The Tang family has made its 3rd attempt to privatize CK Tang, offering 83 cents per share, valuing the company, that they already own 86.61% of, at $196.7 mln, which represents 21% discount to book NTA of $1.05 per share.

The Exit Offer is conditional upon the Delisting Resolution (a) being approved by at least 75% of the shares at the EGM to be convened, and (b) not voted against by 10% or more of the shares held by shareholders present at the meeting. The Tang family need not abstain from voting.

While there is no urgency to accept, minority shareholders of CK Tang should seriously consider accepting the Tang family’s latest offer of 83 cents. Reasons:
The retailer is again in the red (because of the opening of the store at Vivo City and in KL), after briefly returning to the black in fiscal years ended Mar ’05 and Mar ’06.

And it has reverted to not paying dividend, after the payment of 0.3 cent per share in Fiscal Year ended Mar ’06.

Minority shareholders should recall former CEO Tang Wee Sung’s clarification in 2006, that (a) the Marriot Hotel site, belonging to his family, accounted for 72% share value of Tang Plaza, and 22% by the Tang store; and (b) there were no plan to close down the store to realize shareholders value.

The 21% discount to NTA is not inconsistent with the discounts that property stocks in general are trading at presently.

(Tangs’ first offer was 45 cents in Nov 2003, and raised to 65/70 cents in 2006, depending on whether acceptances exceeded 90%. The Tang family’s stake was at the 70% level before the first privatization attempt.)