Vard   

STXOSV

News

According to a Bloomberg article on 17 May: (i) there could be a potential

delay of the sale of STX Corp’s 51% stake in STX OSV (STXO) and (ii) STX

Corp (parent company of STXO) may face liquidity concerns with Korea

Exchange Bank if the sale does not go through. STX Corp has issued a

public statement saying that the STXO sale process and talks with Korea

Exchange Bank are going well and that it is still committed to its plan to

sell W25 trillion of assets, which includes STXO.

Analysis

We think the views of investors who bought STXO for exposure to this

event may be affected by a delay in the stake sale. If the STXO stake sale

process is extended, STX Corp’s position in sale negotiations may be

affected by rising pressure to address its own debt / liquidity issues

(FY2011 net debt to equity ratio of 1.38X) in a timely way.

That said, we believe the above issues do not have any impact on STXO’s

fundamentals and see the share price decline yesterday as unjustified

against STXO’s strong fundamentals (we project 27% yoy increase in

STXO’s orders in 2013E and note that STXO continues to generate strong

cash flows and has a net cash balance sheet) and low valuations (2012E P/E

of 7.8X).

We also note that Och-Ziff recently increased its stake in STXO to 21% from

20% previously, which we think signals a key shareholder’s strong belief in

the underlying fundamentals of the company.

Implications

While the above news may be negative for share price sentiment, we

would see this as a potential buying opportunity given that the attractive

underlying fundamentals of the company are unchanged. Reiterate our Buy

rating on the stock.

 

What makes there will be a mandatory takeover or delisting?

Looks like 51% to be split into 2 parties (Italian and Carlyle). So each holding less than 30 percent.

  Oz Fund also bought recently in the market.

STX Corp is forced into selling STX OSV at 1.60 or so.....too bad. This stock should be worth much more than that. 

 

Sorry, got error in copying the link.

  U can just do a google search of " mandatory offer singapore" and click on first link to download the pdf file.

yiming2000      ( Date: 21-May-2012 11:00) Posted: luvkarena - your url link leads nowhere. Please correct and repost. luvkarena      ( Date: 21-May-2012 10:50) Posted: Pls refer to the takeover document here: http://www.google.com.sg/url?sa=t& rct=j& q=& esrc=s& source=web& cd=1& ved=0CFQQFjAA& url=http%3A%2F%2Fwww.ibanet.org%2FDocument%2FDefault.aspx%3FDocumentUid%3DB6B7FCE5-6F24-45C3-8E44-D082F0DF7C43& ei=pZ-5T_upKIHJrQfiruCoDA& usg=AFQjCNFbDKEKoB3h3zoD4ghRtubwzlIpiA& sig2=-gq1QkbstuwMK6YCSDyO6w

 

luvkarena - your url link leads nowhere. Please correct and repost.

luvkarena      ( Date: 21-May-2012 10:50) Posted: Pls refer to the takeover document here: http://www.google.com.sg/url?sa=t& rct=j& q=& esrc=s& source=web& cd=1& ved=0CFQQFjAA& url=http%3A%2F%2Fwww.ibanet.org%2FDocument%2FDefault.aspx%3FDocumentUid%3DB6B7FCE5-6F24-45C3-8E44-D082F0DF7C43& ei=pZ-5T_upKIHJrQfiruCoDA& usg=AFQjCNFbDKEKoB3h3zoD4ghRtubwzlIpiA& sig2=-gq1QkbstuwMK6YCSDyO6w rutheone1905      ( Date: 21-May-2012 10:25) Posted: yes i remember someting like such a rule, but the duration 6 months or so i am not quite sure.   it happened many yrs back with SPC, they took a reasonable good time frame to find the highest point to offer to us.   so Luv maybe right but i am not sure is it 6 months time frame, i hope it can be higher becos we got some forumers kena trapped.....cheers

 

