Dickson Concept (113 HK): 11th July Vote On Poon's Low-Balled Offer

• Back on the 29th April, Dickson Concepts Intl (113 HK)'s Chairman, Dickson Poon (& relatives), holding (now) 65.77%, tabled an Offer by way of a Scheme for shares not held.

• The family offered HK$7.20/share (best & final). That compared to DC's net cash (as at 31st Mar 2025) of HK$6.92/share. Plus financial assets comprise an additional ~HK$1.92/share.

• The Scheme Document's now out, with a Court Meeting on the 18th July, and expected payment around the 12th August. The IFA (Platinum) says "fair & reasonable". It is not.

Dickson Concepts is super illiquid - look away now if this is not your bag.

The Trade:

• This is a consistently profitable company being taken out below its net cash + financial assets.

• This is the wrong price.

• Still, some shareholders will be happy pocketing a 50% premium.

• You could envisage an activist - or activists - building a 3.4% stake, worth ~HK$90mn currently, and voting down the Scheme. Then negotiate to be taken out a superior price at a later juncture, as they would have the clout to perennially block a Scheme.

• If illiquid arbs are your bag, and you're quietly confident this gets up, buy here.

• Personally, I wouldn't touch it.

This insight is labelled bearish as I would not get involved. The outcome could go either way. But really - it should be voted down.