Indofood   

RTO by Indofood

GuShen Member	Posted: 08-Feb-2007 00:22
x 0 x 0	So poor guys like me who vested this counter before Susp got to live with IndoMee and hope for miracles

Opportunity may lies in crisis.
Maybe, after its new placement. It may go up to chase wilmar 2.0+ and create another miracle..let not hopes down.

 

some time is hard to trust the indo style of doing buzzz

 

So poor guys like me who vested this counter before Susp got to live with IndoMee and hope for miracles

 

Based on the closing price of $0.33 ($3.30 after the adjustment), so current shareholders will lose SGD $2.05 per share.  Is my understanding correct?

 

INDOFOOD AGRI RESOURCES - Placement of 338m shares @ $1.25

 

By Berni Moestafa
     Jan. 29 (Bloomberg) -- Shares of PT Indofood Sukses Makmur,
the world's largest instant-noodle maker, rose after an estimate
on the proceeds from the share sale of its palm-oil unit next
month was raised by 41 percent.
     The stock advanced 8.3 percent to 1,690 rupiah on the
Jakarta Stock Exchange at the 4 p.m. local close time, the
biggest gain since an 8.5 percent jump on Jan. 17. The volume of
Indofood shares traded reached 113 million compared with a six-
month average of 27.9 million.
     Its Singapore-listed unit, Indofood Agri Resources Ltd., may
raise as much as S$423 million ($274.4 million) selling shares,
First Pacific Co., Indofood's parent company, said in a filing to
the Hong Kong Stock Exchange on Jan. 26. The unit initially
planned to raise up to S$300 million.
     ``This will allow Indofood to expand its plantation
division,'' Remalia Rachmawati, an analyst at PT Trimegah
Securities in Jakarta, said in a telephone interview. ``It will
reduce reliance on outside palm-oil suppliers'' for Indofood's
cooking oil and margarine products, said Rachmawati, who has a
12-month price target for the stock of 1,750 rupiah.
     Investors are reacting to the share sale news now after the
market's declines last week hurt confidence, she added. The
Jakarta Composite Index lost 2 percent last week.
     First Pacific raised its share sale estimate of Indofood
Agri amid gains in the price of palm oil. Demand for palm oil has
risen because of its use as a fuel additive as well as its
traditional uses in soaps and cooking oil. Biofuels have been
gaining in popularity after crude prices tripled since 2001.
     Palm oil for delivery in April on the Malaysia Derivatives
Exchange, the region's benchmark, fell 0.05 percent to close at
1,871 ringgit ($533) a ton in Kuala Lumpur.
     Indofood Agri, previously named CityAxis, is holding a so-
called roadshow to offer the new shares to potential investors
from Jan. 26 until Feb. 5. The presentation will cover Kuala Lumpur, Singapore, Hong Kong and London. The pricing of the
placement is expected on Feb. 7.

 

At 33 cents per share ($3.30), the new company would be valued around $3+ billion. Still sounds a bit too rich for a plantation company.

In fact, Indofood targets to raise US$300m for their new placement shares, so slightly >15 cents is about the right price. They might not even get it....

 

they probably won't, but for indofood to over-dilute the share price and undercompensate existing shareholders, it is a serious issue that they can't let it lying down

 

another question.
do you think SGX will do that? =)

 

in reply to yong jiu, i would suggest sgx push them for a higher compensation than just the 5 cents per share given for every city axis share. 5 cents is peanuts compared to the huge capital reduction that existing shareholders face...

 

they did not announce way in advance that trade was going to get suspended right? as for the 20 over cents price in 2006, that was history man. the fact is that they are going to open with a theoretical price of between 9 cents to 12.5 cents per share multiplied by 10, which is more than 60% discount from the last closing price of 33 cents. They are being b*s*a*ds as they are more concerned about raising funds from the placement and wooing new share investors, but all this at the liability of existing minority shareholders...I will take up a case against them even if it means going to court....

 

Imo, it looks like its "unnaturally" volatile.

Not vested.

 

Before the RTO was announced back in Aug 2006, ISG Asia (aka Cityaxis aka Indofood) was trading at BELOW 20 cents. Back then, the value assurance of no less than 75 cents per consolidated share during this private placement was already spelt out.

I got in at $0.245 (too expensive) then and saw it drop all the way to $0.190 before rebounding in Dec. When it hit 0.41 and fell back to 0.315 and a key holder with 20% stake started to sell out, I sold out everything. But strangely after that, the market pushed it back up and over the previous high. The price continued to stay high despite the consistent selldown by the stakeholder, and even after the MAJORITY stakeholder joined in the selling.

So is this a case of tricky Indonesians cheating minority stakeholders?? Or a sucker rally?

 

hi all,

pardon my ignorance. where did you get the info that the price will be 9cents to 12.5 cents.

thanks

 

The 5cents per share entitlement is just a carrot in my opinion.

Tricky Indonesian style as usual... but will this Indo Agri becomes a Wilmar? God knows...

Not vested.

 

what would you recommend sgx to do if you are in their shoe?

 

Should exit earlier.. ah ...

 

this is really unethical....is there nothing sgx can do to stop indofood from offering shares at dirt cheap price to the detriment of minority existing shareholders?

 

for the opening price, why are taking the theoretical price of 9 cents to 12.5 cents and multiplying it by 10 to get the opening price? the last traded price was 33 cents, which means many would be suffering substantial losses like me....HOW COULD SGX ALLOW THEM TO ISSUE SO MANY SHARES AND TO RAISE SO MUCH CAPITAL RELATIVE TO THE WORTH OF THE COMPANY???????

 

huge huge losses for me man...capital reduction plus consolidation would mean i am making 10k in losses for my 30 lots of city axis shares. any advice from veteran?