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Hope the CEO is shewd enough to bargain for more than $2 /share for his company!
Kohlberg Kravis Roberts & Co. has agreed to buy Unisteel Technology, according to sources involved in the auction.
The company said on Thu that it has entered into advanced stages of a transaction with an unidentified group that approached the company.
Reuters sources identified the group as U.S. private equity giant KKR, which is in final negotiations with Unisteel.
Sources would not confirm how much KKR is paying for the company. Unisteel's market capitalisation is US$520 million.
Wah... when the halt is lifted, this counter sure to chiong one.
can Unisteel be lelong for more than $2 ???
keep your fingers crossed ...
Good news to those vested. Stay tuned for further development.
Latest News!
"The Company wishes to inform shareholders that it has entered into advanced stages of discussions on the possible transaction with one of those parties who had made the preliminary approaches. A further announcement will be made when appropriate.
The halt in trading of the Company’s shares will also continue until further notice. When the halt in trading of the Company’s shares is lifted, Shareholders are advised to refrain from taking any action in respect of their shares in the Company which may be prejudicial to their interests, and to exercise caution when dealing in the shares of the Company.
An announcement will be issued by the Company in the event that there are any material developments.
Huge surge in volume today reflecting the sudden interest in the buyout potential.
halted liao.....
turning super green in such an environment really attracts lots of attention
anyone heard abt the potential buy over at $1.95 ?
i heard the buyout talk is resumed again, anyone can commend ? that's why it shoot up today ????
wah..this tortise getting abit shaky liao siah..since no confirmed news so far ! :P
SHOR T?!?! hee...
| Time | Last | Vol | Buy/Sell |
| 10:43:58 | 1.710 | 6 | B |
| 10:40:37 | 1.710 | 9 | B |
| 10:40:22 | 1.710 | 25 | B |
| 10:38:47 | 1.720 | 22 | B |
| 10:37:22 | 1.720 | 22 | B |
| 10:34:27 | 1.720 | 4 | B |
| 10:32:58 | 1.720 | 1 | S |
| 10:32:57 | 1.720 | 1 | B |
| 10:32:51 | 1.720 | 11 | B |
| 10:32:41 | 1.720 | 116 | B |
| 10:31:39 | 1.720 | 100 | B |
| 10:24:55 | 1.730 | 5 | S |
| 10:15:12 | 1.720 | 3 | B |
| 10:13:46 | 1.720 | 1 | B |
| 10:11:25 | 1.730 | 5 | S |
| 10:06:28 | 1.720 | 8 | B |
| 10:06:03 | 1.730 | 5 | S |
| 10:05:28 | 1.730 | 10 | S |
FYI only.
RTRS - UPDATE 1-Bain, KKR bidding for Singapore's Unisteel -sources
By Michael Flaherty and Alison Tudor
HONG KONG/TOKYO, May 2 (Reuters) - U.S. private equity firms Bain Capital
and Kohlberg Kravis Roberts & Co [KKR.UL] are bidding for Singapore disk drive
component maker Unisteel Technology <UNST.SI> in an auction that has also attracted other major
buyout firms, sources close to the matter said on Friday.
The auction is being run by Macquarie's <MQG.AX> investment banking group,
the sources said, adding it was past the first round of bids. Analysts have said a deal for the
company could be worth around S$800 million ($588 million).
Unisteel's auction would allow private equity firms the chance to complete
in Asia the kind of leveraged buyouts they are known for
in the West.
It also represents yet another acquisition opportunity in the hard disc
drive space, which has seen a wave of consolidation amid stiff competition and falling
prices.
Bain and KKR are seen as having the strongest interest in
Unisteel, said the sources, who
were not authorised to speak to the media about the deal.
Private equity firms Carlyle Group [CYL.UL], and TPG Capital [TPG.UL] are
also pursuing Unisteel, the sources said.
"Unisteel is a stable business with good cash flow that would make it relatively easy to
finance," said one of the sources, who did not want to be identified
because of the auction's sensitivity. "That is why it's attractive to these funds."
Unisteel said on April 15 that the
ownership of the company was under review, but added
that discussions with potential buyers were at preliminary stages and
might not progress.
The company did not say it had hired an investment bank.
A Unisteel spokesman referred to last month's statement, saying it was undergoing a strategic review. Macquarie, and all four private equity firms, declined
to comment.
HOT PURSUIT
The hard disk drive industry has been in upheaval in recent years as the
leading players, Seagate Technology <STX.N> and Western Digital <WDC.N>, scooped up suppliers while
major parts makers such as Nidec <6594.OS> and TDK <6762.T> bulked up to
fend off increasingly cut-throat competition and tumbling prices.
Private equity firms have also being getting into the action. Last year, KKR acquired
Singapore hard disk drive components maker MMI Holdings, while Standard
Chartered <STAN.L> Private Equity and CVC Asia Pacific bought computer casings maker
Amtek Engineering Ltd.
