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CH Offshore is worth more than $0.70 per share. Buy-and-Hold.
The following write-up is from Bloomberg:
Falcon to acquire the entire Scomi stake in CHO (29.1%) at S$0.70
per share.
New shareholder in complementary business, may offer synergies.
Although there is no takeover offer, transaction price should
provide downside support to CHO, Maintain BUY.
Falcon to acquire Scomi’s stake for S$0.70 per share. CHO’s largest
shareholder, Scomi Marine, has announced that it has entered into a
conditional share purchase agreement with Falcon Energy to dispose its
entire 29.1% stake in CHO (205m shares) for a cash consideration of
S$143.5m or S$0.70 per CHO share. Upon completion of the transaction, CHO
will become an associate of Falcon Energy.
Who is Falcon Energy? Falcon Energy is a Singapore-listed oil and gas
service provider, with an operational track record of 30 years. It focuses
mainly on the production phase of oilfield activities, and owns and
operates a fleet of vessels comprising mainly of work/accommodation
vessels. It is helmed by Mr Tan Pong Tyea, Executive Chairman and CEO, who
has over 20 years of experience in the industry, supported by a team of
industry veterans.
A positive change for CHO? While it is not immediately clear to what extent
Falcon will be involved in CHO’s daily operations, we believe that
synergies such as enlarged business network, cross-selling of services, and
broadened scope of services could be extracted from association with its
new major shareholder, given the complementary businesses.
Deal underscores CHO’s attractive valuations, maintain BUY. We maintain our
BUY recommendation on CHO as we believe this deal underscores CHO’s
attractive valuations. Although the deal does not trigger a general offer,
we believe the transacted price and our estimated asset breakup value of
CHO’s AHTS fleet of S$0.67 should limited downside to its share price. Our
TP is unchanged at S$0.87.
Believe this is win-win deal for both Falcon and CH Offshore.
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 Alert Admin
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The following is from a local broking house:
Falcon
(NOT RATED) announced last Fri that it was buying Scomi's 29.07% stake
or 205m shares in CH Offshore (CHO, NOT RATED) for $143.5m or $0.70 per
share
The financial impact is positive for Falcon immediately:
a) acquisition is earnings accretive given CHO's 7x PE vs Falcon's 14x PE
b) CHO's fleet is estimated to worth a market value of above $0.80 per share
c) deal could boost Falcon's FY10 earnings to above US$55m or 7.4x FY10 PE
Strategy wise, it is also positive for Falcon:
a) addition of new customer base from CHO
b)
complementary asset class as Falcon focuses on production supporting
vessels while CHO brings in a younger, deepwater AHTS fleet. This enables Falcon to offer a wider spectrum of services to the O&G industry
c) moving up the margin scale with deepwater vessels commanding GPM of >60%
d) CHO brings in new geographical exposure in Latin American and Australia
Although
this deal is viewed as an investment in the short term, there are
longer term excitement arising from potential synergy and cross-selling
of product offerings if Falcon takes on a more active role in CHO
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SO, your final answer is BUY? HOLD? SELL?
kingster ( Date: 08-Feb-2010 10:01) Posted:
| yup i was right in the reason for the halt... now guys, up to u all to look at the benefits of the change in ownership :) |
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yup i was right in the reason for the halt... now guys, up to u all to look at the benefits of the change in ownership :)
PROPOSED DISPOSAL OF 205,000,000 ORDINARY SHARES IN CH OFFSHORE LTD(“CHO”) REPRESENTING 29.07% OF THE ENTIRE ISSUED ORDINARY SHARES OFCHO BY SCOMI MARINE SERVICES PTE LTD (“SMS”), A WHOLLY-OWNEDSUBSIDIARY OF SMB, TO FALCON ENERGY GROUP LIMITED (“PURCHASER”) FOR ATOTAL CASH CONSIDERATION OF SGD143,500,000 http://choffshore.listedcompany.com/newsroom/20100205_185811_C13_9333286BB7DAE8B1482576C1001B59DD.2.pdf
Scomi Marine selling CH Offshore stake
SCOMI Marine Services Pte Ltd is planning to sell its entire 29.07 per cent stake in CH Offshore Ltd to Falcon Energy Group Limited for $143.50 million. Scomi Marine Services is a subsidiary of Scomi Marine Bhd. The sale price translates into 70 cents per CH share.
I think the above news is positive for both CHO and Falcon and there will be synergy between the two companies as there are in similar business. The acquisition will help both to grow their offshore business and earn more revenue.
more likely the major shareholder Scomi Marine is going to sell its 29% stack in CH offshore... that is why the halt... gd luck!
They requested for trading halt might due to issuing rights to raise cash for the payment needed for the new vessels?
As for vessel sale, they did state in their financials that they are trading the new vessel in the spot market. they burned nearly half of their cash last quarter. Seem like they have to raise cash or raise borrowings somehow.
Extension of charter for AHTS. The total gross contract value for the Charters is approximately US$25.6 million.
http://choffshore.listedcompany.com/newsroom/20091204_170903_C13_228CADC48BCDF5BF4825768200127C9B.1.pdf
Final divident confirm.
| Announcement is submitted with respect to * |
CH OFFSHORE LTD |
| Announcement is submitted by * |
Valerie Tan May Wei |
| Designation * |
Company Secretary |
| Date & Time of Broadcast |
28-Sep-2009 17:47:49 |
| Announcement No. |
00075 |
Final tax exempt dividend of 1.5 SGD cents per ordinary share for the financial year ended June 30,2009 :
Record date :25-11-2009
Date paid: 11-12-2009
| Announcement is submitted with respect to * |
CH OFFSHORE LTD |
| Announcement is submitted by * |
Valerie Tan May Wei |
| Designation * |
Company Secretary |
| Date & Time of Broadcast |
28-Sep-2009 17:47:49 |
| Announcement No. |
00075 |
Final tax exempt dividend of 1.5 SGD cents per ordinary share for the financial year ended June 30,2009 :
Record date :25-11-2009
Date paid: 11-12-2009
thanks.
tankuku ( Date: 28-Sep-2009 08:07) Posted:
Yes , simalar:
CH OFFSHORE LTD (CHO) is a dynamic offshore service provider that provides a wide range of services to the offshore oil and gas industry.
To cater for the exploration and production of oil and gas in both shallow and deep waters, CHO has a fleet of Anchor-handling Tug/Supply (AHTS) vessels with Bollard Pull ranging from 50 Tonnes to 150 Tonnes. |
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DMG and Partners said that local company that is making inroads is marine logistics and support services provider were poised to benefit from an improving offshore and marine climate.
One possible beneficiaries of the Gordon project include component makers and suppliers such as CH Offshore and Technics Oil and Gas. Offshore logistics provider CH Offshore hit a year-high of 69.5 cents on Wednesday after jumping 12 per cent the previous day on an upgrade by DBS which initiated coverage of what it called a 'deeply undervalued' stock with a 'buy' rating and target price estimate of 89 cents.
Buy b4 strong buyup by BB pushing it higher.
With Ezion moving to new high, it may be CH offshore turn this week to hit top volume and moving to new high of 0.8
Keep a look out and all the best to these who vest.
Should be announcing the divident payment date soon.
Final divident should be SGS 1.5c
Yes , simalar:
CH OFFSHORE LTD (CHO) is a dynamic offshore service provider that provides a wide range of services to the offshore oil and gas industry.
To cater for the exploration and production of oil and gas in both shallow and deep waters, CHO has a fleet of Anchor-handling Tug/Supply (AHTS) vessels with Bollard Pull ranging from 50 Tonnes to 150 Tonnes.
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