Hafary Holdings

[specuvestor]

from 30 to 12 to 0.6 probably already unraveled

But still peculiar cause this type of relationship usually the supplier / vested stakeholder is a <10% minority. Don't think anyone could expect this outcome

[weijian]

from 30 to 12 to 0.6 probably already unraveled

But still peculiar cause this type of relationship usually the supplier / vested stakeholder is a <10% minority. Don't think anyone could expect this outcome

Hi specuvestor,

When I said "relationship unravelling itself", it referred to the intangible sort rather than actual business dealings.

HCSB will get a ~170% capital return on their investment (not counting some of the generous dividends paid out in the last few years). Despite having a controlling stake, HCSB only put in a couple of non-executive personnel on Hafary's BOD and left the founder alone to do his work (abeit at a high salary).

Hafary was HCSB's only significant non-Msian presence. So now that they got a "good return" on their no-frills investment, can't rule out more collabs in future. The main role of rich people is to bet their wealth on people who can make them richer.

[specuvestor]

yes they could be collaborating on other fronts, especially with good experience, which is unknown but what is known is as supplier and major shareholder of Hafary, their interest there ended including Hafary BoD. In any case nothing that OPMI should be concern about since Hafary is delisting.

[weijian]

yes they could be collaborating on other fronts, especially with good experience, which is unknown but what is known is as supplier and major shareholder of Hafary, their interest there ended including Hafary BoD. In any case nothing that OPMI should be concern about since Hafary is delisting.

hi specuvestor,

The Low family hasn't completed the delisting of Hafary though. As usual, I would probably do a bit more work to see whether there are any merger arb opportunities (which I haven't rule out yet).

Nonetheless, when something uncommon (or doesn't make sense) comes up, I see it as my job to try to improve my mental model a bit to cater to this "new fact".