Let u know a secret :) There a couple of traders out there waiting to cover their shorts on monday :P I want to see them Cry as they short in the friday morning and didnt have the chance to cover back.
I want them to cover high.
ruanlai ( Date: 24-Apr-2010 14:48) Posted:
Monday Morning Short at the high follow by the high of DOW....
Then direction will go all the way to south as things not confirm yet as someone is not accepting.
Baker Tech accepts Yangzijiang's offer to buy PPLH
By NISHA RAMCHANDANI
BAKER Technology has accepted an offer from shipbuilder Yangzijiang Shipbuilding (Holdings) to buy PPL Holdings (PPLH) from Baker for US$155 million.
Baker, which received a letter of offer from Yangzijiang on April 16 to buy all of PPLH, said that accepting the offer allowed the company to unlock the value of its investment in PPLH. PPLH is an investment holding company that holds a 15 per cent stake in PPL Shipyard, which constructs offshore drilling rigs.
Baker also said it had received a letter from Sembcorp Marine on April 22 through its lawyers 'demanding that (Baker) not accept the offer' as Sembcorp Marine alleged that any sale to Yangzijiang would circumvent Sembcorp Marine's pre-emptive rights to have first right of refusal over the sale of PPLH's shareholdings in PPL Shipyard. Sembcorp Marine has an 85 per cent stake in PPL Shipyard.
'The board has sought and received legal advice that Sembcorp Marine has no basis for its claims,' Baker said in an announcement on the Singapore Exchange yesterday evening.
Yangzijiang, which is based in China, is making the purchase together with a Middle East investor, the shipbuilder said last week.
If the acquisition goes through, Yangzijiang, the Middle Eastern investor and Mediterranean Success Group - which is wholly owned by Yangzijiang's non-executive director Yu Kebing - will hold stakes of 50.1 per cent, 45 per cent and 4.9 per cent respectively in PPLH.
As part of the deal, Yangzijiang will place 83.55 million new shares to the Middle Eastern investor at $1.295 a share. The proceeds will be used for the acquisition.
In a filing on Friday, Baker said that it has received a binding letter of offer from Yangzijiang to buy the entire and paid up share capital of PPLH for US$155 million ($208 million).
Payment for the acquisition will be made in cash after the completion of the sale and purchase of the Sale Shares, the announcement said.
One condition of the agreement is an escrow agreement that requires the purchaser to deposit the Total Sum with an escrow agent.
*EXTREMELY SMART GOVERNANCE*
The sale of the shares is still subject to the approval of shareholders at an extraordinary general meeting to be convened.
— Mainboardlisted Baker Technology said it has accepted Yangzijiang Shipbuilding’s offer to purchase Singapore- based PPL Holdings.
Rationale: YZJ To Enter The Robust Offshore Sector (^.^ )
The Board of Yangzijiang is of the view that this strategic acquisition would be in the best interest of the Group as Yangzijiang’s post-Acquisition involvement in PPL Shipyard's business for the design and construction of offshore drilling rigs would add to, and further strengthen Yangzijiang's capabilities in this area and further the Group's development and competency strategies.
Without prejudice,
I see no reason why BT should turn down the offer by YZJ. The offer is just too
good. YZJ is probably one of the top 3 wealthiest (if not the wealthiest) shipbuilders
in the region and they could splash a lot of vitamin M in to expand PPL. I
remember the times when the economic is doing badly, profits of YZJ is still
pouring in like waterfall. I dont think it’s wise for SCM to counter offer as
the amount offered by YZJ is out of this world. Unless, TH(temasek) want to
step in to help a bit. But this will affect their other investments and they
will have to answer to the shareholders. Even if SCM do counter offer, don’t forget
YZJ is capable of counter offering back with another better offer.
Looking at
Part A section 8 - Interests of Directors and Controlling Shareholders, of the announcement
release by BT, the only director that has got shares of YZJ is Tan Yan Guan who
is holding 50,000 shares. 50 000 shares at current market price is not worth a
lot. Furthermore, none of the Directors or controlling shareholders of the
Company has any interest, direct or indirect, in the Proposed Disposal. Hence, I
don’t think the acceptance of offer by BT is of personal interest/profits/gains
within the directors board. Otherwise, every director will be holding on to
tons of shares now. The acceptance is of best interest of the shareholders of
BT.
It just doesn’t
make sense for SCM to disagree with the deal, after all, if YZJ help PPL to
expand and increase profits, SCM will benefits as well. The disagreement is
perhaps personal? Not wanting competition from others? Remember the time when
there’s only 1 telco in Singapore?
Just my
personal view, I may be wrong. Lol~ let’s wait and see!
looks like oil is up! Time to stock oil? ChinaOilField? any advice?
Rationale: YZJ To Enter The Robust Offshore Sector (^.^ )
The Board of Yangzijiang is of the view that this strategic acquisition would be in the best interest of the Group as Yangzijiang’s post-Acquisition involvement in PPL Shipyard's business for the design and construction of offshore drilling rigs would add to, and further strengthen Yangzijiang's capabilities in this area and further the Group's development and competency strategies.
Rationale: YZJ To Enter The Robust Offshore Sector (^.^ )
The Board of Yangzijiang is of the view that this strategic acquisition would be in the best interest of the Group as Yangzijiang’s post-Acquisition involvement in PPL Shipyard's business for the design and construction of offshore drilling rigs would add to, and further strengthen Yangzijiang's capabilities in this area and further the Group's development and competency strategies.
The price of YZJ has dropped to the level before the initial announcement of the deal. Even though the deal concelled, we may not see panically sell-down Monday, espeicially if Dow performs well tonight, stay calm and enjoy weekend with your special ones.,
It doesn't matter anymore whether SCM is objecting the sale or not. This is because there's only one FACT from the annoucement, Bakers Tech has accepted the offer from YZJ. Main Highlight of the announcement is probably Part A(1) of the announcement,
"The Board wishes to announce that the Company has today accepted the Offer by the Purchaser, for the Company to sell to the Purchaser the entire issued and paid-up share capital of PPLH held by the Company on the terms and conditions as set out in the Letter of Offer (the “Proposed Disposal”)."
Highlight of Part B is
"The Board has sought and received legal advice that SCM has no basis for its claims."
Whether SCM like it or not is not going to change the fact that BT has accepted the offer.
So... Is it good news for YZJ and bad news for SCM? If so... is YZJ price going up and SCM going down? Someone please advice!
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