Pls refer to the takeover document here:

http://www.google.com.sg/url?sa=t& rct=j& q=& esrc=s& source=web& cd=1& ved=0CFQQFjAA& url=http%3A%2F%2Fwww.ibanet.org%2FDocument%2FDefault.aspx%3FDocumentUid%3DB6B7FCE5-6F24-45C3-8E44-D082F0DF7C43& ei=pZ-5T_upKIHJrQfiruCoDA& usg=AFQjCNFbDKEKoB3h3zoD4ghRtubwzlIpiA& sig2=-gq1QkbstuwMK6YCSDyO6w

rutheone1905      ( Date: 21-May-2012 10:25) Posted: yes i remember someting like such a rule, but the duration 6 months or so i am not quite sure.   it happened many yrs back with SPC, they took a reasonable good time frame to find the highest point to offer to us.   so Luv maybe right but i am not sure is it 6 months time frame, i hope it can be higher becos we got some forumers kena trapped.....cheers  luvkarena      ( Date: 21-May-2012 10:03) Posted: In a mandatory offer, the offer price cannot be lower than the highest price paid by the offerer or any of the parties acting in concert with it for any shares carrying voting rights during the offer period and within the six months leading up to the beginning of the offer period.   That means STXOSV offer price must be at least $1.72 (adjusted for dividend paid) - 8.5% upside based on $1.585 price.   Today Bloomberg news about STXOSV: * STX Corp. (011810) (011810 KS) will sell 50.75 percent stake in STX OSV Holdings Ltd. (SOH) to a group formed by Italy’s Fincantieri and Carlyle, Maeil reports.  http://www.bloomberg.com/news/2012-05-20/south-korea-daybook-s-korea-japan-u-s-envoys-discuss-n-korea.html There is a potential run up for this counter in this few weeks.

 

yes i remember someting like such a rule, but the duration 6 months or so i am not quite sure.  

it happened many yrs back with SPC, they took a reasonable good time frame to find the highest point to offer to us.  

so Luv maybe right but i am not sure is it 6 months time frame, i hope it can be higher becos we got some forumers kena trapped.....cheers 

luvkarena      ( Date: 21-May-2012 10:03) Posted: In a mandatory offer, the offer price cannot be lower than the highest price paid by the offerer or any of the parties acting in concert with it for any shares carrying voting rights during the offer period and within the six months leading up to the beginning of the offer period.   That means STXOSV offer price must be at least $1.72 (adjusted for dividend paid) - 8.5% upside based on $1.585 price.   Today Bloomberg news about STXOSV: * STX Corp. (011810) (011810 KS) will sell 50.75 percent stake in STX OSV Holdings Ltd. (SOH) to a group formed by Italy’s Fincantieri and Carlyle, Maeil reports.  http://www.bloomberg.com/news/2012-05-20/south-korea-daybook-s-korea-japan-u-s-envoys-discuss-n-korea.html There is a potential run up for this counter in this few weeks.

 

$1.585 is quite a good entry price to get in. The next support level will be $1.535.

 

sole discretion of the major stakeholders.   delist doesnt mean that they wont list in other exchanges, it is just purely SGX not a ideal place to list.   if u notice there were many coy delist from sg n move on to other exchanges, n potentially more to come, which i had mentioned in one of my previous post (this rumours had been around for a while tat y SGX price keep dropping).

remember wang wang (taiwan coy)? it was a damn good coy i own the shares since it ipo, but got delisted n move on to hk.

 

learner^      ( Date: 21-May-2012 09:55) Posted: under what situation will they delist? rutheone1905      ( Date: 21-May-2012 09:52) Posted: hang on to it.   this is a good counter, unless they delist then bopian.   wait for SGX inf

 

$1.82 is the highest price in the past 6 month before dividend.

  The stock price is falling back cos the announcement is not made yet....

yiming2000      ( Date: 21-May-2012 10:13) Posted: What makes you think that the offer price is $1.72? We all wish you are right. If you are right, why is the price falling back to 1.585?   luvkarena      ( Date: 21-May-2012 10:03) Posted: In a mandatory offer, the offer price cannot be lower than the highest price paid by the offerer or any of the parties acting in concert with it for any shares carrying voting rights during the offer period and within the six months leading up to the beginning of the offer period.   That means STXOSV offer price must be at least $1.72 (adjusted for dividend paid) - 8.5% upside based on $1.585 price.   Today Bloomberg news about STXOSV: * STX Corp. (011810) (011810 KS) will sell 50.75 percent stake in STX OSV Holdings Ltd. (SOH) to a group formed by Italy’s Fincantieri and Carlyle, Maeil reports.  http://www.bloomberg.com/news/2012-05-20/south-korea-daybook-s-korea-japan-u-s-envoys-discuss-n-korea.html There is a potential run up for this counter in this few weeks.

 

What makes you think that the offer price is $1.72? We all wish you are right.

If you are right, why is the price falling back to 1.585?

