SG Wealth Builder

To make money. To build wealth. To preserve wealth.

Victory for k1 minority shareholders!

Ranked Top 75 Singapore Investment Blog by Feedspot

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 2,257 other subscribers

Last month, I posted an article on GKB Holding’s proposed voluntary conditional cash offer for k1 Ventures Limited, the investment arm of Keppel Group. I am pleased to inform readers that the proposal did not go through and that the offer had lapsed on 14 September.
The company had received only 77.62% of the total number of issued shares, way below the required 90% for the proposal to go through.

Extension of offer closing date
I was quite annoyed with GKB Holdings for extending the offer closing date TWICE. I thought the management of GKB Holdings was quite disrespectful to the minority shareholders when they extended the offer closing date without even improving the offer.

stock market
In view of the APB and Heineken saga, they should have revised and enhance the offer to make it appealing to the shareholders. Instead, they stuck with their initial offer of $0.135 per share and expect more shareholders to take up the offer. Their stance is that the counter is thinly traded and the offer is made at a premium based on the last 6 months of trading.
Being a long-term investor and loyal supporter of the company, I am disappointed with this recent turn of events. To be honest, I am not overly concerned with the trading prices of k1 Ventures as I am more of a dividend player rather than a speculator. So GKB Holdings’ offer does not appeal to me at all. Furthermore, if I had accepted their proposal, I would have suffered a loss of more than $2000, excluding the dividends collected so far. If they wanted shareholders like me to accept their proposal, the offer has to be made based on the value of their investment holdings instead of the recent traded prices.

Investment in k1 Ventures
Prior to GKB Holdings’ proposed delist of k1 Ventures, I had actually wanted to increase my shareholding in the latter. But now I am seriously considering whether it is prudent to do so. I thought to myself what if the management of k1 Ventures made another ridiculously low offer to delist the company again in the near future? I would potentially suffer losses amounting to thousands of dollars if this happened again. So whilst they have made a dividend announcement of $0.005 per share to be paid in 14 November, I am not impressed at all and decided not to invest any more monies in this counter.

Note: The above article chronicles my investment experience in k1 Ventures and is meant for sharing. Readers must not take it as investment advice to buy or sell the share.

Join me in my investment journey and read my financial adventures for free! Through the sharing, my vision is to improve and change people’s lives. In school, we don’t learn how to budget, manage our finances, build wealth and invest our money. Instead, we are taught useless subjects which we would never put to use most of the times during our working lives.

Yet, managing our money is an important life skill that is critical to our survival in the society. Many people start to realize how it is importance of managing money only when they face the prospect of financial ruins, by then which would be too late for remedies. Thus, I started this blog to share articles on finances which I aspire to make a positive impact in others’ lives.

You can opt to subscribe email updates on my articles for free by entering your email address below.

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Magically yours,

SG Wealth Builder

REITS Master Class

Reits Masterclass
Updated: June 1, 2016 — 3:49 pm

Leave a Reply

SG Wealth Builder © 2016 Frontier Theme

Sign up for SG Wealth Builder articles

Enter your email and stay on top of things! Get the latest articles on hot stocks, career, property strategies and gold market!

Join 2,257 other subscribers

%d bloggers like this: