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1781-1800 of 1912
As true singaporean.. sad to see these local pioneer companies get taken over by foreign investors.
Hoping it would be to go ahead. After this, Charoen will need to ask you and I to sell our shares to him lor! Base price could be minimum $3.40, some sales of Wearnes and the Orchardgateway unlocked cash values that has raised the NAV of UE. In the first place, there was never an accurate NAV as the assets seem undervalued. Hopefully, at the end, we get to sell our shares to Charoen at a higher price than OCBC agrees.
kirana ( Date: 03-Oct-2014 23:04) Posted:
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Therefore how would it turn out?
Takeover is for UE E& C
So if both side not giving way, than no deal is the best answer.
Good of you to be so encouraging! Mr Charoen will not overpay. Yet Mr OCBC gang will not be underpaid.
Waiting for the takeover announcements. Hope it will be above $3.40.
Togther with UE E& C and UE P , they are entering their 3rd day of HALT...
kirana ( Date: 02-Oct-2014 22:49) Posted:
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Still in H mode....a lot of possibilities.
how come there are transaction during pre session? trading halt lifted?
Halt trading again........ hope is good news
Transcript of video:
Thai businessman Charoen Sirivadhanabhakdi is often called the Thai Tycoon, Peter, because of his relentless appetite for buying companies but maybe there' s a bit of deal fatigue at this point. Well, it definitely seems to be a deal fatigue setting in amongst the shareholders, the public shareholders of his publicly listed companies. And actually we' ve seen today the latest announcement which is that they confirmed that he' s in talks to buy this company called United Engineers which could be another takeover on top of the $3.3 billion which he' s a already, his company has already spent on acquisitions this year. And all of this comes on top of course of the acquisition of Fraser and Neave, the Singaporean conglomerate which costs another $11 billion. But the interesting aspect to this really is that his empire is quite hard to piece together. There are all these listed entities, the largest of which is Thai Beverage which makes Chang Beer. These are all controlled by different sort of family entities- Chareon himself, his wife, and other members of his family. And so, the hard thing is trying to work out where the assets are and also, where the debt is and where the financing is coming from that is fueling this big acquisition spree. Hard to work out indeed and you do have to question again whether shareholders are starting to get really worried about this. Yeah, I mean, I think we' ve seen the shares of some of the existing companies falling in the last few months. For example, Fraser' s center point which is the property business that was spun off from Fraser and Neave to this big deal in Australia and shareholders have taken a slightly lukewarm attitude towards that. There' s also some question about really whether the sort of, the broader picture that the leverage picture might prompt Chareon to do some strange things with some of his companies and actually Standard & Poor' s, the rating agency downgraded ThaiBev to junk because it was worried about debt in the related companies. That rating was then subsequently withdrawn at the company' s request so I think shareholders of these public entities might sort of feel well, you know, we have- we' re invested in this particular public company. What happens in the broader group doesn' t really affect us too much but obviously he' s on a bit of an acquisition spree that can affect these companies. And not really knowing where the leverage is in this company and kind of how it might be related to other businesses is a concern at the moment. The opaque business structure of Thai Tycoon Chareon' s companies, investors starting to take note.
Video news on UE takeover: : http://insider.thomsonreuters.com/link.html?cn=share& cid=1290858& shareToken=MzpiOGM3ZGE3NC0yMjc3LTRjNDItOTRkZC0wYjc4YzY3M2RmNjQ%3D& playerName=ReutersNews
http://sbr.com.sg/building-engineering/news/uel%E2%80%99s-wearnes-disposal-could-set-stage-charoen%E2%80%99s-takeover-report
This stock must look at sentiment daily as the price runup is premised on a takeover happening. CIMB analyst who earlier said UE is worth 20% below NAV should quietly disappear as such incompetence reflect badly on the firm.
Is UE still has link to Straits Trading Co after getting WBL?
A lot of sellers queing, looks like there' s going to be some volatility in the stock until the announcement of the purchase of OCBC group' s 34% in UE.
The suspension was probably to allow news of the impending sale of the automotive segment (acquired from Wearnes), which is positive news, a cash injection of $450mln to boost their cash in bank to exceed $1bln.
The price runup so far has only been 48cents. It' s still cheap for Charoen and could attract other predators such as OUE (Lippo). The news is positive, hence today would be a catching up of the upward price movement (PE is still below $10, hanging at 9 plus).
An observation made in the F& N takeover. Charoen offered $8.88 to OCBC, above the prevailing price at that time. So the price would very much depend on how UE performs in these few days and weeks before he buys the 34% from OCBC. I would be inclined to think that anything below $3.50 will still be safe. Once the price goes above $3.50 towards $4.00 it starts getting a little more aggressive.
To get in now below $3 is a bargain, for sure. That explains the queues at $2.80
The trading halt has been lifted.
Buyers on the queue for $2.80 already, could bust $3 today.
UE chart (adjusted for corporate actions).
Strange thing, current assets are three times that of 2008, ROE has gone up from 6 to 8 %, yet current price has not reached price of 2008 days. With the sale of non core assets such as the automobile segment of luxury cars ($450mln), debt is going to go down by a fair bit.
