The next buyout after OSIM...

cc2mss5

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1. Easy to privatise
Net cash more than 20% of market cap, 
Public float of under 20%, 
Trading within 10% of 52-week low and/or 
ROE more than 10%, 
Market capitalisation > S$100m 

2. Cheap, battered, and possibly profitable
Trading within 10% of 52-week low, 
PE under 10 or PB under 0.7, 
Public float of under 30% or 
ROE more than 10% 

3. Depressed and weary
Listed for at least 15 years, 
Trading within 10% of 52-week low, 
PE under 10 or PB under 0.7, 
Market capitalisation > S$100m 

Great list
 

lbs

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nice job
I thought UOBKH will be one of them
1. Easy to privatise
Net cash more than 20% of market cap, 
Public float of under 20%, 
Trading within 10% of 52-week low and/or 
ROE more than 10%, 
Market capitalisation > S$100m 
Great Eastern
Fraser and Neave
NSL Ltd
Challenger Tech
ABR Holdings
Design Studio Group


2. Cheap, battered, and possibly profitable
Trading within 10% of 52-week low, 
PE under 10 or PB under 0.7, 
Public float of under 30% or 
ROE more than 10% 
Genting Hong Kong
Guocoland
Soilbuild Construction
Design Studio Group
Hafary Holdings
Nobel Design
Cheung Woh Technologies


3. Depressed and weary
Listed for at least 15 years, 
Trading within 10% of 52-week low, 
PE under 10 or PB under 0.7, 
Market capitalisation > S$100m 
Genting Hong Kong
Lee Metal Group
Ezion Holdings
GP Batteries
Chip Eng Seng
Yongnam Holdings
Hong Leong Asia
Samudera Shipping
Baker Technology
 

Dix

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Offshore marine group could be first in sector to be delisted as privatisation wave rolls in

PUBLISHEDJUN 4, 2016, 5:00 AM SGT

Jacqueline Woo

Offshore marine group Otto Marine could be the first firm from the hard-pressed sector to be delisted amid a privatisation wave hitting the local bourse.

The mainboard-listed company called for a trading halt on Thursday morning before announcing that a potential buyer is looking to acquire shares in the group.

The stock, which last traded at 23 cents, spiked 17 per cent over the past week but is still down 19.3 per cent this year.

Otto Marine told the Singapore Exchange that it has received a letter from RHB Securities Singapore, the financial adviser to the potential buyer, which said it intends to submit a formal proposal to the group's board "as soon as possible".

The group also urged shareholders to exercise caution when dealing with its shares, adding that there is "no certainty or assurance that such an offer will materialise".

CIMB Research analyst Lim Siew Khee told The Straits Times that Otto Marine - an "unloved candidate" - may not be the most attractive asset on the market, but it is trading at a heavy discount to its book value at 0.17 times.

The group, which is 61.2 per cent-owned by Malaysian tycoon Yaw Chee Siew, has been reporting annual losses since 2011, "hit by execution issues, weak vessel orders and charter rates, and high leverage", Ms Lim noted in a report yesterday.

The report also named companies such as Baker Technology, CSE Global, Mermaid Maritime Public Co, Dyna-Mac Holdings and Pacc Offshore Services Holdings as "potential delisting candidates".

It noted that these companies are trading at a low point, and have relatively decent balance sheets or a controlling shareholder with the financial muscle and desire to control the entire entities.

Other possible candidates include ASL Marine Holdings, KrisEnergy, KS Energy, Marco Polo Marine and Pacific Radiance, which fulfil certain criteria such as having a highly-valued business that is likely to rebound if oil prices recover sharply.

Privatisations have become more common in the wider market recently, with Osim International and Eu Yan Sang International among those that have received offers to be delisted. But now the spotlight is turning to the offshore marine area.

Ms Lim believes it is only a matter of time before more privatisation deals in the sector are made.

"Buyers are probably waiting for good prices for quality assets - those that will likely see a turnaround after this down-cycle."

In the same vein, OCBC Investment Research analyst Low Pei Han said: "Indeed, talk about mergers and acquisitions and privatisation deals in the Singapore market, especially in the beaten-down offshore marine sector, has been growing in recent months."

