Midsouth   

Delisting at 80cts but people selling at 76cts

Vehicle parts maker Midsouth Holdings rose to a seven-month high of $0.775 after it received a bid from Zhong Nan Holdings to delist the firm.

Zhong Nan, a special purpose vehicle, has offered $0.80 per share in cash to shareholders of Midsouth which, according to Reuters calculations, values the company at $264.7 million.

Zhong Nan said in an offer document that it does not intend to increase its offer price, which represents a 10.3% premium over the share's closing price of $0.725 on May 9.

Zhong Nan, which holds 75.12% of Midsouth, cited poor market valuations and trading volume as reasons to delist the firm.

Midsouth makes vehicle parts for companies such as China National Heavy Duty Truck, the country's third-largest truck maker.

Midsouth's shareholders have until Oct 31 to decide whether to accept the offer.

DBS Bank is acting as the financial adviser for Zhong Nan.

 

You cannot blame Companies wanting to delist if local investors not showing interests and Companies are not getting the valuations that they deserved. If blame is to be assigned, it should fall squarely on  the local investment community.

If this malaise persists, soon no more good companies are going to come here for listings. Instead, more listed companies may take the de-listing routes or will be taken private by other more savvy dealmakers.

knightrider      ( Date: 14-May-2008 12:05) Posted: Actually, this company only listed on 5 May 2006, just pass 2 years. I wonder why SGX allow companies to seek for delist in so short a time frame. For those minor share holders if they bought expensive, they will felt cheated. I wonder what is the IPO price ?

 

Still not so bad for the IPO subscribers.................IPO price at 48 cts

 

Actually, this company only listed on 5 May 2006, just pass 2 years. I wonder why SGX allow companies to seek for delist in so short a time frame. For those minor share holders if they bought expensive, they will felt cheated. I wonder what is the IPO price ?

 

Correction, their profit for jade is going at 0.005 !!! not even 1 cent !!!!

 

These are smart and got brain people, they have learn from Jade saga ! Not like a group of  investors, one Omi..xxxx, so gun ho or  desperate, at that time market is going 0.22 and Anthony Soh is paying for 0.225, these group of so call experience businessmen, form Omi..xxxx just buy in from market at 0.22, so desperate of the 0.05 profit.

In this globe, now is all full of uncertainty, the only real is to enjoy life and have cash in the pocket (not even in bank, the sub-prime, has caused Australian to went bust and create the Jade saga). Now you see mother nature cause so much pain in the recent 2 countries. Life short, enjoy it while you can, got $$$ grab 1st. This is my own opinion, hope did not offend the group of  so call experience businessmen. Good Luck.

 

Hi hulumas

From now till October delisting, it's like getting 1% interest per month.....better than putting yr $ in the bank, right?

Any catch to this Midsouth if i were to buy now? Any hidden clauses or surprise, china stocks u know.......DBS says the offeror have the financial arm to do this, but after the ocbc pull out of Jade..........i have my doubts. Do these banks actually do any due diligience?

 

 

In short, not all people have liquid cash. Some don't have the time to tie up their fund for too long.  They will sell it in the open market and the funds are available in 3 to 4 days. Some maybe contra case. It really depends lo.

 

Dear Spiderman1234,

 

The seller at Sgd. 0.76 should have put "Time value of money" into urgent priority perhaps.

 

Anyone knows why the offer buy price is 80cts to delist it from SGX, but the share price now is at 76cts. A profit of 4cts if i buy now isst?