 

luvkarena      ( Date: 21-May-2012 10:03) Posted: In a mandatory offer, the offer price cannot be lower than the highest price paid by the offerer or any of the parties acting in concert with it for any shares carrying voting rights during the offer period and within the six months leading up to the beginning of the offer period.   That means STXOSV offer price must be at least $1.72 (adjusted for dividend paid) - 8.5% upside based on $1.585 price.   Today Bloomberg news about STXOSV: * STX Corp. (011810) (011810 KS) will sell 50.75 percent stake in STX OSV Holdings Ltd. (SOH) to a group formed by Italy’s Fincantieri and Carlyle, Maeil reports.  http://www.bloomberg.com/news/2012-05-20/south-korea-daybook-s-korea-japan-u-s-envoys-discuss-n-korea.html There is a potential run up for this counter in this few weeks.

 

i hope you are right. not so keen to cut loss

 

In a mandatory offer, the offer price cannot be lower than the highest price paid by the
offerer or any of the parties acting in concert with it for any shares carrying voting rights
during the offer period and within the six months leading up to the beginning of the offer
period.

  That means STXOSV offer price must be at least $1.72 (adjusted for dividend paid) - 8.5% upside based on $1.585 price.


  Today Bloomberg news about STXOSV:

* STX Corp. (011810) (011810 KS) will sell 50.75 percent stake in STX OSV Holdings Ltd. (SOH) to a group formed by Italy’s Fincantieri and Carlyle, Maeil reports. 


http://www.bloomberg.com/news/2012-05-20/south-korea-daybook-s-korea-japan-u-s-envoys-discuss-n-korea.html

There is a potential run up for this counter in this few weeks.

 

under what situation will they delist?

rutheone1905      ( Date: 21-May-2012 09:52) Posted: hang on to it.   this is a good counter, unless they delist then bopian.   wait for SGX info newtrader1      ( Date: 19-May-2012 08:01) Posted: crap shit i bought at 1.655

 

hang on to it.   this is a good counter, unless they delist then bopian.   wait for SGX info

newtrader1      ( Date: 19-May-2012 08:01) Posted: crap shit i bought at 1.655

 

What are possible scenerios result from this?

1) Sale get through at $1.60.

          a. Buyer buy over the remaining at a price likely to be $1.60 or below.

          b. STX OSV remain listed. Only Major shareholder change. Things went back to normal before the announcement of the sale.

2) Sale did not went through

        a. Things went back to normal before the announcement of the sale.

        b. Find the next highest bidder which offer is lower than $1.60 and etc etc......

Do take note of current market sentiment now.......

 

 

 

How many lots did you buy? Did you buy before ex-date April 26? If you did, then your dividend will cover your loss with some left over for kopi.

newtrader1      ( Date: 19-May-2012 08:01) Posted: crap shit i bought at 1.655

 

Agree with you. Will wait for the announcement from SGX before taking any actions.

rutheone1905      ( Date: 20-May-2012 00:19) Posted: from the News:    " Both parties plan to sign a preliminary agreement on the deal sometime next week...."   the word " preliminary" i dont like it.....the whole deal may be blown over.   once SGX got the confirmed details then will be fast but how long it takes from " preliminary" to " confirmed" that the key.....the buyer din give management premium that may also translate to they in no hurry to buy UNLESS other buyers come in for another offer. tglim74      ( Date: 19-May-2012 23:59) Posted: Any suggestion on how long we need to hold on for those who are caught at price higher than 1.60 like me?

 

thanks for the link, here the translation:STX Business Group is pushing to boost market liquidity on a large scale sale of STX OSV operations within six months built a knot.  Meanwhile, STX Business Group as the preferred bidder to negotiate a single state had conducted an Italian cruise shipbuilding companies in the consortium formed by Carlyle pinkantieriwa global private equity stake in STX OSV all agreed the final turn.  As a result, liquidity, STX Business Group on jegidwae Meanwhile controversy is expected to be able to dispel. 

The 18th mergers and acquisitions (M & A) are, according to industry STX Business Group held a 50.75% stake in STX OSV pinkantieri - Carlisle to turn it over to the consortium and of next week a memorandum of understanding (MOU) is expected to sign.  The sale price at the 18th Singapore market as the company was complaining based on the closing price. 

STX OSV Singapore stock market day in the week is trading at 1.60 Singapore dollars.This solution is based on a sale of 958 161 600 Singapore dollars (about 882.064 billion won), the takeover premium for more than 1 trillion won, including the expected goal of STX Group maegakaek somewhat less than the figure. 

