Award-winning Financial Journalist

Ashish Saxena

Ron Sim’s bid to take Osim International Ltd private has been making headlines ever since it was announced on March 7.Yet, several pertinent aspects of the offer have still not been reported on.<ul><li>Mr Sim might revise the offer price higher as he hasn’t ruled out such a possibility in the offer announcement.</li><li>Convertible bondholders might have a strong case to skip Mr Sim’s loss-making offer to them.</li><li>It is not clear if Osim International’s financials would look as robust after delisting if the bondholders enforce their right to seek redemption.</li><li>There are contradictions about Mr Sim’s stake in various disclosures, including the offer announcement and the accompanying press release.</li><li>It seems Mr Sim’s family is likely to participate in the offer even though he has personally undertaken to not receive any consideration for his stake.</li><li>The timing of the query from SGX, request for a trading halt and the subsequent offer announcement arouses curiosity about what triggered what.</li></ul>But before we delve deeper into each of those insights, here is a quick review of the offer:Ron Sim Chye Hock, its controlling shareholder, Chairman and CEO, has made an offer to take Osim International private at S$1.32 per share.He is making the offer through an indirectly wholly-owned subsidiary Vision Three Pte Ltd (the offeror).Though the offer is voluntary and unconditional, Mr Sim has clearly mentioned the intention is to “delist and privatise the company”.Mr Sim already owns 69.25% stake as per the offer <a href="http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&amp;B=AnnouncementLast12Months&amp;F=T8EEEGMQVY9KYUHB&amp;H=8e0a534e9b286907a9d1aaba2a71bdf260c6a889258a1aff9c7f9a29b0a33e37" target="_blank">announcement</a> on March 7.After adjusting for the dividend of S$0.02 per share that was announced in the recent FY15 earnings report, the net cash offer stands at S$1.30 per share.But is it the best that he can offer? Let’s find out.

Ron Sim’s bid to take Osim International Ltd private has been making headlines ever since it was announced on March 7.Yet, several pertinent aspects of the offer have still not been reported on.Mr Sim might revise the offer price higher as he hasn’t ruled out such a possibility in the offer announcement.Convertible bondholders might have a strong case to skip Mr Sim’s loss-making offer to them.It is not clear if Osim International’s financials would look as robust after delisting if the bondholders enforce their right to seek redemption.There are contradictions about Mr Sim’s stake in various disclosures, including the offer announcement and the accompanying press release.It seems Mr Sim’s family is likely to participate in the offer even though he has personally undertaken to not receive any consideration for his stake.The timing of the query from SGX, request for a trading halt and the subsequent offer announcement arouses curiosity about what triggered what.But before we delve deeper into each of those insights, here is a quick review of the offer:Ron Sim Chye Hock, its controlling shareholder, Chairman and CEO, has made an offer to take Osim International private at S$1.32 per share.He is making the offer through an indirectly wholly-owned subsidiary Vision Three Pte Ltd (the offeror).Though the offer is voluntary and unconditional, Mr Sim has clearly mentioned the intention is to “delist and privatise the company”.Mr Sim already owns 69.25% stake as per the offer announcement on March 7.After adjusting for the dividend of S$0.02 per share that was announced in the recent FY15 earnings report, the net cash offer stands at S$1.30 per share.But is it the best that he can offer? Let’s find out.

Are Convertible Bondholders Better off Skipping Mr Sim's Loss-Making Offer?

Freelance Research Analyst

Tay Hock Meng

Thematic (Sector/Industry)

Developers managed to sell 384 new units, excluding executive condominiums (ECs) in December 2015, compared to 759 units in November 2015, and 230 units in December 2014. Including ECs, developers sold a total of 508 new units in December 2015, compared to 945 new units in November 2015, and 406 new units in December 2014. The December 2015 results brings the total number of new private residential units sold by developers to around 7,460 to 7,490 in 2015, about 2% higher than 2014 (Comprehensive property sales results for 4Q and whole of 2015  is scheduled to be released by the government on January 22, 2016).

Developers managed to sell 384 new units, excluding executive condominiums (ECs) in December 2015, compared to 759 units in November 2015, and 230 units in December 2014. Including ECs, developers sold a total of 508 new units in December 2015, compared to 945 new units in November 2015, and 406 new units in December 2014. The December 2015 results brings the total number of new private residential units sold by developers to around 7,460 to 7,490 in 2015, about 2% higher than 2014 (Comprehensive property sales results for 4Q and whole of 2015  is scheduled to be released by the government on January 22, 2016). 

Singapore

OSIM International Ltd creates, designs, develops & markets well-being and healthy lifestyle products through its specialty retail outlets worldwide. The Company's products include massage chairs, foot massagers, neck & shoulder massagers, head massagers, fitness equipment, diagnostic equipment, vitamin & supplements and luxury tea.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Osim International (OSIM SP)

Are Convertible Bondholders Better off Skipping Mr Sim's Loss-Making Offer?

Ron Sim’s bid to take Osim International Ltd private has been making headlines ever since it was announced on March 7.Yet, several pertinent...

Ashish Saxena

Modest Rise in New Home Sales in 2015

Developers managed to sell 384 new units, excluding executive condominiums (ECs) in December 2015, compared to 759 units in November 2015, and 230...

Tay Hock Meng

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)