As expected, DKSH privatization offer was rejected by minor shareholders. The share price reverses as some short-term investors might have sold their shares.
DKSH has made a handsome net profit in FY2025, and generated a positive Free Cash Flow as well. Unfortunately, DKSH has decided NOT to pay dividends for FY2025, as they will use the cash to settle the short-term debt and to confront with the possible business uncertainty due to Iran war.
Well, I am quite disappointed with the decision made by the Board. After all, a value investor like me depends on dividends to live right? Therefore, I have sold some of my shareholdings in this company and shift the monies to other companies that pay higher dividends.
Hopefully the Management would make good use of the cash preserved and grow the business further.
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