Tuesday 10 December 2013

F&N: Is minority interest at risk?

For those who own shares in F&N, it appears that there was a married trade of ~61mn shares or ~4.2% of total share base today.

It is assumed that this placement is done by K. Charoen for the free float requirement. But we will have to wait till the official SGX annoucement to confirm that, which is not out at time of writing.

The crucial question now is this, imo - what % of MI is currently in the hands of parties that may be friendly to K. Charoen?

This is a crucial question as the original MI, prior to the married trades, were able to control the outcome of any (potentially) damaging related party transactions. And in doing so, protect their interest.

With the introduction of more MI that are potentially friendly to K. Charoen, the rules of the game may have changed. For those who are not friends with K. Charoen, can you still protect your interest?

Food for thought.


P.S. Do not forget that allies of K. Charoen could potentially have taken out some of the original MI since the time trading halt was lifted post-takeover. The original MI can be assumed to be non-allies since they did not take up his original exit offer. Hence, the MI friendly to K. Charoen could potentially be more than the free float placement.

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