This has been helped by the rebound in crude prices - up 85 per cent from their mid-February lows of US$27 a barrel - as the oil market continues its rebalancing in terms of demand and supply, she noted.

"We will not be surprised if there are more deals announced in the later part of this year, as price expectations between buyers and sellers narrow even further."

Potential targets for privatisation
ASL Marine
Baker Technology
CSE Holdings
Dyna-Mac
Holdings
KrisEnergy
KS Energy
Marco Polo Marine
Mermaid Maritime
Public Company
Pacc Offshore*
Services Holdings
Pacic Radiance
Vard Holdings

Source: CIMB Research STRAITS TIMES
 

Sinkie

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Usually will be higher than last done price

even offer can also pull out later within 1-2 weeks

just take a look at chinakunda and asiatravel..
 

Dix

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Otto Marine announces delisting deal

SINGAPORE - Offshore marine group Otto Marine has received a formal acquisition offer for its shares and is likely to become the first firm from the hard-pressed sector to be delisted.

In an exchange filing on Wednesday, the company said it has received an exit offer of 32 cents per share from RHB Securities, the potential buyer's financial adviser.

This is a premium of 39.13 per cent over the share price of 23 cents on June 1, the last full day of trading in the shares before the company called for a trading halt.

The potential buyer, a firm called Ocean International Capital Limited, does not intend to revise the exit offer price, said Otto Marine in its exchange filing.

The delisting is subject to holders of Otto Marine Services' multicurrency term notes agreeing to certain terms.

Otto Marine said in its exchange filing that the delisting will give shareholders the opportunity to realise their investment in the shares at a premium.

The delisting would also give the management greater flexibility to develop existing businesses while exploring opportunities without the attendant costs, regulatory restrictions and compliance issues associated with being listed.

An extraordinary general meeting (EGM) will be convened for shareholders and the company will despatch a notice about this in due course.

If the delisting resolution is approved by shareholders at the EGM, the exit offer will be open for acceptance by shareholders for a period of at least 14 days after the date of the announcement of shareholder's approval.

Otto Marine, which is 61.2 per cent-owned by Malaysian tycoon Yaw Chee Siew, has been reporting annual losses since 2011.
 

Dix

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The Edge Magazine (20 June 2016) listed these companies as potential delisting:
1. Bukit Sembawang Estates
2. CapitaLand
3. City Developments
4. Frasers Centrepoint
5. Global Logistic Properties
6. Guocoland
7. GL
8. Ho Bee
9. Hotel Properties
10. Metro
11. OUE
12. Perennial Real Estate
13. United Engineers
14. UIC
15. UOL
16. Wheelock Properties
17. Wing Tai
18. Yanlord Land
19. Ying Li
 

Perisher

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The Edge Magazine (20 June 2016) listed these companies as potential delisting:
1. Bukit Sembawang Estates
2. CapitaLand
3. City Developments
4. Frasers Centrepoint
5. Global Logistic Properties
6. Guocoland
7. GL
8. Ho Bee
9. Hotel Properties
10. Metro
11. OUE
12. Perennial Real Estate
13. United Engineers
14. UIC
15. UOL
16. Wheelock Properties
17. Wing Tai
18. Yanlord Land
19. Ying Li

Some of those has been on this type of list for a long time already...
 

Dix

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SINGAPORE: Temasek Holdings is mulling a buyout offer for transport operator SMRT, according to a Bloomberg report on Monday (Jul 18).

The state investment firm is said to be weighing an offer to buy all the shares it does not already own, according to the report, which cited an unnamed source with knowledge of the matter. According to SMRT's website, Temasek is the biggest shareholder with 54.2 per cent as at Feb 11, 2015.

In a SGX filing on Monday, SMRT announced a continuation of the trading halt "pending a possible announcement".

The transport operator requested a trading halt on Jul 15, ahead of the announcement that its operating assets will come under the new rail financing framework from Oct 1. Under the new arrangement, the Land Transport Authority (LTA) pay nearly S$1 billion for more than 60,000 SMRT assets.

When contacted, Temasek said it "does not comment on market speculation and rumours", while SMRT vice president for Corporate Information and Communications Patrick Nathan also said it "does not comment on market speculation and rumours".
 

