing provision;
http://www.bursamalaysia.com/misc/system/assets/5001/listing_requireme...

3. HSS being kindness and desperate to collect 100%, negotiate with us and offer a better price for all people including those who have already accepted the offer. This might need HSS to write a request to SC for approval.

"We will only cross the bridge after HSS has proven that he is able gather 67% first, next hurdle 75% and last hurdle 90%)"

和气生財...

你敢有聽著咱的歌 《Do You Hear the People Sing 》

https://www.youtube.com/watch?v=4jWwpc_a_fo

https://www.youtube.com/watch?v=h7D27BYfjgQ

https://www.youtube.com/watch?v=6p5jL7M325U

Who wants to buy?
1. (18 - 29/12) HSS up to 38 sens, > 38 sens HSS assigned proxies due to Johan case.
2. All medium to longterm shareholders after 29/12. If you refer Bursa stock chart
https://klse.i3investor.com/servlets/stk/chart/7213.jsp

Highest price achieved by Hovid was 56.5 sens in 20 April 2015, fast forward to present 16 Dec. 2017 after the following actions below, don't you think Hovid share price has better capacity to scale greater heights?:

According to CIMB, the Chemor plant extension could raise Hovid’s existing tablet and capsule capacity by 70% (from the original capacity). But this will happen gradually.

The new capacity will translate into stronger earnings growth in future for Hovid when things are falling in place. This may be why Fajar Astoria is keen on pouring in money to take Hovid private — a deal that will cost them about RM243.1 million.

Hovid’s production facilities include the 20-acre (8.09ha) Chemor plant with softgel packing, effervescent dosage and oral solid dosage facilities, while its three-acre Ipoh plant, where its headquarters are in, produces softgel encapsulation, oral liquid, penicillin products and its heritage Ho Yan Hor herbal tea.

Aside from the manufacturing plants, Hovid has a research and development centre in Penang which is dedicated to bioequivalence studies.

With a market capitalisation of RM295 million, which is less than US$85 million, Hovid does appear to be an attractive merger and acquisition (M&A) target for foreign pharmaceutical giants that are looking for capacity expansion in this part of the world.

HOVID BERHAD-WB 2013/2018 only expires in June 2018, HSS need not convert the warrants before 29 December as :

Quote "Since HSS atm only has 549,995,630 shares, he need to collect another 644,057,077 - 549,995,630 = 94,061,447 shares to achieve 67% including Warrants conversion to shares. Now HSS would need to collect at least 94.06 millions shares or 10.45 million shares daily (over 9 market days) in order to achieve 67% by 29 December instead of 5 million shares daily before HSS converts his warrants. So if we are HSS, it doesn't makes sense to convert the warrants which entails a cash payment of ( 140,390,220 x 0.18 = RM25,270,240) to Hovid and also enlarge the % shares base? "

HSS may convert the warrants to shares after 29 December to enjoy these Potential Benefits after 29 December:
1. Dividends when declared
2. Bonus & Rights Issues (according to latest 2017 Annual report, Hovid still has retained earnings of RM70, 395,000, Reserves of RM39,748,000 and Cash & Deposit of RM15,864,000)
3. If all the retained earning & reserves are capitalised as Bonus shares, based on 820.889,000 shares issued, each ordinary share is entitled to RM0.1341 of the Retained Earnings and Reserves!
4. Potential capital appreciation if a big Pharma invest in Hovid etc.

Points to ponder over:

1. There are actually still 820,889,000 (assuming no conversion of more warrants) - 549,995,630 = 270,893,370 or 2,708,933 lots or 2,708k lots of free floating Hovid shares out there. The reason why out of this 2,708k lots of free floating Hovid shares, the required 571k lots (only 21.09% of free floating shares) of shares is not on selling queue, is because the current buying price is not right?

2. It doesn't makes sense for a stingy person to convert the warrants owned, which entails a cash payment of ( 140,390,220 x 0.18 = RM25,270,240) to Hovid and also enlarge the % shares base?

