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Fincantieri’s price for a 50.75% stake of STX OSV (MS7.SG) is “somewhat low” considering the Singapore-listed company’s relatively strong balance sheet, valuing the stock at 7X FY13 P/E, OSK-DMG says.
“This depressed sale price could be primarily driven by the desperation of the STX Group to sell its assets to pare down debts.” While Fincantieri has lined up finances to acquire the rest of STX OSV, OSK-DMG doesn’t expect the general offer to succeed, noting the $1.22/share price is below the current share price, with the offer likely merely aimed at satisfying Singapore takeover rules “we view the offer as unattractive to minority holders.”
It adds, Fincantieri might not get the 90% acceptance level needed to take the company private, noting Och-Ziff holds 12%. But it adds, “the change in major shareholder could remove the overhang on the stock and lead to rerating.”
It keeps a Buy call with $2.05 target. It notes STX Group is also looking to sell its STX Pan Ocean (GZ9.SG) holding. The stock is down 6.1% at $1.315. STX Pan Ocean is down 6.2% at $4.37.
brenocav ( Date: 21-Dec-2012 18:23) Posted:
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I agree from my experience of a corporate lawyer
deedee90 ( Date: 21-Dec-2012 14:14) Posted:
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If within these 3 days, the price unable to climb up at least 1.355and uphold for another 3 days.
Its better to pull out your $, go for others counter.
deedee90 ( Date: 21-Dec-2012 14:36) Posted:
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s100125 ( Date: 21-Dec-2012 14:32) Posted:
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I believes the price will move even higher next week.
Remember last year when the other major buyer bought at 1.32 and the price actually continue to climb.
I believes the price will move even higher next week.
Remember last year when the other major buyer bought at 1.32 and the price actually continue to climb.
InvestNotTrade ( Date: 21-Dec-2012 13:49) Posted:
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So if the italian company manage to get the other major shareholder to sell their share at $1.22 in April 2013 and obtain 90.1% ownership, this counter will get delisted.
if not mistaken, publicly traded shares are abt 15%?
Mandatory offers are triggered by the offeror acquiring shares which result in the shareholdings of the offeror and parties acting in concert with it in the target company
crossing certain thresholds. An offer is mandatory in the following situations:
• Any person acquires shares which (taken together with shares held or acquired by persons acting in concert with him) carry 30% or more of the voting rights of a company
• A person who, together with persons acting in concert with him, holds between 30% to 50% of the voting rights and such person or any persons acting in concert with him, acquires in any period of 6 months additional shares carrying more than 1% of the voting rights
The take-over code requires the offeror to extend offers to the holders of any class of share capital of the company so that the minority shareholders have the choice whether to exit the Company as there is a change in major shareholder.
Likley will remain listed..says analyst CIMB
Low-ball offer
Italian cruise shipbuilder, Fincantieri,has agreed toacquire 50.75% of SOH for S$1.22/share, a low-ball offer, in our view. Though SOHcould succumb to some near-termselling pressure, we believe its fundamentals couldeventually providesupport at S$1.30-1.40.
Hence, we remain Neutral with unchanged EPS estimates and target price (blended valuations, implying 7.8x CY13 P/E and2.7x CY12 P/BV). We could revisit the stock once we get more colour from SOH.
What Happened
Fincantieri has agreed with STX Europe to acquire 50.75% of SOH from STX Europefor S$1.22/share. The price represents a discount of 12.9% to SOH’s closing price on 20 Dec and 17.5% discount to itsweighted average price inthe past three months (S$1.48/share). The acquisition is expected to take place within the first four months of 2013 (after pre-conditions arefulfilled). After which, a mandatory cash offer for the remaining shares will be made, in compliance with takeover/merger rules in Singapore.Fincantieriwill use itsinternal resources and a syndicated loan.
What We Think
We weresurprised atthe low sale price,which values SOH at 6.5x CY13 P/E and 2.2x CY12 P/BV. Though we understandKorean parent company STX Corp’s urgency to restructureits balance sheet,the sale priceundervaluesSOH, in our view.Fincantieri also does not intendto maintain the listing status of SOH. However, we think that SOH may remain listed, given the low offer price.The sale price represents21.7%, 19.9%and 17.5% discountsto itsvolume-weighted average price inthe past 12, six and three months respectively. Lastly, recall that thatOch-Ziff’s average cost for its 12% shareholdingwas roughly S$1.33/share.
What You Should Do
Though we expect near-term selling pressure when itstrading halt is lifted, we believeSOH’s fundamentals could eventually provide some support at S$1.30-1.40(comparable to theaverage 7.3x CY13 P/Efor smaller SGX-listed OSV builders). Hence, maintain Neutral.
* Fincantieri to buy 50.75 pct STX OSV stake at S$1.22 each
* To launch offer for rest of STX OSV after April 2013 at same price
* Offer was at 12.9 pct discount to last traded price
* Analysts say offer undervalues STX OSV
* STX OSV shares down 4.6 pct
(quote from Yahoo news)
Based on what I'm told, I quote.
" Fincantieri has signed an agreement to purchase 50.75% of STX OSV belonging to STX Europe. They will pay S$730.6 million for the stake, and the ownership transfer is expected to be completed within the first four months of 2013, subject to certain conditions in the agreement. Only after the transfer has been completed, can Fincantieri launch a Mandatory General Offer (MGO) for the rest of STX OSV’s shares that it does not yet own, altogether inclusive of the 50.75% stake would be 1.18 billion shares. Whether or not the MGO results in a de-listing would depend on whether Fincantieri can trigger a 90% shareholding including acceptances."
Does this mean that by April 2013 after completing the transfer of ownership, Fincan can do MGO? Meaning a force-purchase? Why call it mandatory when fincan's offer need acceptance?
Confused.
Billongkokeng ( Date: 21-Dec-2012 11:48) Posted:
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best to buy is now when the price is low.
discount don`t come everydays. Still a solid company afterall.