ion's valuation - the minority hope to have?A group of 10 shareholders of CK Tang signed, sealed and delivered a petition to the Singapore Exchange and the Ministry of Finance to protect the interest of the minority shareholders against 89%-majority Tang family's plans to take the company private.
Their main grievance - They are claiming that the flagship 5-storey store (I think, including the basement), which is part of a huge hotel that C K Tang (the listed company) does not own, has been undervalued because the company has not taken redevelopment potential into account.
There are many ways to value an asset. Thus I would be very interested to know how was the valuation done.
How to satisfy the minority shareholders? Based on what I read in the papers today, there are two options.
* Justify your current offer of 83 cents with a vigorously and comprehensively analysed valuation report done by completely independent and competent property professionals, free from any undue influence or opinion from C K Tang's management OR;
* make an offer that at least matches CK Tang's net tangible assets of 93 cents per share as per financial statements dated March 31, 2009 - 10 cents higher than the current offer price of 83 cents.
Will the minority get their report or their money?
P/S - I got no C K Tang shares.
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