3. While it is true they may not increase the offer price above 38 sens for those who have accepted their Offer. Those shareholders who have not accepted their Offer can continue to trade on Bursa and obtain better price than 38 sens depending on market demand, as with only 67%, HSS can no longer apply to delist Hovid.

In the short term to 29 December, in order achieve at least 67% in order to keep the shares of those who have accepted HSS's offer earlier, the share price of Hovid may increase higher than 38 sens due to supply and demand situation.

* There are many ways to keep tabs on the % of shares HSS has from the base of 62%...
1. Any open market purchases by major shareholder (HSS) needs to be announced to Bursa.
2. AGM 19/12
3. "Showhand" day on 27/12, before making the final decision

There are some loose ends here:

1. Originally 820,889,000 Hovid shares = 100%, If HSS converts 140,390,220 warrants to shares based on 1:1 basis after payment of 18 sens premium per warrant to Hovid, the total Hovid shares = 100% would be (820,889,000 + 140,390,220 = 961,279, 220 shares). In order to achieve 67%, HSS needs to collect 961,279, 220 x 0.67 = 644,057,077.4 shares).

Based on the original 820,889,000 Hovid shares, HSS only managed to collect 62% or (820,889,000 x 0.62 = 549,995,630 shares). After HSS converts his warrants, the base for % of Hovid shares has enlarged to 961,279, 220 shares. Meaning HSS needs to collect at least 67% x 961,279, 220 = 644,057,077 shares in order to achieve 67%.

Since HSS atm only has 549,995,630 shares, he need to collect another 644,057,077 - 549,995,630 = 94,061,447 shares to achieve 67% including Warrants conversion to shares. Now HSS would need to collect at least 94.06 millions shares or 10.45 million shares daily (over 9 market days) in order to achieve 67% by 29 December instead of 5 million shares daily before HSS converts his warrants. So if we are HSS, it doesn't makes sense to convert the warrants which entails a cash payment of ( 140,390,220 x 0.18 = RM25,270,240) to Hovid and also enlarge the % shares base?

"1% of Hovid is approximately 10 millions shares, so in order to obtain 5% to reach 67%, HSS needs 50 million shares. The daily open market purchase by HSS ranges from 0.958 to 3.70 million shares. With 9 market days left to 29 Dec., HSS needs to race to collect at least 5.56 million shares daily to achieve it. The fastest way to obtain the 5% shares outstanding, is to increase the open market purchase price above 38 sens. This is cheaper than making a general share price increase (Offer Price) for 67% (target) - 33.72% (HSS original shares) = 33.28% (public shares)."

2. While it is true HSS may not increase the offer price above 38 sens for those who have accepted their Offer. Those shareholders who have not accepted their Offer can continue to trade on Bursa and obtain better price than 38 sens depending on market demand, as with only 67%, HSS can no longer apply to delist Hovid.

In the short term to 29 December, in order achieve at least 67% in order to keep the shares of those who have accepted HSS's offer earlier, the share price of Hovid may increase higher than 38 sens due to supply and demand situation.

Quote" HOVID is 820,889,000 shares and HOVID-WB is 322,231,429 warrants.
55.46% of HOVID is 455,265,039 shares
71.64% of HOVID-WB is 230,846,595 warrants.
Conversion is 1 HOVID-WB for 1 HOVID @ RM0.18

Total of HOVID & HOVID-WB is 1,143,120,429
If HSS convert all HOVID-WB held to HOVID and the % is,
((455,265,039+230,846,595)/(820,889,000+230,846,595))*100
(686,116,634/1,051,735,595)*100
=65.24%"

Thanks for confirming that the level of acceptance as of 16/12 is only 62%.

1% of Hovid is approximately 10 millions shares, so in order to obtain 5% to reach 67%, HSS needs 50 million shares. The daily open market purchase by HSS ranges from 0.958 to 3.70 million shares. With 9 market days left to 29 Dec., HSS needs to race to collect at least 5.56 million shares daily to achieve it. The fastest way to obtain the 5% shares outstanding, is to increase the open market purchase price above 38 sens. This is cheaper than making a general share price increase (Offer Price) for 67% (target) - 33.72% (HSS original shares) = 33.28% (public shares)."

