The shareholder’s responsible for charging CK Tang for their buyout proposal is now getting ready for defeat in a much-anticipated general meeting today.
The numbers are now stacked against shareholder Mr Alan Goei, as well as other minor investors, despite the emotional and hard-fought battle to stop the plan.
Yesterday, the shareholder told The Straits Times: “I think I’ve done all I can. We’ve appealed to every conceivable authority we can think of. I’m exhausted and quite drained.”
The numbers looks impregnable. The stake of Tang family’s holdings is at 89.51% of the firm, which includes some accepted offers. The process of delisting will continue if votes against it sums up to less than 10% of the issued shares.
This seems to be an already done deal except for the name. “I think the offerers are very close to their 90 per cent shareholding. People who are sympathetic to them could swing the vote,” said Mr Goei.
He filed the charges earlier this month after he formed a group of minority investors to sign in a petition to the Finance Ministry and Singapore Exchange, expressing discontent towards the buyout proposal.
The group said the $340 million placed by Jones Lang LaSalle on the firm, which included an assessment for the board of CK Tang, was very low.
They further pointed out that the figure did not include the re-development potential of the Orchard Road property of the company. They also said that the 83 cents offer share price was low.
Two days before, Mr. Goei gave CK Tang’s board an estimated amount of the firm and valued it at $394 million.
This was his last gamble before the meeting today and followed a slight victory on 17 July 2009, when minority shareholders were able to let the board adjourn the meeting so that directors could seek advice on dealings with valuation concerns and other issues.
Its been a “very long and stressful two weeks” after the meeting, said Mr Goei, but the advantage he has acquired was “meeting people who share the same conviction as you, and friends who offer help and yet not charge a penny”.
Director of The Goldhill Developer bought many of his shares on CK Tang two years ago, having thought that the property increase in Orchard Road could mean higher valuation for retail investors.
Buyouts at CK Tang have a fraught history. This is the third attempt of the Tang family since 2003 to make the firm private.
The previous two buyouts have been rebuffed by shareholders and Mr. Goei anticipates the great tension at today’s meeting.