Stock has got lots of cash on its balance sheet. About 47 cents a share, compared to its 32 cent stock price. It\'s a screaming bargain which .... has not risen more because of the company\'s JV bidding for an Australian company (at high price). After a few weeks, it looks like their bid is not good enough compared to a rival bid. That\'s good for Lion Asiapac minority shareholders, cos the money now potentially can be used for special dividend payout. Any views out there on this? The other time, NextInsight carried an article by a smart investor / shareholder.
www.nextinsight.net/content/view/1597/79/
Yes, stock has lots of cash and little liabilities on its balance sheet. Their JV bid for Polaris requires approval from minority shareholders. It is unlikely that minorities will agree. The minorities have already made their presence felt on two recent ocassions: (a) voting down their plans to do property development in China , (b) nearly scuppling their share buyback mandate at the recent AGM. In view of that, I do not see why minorities will vote for the Polaris takeover. To sooth strained relations and break the repeated deadlock, management may well be compelled to offer a small dividend like 5 cents. The rest would probably be retained as the company is a going concern seeking other opportunities. Any other views are welcome.
i absolutely agree that Lion Asiapac will liekly pay a special dividend. Certainly looking forward to that! by the way, why did minorities \" nearly scuppling their share buyback mandate at the recent AGM\"? share buyback is most welcome ! especially at such undervalued price as 32 cents (when the net cash is already 47 cents!).
An EGM was held following the 39th AGM. From memory, it was to discuss a share buyback mandate and that particular resolution was passed only by 53% of the shares. Share buybacks are certainly welcome for an undervalued company. Unfortunately, it seems that minorities prefer returns in real hard cash. You just need to show up at an AGM or EGM to come to this conclusion.
Stock firmed up 1 ct yesterday. Now 33 cts. Does it have anything to do with the Lion announcement yesterday? Who an explain in layman terms what its about? Takes a genius to understand that announcement: NewCo has announced on Dec 3 that ......Australian Takeovers Panel has affirmed the decision of ASIC not to remove or allow the waiver of the 50.1% minimum acceptance condition (\"50.1% Condition\") of the 2nd Revised Proposed Offer in respect of the POL Shares (the \"Panel Decision\"). Following the Panel Decision, NewCo has resolved to free the 2nd Revised Proposed Offer in respect of the POL Shares from all defeating conditions as set out in the Bidder\'s Statement (as supplemented by the First Supplementary Bidder\'s Statement), save for the 50.1% Condition. To facilitate the satisfaction of the 50.1% Condition, NewCo proposes to establish an acceptance facility (\"Acceptance Facility\") which is open to all POL Shareholders. The purpose of the Acceptance Facility is to give POL Shareholders the opportunity to indicate their intention to accept the 2nd Revised Proposed Offer in respect of the POL Shares if the 50.1% Condition is satisfied
If you examine the track record of Lion Asiapac, you will find that the management is not very shareholders-friendly. Low and sometimes zero dividend, little communications with shareholders and worst, the stock has been trading below NTA for the longest of time. Why would this all change overnight? Leopard can never change its spots and in this case, I see little possibility of this lion becoming a Santa Claus.
