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You will not see any movement on this baby anymore as the deal with DUBAI been announced. Be it good or bad news it will very much stay there.
Same case when Pan United Marine sold to DUBAI. During the big correction, all counters moved except PUM. Very soon it will be delisted from SGX, same as PUM.
hmm...i m always curious...SembMar make such huge forex loss and share price got whack like sai...and this burger...making the same mistake...and share price so steady?? as if the Dubai deal so big deal ?!??!?!? :P anyway...today is SHORTISTs paradise...hee...
cant wait to SHORT several counters now...hee... :)
Making a loss!!
And if the Dubai Drydocks World deal didnt goes through, what will happen.....
Trade with care..
SINGAPORE, Nov 15 (Reuters) - Singapore's Labroy Marine
The shipbuilder and oil-rig maker swung to a loss in the July-September period, against an S$18.7 million net profit a year earlier, due to bets on "derivative financial instruments", it said in a statement.
Labroy first announced the unrealised forex loss last month, in the same statement in which it announced that Dubai Drydocks World was making a $1.63 billion cash bid for the company.
Labroy was the second marine firm to disclose major losses from currency bets in October, after SembCorp Marine
Hi , below is the annoucement release on 13Nov07 about the Dispatch Annoucment. As I am still holding to Labroy's shares, does anyone know whether i can still sell it in the market tomorrow ? (According to annoucement below, it seem to be that i cannot sell my holding in the moarket tomorrow) .. can anyone help to explain
DESPATCH OF OFFER DOCUMENT IN RELATION TO THE VOLUNTARY CONDITIONAL CASH OFFER
FOR ALL THE SHARES IN THE CAPITAL OF THE COMPANY
We refer to the announcements dated 29 October 2007 regarding the voluntary conditional cash offer (the
?
Company wishes to inform shareholders of the Company (?
Corporate Finance Pte Ltd has made an announcement on 13 November 2007 (the ?
Announcement
dated 13 November 2007 (the ?
accompanying Form of Acceptance and Authorisation and Form of Acceptance and Transfer, has been
despatched to Shareholders.
Please refer to the Despatch Announcement for further details on collection of the Offer Document. A copy of
the Despatch Announcement is available on the website of the Singapore Exchange Securities Trading Limited
at
A circular (the ?
the recommendation of the independent directors of the Company will be sent to Shareholders within 14 days
from the date of despatch of the Offer Document by the Offeror.
to refrain from taking any action in relation to their shares which may be prejudicial to their interests
until they or their advisers have considered the information and the recommendations of the Board of
Directors as well as the advice of the IFA set out in the offeree board circular to be issued in due course.
Offer?) for all the shares in the capital of Labroy Marine Limited (the ?Company?). The Board of Directors of theShareholders?) that PricewaterhouseCoopersDespatch?), for and on behalf of Dubai Drydocks World LLC (the ?Offeror?), that the offer documentOffer Document?) containing details of the Offer, together with thewww.sgx.com.Offeree Board Circular?) containing the advice of the independent financial adviser (?IFA?) andIn the meantime, Shareholders are advisedThe Directors of the Company (including those who have delegated detailed supervision of this Announcement)
have taken all reasonable care to ensure that the facts stated and all opinions expressed in this announcement
are fair and accurate and that no material facts have been omitted from this announcement, and they jointly and
severally accept responsibility accordingly.
BY ORDER OF THE BOARD
Chua Hwee Tin
Phoon Kim Sin
Company Secretaries
Labroy Marine Limited
Dated this 13 day of November 2007.
Submitted by Phoon Kim Sin, Company Secretary on 13 November 2007 to the SGX.
Seems like we've reached the limit for LM. Can't see the price exceeding ~ $2.84 honestly as buying at higher prices just doesn't make sense. Could either wait for deal to materialise to save on transaction cost with a very small risk of the deal falling through or just sell now and move on to something else. The latter decison seems to be better.
If the deal cant go through, i think the share will dive heavily....similar to Sembmarine, if not, more.
Labroy may not be financially as strong as Semb Marine when dealing with this kind of Forex losses..with this kind of magnitude.
SINGAPORE, Oct 31 (Reuters) - Labroy Marine
The shipbuilder and oil-rig maker announced the unrealised forex loss on Monday, in the same statement in which it announced that Dubai Drydocks World was making a $1.63 billion cash bid for the company.
Labroy said that the losses are "likely to have a material negative impact" on its performance for the third financial quarter to end September, and that it would indemnify the buyer from most of the forex losses.
"Such significant information must be disclosed clearly and without delay, independently of other announcements," said David Gerald, president of the Securities Investors Association of Singapore.
A Singapore Exchange
"We do not discuss dealings with listed companies publicly," a spokesman from the exchange said when asked if Labroy was being investigated. She declined to deny or confirm whether Labroy was under investigation by the SGX.
She added that penalties for non-disclosure by companies are decided on a case by case basis following investigations, and would depend on the severity of the offence.
Labroy declined to comment. The company is expected to announce its third-quarter results in November.
Analysts said Labroy should have been more upfront about such losses, instead of springing a surprise on investors.
"They can definitely be more transparent. We're a bit concerned now that more such cases could come up," OCBC Investment Research analyst Serene Lim said, adding that she is now taking a closer look at the currency hedging practices of other marine firms.
Labroy is the second marine firm this month to disclose major losses from making currency bets, after SembCorp Marine
SembMarine shares dived 21 percent after the disclosure, wiping nearly S$2.5 billion in market cap off in seven days.
Labroy rose over one percent on Tuesday when its shares resumed trading after a halt, as investors focused on the takeover.
"Given the recent cases, companies should be tightening up their risk, and disclose how and when their losses are being incurred with more clarity," Gerald said.
In April 2006, thumb-drive maker Trek 2000
Thanks for your advise, Sanye!
Maybe contra player getting out....
Once we flushed out the contra players, we should see the price stablised @ 2.83 ~ 2.85 until some fresh news come in.
If DD failed to acquired 90% of the stock, they will not be able to delist Labroy but DD can chose to suspend the counter infinitely. :c
Unless there is a bidding war for LM, retail investors better chose to take up the offer.
I don't understand why so many seller sold at 2.79-2.8 since the offer price is 2.84.
If I am not wrong, the scenario will be:
1. DD continue to purchase at the open market, once their holding reach 90% (including the 65% that they purchase from directors), they are allow to delist Labroy.
2. Once they hold >90%, they will mail the acceptance form to the remaining shareholder.
3. Remaining shareholding accept the offer (no other option) at 2.84, and receive the money (the transaction do not require to pay commision).
correct me if i am wrong
Poppy_toyz,
Don't panic. Wait for them to send you the offer document. You can then decide whether to sell your shares to them. Do take note that if they acquire >90% of the shares at this offer exercise, they will have the right to "compulsorily" acquire your shares. They will send you a second letter to inform you that. By then, you will have to go high court to file for rejection of the offer (in short, very troublesome and not cost effective for small time investor).
Oh, I talk too much liao. In short, just wait for their offer letter. Don't have to sell in open market unless you want to.