HG Metal
Last:0.565
-0.005
HG Metal a hidden gem ?
Post Reply
381-400 of 623
HG Metal likely to buy over BRC Asia
HG says it'll announce major acquisition today
By
NISHA RAMCHANDANI
STEEL
products maker HG Metal is expected to buy a controlling stake in BRC
Asia in a deal that could be worth up to $100 million.
 |
|
HG Metal will buy the stake from BRC Asia's parent company, UK-based Acertec Holdings, which owns 69 per cent of BRC.
|
|
|
|
|
|
According to a
Reuters report, HG Metal will buy the stake from BRC Asia's parent
company, UK-based Acertec Holdings, which owns 69 per cent of BRC. The
deal is said to be worth between $70 million and $100 million.
A
spokesman for HG Metal said yesterday the company will make an
announcement today on a major acquisition. He would not name the target
company.
HG Metal and BRC Asia requested trading halts yesterday.
HG Metal said recently its Q3 net profit almost quadrupled year on year
to $28.5 million, from $7.6 million in the year-ago period. Revenue
jumped 90 per cent to almost $234 million on strong demand and higher
steel prices. Earnings per share more than doubled to 6.72 cents, from
2.34 cents.
When it released the results, HG Metal said it was
'seriously considering merger and acquisition opportunities' and was
'in the midst of discussions with specific parties'.
BRC Asia, which designs and makes steel mesh, has operations in Singapore, Hong Kong and Shanghai.
Its Q2 net profit dropped to $1.75 million, from $2.1 million a year
earlier, despite revenue surging 167 per cent to $68 million. This was
due to a $3.4 million provision for 'onerous' contracts.
Despite
the slowing economy and the government scaling back some projects, 'the
construction market is expected to continue to be strong in the next 12
months', BRC said when it released its Q2 results in July.
The local construction industry is expected to be the main driver for the steel reinforcement industry this year.
A consortium led by steel products maker HG Metal will gain control of local rival BRC Asia from Britain's Acertec . the UK-based company said on Tue.
The consortium agreed to buy Acertec's 70.28% stake in BRC for $48.1 million, valuing the firm at over $68 million, Acertec said in a stock exchange filing in London, confirming what sources with knowledge of the deal earlier told Reuters.
BRC, a maker of steel reinforcement products for sale in Singapore and China, had a market value of US$49 million as of Mon, according to Reuters data.
Under Singapore's listing rules, HG Metal, which mainly sells its products such as steel plates and beams in Singapore and southeast Asia, will be required to make a takeover offer for the whole of BRC because its stake in BRC will exceed 30%.
Steel makers worldwide have been seeking partnerships and new investors to help them cope with soaring energy and iron ore prices.
SOURCES SINGAPORE, Aug 12 (Reuters) - Steel products maker HG Metal <HGMM.SI> is expected to acquire a controlling stake in local rival BRC Asia <BRCA.SI>
from UK's Acertec <ACER.L>, in a deal likely worth up to S$100
million ($71 million), sources told Reuters on Tuesday.
"HG Metal will be buying the stake from BRC's parent Acertec. The
deal should be announced on Wednesday," said a source with direct
knowledge of the deal. Acertec owns a 69 percent stake in BRC, which
has a market value of $49 million, according to Reuters data. Another
source told Reuters that the deal is likely to be worth between S$70
million to S$100 million. HG Metal and BRC Asia both halted trading in
their shares on Tuesday. (Reporting by Daryl Loo and Charmian Kok,
editing by Neil Chatterjee) ((daryl.loo@thomsonreuters.com; +65 6403 5669; Reuters Messaging: daryl.loo.reuters.com@reuters.net))
Something is going on.... this counter halted.
And BRC is.......also halted. Guess it yourself !!
This is a good stock, see how the market drops, and this counter just move an inched lower still steadily maintained at S$0.35. Give yourself a hand of applause for holding to this good stock. Good Luck for selecting the correct stock.
Take a look carefully, at S$0.395, the buy and sell volume is exactly the same figure ! Is this a coincidence? Good Luck
Last retrieved on Tuesday, 20 May, 2008 at 05:00:07 PM
|
|
Weighted Average Prices:
|
0.3952
|
Last Done Prices:
|
0.395
|
|
Spread/Price Ratio:
|
-1.0000
|
AVG Trade Size:
|
30,070.312
|
|
|
|
| |
This is no doubt a good fundamental stock.
I will vest again when the price soften more as I have noticed that for the past few days there are large lots sell down..... My view
Dont think there's anything unusual..market currently pricing steel stocks at 4 to 5 PE..look at hupsteel and asia enterprise, hardly moved after results too...this is due primarily to the industry's cyclical nature where steel prices are uncertain. Moreover as China moves to curb inflation, demand might decline and naturally steel prices would drop.
Also, there was a recent steep run up on the stock price recently and investors are probably taking the chance to lock in profits in view of volatile market conditions. Risk aversion is still high given that markets are on a roller coaster ride...
Yes, I agree with all the opinions and analysis, but the share was last traded at 40.5 cents today versus yesterday's closing of 42 cents. Why???
2QFY08
RESULTS
13 May 2008
O
HG Metal Manufacturing S$0.42 Target: S$0.72
Windfall from strong steel prices
Industrial goods & services - others
Mkt.Cap: S$178m/US$131mhttp://www.remisiers.org/research//HG%20metal%2013May08%20Op%20cimb.pdf
UTPERFORM Maintained
stock trading at 3.9 PE fy08, based on annualized half year earnings..something to shop for in great singapore sale! trading at PE lower than AE and Hupsteel...if trade at 5 PE, should be priced at 0.51 cents...
Ya is true, but I actually hold for 10 months after I checked my buy history......
Got earn is good already ! Wait for it to soften then buy back.
Ya lor.... wasted, let go at 0.405 yesterday
Now .42 liao !
This one no stopping....33.5¢ all the way to now 41.5¢......beri good run!
| Day High: |
0.380 |
Net Change: |
0.025 |
Total Value: |
1,681,490 |
| Day Low: |
0.360 |
Last Done: |
0.375 |
Volume: |
4,502,000 |
0.38 liao !!!
Seems I am right, when coming to qtr results announcement, it is starting to go up now. Moreover, directors are buying too ! Good Luck !