The next milestones to lookout for:
1. AGM on Tuesday (19/12), chance to query Hovid Mgt. on the latest developments.
2. HSS "showhand" on 27/12, 2 days before final closing date for Offer on 29/12, in order to decide on next course of action.

Quote "While it is true they may not increase the offer price above 38 sens for those who have accepted their Offer. Those shareholders who have not accepted their Offer can continue to trade on Bursa and obtain better price than 38 sens depending on market demand, as with only 67%, HSS can no longer apply to delist Hovid.

In the short term to 29 December, in order achieve at least 67% in order to keep the shares of those who have accepted HSS's offer earlier, the share price of Hovid may increase higher than 38 sens due to supply and demand situation.

1% of Hovid is approximately 10 millions shares so in order to obtain 5.71%, HSS needs 57.1 million shares. The daily open market purchase by HSS ranges from 958,000 to 3,702,500 shares. With 10 market days to 29 Dec., HSS needs to race to collect at least 5,710,000 shares daily to achieve it. The fastest way to obtain 5.71% is to increase the open market purchase price above 38 sens. This is cheaper than making a general share price increase (Offer Price) for 67% - 33.72% = 33.28% shares."

If reach 67%, then it will be unconditional and those who have accepted HSS's offer earlier will be paid 38 sens per share within 10 days after 29 Dec.

Since cannot delist, those who have not accepted HSS's offer can continue to trade on Bursa..or after HSS "show hand" on 27 Dec., 2 days before the last closing date...can chose to accept HSS's offer by 29 Dec. or continues to trade on Bursa...

For those who have changed their minds and wanted their shares back from HSS in order to continue trading on Bursa for a better price in future, before he accepts your offer (turns unconditional) on 29 Dec., since with only 67%, HSS can't apply for Hovid's delisting, can do so in person from Tricor Investor & Issuing House Services Sdn. Bhd. at Vertical Business Suite, Avenue 3, Bangsar South, No. 8 Jalan Kerinchi, KL...

Quote" (c). withdraw his acceptance within 8 days of notification by the Joint Offerors of a revision of accepting condition"

Since the notice of revision of accepting condition from 75% reduced to 67% announced on 14 December, you have 8 days until 22 December to withdraw your acceptance (get back your shares) in person from Tricor Investor & Issuing House Services Sdn. Bhd. KL
http://www.bursamalaysia.com/market/listed-companies/company-announcem...
Refer Hovid Conditional Voluntary Take-over Offer Document Para 3 (Rights of Withdrawal by an Accepting Holder) Page 20 dated 30 Oct. 2017

While it is true they may not increase the offer price above 38 sens for those who have accepted their Offer. Those shareholders who have not accepted their Offer can continue to trade on Bursa and obtain better price than 38 sens depending on market demand, as with only 67%, HSS can no longer apply to delist Hovid.

In the short term to 29 December, in order achieve at least 67% in order to keep the shares of those who have accepted HSS's offer earlier, the share price of Hovid may increase higher than 38 sens due to supply and demand situation.

1% of Hovid is approximately 10 millions shares so in order to obtain 5.71%, HSS needs 57.1 million shares. The daily open market purchase by HSS ranges from 958,000 to 3,702,500 shares. With 10 market days to 29 Dec., HSS needs to race to collect at least 5,710,000 shares daily to achieve it. The fastest way to obtain 5.71% is to increase the open market purchase price above 38 sens. This is cheaper than making a general share price increase (Offer Price) for 67% - 33.72% = 33.28% shares.

Yes, with only 67%, HSS just want to keep those shares who already accept their offer at 38 sens as with the 26.87% collected so far, they already entitled to 26.87% of Hovid's retained earnings of RM70,395,000 and Reserves of RM39,748,000.

