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Nestle took a big step into the Chinese market Monday with the announcement that it is to buy a majority stake in candy maker Hsu Fu Chi for 2.1 billion Singapore dollars ($1.7 billion $1.4 billion Swiss francs).
http://sgsharemarket.com/home/2011/07/nestle-buys-majority-stake-in-chinese-candy-maker-hsu-fu-chi-for-1-7-billion/
seldom pple go for less glamourous stocks..
herd always follow the popular stocks..
but value investors would like stocks such as hsu fu chi..
simple biz,cash cow moo moo, and consistently making profits..
even after the news hardly anyone buying..
ivanignatius ( Date: 09-Sep-2009 19:33) Posted:
| Anyone looking at Hsu Fu Chi these days? They just announced an extremely solid set of full year results to end of June 2009, with RMB200mn of debt paid off, plus a big hike in the dividend. The company ought to be in a hot area: branded consumer confectionaries in China. Cadburys has just had a hostile bid in the UK. Yet no broker covers it despite it having US$500mn of sales, and a market cap over S$1.2bn. Anomaly or there is something wrong with the stock. Any views welcome? |
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Nestle to buy 60 pct of Singapore-listed Hsu Fu Chi for $1.7 bln
* To pay S$4.35 a share, 8.7 pct premium to July 1 close
* Deal could lead to delisting from Singapore exchange-Hsu Fu Chi (Adds details)
SINGAPORE, July 11 (Reuters) - Nestle , the world's largest food company, agreed to acquire 60 percent of Chinese candies and pastries group Hsu Fu Chi International for about S$2.1 billion ($1.7 billion), the Singapore-listed company said.
" Nestle is proposing to acquire an aggregate interest of 60 percent in the company," Hsu Fu Chi said in a statement on Monday.
The deal values the entire company at S$3.46 billion.
Nestle has no intention to make major changes to the business or cut jobs, the statement said.
The agreement could lead to a delisting of the company from the Singapore exchange, the statement said.
Hsu Fu Chi, which is based in Dongguan in China's southern Guangdong province and makes Chinese snacks such as peanut candies, pop jellies and sachima rice snacks, is over 50 percent held by the Hsu family and about 16.5 percent held by Baring Private Equity.
Nestle is acquiring 43.5 percent by way of a scheme of arrangement and 16.48 percent from individual shareholders at S$4.35 a share, about 8.7 percent more than its July 1 close of S$4.0 a share, the statement said.
The company's shares have been suspended from trading since July 1.
A scheme of arrangement requires court approval for an agreement between a company and shareholders.
Analysts have said in the past it would make sense for Nestle to buy a company in an emerging market due to sluggish sales at home.
Nestle has been sitting on a pile of cash since it sold its remaining stake in eyecare group Alcon. In April, it said it planned to take a 60 percent stake in China's Yinlu Foods Group for an undisclosed price. .
Credit Suisse advised Nestle. The directors of the Singapore-listed company plan to appoint an independent financial adviser. ($1 = 1.221 Singapore Dollars) (Reporting by Saeed Azhar Editing by Vinu Pilakkott)
SINGAPORE, Jul 11 (Reuters) - Nestle , the world's largest food company, has agreed to acquire 60 percent of Chinese candies and pastries group Hsu Fu Chi International for S$4.35 a share, the Singapore-listed company said on Monday.
" Nestle is proposing to acquire an aggregate interest of 60 percent in the company," Hsu Fu Chi said in a statement
HAIZ.........its pie in e sky for me....
Hsu Fu Chi International, a Singapore-listed Chinese maker of candies and pastries, has engaged in preliminary talks with Nestle S.A. for a potential deal.
http://sgsharemarket.com/home/2011/07/singapore-company-highlights-05072011/?=HsuFuChi
July 4, 2011, 7.05 pm (Singapore time)
China's Hsu Fu Chi in talks with Nestle for possible deal
SINGAPORE
- Hsu Fu Chi International, a Singapore-listed Chinese maker of candies
and pastries, has engaged in preliminary talks with Nestle S.A. for a
potential deal, the company said on Monday.
'The company...has engaged in preliminary confidential
discussions with Nestle S.A. in relation to a possible transaction
relating to the company, which may or may not lead to an offer being
made for the shares of the company,' it said in a statement to the stock
exchange.
The company, which has a market value of US$2.6 billion, had suspended its shares on Monday.
Analysts said it would make sense for Nestle, the world's largest
food company, to buy a firm in an emerging market due to sluggish sales
at home. -- REUTERS
July 2, 2011, 8.16 am (Singapore time)
Nestle holds talks to buy Hsu Fu Chi: report
NEW YORK - Nestle SA has been holding talks to buy Chinese snack
and candy maker Hsu Fu Chi International Ltd, Bloomberg reported on
Friday, citing people familiar with the matter.
Nestle is the world's largest food company.
The talks have been on and off for about two years, and it is not
clear that Nestle will reach a deal as other suitors have been looking
at the Singapore-listed company, according to the report.
A spokeswoman for Nestle, based in Vevey, Switzerland, said the
company does not comment on market speculation. Officials at Hsu Fu
Chi's offices in Dongguan, China could not be reached for comment after
normal business hours, Bloomberg reported. -- REUTERS
Not really sure why this counter's trading volume is so low...the fundamentals are solid, and it's been on a steady uptrend since 2008...Perhaps it's something like fashion...of solid quality but just not in vogue in Singapore.
Hsu Fu Chi International posts 50.5% rise in 2Q net profit to $49.2m :)
Hsu Fu Chi International, the manufacturer and retailer of candies, pastries,
chocolates, jellies, puddings and sachima, says net profit attributable to
shareholders of the group for 2Q10 increased 50.5% to RMB 236 million
($49.2 million) compared to the previous corresponding period. For 1HFY10, the
group’s net profit increased by 61.2% to RMB 329 million, compared to the previous
corresponding period in which there was a foreign exchange loss of RMB 31 million.
Source: The Edge
This is a counter that Warrent Buffet would like, simple business and stable income yar after year, and best of all, reccession proof stock. No ones is interested in this kind of counter because it's slow. It's like SMRT where no one will want to take a bet. It's for people with longer horizon investment.
I laid my eye on this counter in April 09 and took position 20 lots at 96 cents. Now sitting very comfortably with a neat profit. I have to admit that with that same amount of $$ if I put in DBS or CityDev my profit would have double, but I am happy with the gain I am having now. Sleep well. Not leting go so soon.
Anyone looking at Hsu Fu Chi these days? They just announced an extremely solid set of full year results to end of June 2009, with RMB200mn of debt paid off, plus a big hike in the dividend. The company ought to be in a hot area: branded consumer confectionaries in China. Cadburys has just had a hostile bid in the UK. Yet no broker covers it despite it having US$500mn of sales, and a market cap over S$1.2bn. Anomaly or there is something wrong with the stock. Any views welcome?
