Post Reply
161-180 of 193
CH holds 28.9% of CHO directly and indirectly (thru SCOMI Mar) 8.4%.
CHO has moved from 47 cts to 61 cts the past two trading days.......i.e. 14 cts increase.
From the shareholding structure, every 4.8 cts increase/decrease in CHO price translates to about 1 ct incr/decr in CH price.
=> 14 ct increase in CHO should translate to about 3 ct increase in CH....(36.0 to 36.5 ct).
For forumers' info.
up 2 cts & he must b making alot of $$$ after accumulating so much the past few weeks
Mandatory offer extended. Too bad!
Else it should move fast as it is undervalue and its subsidary CH Offshore move significantly.
It is hidden gem
|
|
If the NAV is at $0.4261 while the share is trading at $0.340 does that mean this company is undervalued?
Excerpt of Letter to CHH Independent Directors by Stirling Coleman.
The full text is available at:
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_E9823464D39913E8482572B800264260/$file/CIRCULARdd09apr2007.pdf?openelement
<quote>
Having carefully considered the information available to us, and based upon the monetary,
industry, market, economic and other relevant conditions subsisting on the Latest Practicable
Date and based on the factors set out in Section 9 above, and subject to the qualifications and
assumptions made herein, we advise the Independent Directors to make the following
recommendations to the Shareholders in relation to the Offer as follows:
1) Shareholders should ACCEPT the Offer if:
* Shareholders take a short term view of their investments in the Shares and/or
wish to liquidate their holdings of the Shares in the near term and/or take a
negative view of the future performance of the Share price and longer term
prospects of the Group, and if they are unable to sell their Shares in the open
market at a higher price than the Offer Price (after deducting all related
expenses). In this connection, Shareholders should note that the Offer Price is
higher than the mean of the trading PER and the highest EV/EBITDA multiples of
the Comparable Companies, but within the range of the trading P/Book NAV ratios
of the Comparable Companies; and/or
*Shareholders with larger holdings wish to take advantage of the Offer which
provides an avenue to dispose part or entire of their shares in the Company at the
Offer Price.
2) Shareholders should REJECT the Offer if:
*Shareholders are prepared to take a longer term view of their investments in the
Company and/or who are confident of the longer term prospects of the Group?s
assets under the management of the Offeror. Shareholders who retain their
Shares, however, should understand that the future performance of the Share
price of the Company would depend, amongst other things, upon the performance
and prospects of the Group as well as the prevailing market conditions and
general sentiments of the equity market in Singapore. Shareholders should also
note that there is no assurance that the market price of the Shares can be
sustainable at current levels. The Share price may also not be maintained at such
levels after the close of the Offer.
</quote>
More write-ups on Chuan Hup:
What's Peh up to with Chuan Hup?
By CONRAD RAJ
WHAT is Chuan Hup Holdings' founder and single largest shareholder, Jimmy Peh Kwee Chim, up to with his recent bid for the rest of the shares of the investment holding company?
The offer was triggered by his purchase (more correctly through Walnut Pte Ltd, which was specially set up to make the offer) of shares in Chuan Hup to raise his total direct and deemed stake in the company to 30.38 per cent - just beyond the takeover trigger point of 30 per cent. Walnut has since made further purchases, raising the total stake to 30.97 per cent.
However, Mr Peh has clearly indicated that he does not want to take the company private, stating in the offer notice that he 'intends to maintain the listing of the company and for the company to continue with its existing activities and has no intention to (a) introduce any major changes to the business of the company, (b) redeploy the company's fixed assets, (c) affect the operations of any of its subsidiaries, or (d) discontinue the employment of any employees of the company and its subsidiaries, other than in the ordinary course of business'.
Having sold in 2005 its marine logistics business to the Scomi Group, the Malaysian oil and energy giant controlled by businessman Shah Hakim and Kamaluddin Abdullah, the only son of Malaysian Prime Minister Abdullah Ahmad Badawi, Chuan Hup is now a pure investment holding company, albeit still largely in the marine business.
The marine logistics business, comprising 29 per cent of CH Offshore and 49 per cent of PT Rig Tenders Indonesia, was sold in a cash-cum-equity deal worth $570.6 million.
