Medtecs Intl    Last:0.113    +0.001

Conversion of Ordinary Shares into TDR

Two main problems are that we do not know:

1. How long does it take to fulfil the requirements in order for the transfer?

2. When will it increase the no. of ordinary shares vis-a-vis its existing no. of TDR?

My view is that they are unlikely to happen in the near future.

 

Application to transfer to the mainboard. Good news?

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_F38EF41C50052CD0482577580028CA6F/$file/Medtecs_TransferfromCatalisttoMainboard_6July10.PDF?openelement

 

Yes, there is such a rule but, of course, it does not prohibit a company form exploring additional conversion even if the company has reached the limit. eg it can increase the no. of  its ordinary shares thru private placement,etc so that the proportion of ordinary shares to TDR will increase significantly to allow meaningful conversion.

 

I am not aware of this rule.

Anyway, the management has stated the following in the agm:

In response to queries raised by the shareholders at the AGM, the Chairman has indicated that the Board is exploring various options to maximize shareholders’ value, including possible conversion of ordinary shares of the Company into Taiwanese Depository Receipts to be listed on the Taiwan Stock Exchange, dual listing, transferring the Company from the Catalist sponsored regime to Mainboard of the SGX-ST and increasing the share capital of the Company.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_EBB847F712F4B7194825771400464071/$file/Medtecs_ResolutionsPassedatAGM.PDF?openelement

ohm136      ( Date: 21-Jun-2010 17:57) Posted: Taiwan has set a limit of TDR at 50% of total shares issued. Based on Medtecs announcement (19/10/2009) after its TDR conversion and sale, some 47.25% of Medtecs shares had been converted to TDR and traded in Taiwan. Therefore, further conversion of ordinary shares to TDR for sale in Taiwan seems unlikely unless the proportion of ordinary shares to TDR can be increased meaningfulling. Appreciate your views/comments.

 

Taiwan has set a limit of TDR at 50% of total shares issued. Based on Medtecs announcement (19/10/2009) after its TDR conversion and sale, some 47.25% of Medtecs shares had been converted to TDR and traded in Taiwan. Therefore, further conversion of ordinary shares to TDR for sale in Taiwan seems unlikely unless the proportion of ordinary shares to TDR can be increased meaningfulling.

Appreciate your views/comments.

 

Now the tdr is traded at 12.1 twd (around 0.52 sgd). Compared to 0.14 in singapore is still a huge difference.

After this conversion, the price difference will be corrected.

I have reinvested my profits from the conversion.

 

Agreed. Based on the sunday times (25/10/09) report "US declares H1N1 a national emergency" and that Medtecs exports 70% of its products to the US (Re: Reuters' interview with Medtecs CEO on Apr 29, 2009), this FY results shall be good.

 

Too late already

Better accumulate now, full year result should be good.

dasewemi      ( Date: 21-Oct-2009 10:32) Posted: Hi, Is it still possible to convert Medtecs into TDRs now? Thanks!

 

As stated in the company's circular, it is only once per financial year.

 

Hi, Is it still possible to convert Medtecs into TDRs now? Thanks!

 

Medtecs shares which were converted to TDRs for sale in Taiwan were sole at NTD 11.93 per TDR (about 52 cts per share). This is about 37 cts more than the closing price of 15 cts per Medtecs share on sgx.

While Medtecs shareholders must thank Medtecs Management for its effort in unlocking the intrinsic value of their shares, a more pertinent question is: Why is there such a price differential between the 2 markets?

Also, in a free & perfect market, the price differential of a commidity will correct itselt to narrow the gap. Is this applied to shares?

Your views are appreciated.

 

Medtecs has obtained the final regulatory approval for carrying out the conversion of the Company's ord shares into TDRs and their sale. TDR closed today at NTD 13.25 (about 58 S'pore cts per share) vs 13 cts per share on sgx.

Congratulation to those who have submitted their shares for conversion!

 

My concern is what will be the price of the tdr after conversion and what determine its price? If it is significantly higher than the current trading

price, then the $700 to be paid is fine.

If the application of the tdr is less than 5% of the company shares then the conversion is terminated, the $700 cannot get back?

 

After reading thru the cicular and the application form, I am rather disheartened of the conversion & sale program for the following reasons:

1. $0.007 per share for the conversion, which has to be paid upon the submission of application, ie $700.00 per 100 lots (there may be difference, which will be returned to or collected from the shareholders).

2. there are various circumstances on which the conversion & sale program will be terminated. (no refund of the fees & expenses incurred)

3. shares to be converted should be acquired and held before Jul 10, 2009.

Appreciate your advice and/or comments.

 

By converting from singapore shares to taiwan shares, we are able to sell at a higher price in taiwan compared to singapore. So it is beneficial for singapore shareholders and bad for taiwan shareholders. Am I right to say that?

 

What do you guys think of the company's latest move? A way to unlock value for shareholders?

 

Why is it a good news?

 

Hi, Good news for all Medtecs shareholders. We can convert Medtecs ordinary shares to TDR for sale in Taiwan. Medtecs TDR last traded in Taiwan for NT$ 8.10 (about 36 S'pore cents).

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_28F1104F1C33F7B0482575EE00141E43/$file/TDR_Amendments_3Final_9Jul09.pdf?openelement