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Hi KennyNg,
It means that the Offeror is only buying a 51% stake in GMG for $0.26 a share. It is paying cash and not shares.
KennyNg ( Date: 11-Jul-2008 10:01) Posted:
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ha ha can't contribute, as AK know tapping rubber tree but not its business.
Hi Shplayer,
What is the meaning of " 51% partial cash offer at 26c per share ". Can elaborate on this as I am quite new all the terms.
kenny
Rubber futures on TOCOM remained under selling Thu afternoon. The benchmark, most distant Dec '08 contract traded at 335.4 yen per kg at 3:45 p.m. Tokyo time, down 1.4 yen from Wed.
51% partial cash offer at 26c per share.
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_2264F55E07C49FD2482574820023A86C/$file/ANZ-PartialOfferAnnouncement.pdf?openelement
GMG Trading Halt pending announcement.
Take over offer?
Rubber futures on TOCOM lacked vigor Wed afternoon despite a late morning rebound from the early lows. The benchmark, most distant Dec '08 contract fell 3.2 yen from the previous day to 335.3 yen per kg at 3:45 p.m. Tokyo time.
Rubber futures on TOCOM remained at lower ground Tue afternoon, snapping a late morning rebound. The benchmark, most distant Dec '08 contract traded at 343.1 yen per kg at 3:45 p.m. Tokyo time, down 2.1 yen from Mon.
Thai Hua Rubber PCL, Thailand's 3rd-largest rubber producer, expects sales to China to rise more than 30% in 2008 because of the country's growing appetite for the commodity, its chief executive said on Mon.
The company, which last week struck a deal to sell 100,000 tonnes to China, has also invested in new plantations in Laos, where it plans to increase rubber plantings to 28,800 hectares (71,136 acres) in a few years from 2,640 hectares curently, Luckchai Kittipol told Reuters in an interview.
"We have expanded our production capacity and we expect to sell more rubber to Chinese buyers later this year and next year," said Luckchai.
"China bought less-than-expected rubber in the first quarter. We expect Chinese tyremakers to buy more rubber in the second half of this year. I think demand in China will remain firm."
Thai Hua Rubber aims to sell 250,000 tonnes of rubber this year, up from 188,000 tonnes in 2007, said Luckchai, adding that most sales would be to China -- the world's largest consumer.
"Sales should rise to around 320,000 tonnes in 2009," said Luckchai, who is also president of Thai Rubber Association.
The company sold 100,000 tonnes of rubber sheet and block rubber to China's Sentaida Tyre Co. Ltd at US$3.20 per kg in a deal struck last week. Shipment will run through December.
China imported 729,003 tonnes of natural rubber in January to May 2008, up 22% from a year ago. China's tyre production has grown rapidly, with output of radial tyres rising at 20% a year over the past few years. Tyres account for 60% of rubber consumption.
Thai Hua produces around 39,000 tonnes per month from its 12 rubber factories across the country, including three new factories on Thai-Laos border to satisfy rising Chinese demand, said Luckchai.
"Rubber trees in Laos and northeastern Thailand should start producing latex this year and our production will rise gradually," he said.
Thai export-grade rubber sheet, RSS3, was quoted at US$3.25 per kg on Mon, while STR20 block rubber was quoted at US$3.24 per kg, up from around $2.40 per kg for both types of rubber last year, dealers said.
At above US$3, cash rubber prices are at their highest level in more than half a century on tight supplies in Southeast Asia and oil-driven rally in Tokyo futures. Dealers are expecting a technical correction in the Japanese market.
"The current level is quite high," said Luckchai." But, I don't expect rubber prices to drop significantly as demand remain strong."
Thailand, the world's biggest rubber producer, exported 2.9 million tonnes in 2007, down from 3.0 million tonnes a year earlier, according to the Commerce Ministry. The country is expected to produce 3.1 million tonnes of rubber sheet and block rubber in 2008, up slightly from around 3.0 million tonnes last year, the Agriculture Ministry has said.
Rubber futures on TOCOM were slightly lower Mon afternoon after sizable declines in the morning session. The benchmark, most distant Dec '08 contract traded at 346.4 yen per kg at 3:45 p.m. Tokyo time, down 0.5 yen from Fri.
Rubber futures on TOCOM were slightly firmer Fri. The benchmark, most distant Dec '08 contract rose 1.4 yen from the previous day to 347.1 yen per kg at 3:45 p.m. Tokyo time.