Wood41

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Such a long list & nobody thought SMRT is staring at everyone. :s8:
 

Dix

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SINGAPORE: Public transport operator SMRT looks set to be privatised after Temasek Holdings announced a S$1.18 billion buyout offer at S$1.68 a share Wednesday (Jul 20).

The offer from the Singapore state investment firm values SMRT at approximately S$2.565 billion, Temasek and SMRT said in a media statement. Once the acquisition is completed, SMRT will become a wholly-owned subsidiary of Temasek and will be delisted from the Singapore Exchange.


In their statement, Temasek and SMRT said that privatisation will provide SMRT with "greater flexibility to focus on its primary role of delivering safe and high quality rail service, without short term pressures of being a listed company, in the midst of its transition to a new regulatory framework under the new rail financing framework".

The statement added that SMRT is "expected to face challenges, even under the new framework, with costs and uncertainties associated with an ageing and expanded network".

SMRT will also need to "focus on delivering on existing and new multi-year programmes to support an ageing and expanded network", the statement added, including "the need to deliver a higher order of rail reliability and service in line with the heightened maintenance performance standards to be determined by the Land Transport Authority (LTA)".

Noting that further investments are necessary for SMRT to fulfil its role as a public transport operator, company chairman Koh Yong Guan said: “Taking the company private will allow SMRT to better fulfil its role as a public transport operator without the pressure of short-term market expectations. It will also allow SMRT to be better supported as it retools and reinforces its core skillsets in engineering and maintenance.”

Mr Chia Song Hwee, president of Temasek International, added that it is proposing to move SMRT to private ownership so that it can "more closely collaborate with (SMRT) on system-level transformation, including its transition to the new regulatory environment without the distraction of being a listed company".

"We will have greater flexibility to work with SMRT as a private entity to seek sustainable long-term solutions as part of its transition."

In their statement, SMRT and Temasek added that the privatisation of the public transport operator would also allow minority shareholders to monetise their holdings through the scheme and avoid the uncertainties of the transition, as well as remove all costs and distractions associated with the company’s listing requirements, including quarterly reporting.
 

Dix

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Sim Lian founder leads offer to take developer private


By

Nisha Ramchandaninishar@sph.com.sg@Nisha_BT

Aug 9, 20165:50 AM

Singapore

A CONSORTIUM led by the founder of Sim Lian Group (SLG) is seeking to take the property developer private.

In a release to the Singapore Exchange (SGX) on Monday night, Coronation 3G said it is making a voluntary conditional cash offer of S$1.08 per share for all the outstanding shares in SLG that it doesn't already own or has agreed to acquire.

It has secured irrevocable undertakings representing 80.36 per cent of the total number of issued shares in SLG from Sim Lian Holdings and a number of individuals from the Kuik family.

The offer price, which is final, represents a premium of 14.9 per cent over the last traded price of S$0.94 per share on Aug 4.

Coronation 3G is a Singapore-incorporated investment holding company owned by the Kuik family and led by Kuik Ah Han, founder and executive chairman of SLG.

"Coronation 3G believes that the offer presents SLG shareholders with a compelling cash exit opportunity given the illiquidity of its shares," it said, pointing out that the shares have not traded at or above the offer price since its listing in 2000.

It also said that the trading volume of the shares has been generally low, and that SLG has not raised any equity capital through SGX since 2007 and is unlikely to do so in the forseeable future. The offer is conditional on it receiving acceptances or acquiring shares representing a stake of not less than 90 per cent.

Coronation 3G also intends for SLG to continue with its existing activities and has no plans to introduce any major changes to the business, re-deploy fixed assets or discontinue the employment of any of the employees.
 

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HOT STOCK
Sim Lian shoots up on privatisation offer
By
Lee Meixianleemx@sph.com.sg@LeeMeixianBT
COMMENTSSHARE
Big jump
AUG 11, 20165:50 AM
Singapore

SHARES of construction and property development firm Sim Lian Group jumped 13.3 per cent or 12.5 cents on Wednesday to close at S$1.065 after it resumed trading.

This followed Monday's announcement of a privatisation offer from a consortium led by the company's founder. The stock price has not been at this level for a year.

It was also close to the price of S$1.08 per share that the offer vehicle Coronation 3G is offering in the voluntary conditional cash offer for all the outstanding shares in Sim Lian that it doesn't already own.