PART C – WITHDRAWAL OF LISTING AND DE-LISTING BY THE EXCHANGE
16.05 Withdrawal of listing
(1) The Exchange may grant a listed issuer’s request for withdrawal from the Official List.
(2) The Exchange will notify the SC of any decision to approve a request for withdrawal from the
Official List.
16.06 Request for withdrawal
(1) Subject to paragraph 16.07, a listed issuer may not request to withdraw its listing from the
Official List, unless -
(a) the listed issuer convenes a general meeting to obtain its shareholder or unit holder
approval and a separate meeting for the approval of the holders of any other class of
listed securities, if applicable and the circular sent to the shareholders or unit holders
and the holders of any other class of listed securities includes the information set out
in Part A of Appendix 16A. The draft circular must be submitted to the Exchange
together with a checklist showing compliance with Part A of Appendix 16A;
(b) the resolution for the withdrawal of its listing is approved by a majority in number
representing three fourths (75%) in value of the shareholders or unit holders and holders of
any other class of listed securities, if applicable, present and voting either in person or
by proxy at the meetings and provided that such shareholders or unit holders and
holders of any other class of listed securities who object to the withdrawal is not more
than 10% of the value of the shareholders or unit holders and holders of any other
class of listed securities present and voting either in person or by proxy. Where the
constituent document of the listed issuer imposes a stricter condition in respect of the
votes required to approve the withdrawal of listing, such stricter condition will apply in
substitution of the foregoing provision;
http://www.bursamalaysia.com/misc/system/assets/5001/listing_requirement_main_market_ch

If cannot achieve 75% just abandon the privatisation exercise and let's all enjoy the fruits of labour from our investment in Hovid, as Malaysia GDP is growing, bursa is already 1,755.82 points, crude oil and RM is up and foreign investors is coming back...we are sure Hovid share price will continue to rise soon...

KUALA LUMPUR, Dec 14 — Malaysia’s 2017 gross domestic product (GDP) is projected to grow at 5.8 per cent, year-on-year, the highest annual growth rate since 2014, said World Bank Group, Malaysia and Thailand, director for regional partnerships Dr Ulrich Zachau.

He said the World Bank expected the economy to remain strong in 2018 and projected a growth of 5.2 per cent.
http://www.themalaymailonline.com/money/article/world-bank-sees-malaysias-2017-gdp-growth-at-5.8pc#eMRcfXiwzbk0rWvA.97

Don't forget! Tomorrow is D-Day..if no further announcements or price increase..confirm won't achieve 75% by 29 December..so what's next?

(According to latest 2017 Annual report, Hovid still has retained earnings of RM70,395,000, Reserves of RM39,748,000 and Cash & Deposit of RM15,864,000)
If all the retained earning & reserves are capitalised as Bonus shares, based on 820.889,000 shares issued, each ordinary share is entitled to RM0.1341 of the Retained Earnings and Reserves!

If the offer price is 45 *sens, (32 Sens based on 5 Days VWAP + 13.41sens - share of retained earnings + reserves) the extra 7 sens payable (RM0.07 x 544,085,171) only cost extra RM38.05 million, in USD only $9.24 million.

Actually if you deduct the shares originally owned by HSS (33.72%), the actual out of pocket expenses to HSS only cost extra RM38.05 x 0.6628 = RM25.22 million, in USD only $9.24 x 0.6628 = 6.12 million. HSS pays extra RM25.22 million to get hold of Hovid's retained earnings of RM70,395,000, Reserves of RM39,748,000 and Cash & Deposit of RM15,864,000 = RM126,007,000)

They need to do better and increase the offer price to obtain at least 10 million shares per day to increase 1%.

Even after increasing the open market purchase price to 38 sens today..they only managed to obtain about 1,585,800 shares atm. I don't think they will convert the warrants which adds to their costs and dilutes the existing share base..

Current HSS shareholding:
33.72 + 26.87 = 60.59%

The hints has been given in the illustrations below...