Chuan Hup is now left with 23.8 per cent of CH Offshore, which owns and operates a fleet of vessels to support and service the offshore oil-and-gas industry in Asia-Pacific and the Middle East. In addition, it is involved in property development in Australia and the Philippines through various domestic companies, and in electronics manufacturing through listed PCI Ltd. Other investments include manufacturing and engineering of hydraulic products, international marketing and communications, biotechnology, and some treasury activities.
Since Mr Peh does not really want to change the nature and structure of Chuan Hup's businesses - after all, he is already largely in control of the company with his son, Terence, as its chief executive - it's obvious that he feels that the company is significantly, perhaps grossly, undervalued.
So why should the other shareholders take up the offer?
The offer price of 34 cents a share provides little enticement for most minority shareholders to accept the offer by Walnut - they would be nuts to do so (pardon the pun). Compared with Mr Peh's last transacted price of 33.5 cents before the mandatory offer, there is hardly any premium.
In fact, those who have been paid or who will receive the interim dividend of 0.5 cent declared by the company on Feb 13 will have to settle for a reduced consideration of 33.5 cents a share. This is hardly the kind of inducement needed to make shareholders part with whatever stake they have in the stock. The offer price is also well below the company's net tangible assets per share of just over 40.38 cents as at the end of last year.
So, if he is not really serious about taking Chuan Hup private, what really is Mr Peh up to? Perhaps he is just signalling to investors and the market that they need to wake up and realise that they are sitting on an undervalued asset.
Dear Readers,
I have sold all my Chuan Hup shares. Thanks for the offer!
By MICHELLE QUAH
CHUAN Hup Holdings' substantial shareholder and former managing director Peh Kwee Chim is set to make an offer for some 70 per cent of the company that he does not already own, after triggering the 30 per cent shareholding level at which he is required to make a general offer for the rest of the company.
And he is doing so through Walnut Pte Ltd - a private vehicle owned by him and his son, Terence Peh Siong Woon, who is Chuan Hup's current CEO.
Walnut said yesterday that it intends to make a mandatory conditional cash offer for the company, at 34 cents a share.
Chuan Hup shares closed unchanged at 30.5 cents yesterday.
Mr Peh's direct stake in Chuan Hup stood at 29.2 per cent as at January. But his total shareholding is considered to have jumped to 30.38 per cent yesterday, after Walnut agreed to buy a 1.18 per cent stake in Chuan Hup - amounting to about 12.8 million shares.
According to the Singapore Code on Takeovers and Mergers, 'parties acting in concert' - which Mr Peh and Walnut are considered to be - whose combined stakes in a listed company exceed 30 per cent are obliged to make a general offer for the company.
Walnut said in a statement to the Singapore Exchange yesterday that its offer will be conditional upon it receiving, by the close of the offer, valid acceptances resulting in the offeror and parties acting in concert holding a more than 50 per cent stake.
It will pay those shareholders who have been paid or who will receive the interim dividend of 0.5 cents declared by the company on Feb 13 a reduced consideration of 33.5 cents a share for each share they offer in acceptance of Walnut's deal.
Walnut also said it intends to maintain Chuan Hup's listing on the Singapore Exchange and for Chuan Hup to continue with its existing activities.
It said it has 'no intention to (a) introduce any major changes to the business of the company, (b) re-deploy the company's fixed assets, (c) affect the operations of any of its subsidiaries, or (d) discontinue the employment of any of the existing employees of the company and its subsidiaries, other than in the ordinary course of business'.
The special investment vehicle added that it would despatch its official offer document soon, after which it intends to keep its offer open for acceptances for at least 28 days.
Chuan Hup sold its marine logistics units in 2005 to Malaysian oil and energy giant Scomi Group - controlled by businessmen Shah Hakim and Kamaluddin Abdullah, the only son of Malaysian premier Abdullah Ahmad Badawi - in a cash and equity deal worth $570.6 million.
After selling those units - 29 per cent of CH Offshore and 49 per cent of PT Rig Tenders Indonesia - Chuan Hup is now essentially an investment holding company.
the 40 odd million buy Q may be that of father and son, knowing fully well that it's difficult to pull the deal through at their current offer price. so hold your horses.
The controlling shareholder of marine logistics and transportation group Chuan Hup Holdings has made a takeover offer for the firm, valuing it at about S$370 million....
I got the shares at $0.955, will not accept the offer too.