STX does not put a separate group of control premium based on market price share price agreed in the meantime, inflation STX OSV and ingenuity takeover premium is already reflected in current share price because that judgment.  The actual task of selling the company stock price has progressed over the past six months jumped 40 percent. 

In addition, Singapore Exchange (SGX) the obligation to tender the sale `gun` (Mandatory Offers) viscosity of the target specified by the STX group did not require an additional premium for management control in the background is analyzed.  This is the total equity trading volume is greater than 30% of the shareholders holding the remaining shares deulegedo side argument for the same price for their shares neomgilji is prompting regulations.  If you want to sell their shares if the underwriters shareholder acquisition of all sides it should be.  Eoneojyeo takeover premium if the premium for the remaining shares being traded shareholders and are intended to be shared. 

Investment Bank (IB) official said, " is greater than 30% of trading volume generally georaedwae eoneojyeo takeover premium as long as we can see significant gains most of the remaining shareholders' equity also is relentless," said " In the end, more than 30% in Singapore stocks  Acquisition generally leads to a 100% equity acquisition, " he explained. 

Eventually the remaining 49% stake in the consortium pinkantieri an additional argument in mind the possibility can not afford to give up on asking cheohamyeonseo takeover premium in the STX group known to persistently requested.  For this reason, a delay that was the task of selling financial situation of the recent controversy surrounding the group became recover, STX needs of the consortium pinkantieri accepted as soon as possible to secure a large liquidity position seems to be wheeled. 



STX Business Group on the other hand, the proceeds from the sale to repay borrowings due back first silencing using the recent controversy that raised liquidity plans.  STX Offshore & Shipbuilding industry early next month, the scale of 520 billion won in the bank loan must be repaid.  The sale of a 50.7% stake in STX OSV which STX Europe holds and, STX Shipbuilding held 66.7% stake in STX Europe STX Norway has a 100% stake. 

tglim74      ( Date: 20-May-2012 00:17) Posted: Thanks rutheone1905! Was trying to read the news in Korean with google translate on the Mandatory Orders part but still ended up with confusion. (http://news.mk.co.kr/newsRead.php?year=2012& no=304307)  Will wait from the response from SGX before taking any actions on Monday. Congrats to those who have  profited  from this counter! =)  rutheone1905      ( Date: 20-May-2012 00:03) Posted: my take is wait for SGX announcement n letter of offer.....currently we do not know the details like how many major investors will willing to sell n if they dont then everything back to normal. if they do, then at wat price? for us we wait for SGX for the actually offered price n it is up to u to sell or not to sell.   however if it is a delist case then u have no choice but to sell (ofcos if u insist u still can dont sell but after delist, SGX wash hand)

 

from the News:    " Both parties plan to sign a preliminary agreement on the deal sometime next week...."  

the word " preliminary" i dont like it.....the whole deal may be blown over.  

once SGX got the confirmed details then will be fast but how long it takes from " preliminary" to " confirmed" that the key.....the buyer din give management premium that may also translate to they in no hurry to buy UNLESS other buyers come in for another offer.

tglim74      ( Date: 19-May-2012 23:59) Posted: Any suggestion on how long we need to hold on for those who are caught at price higher than 1.60 like me?  rutheone1905      ( Date: 19-May-2012 22:54) Posted: for those bought higher then 1.6 no hurry to sell unless got suckers willing to buy higher then 1.6, n u need to pay commission via mkt selling, for those lower then 1.6 no hurry to sell too becos no sucker will buy from u at 1.6 cos they need to pay commission n u too,  left behind r other grp with different agenda.

 

Thanks rutheone1905!

Was trying to read the news in Korean with google translate on the Mandatory Orders part but still ended up with confusion. (http://news.mk.co.kr/newsRead.php?year=2012& no=304307)  Will wait from the response from SGX before taking any actions on Monday.

Congrats to those who have  profited  from this counter! =) 

rutheone1905      ( Date: 20-May-2012 00:03) Posted: my take is wait for SGX announcement n letter of offer.....currently we do not know the details like how many major investors will willing to sell n if they dont then everything back to normal. if they do, then at wat price? for us we wait for SGX for the actually offered price n it is up to u to sell or not to sell.   however if it is a delist case then u have no choice but to sell (ofcos if u insist u still can dont sell but after delist, SGX wash hand)