Why the offerors gave a higher premium of 45.02% for Warrants compared to only 20.55% for Ordinary Shares?, why the disparity in premium offered for Warrants & Ordinary Shares?, if they offer the same premium of 45.02% for Ordinary Shares, the offer price should be 45 sens.

e.g.
1. If they raise the offer price to 41 sens, the extra 3 sens payable (RM0.03 x 544,085,171) only cost extra RM16.32 million, in Singapore Dollars only $5.94 million.

2. If the offer price is 45 sens, the extra 7 sens payable (RM0.07 x 544,085,171) only cost extra RM38.05 million, in Singapore Dollars only $12.55 million

Finally..some good sense has prevailed..looks like there might be a better offer coming along? as the open market purchase price has increased a bit..with the first deadline on 15 December coming soon?

Currently 1USD = RM4.078
e.g.
1. If they raise the offer price to 41 sens, the extra 3 sens payable (RM0.03 x 544,085,171) only cost extra RM16.32 million, in USD only USD$4.00 million.
2. If the offer price is 45 sens, the extra 7 sens payable (RM0.07 x 544,085,171) only cost extra RM38.05 million, in USD only USD9.33 million

But don't delay too long with the revised offer, since Malaysia GDP has gone up to 6.2% and crude oil price is increasing, the RM will strengthen further and the Offerors may end up paying more if the Privatisation Exercise drags into next year! They may end up penny wise but pound foolish..
p.s. quoted earlier in Sing Dollars because we thought Tael Partners was based in Singapore..

HSS original shareholding 33.72%
Fajar Astoria shareholding 23.56% (as of 19 Nov)
33.72 + 23.56 = 57.28%
Fajar Astoria shareholding 26.87% (as of 11 Dec)
33.72 + 26.87 = 60.59%
% increase after 23 days = only 3.31% (as of 11 Dec)

Looks like those who transferred their shares to HSS earlier, is in for a long wait for their cash...also the open market acquisition @RM0.37 selling volume has dropped on a daily basis...if HSS wants to achieve at least 75% by 29 Dec...he needs to increase the buying price asap!...

Direct (%) 26.87
Indirect/deemed interest (units)
Indirect/deemed interest (%)
Total no of securities after change 220,573,406
Date of notice 11 Dec 2017

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5633485

AGM is in Ipoh on Tuesday, 19/12. It's better for those in Perak to attend...

Annual General Meeting
Date & Time 19-Dec-2017 10:30
Depositor Date 11-Dec-2017
Venue Conference 1
Level 2, Weil Hotel
292 Jalan Sultan Idris Shah
30000 Ipoh
Perak Darul Ridzuan

Recap...
"The premium for the Ordinary Shares (with voting and dividend rights & no expiry date) is only 20.55% to 5 days the VWAP i.e from 31.5 sens to 38 sens, while the Warrants (no voting and dividend rights expiry date 5 June 2018, exercise 18 sens (1:1) to convert to Ordinary Share) gets a premium of 45.02% to the 5 days VWAP i.e from 13.5 sens to 20 sens.

Hovid Warrants B - expiry date 5 June 2018, exercise 18 sens (1:1) to convert to ordinary share.
http://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=72...

Why the offerors gave a higher premium of 45.02% for Warrants compared to only 20.55% for Ordinary Shares?, why the disparity in premium offered for Warrants & Ordinary Shares?, if they offer the same premium of 45.02% for Ordinary Shares, the offer price should be 45 sens.

e.g.
1. If they raise the offer price to 41 sens, the extra 3 sens payable (RM0.03 x 544,085,171) only cost extra RM16.32 million, in Singapore Dollars only $5.94 million.
2. If the offer price is 45 sens, the extra 7 sens payable (RM0.07 x 544,085,171) only cost extra RM38.05 million, in Singapore Dollars only $12.55 million

Mind you this is a privatisation exercise, meaning the medium and the long-term shareholders would be deprived of the future benefits through better share price and dividends in future should the privatisation be successful and their shares are taken over through a mandatory offer, if they achieve 90% at the current offer price of 38 sens for ordinary shares."

