Stratech shares transferring to NewCo

Hi,

Anyone still holding on to Stratech Shares?
When the shares are transferred to NewCo (which is an investment holding), Stratech shares will cease to be listed.
My question is this....will the NewCo owns the IPs of Stratech? If not, what does the existing shareholders stands to benefits with the transfer of shares? What would think when some big players buy over Stratech's IP?

simplytrade:

I am not sure why you worry about any sale of IP by the subsidiaries. The IPs have a lot of value, but surely any sale must be at a fair market price. Ultimately, major and minor shareholders will benefit.

The controlling shareholders are Dr Chew and his wife – total about 34% in the company. They will own shares in Newco, so they are in the same boat as the minority shareholders.


As for the restructuring, the rationale as provided by Stratech is worth thinking through. I am afraid some parts are a blur to me. Anyone can shed light?


“ The Company is of the view that the Proposed Restructuring will be able to:
( i) streamline the existing group structure and operations to provide leverage for the Stratech Group to expand its business globally across the numerous products and capabilities;

( ii) achieve ease and flexibility for the Stratech Group to acquire new businesses, as well as expand and/or divest existing business segments as and when opportunities arise; and

( iii) as a natural consequence of the Proposed Restructuring, by having NewCo (which is an investment holding company with no business operations) as the listed entity on the SGX-ST, ring-fence the listed entity from the NewCo Group’s operating entities and direct operating risks (including any possible claims and litigation arising in connection with the NewCo Group’s operations and business).

New market darling? UP 50%. now 3.1 cents. Was 2 cents prior to restructuring. IIRC

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in my humble opinion, the restructuring will facilitate and pave the way for the Company to explore RTO. Why? and
How is it done?

The Company has been trying to stay profitable for many years. In fact it has never really create value and with the meagre contract sum and niche industry,the owner is better off to get the company delisted.

To extract maximum value, the existing owner will likely go for a significant transaction i.e. a very significant acquisition which will result in RTO.

The existing owner would also do a side deal with the vendor or new owner of enlarge entity to sell the existing business (which has been restructured under a separate subsidiary back to the existing owner). The transaction or disposal is usually done post RTO and by then the existing business is already so insignificant as compared to the new business, it will normally be disposed off with a one liner announcement. Many shareholders may not even know about it.