Mr Ron Sim, the chairman and CEO of OSIM international made an offer to buy the rest of OSIM shares not own by him at an offer price of $1.32. According to sources, he owns 69.25% of the shares issued. That means that the free float is about 30% (assuming no shares in the treasury which is highly unlikely). Nevertheless, that still means about $300m price tag to buy up all the shares currently not own by Mr Ron Sim.
Frankly, many retail investors who bought during the good days when OSIM on an unprecedented growth path for 21 quarters would have been disappointed.
Those who had bought the shares between 2nd half of 2012 and even until Q3 of 2015 would have been “out-of-money” based on this proposed offer and may not likely to accept this offer. (Of course, it may not be that simple as there are infinite trade possibilities.) All said, the trading price over the next few days should set the tone whether the minority shareholders, as a whole, are happy with the offer price. Based on closing price of consistently above $1.32 over the last few days, it appeared to indicate that minority shareholders may not accept the price offer of $1.32 even though it appears that the premium over the offer price is waning.
Brennen has been investing in the stock market for 26 years. He trains occasionally and is a managing partner for BP Wealth Learning Centre. He is also the author of the book – “Building Wealth Together Through Stocks” which is available in both soft and hardcopy.