By the end of the day's trading, more than four million Sim Lian shares worth S$4.3 million had changed hands.

In the offer announcement, the offeror said: "The shares have not transacted at or above the offer price since the company's listing in 2000. The offer provides an opportunity for shareholders who wish to realise their investment in the shares to do so in cash, at a compelling premium over the prevailing market prices and without incurring brokerage fees."

The offeror has secured irrevocable undertakings representing 80.36 per cent of the total number of issued shares in Sim Lian from Sim Lian Holdings and a number of individuals from the Kuik family.

The offer price, which is final, represents a premium of 14.9 per cent over the last traded price of S$0.94 per share on Aug 4, 2016. But it is below the net asset value per share of S$1.14 at the end of its fiscal third quarter ended March 31, 2016.

For Q3, the firm reported an 82 per cent drop in net profit to S$16.4 million, while revenue plummeted 74 per cent to S$163.3 million.

Sources told The Business Times that while Sim Lian does not currently face a significant amount in qualifying certificate extension charges, the group would like to be able to acquire private land for development in future without worrying about sticking to a stringent timeline.
 

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Why a delisting makes sense for Sim Lian


By

Lynette Khoolynkhoo@sph.com.sg@LynetteKhooBT

Aug 23, 20165:50 AM

THE proposed delisting of Sim Lian Group by its founders may serve as yet another reminder of the meandering state of the Singapore bourse, which has seen or is seeing the exit of household names such as healthy-lifestyle products group OSIM International and traditional Chinese medicine (TCM) group Eu Yan Sang.

What is poignant in the case of the long-listed property construction and development group is that it is seen as largely driven by a persistent undervaluation and poor trading liquidity of its stock, unlike its industry peers Popular Holdings and SC Global which had been taken private to avert paying hefty penalties on residential properties. None of Sim Lian's residential projects are subject to qualifying certificate (QC) conditions, which require extension charges to be paid for unsold residential units two years after the project's completion.

But one would argue that the merits of staying listed for companies such as Sim Lian have paled vis-a-vis the costs of listing, which could be anything between half a million and a million Singapore dollars annually.

Languid trading valuations have also made privatisation exercises less costly. As a ballpark estimate, it would only take the founders of Sim Lian around S$213 million to privatise the company based on the offer price of S$1.08 per share and the 19.64 per cent interest that is not already owned by the offeror and concerted parties.

Since news of its proposed privatisation broke, Sim Lian's thinly traded shares were finally revived and surged from S$0.94, an 18 per cent discount to net asset value, to a record high of S$1.07 on Aug 11 and have been hovering around S$1.065 since. Not that Sim Lian needs to make any cash call but, until this price surge, the undervaluation that has plagued the stock has made it unconducive for any equity fund-raising.

Announced privatisations to-date would see some S$8 billion in market capitalisation vanish from the Singapore bourse, outpacing the combined market cap of S$6.3 billion from new listings so far this year.

Sim Lian started out as a construction contractor in the 1980s before getting listed in 2000 and branching out into property development in 2001. Another critical milestone came in 2013 when the group accelerated its overseas venture, acquiring income-yielding property investments in Australia in particular.

But it has not carried out any exercise to raise equity capital on the Singapore Exchange since 2007. The group is also unlikely to require access to the equity capital markets to finance its operations in the foreseeable future.

Even without tapping equity for growth, Sim Lian's net profit saw a compounded annual growth rate of 32 per cent over the past 10 years while total assets grew a compounded 13 per cent to S$1.65 billion in fiscal 2015.

The need for equity raising is further diminished now that it has a recurring income stream from newly acquired retail properties in Australia as part of its diversification strategy.

Overseas properties now form the bulk of its investment portfolio, mainly two freehold office properties and nine shopping malls anchored by major supermarket tenants in Australia. In Singapore, it is keeping Hillion Mall, the retail component of its integrated project in Bukit Panjang that is currently 85 per cent leased, and some 200,000 sq ft of strata office space at Vision Exchange for rental.

Sim Lian group executive director Kuik Sing Beng had told BT in an interview this year that it was eyeing more overseas assets with the long-term view of generating half of its earnings from investment properties, up from 5 per cent in fiscal 2015. Any near-term expansion is likely backed by some S$380 million of cash as at March 31 and strong support from banks.

