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| Fincantieri makes low-ball bid for STX OSV: CIMB |
| WRITTEN BY DOW JONES & CO, INC |
| FRIDAY, 21 DECEMBER 2012 13:13 |
Fincantieri’s $1.22/share price for a 50.75% STX OSV (MS7.SG) stake is a low-ball offer, says CIMB.
“We were surprised at the low sale price, which values STX OSV at 6.5x 2013 P/E and 2.2x 2012 P/BV. Though we understand Korean parent company STX Corp.’s urgency to restructure its balance sheet, the sale price undervalues STX OSV.”
While Fincantieri doesn’t intend to maintain STX OSV’s listing status, CIMB expects the stock to remain listed, given the low price it notes Och-Ziff’s average cost for its 12% stake was around $1.33/share.
“Though STX OSV could succumb to some near-term selling pressure, we believe its fundamentals could eventually provide support at $1.30-$1.40.”
It keeps a Neutral call with $1.47 target, implying 7.8x 2013 P/E and 2.7x 2013 P/BV. The stock is down 6.4% at $1.31.
if stx europe will to sell entire 50% stake via open market, the share price will be free fall........
I think it is sideway from now on till they finished the sale......it takes time for retail investor to get used to the price of the share.....
STX Group willing to sell STX OSV at $1.22, why buyers want to pay higher, $1.32-1.34??
What if STX Group chose to sell STX OSV through open market???
If BB want to buy STX OSV, they would get it cheaper from STX Group??
It happen to my Olam, Kruez & Ezra, and even worst case was the Ezion ... things do happen (sell by mistake or misjudement) .. take it as a lesson and never look back ...
STX still got big headroom ... still no late to buy back ... got chance to rise up fast ...
1.33 - 1.34 still good entry ... cheers
rotijai ( Date: 24-Dec-2012 10:06) Posted:
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congrats.. at least u earn $$
merlin_magic ( Date: 24-Dec-2012 09:52) Posted:
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u must be in a panic mood when trying to place order
merlin_magic ( Date: 24-Dec-2012 09:52) Posted:
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I can't believe it .. I wanted to buy another tranche at 1.32 but clicked wrongly... Sold my old tranche at 1.31.... Sad
SEOUL, Dec 23 (Reuters) - STX Offshore & Shipbuilding
067250.KS said on Sunday it has won a $695 million order to build 13 oil tankers from BP Shipping Limited, the shipping and logistics unit of oil major BP Plc BP.L .
The domestic shipbuilding arm of South Korea's STX Group said in a statement that the 13 tankers - three 160,000 DWT and ten 110,000 DWT vessels - were scheduled to be delivered by the end of 2015.
The deal covers an optional purchase order for another eight tankers, which could bring the total contract value to as high as $1.13 billion, a STX spokesman added.
(Reporting by Sung-won Shim Editing by Nick Macfie)
((Sung-won.shim@thomsonreuters.com)(+822.3704.5649))
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STX OSV got great potential to return above 1.6.
While waiting, at least we can recieve good dividends ...
brenocav ( Date: 21-Dec-2012 18:23) Posted:
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If new company takes over but it remains listed, will same kind of dividend be paid out?
I think it is less likely. Just my view......
Fincantieri carries forward the great tradition of Italian shipbuilding.
Founded in December 1959 as a financial holding company, the company was successful in using its inheritance of resources - people, skills and ships.
It has built numerous merchant and naval vessels, over 7,000 in 200 years of shipbuilding, several of which have made their mark in history.
This is a dynamic company, attentive and ready to change, able to bring together in synergy tradition, experience and innovation.
Fincantieri has developed over the years and became an operating company in 1984 when it was already one of the largest and most diversified shipbuilding groups in the world.
Today, the history of Fincantieri remains the history of its ships, a fleet of cruise ships and ferries, merchant ships of all types and naval vessel.
Floating showcases of made in Italy and of the commitment of a united team made up of the workforce of Fincantieri and the many subcontractors in the supply chain who contribute to building unique ships.
This is a company able to renovate in order to be ready to manage complex, challenging projects and create value for all its stake-holders.
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http://www.fincantieri.it/cms/data/pages/000043.aspx
the italian must have recognised that, in order for them to take over STX OSV (a fundamentally good company) fully, they have to give a very competitive price for the shareholders come April 2013. Maybe one of the reason why they can get such good discount from STX OSV. Will hold until the end.
Hope Keppel or Sembcorp make a last minute bid haha (dreaming)
Yes, STX OSV is interesting, good dividends.
This year April 10c and Aug 13c ...
Good to hold and see what happens next. If the share holder reject 1.22 deal (just like the F& N) , it will rebound or gap-up and then trading upward again.
handsome reward comes later ...
Once again a time SMM and SCi was below $2 and now it is hot stock usually above $4 ...
starlene ( Date: 21-Dec-2012 23:33) Posted:
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Well, I think that price will certainly be sideway or drop considering that more than 50% stake will be traded at $1.22....
And likely so for at least few more months.....
We had to bear in mind that for some reasons stx osv is paying extremely high dividend.....and as long as you buy early, you are likely in a profit position....
Hence, still possible for a take over at $1.22.......
Just my view........and considering stx osv ipoed at $0.79, sale at $1.22 is not too bad to stx europe..........
If that is the case unlikely the Italian co will succeed in buying from the minority shareholders..recall OZ mgt fund first bought $1.33 for a large stake from STX Europe and they also bought from market at about $1.55-$1.56 but of course they also sold some aat $1.65..last month OZ mgt fund also buy 800,000 at $1.38 so unlikley will sell to this co..so STX OSV will remain listed unlikely will be taken private..STX OSV is one of my favourite having made many rounds since it was listed in Oct 2010 and that time N korea fired missile at S Korea it dropped to 80cts close to its ipo..so having be buying and selling all the way from 80cts to $1.40 and not forgetting its generous dividends
InvestNotTrade ( Date: 21-Dec-2012 23:23) Posted:
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IF that company get 90% ownership it can do that to us. Yes.
The main question is, is this italiano able to purchase the balance 35% of the shareholders at $1.22, come april 2013.
If they are able to... nothing can stop them from buying the remaining 5% from SGX and then making it mandatory for the dissenting shareholder (us) to sell their shares to the fincan company.
I think its > 50% must make mandatory offer, but subjected to the shareholder's approval. > 90% then is takeover.
starlene ( Date: 21-Dec-2012 23:04) Posted:
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Problem is under SGX rule,this Italy co has > 50%.it can compulsory acquired from balance shareholders at this ridiculously low price $1.22,even if we don't agree,it can forced us to sell to it..is this rule..someone plse correct me if I am wrong
Italian company said it has no intention to make any operational changes.
Any hindsight on dividend payout. Will maitain or change due to new owner.
Ignoring the fact that Financial year 2012 earnings is weaker than 2011.
Yes, once the over hang is over, the change to new major share holder who is famous in Italy and cash rich who can afford to pay cash offer even at this time of Euro Debt show this is a solid co.
With New mgt, it will reach new height and it will tap on the resources and network of European mkt ... and moreover, it has more award coming and also backlog order ...
Nothing is lost ... it will once again return to at least 1.6 ...
Cheers ..
brenocav ( Date: 21-Dec-2012 18:23) Posted:
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Vickers analyst also has a tp of $2