Unisteel is being fought over by private equity firms because it has little debt and
generates a steady cash flow, which makes it easier for funds to gear up.
The firms also welcome the chance to take majority ownership of a strong
Asian asset.
While leveraged buyout firms have flocked to Asia seeking to tap its booming
economy for deals, they have had a hard time finding companies willing to give up
control.
Should a private equity firm succeed in a majority buyout of Unisteel,
company founder and executive chairman Bernard Toh Bee Yong is expected to roll over part
of his 18 percent stake into the new firm and take an active role in its future,
sources said.
Unisteel has a market capitalisation of around S$648 million.
Private equity firms have bought several smaller Singapore technology companies in recent years to
take advantage of relatively low valuations in a market where investors were more focused
on banks and property firms.
TPG Capital and Affinity Equity Partners joined forces last year to buy Singapore's United
Test & Assembly Center, a microchip tester, at S$1.20 per share, or an 8 percent premium,
valuing the firm at S$2.2 billion.
Since Unisteel's announcement of its strategic review mid-April, analysts have been
calculating possible buyout prices based on the price tags of previous
buyouts in the sector, and the company's share price has risen about 14 percent.
The analysts' estimates have suggested a take-out price of
S$1.80-S$2.17 per share. At S$2 per share, the company would be worth around S$800 million, or roughly
US$600 million.
Unisteel trades at 13.6 times earnings and offers shareholders a dividend
yield of around 3.7 percent, according to Reuters
data. Unisteel had net cash of S$43.3 million at the end of
2007, according to its 2007 financial statement.
Its stock was up 1.8 percent at S$1.64 on Friday.
Technology sector peers Map Technology <MAPT.SI> and Broadway Industrial
<BRWY.SI>
trade at a P/E of 8.8 times and 4.6 times, respectively.
May 2, 2008, 2.30 pm (Singapore time)
Unisteel up on private equity bidding
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SINGAPORE - Disk drive component maker Unisteel Technology rose as much as 6.8 per cent to $1.72 after sources told Reuters the firm has attracted interest from four major buyout firms.
Analysts have said a deal for Unisteel could be worth around $800 million (US$588 million).
US private equity firms Bain Capital and Kohlberg Kravis Roberts & Co are seen as having the strongest interest in Unisteel, sources said on Friday, adding Carlyle Group and TPG Capital are also bidding .
The auction is being run by Macquarie's investment banking group, sources said, and is past the first round of bids.
A Unisteel spokesman declined to comment, referring to a statement last month that said it was undergoing a strategic review. -- REUTERS
Reuters news on 17/4.
Disk drive component-maker Unisteel Technology, which said this week it is reviewing options to boost shareholder value, has told analysts that it is a buyout target, one analyst said.
Unisteel was queried by the Singapore Exchange after its share price jumped 20% on Tue, forcing the firm to say that it was reviewing options to enhance shareholder value.
The company declined to comment on possible takeovers when contacted by Reuters, saying it was still in the preliminary stages of a review.
But an analyst, who covers the stock and declined to be named, said Unisteel had told analysts that unnamed buyers, including private equity firms, had expressed interest in buying the firm.
The analyst and a trader said the unnamed buyers were likely to pay $1.80-$2.00 per share, which is at least a 14% premium over Unisteel's last traded price of $1.57 a share on Thu, valuing the firm at about $800 million.
A second analyst said Unisteel was an attractive target for private equity firms because of its low share price and relatively strong financial position.
Unisteel trades at 11x forward PER and offers shareholders a dividend yield of around 5.4%, according to Reuters data. Technology sector peers Map Technology and Broadway Industrial trade at a PER of 6.8x and 4.5x respectively.
"Unisteel has a good return-on-equity ratio and is in a healthy net cash position. This firm is also a market leader in its sector. After much consolidation in the tech industry for the past 2 years, you don't see a better target than Unisteel," said the second analyst, who also declined to be identified.
Unisteel's ROE is around 31%, according to Reuters data. It had net cash of $43.3 million at the end of 2007, according to its 2007 financial statement.
Private equity firms have bought several smaller Singapore tech companies in recent years to take advantage of relatively low valuations in a market where investors were more focused on banks and property firms. TPG Capital and Affinity Equity Partners joined forces last year to buy Utac, a microchip tester, at $1.20 per share or an 8% premium, valuing the firm at $2.2 billion.
bros....
Just FYI... i had bailed out from this counter though the upside of this stock is still intact... trade with care ok? Near term target 1.55 to 1.63.
cheers
aya...wat goes up will come down...hey! watch this burger again end of the week !!
hee...
:D
target hit!!!! hope there are some or even one brother here catch it ok?
bROTHERS.... tHIS STOCK is moving again.. watch out for 10 cents gain today.....
I think still alot of brothers here miss out this baby!!!!! Just to update on this swee swee counter that in 2 days it went up 13 cents slowly and quietly....
Chart shows that a uptrend is in place... Just look out for this ok? next immediate high is 1.53
Not a Post to inducing buy though, believe in urself.