Tokyo rubber futures were higher on Wed, tracking rises in oil and gold prices, but the upside was expected to be capped by profit-taking. The benchmark contract on the TOCOM for Dec delivery rose 2.9 yen to 351.7 yen per kg at 3:45 p.m. Tokyo time.
US crude oil prices rose to US$142.24 a barrel on forecasts that global supplies will struggle to keep pace with demand and concerns about tension between Israel and Iran.
TOCOM rubber was expected to rise further on speculative buying to test the next psychological resistance of 355.0 yen, the level at which profit-taking could emerge, dealers said.
Physical rubber prices rose and were expected to remain firm despite increasing supply because buyers need to buy more rubber to replenish stocks.
Rubber futures on TOCOM remained at moderately higher ground Tue afternoon. The benchmark, most distant Dec '08 contract traded at 347.1 yen per kg at 3:45 p.m. Tokyo time, up 1.4 yen from Mon.
Tokyo rubber futures were expected to hover near a 28-year high in Jul, supported by soaring oil prices and tight supply as wet weather hit producing countries, a Reuters poll showed on Tue.
Rains have eased in Thailand, the world's main rubber producer, but supplies have yet to return to normal. Main consumer China may buy more to replenish domestic stocks, dealers said.
Rubber futures on TOCOM came under broad selling Mon afternoon, entirely giving up the early gains. The benchmark, most distant Dec '08 contract sank 3.8 yen from Fri to 351.3 yen per kg at 3:45 p.m. Tokyo time. The contract ran out of steam from late morning to afternoon after climbing to a new lifetime high of 356.9 yen in early trading, the highest since Mar 1980.
TOCOM was also supported by tight physical supply as monsoon rains hit Thailand, the world's biggest rubber producing country, disrupting tapping.
Physical rubber prices were quoted higher and are expected to remain firm this week as rain hit producing countries, traders said.
Rubber futures on TOCOM held on to the broad morning gains on the back of oil and precious metals futures' sharp climbs. The most distant Dec '08 contract rose 4.9 yen from Thu to 352.8 yen per kg at 3:45 p.m. Tokyo time. The contract climbed to a high of 356.7 yen in the morning session.
Light, sweet crude for Aug delivery rose to a record US$142.26 a barrel in premarket electronic trading on the New York Mercantile Exchange.
Rubber futures on TOCOM slightly moved up Thu afternoon. The most distant Dec '08 contract rose 0.1 yen from Wed to 349.8 yen per kg at 3:45 p.m. Tokyo time.
Rubber futures on TOCOM generally regained strength Wed afternoon, shrugging off weakness in early trading. The benchmark Nov '08 contract grew 0.1 yen from Tue to 346.3 yen per kg at 3:45 p.m. Tokyo time. The new Dec '08 contract rose to 347.8 yen from its debut price of 345 yen.
Report by DMG.
GMG Global is a Singapore-headquartered plantation group dedicated to long-term investments in Central and West Africa, as well as Indonesia. It is an integrated producer of natural rubber engaged in the planting, growing, tapping processing, marketing and exporting of natural rubber. Their emphasis is on producing premium products for Europe, US and Asia markets.
GMG's Hevecam plantation in Cameroon has an area of 40,000 ha with a processing capacity of 50,000 tonnes. Its Tropical Rubber Cote d'Ivoire plantation in Ivory Coast has 1,511 ha and processing capacity of 30,000 tonnes. Its Indonesian operation has a processing capacity of 30,000 tonnes. GMG has an annual production of above 50,000 tonnes per year and accounts for approximately 60% and 12% of Cameroon’s and Ivory Coast’s annual rubber exports respectively.
GMG intends to boost production volume in the short term via expansion in processing by opening new plants in Indonesia or Ivory Coast. In the longer term, the group intends to grow production volume by new land and new plantation acquisitions.
At the $0.205, GMG is trading at 18.8x historical P/E. We do not have a rating on this stock currently.
Rubber futures on TOCOM became slack Tue afternoon, losing all of the morning gains. The benchmark, most distant Nov '08 contract fell 0.5 yen from Mon to 344.5 yen per kg at 3:45 p.m. Tokyo time.
Rubber futures on TOCOM held on to the strong morning gains Mon afternoon. The benchmark, most distant Nov '08 contract climbed 7.2 yen from Fri to 344.8 yen per kg at 3:45 p.m. Tokyo time.