The buy queue at 37 sens is already twice that at 37.5 sens today..but not many sellers..if HSS really wants to achieve 75% by 29 Dec, he better ups the offer price asap..

Actually you only need to cross the bridge after the following important dates:
1. 15 December, the last date for HSS to make a better offer
2. 27 December (HSS needs to "show hand") at least 2 days before 29 December on whether HSS has achieved 75% or not to make his offer Unconditional.
3. The rate of open market sales of Hovid shares has dropped steadily, that why there are new promoters to encourage more sales

Also note that, most of the hardcore minority shareholders left are medium to long term shareholders, so short-term fluctuations are of not great concern...

Also refer 3rd last page of presentation below:
https://drive.google.com/file/d/1Ng3ZXNarGoC5gCj-AxpOh0qoyWqgr2J6/view
Scenario 1: Takeover Successful
* Portfolio do not suffer any loss but should book marginal profits, although it comes at grave oppoetunity costs

Scenario 2: Takeover Fails
* Increase price volatlity due to short term market reactions
* Negative connotation to management integrity & intentions
* Potentially longer holding power needed or even value trap
* Delisting stalemate if PAC owns >75% but <90%

Read this presentation below for roadmap to the future value of Hovid which can be 76 sens or more due to earning potential in 2018 onwards from patents cliff and Hovid registration of new generic drugs... only issue is that people are scared to commit above 38 sens since the privatisation exercise is still on...all things being equal...things will be clearer by 15 December the last date for HSS to make a better offer?

THE FUTURE OF GENERIC DRUGS & HOVID BERHAD TAKEOVER OFFER
Author: ValinV | Publish date: Fri, 1 Dec 2017, 12:07 AM

https://klse.i3investor.com/blogs/fixmy/140068.jsp

The basic answer...

If you refer to 4.3 Rights of Dissenting Holders & 2.4 Closing of the Offer this question doesn't arise as you can still sell the the shares to HSS at HSS's offer price at that time (29/12). Quote " the Offer will remain open for acceptances for at least 14 days from the date on which the Offer becomes and is declared unconditional (e.g. 29/12) which, in any event, shall not be later than the 60th day from the Posting Date.)

*note: Those shareholders who has not transferred or sold their shares to HSS can continue to trade on Bursa after 29/12. Since HSS has paid for the shares at 38 sens each, it is in their interest to protect their capital investment by keeping the share price at a min. of 38 sens or more.
Note:
1. In order to delist Hovid, HSS needs at least 90% of the shares.
2. If HSS really obtained 75% of the shares by 29/12, they still can't apply to delist Hovid automatically. What is means is only Bursa would consider delisting if the public spread is not met. However according to TheEdge, Quote 'According to the latest annual report, Hovid’s shareholding is rather fragmented with each shareholder owning no more than 1.3% stake in the company', what it means is the public spread is rather large and so don't meets Bursa conditions for delisting.
3. What it only means is that those who has transferred their shares to HSS by 29/12, will be paid 38 sens (if the offer price is not revised), 10 days after the Privatisation offer turns unconditional (Lol next year 2018!)
4. Those shareholders who has not transferred or sold their shares to HSS can continue to trade on Bursa. Since HSS has paid for the shares at 38 sens each, it is in their interest to protect their capital investment by keeping the share price at a min. of 38 sens or more.

Looks like sellers at 37 sens has dried out..HSS better increase the offer price asap..otherwise there is no way to achieve 75% by 29 Dec..

If you refer to 4.3 Rights of Dissenting Holders & 2.4 Closing of the Offer this question doesn't arise as you can still sell the the shares to HSS at HSS's offer price at that time. Quote " the Offer will remain open for acceptances for at least 14 days from the date on which the Offer becomes and is declared unconditional (e.g. 29 Dec) which, in any event, shall not be later than the 60th day from the Posting Date.)

*note: Those shareholders who has not transferred their shares to HSS can continue to trade on Bursa. Since HSS has paid for the shares at 38 sens each, it is in their interest to protect their capital investment by keeping the share price at a min. of 38 sens or more.