Less susceptible

Its earnings are also expected to become less susceptible to swings as the group aims to bring down lumpy contributions from property development and building construction to about 40 per cent (from 71 per cent in FY2015) and 10 per cent (from 25 per cent in FY2015) respectively over time.

Only two residential developments this year, Wandervale and Treasure Crest executive condominium (EC) projects, may face a potential clawback on additional buyer's stamp duty (ABSD) remission on land cost if they do not finish selling out by September 2019 and February 2020 respectively, five years after the date of award of the sites.

But this risk looks remote now that these projects are over 80 per cent sold since their launch this year; their conversion rates of buyers' interest from e-applications to sales were laudably higher than industry's average. Profits from these sales will be recognised only upon construction completion under EC rules. If it is successfully privatised, Sim Lian will no longer have to share the gains from these sales with minority shareholders when these projects are completed. Neither does it have to worry about sticking to a stringent timeline under the QC conditions should it decide to acquire private land for development in the future.

While there are bound to be some drawbacks in going private, these factors do not seem to figure in Sim Lian's case.

For one, it does not have to worry about having to offer a higher premium for bonds as a private company, since it has not issued any before and does not intend to.

Being a private company is also unlikely to stand in the way of securing large construction contracts, given Sim Lian's 35 years of track record in public-sector projects and its Class 1 general builder licence that allows it to take on projects with no tender limits.

As it stands, Sim Lian's exit from the bourse looks imminent even before approval from minority shareholders is obtained. It has no substantial shareholders other than the Kuik family members and related parties who collectively hold 80.36 per cent of the outstanding shares.

Sixteen years on since its IPO, the group has clearly morphed into a more resilient and diversified group. It's a pity that minority shareholders will soon have no share in its future upside.

All things considered, there is little impetus left for Sim Lian to stay listed. Sadly, this may ring true for some other property counters too.
 

Unique99

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08 September 2016

Tycoon Salim's entity eyes China Minzhong
A worker inspectingmushroom cultivation at China Minzhong Food. The firm will be delisted if the buyout offer goes through.
A worker inspectingmushroom cultivation at China Minzhong Food. The firm will be delisted if the buyout offer goes through.

Firm's largest shareholder Indofood could use proceeds from the sale to repay some of its foreign currency debt
JAKARTA • A company controlled by billionaire Anthoni Salim offered to acquire the rest of China Minzhong Food in a deal valuing the Chinese company at S$786 million, helping the Indonesian tycoon exercise greater control over a food empire spanning potato chips, instant noodles and cooking oil.

Marvellous Glory Holdings offered S$1.20 in cash for each share in China Minzhong, according to a filing yesterday in Singapore, where China Minzhong is listed. That's 25 per cent more than the stock's last closing price.

Investors can choose an alternative in the form of cash and exchangeable bonds under terms in the offer. Shares of the Chinese vegetable-processing company jumped 18 per cent to close at S$1.135.
 

Android user

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08 September 2016

Tycoon Salim's entity eyes China Minzhong
A worker inspectingmushroom cultivation at China Minzhong Food. The firm will be delisted if the buyout offer goes through.
A worker inspectingmushroom cultivation at China Minzhong Food. The firm will be delisted if the buyout offer goes through.

Firm's largest shareholder Indofood could use proceeds from the sale to repay some of its foreign currency debt
JAKARTA • A company controlled by billionaire Anthoni Salim offered to acquire the rest of China Minzhong Food in a deal valuing the Chinese company at S$786 million, helping the Indonesian tycoon exercise greater control over a food empire spanning potato chips, instant noodles and cooking oil.

Marvellous Glory Holdings offered S$1.20 in cash for each share in China Minzhong, according to a filing yesterday in Singapore, where China Minzhong is listed. That's 25 per cent more than the stock's last closing price.

Investors can choose an alternative in the form of cash and exchangeable bonds under terms in the offer. Shares of the Chinese vegetable-processing company jumped 18 per cent to close at S$1.135.
This 1 is unusual. Normally when a float is lower than 15%, a buy in at near the buy out price should occur. Why this 1 only raise to 1.14 and not 1.18 or higher.

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