KOmani
8 años hace
Joke Offer. PROOF below.
On February 8, 2017:
"As of 5:00 p.m. Eastern time on February 8, 2017, 1,036,239 common shares have been tendered and not withdrawn."
Final Results from February 24, 2017:
"SunLink accepted for purchase a total of 280,558 common shares at a purchase price of $1.50 per share, for an aggregate purchase price of $420,837."
What a joke that offer was and the amount of shares tendered confirms this.
KOmani
8 años hace
Well, I understand that management would like to make something on the whole process.
It's just that they look to make $10+ Million that makes it sickening.
If they offered $2 or $2.25, I would have considered it fair.
Yeah, it would have given them a good pay day after it was all said and done, but what they did was try and steal the company.
There is very little risk in waiting to see what further asset sales bring when management only offers $1.50 per share.
The company has proven that they have depreciated (or written down) assets below market value on their balance sheet.
Maybe this isn't a sexy play that will jump 1,000% in a short time but it seems pretty likely that we will see over $2 shortly.
Always good to have a few things going at the same time.
malp2009
8 años hace
KOmani, the tender offer has been extended to 2/24/2017
So as of today, no shares have been officially tendered and closed out. The share count as of today is still 9,444,000
One has until 2/24/2017 to withdraw any shares tendered.
It is my feeling that a lot of the shares put up for tendering will be withdrawn.
I think that by Friday the shares tendered well be less than 1M
Why tender shares at 1.50 and they are trading at 1.69 and are worth north of 2.72
Management is trying to pull a fast one.
Like you said, the offer is a JOKE!
malp2009
8 años hace
Someone should explain the meaning of fiduciary to management and the board.
Today, 2/21/2017, SunLink closed at $1.69, 19 cents above the tender offer. On 2/14/2017 they issued their 10Q for the period ending 12/31/2016. The book value of the company as of 12/31/2016 is $2.72 per share, $1.22 above the tender offer. And we all know that with the possible future sale of the pharmacy business of about $10M to $12M, and all of the other buildings and property that the company owns since 2001, along with the licenses, the FMV of the company is far north of the $2.72 per share.
Note that this unfair unreasonable tender offer of $1.50 made by the Management Team and the Board of SunLink Healthcare Systems Inc has made this tendering very difficult for the non-affiliated shareholders. Meaning that, this gun to the head offer, take this offer or the affiliated shareholders are going private, underground, going dark, with non-tradable shares, is just plain wrong.
KOmani
8 años hace
Also note:
1,036,239 shares were tendered at $1.50
So, yes, shareholders equity declined $1,554,358.50
But shares outstanding declined 1,036,239
In other words, the adjusted shareholders equity is 24,109,641.50
(estimate)
While number of shares outstanding is now: 8,407,169
This give a book value of about $2.87
Management was greedy with it's $1.50 offer and now I will be even greedier in terms of what I want to tender my shares.
$2.25-$2.50 is more appropriate at this time and that may still leave quite a bit on the table.
I am ok to leave management with something, but offering $1.50 was an insult I couldn't support.
KOmani
8 años hace
The Annual Report was released on Friday.
On the report they have listed the August sold assets at $7.633 Million.
At this point, it's time to update the math in the intro ... as of June 30
Total Shareholders’ Equity was $19,489,000 (Compared with $20,759,000)
As there has been no dilution, the number of shares outstanding is 9,443,408.
Quick math suggested that the book value was $2.06 (Compared with previous $2.19)
The effect of the news is to increase the Shareholder's equity by approximately $7,000,000 (unchanged at this point.)
As such, the adjusted shareholders' equity is $26,489,000 (Compared with $27,759,000)
Again, no dilution, so the number of shares outstanding is still 9,443,408.
This suggests an Adjusted Book Value of $2.80/share (previously $2.94/share).
KOmani
8 años hace
I am still holding my shares, however, when I tried to contact the company, it didn't go anywhere.
Annual report is expected this month, but I am not sure that management and shareholders are on the same page.
As management, do you want to give, say, a $0.50 Dividend to everyone or do you want to give yourself a raise and keep the money for next year's pay and obvious raise?
Sadly, my enthusiasm for the management isn't the greatest.
Still hoping for shareholders to get some nugget, but not sure it's going to happen.