SHAREHOLDERS'   RiGHTS

Now the case of SembMarine. The world’s second-largest offshore rig builder got into a deal where, while having a 85-percent stake in PPL Shipyard, it unwisely left management control to the 15-per-cent stakeholder, PPL Holdings, which in turn is owned by Baker Technology, a company controlled by Dr Benety Chang, who is also the deputy chairman of PPL Shipyard.

Now, SembMarine is vigorously opposing Baker’s plans to sell its 15-per-cent stake in PPL Shipyard to China-based but Singapore-listed Yangzijiang Shipbuilding on the grounds that it has rights of first refusal.

Why? Because SembMarine is afraid with the Chinese in control, it would lose valuable rights to PPL Shipyard’s rig designs.

PPL is one of the world’s largest builders of offshore oil rigs and is a substantial contributor to SembMarine’s revenue and bottomline.

Yangzijiang is a major shipbuilder in China and desperately wants to be a major player in the rigs business which is expected to pick up with oil prices at current levels.

But SembMarine is offering just $59.4 million compared with Yangzijiang’s offer of US$155 million, or some $215 million.

If I were a Baker shareholder it would obviously not be in my interest to even consider SembMarine’s bid — little wonder the Yangzijiang offer was unanimously accepted by Baker’s shareholders at its recent extraordinary general meeting.

Conrad Raj

conrad@mediacorp.com.sg

a strategy is only useful if an indvidual sticks to it religiously..

but when the emotions come into play...the strategy gets thrown out the door..

Isolator      ( Date: 16-Jun-2010 10:48) Posted: Good to share... I am just trying to say when a trading theory is known by so many of them, can it still be reliable to use?.... ozone2002      ( Date: 16-Jun-2010 10:42) Posted: but the difference is i care to share.. maybe i should keep quiet next time..

but the difference is i care to share..

maybe i should keep quiet next time..

Isolator      ( Date: 16-Jun-2010 09:19) Posted: If you can spot, others also can spot... then.... hmmm....

damn sianz abt the EU news!

yzj seems to be sleeping !!!!

somebody must be making money big time!

While China-based shipbuilder’s orderbook and execution track record remain unblemished with no contract cancellations yet, concerns over its exposure to Europe — which accounted for bulk of its revenue in the last two years — have surfaced. “A full-blown crisis in the eurozone will affect the broader economy and European ship owners will not be spared,” says OCBC Investment Research, which has “Hold” call with $1.60 target.