This morning, at 8.30am, I dropped a pink envelope into the Singpost letterbox. Contained in the pink envelope was the acceptance letter to sell off my Adampak stake to Navis Capital. Navis made an offer to buy over Adampak at $0.42/share.
My initial plan was to wait out till around 24th May to accept the offer. However, I accepted the offer much earlier as Navis had acquired 88.76% of Adampak as of yesterday and it was no point holding out any longer. This evening, after posting my letter, news was released that Navis had acquired 91.74% of Adampak and has exercised the right to completely acquire Adampak. It was a “right” timing to post my letter, so to speak.
Now, I have to look for other companies to invest my funds in…
Just hot off the press – Adampak has been offered to be bought over by Navis Capital at $0.42/share (Offer Price). Current market price is at $0.345. This is a premium of 21.7%. For more information, check out the SGX announcement.
Adampak has been halted from trading since 30th March 2012, pending this announcement. Trading is still halted at the time of writing. At the price of $0.42/share, the P/E ratio works out to be 17.4. This will be the highest ratio ever since FY 2005. The ratio is high due to the decrease in earnings for FY2011, mainly due to the Thailand flooding.
For most shareholders, I guess it will be a bittersweet moment as they will be unwilling to let a gem go but at the same time, cash in due to the uncertainties surrounding the HDD market.