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.
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.
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SG Wealth Builder