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China Fishery - Low PE

Report in undercurrentnews: http://www.undercurrentnews.com/2013/04/11/china-fishery-raises-copeinca-bid-to-match-cermaqs-offer/

for your reading pleasure...

 

Group made a competing offer to match the bid of NOK 59.70/ share by Cermaq ASA and extended the deadline of acceptance to 10 May 2013. As of 11 Apr, China Fishery has a total aggregate holding that equal to 32.3% of Copeinca Recall over the weekend, Cermaq ASA made a voluntary cash offer of NOK 59.70/ share for Copeinca ASA, after gaining a 50.7% control of Copeinca. Cermaq achieved its 50.7% control after i) Copeinca issued new shares to Cermaq ii) several of Copeinca's major shareholders and treasury shareholders sold their stakes to Cermaq China Fish's initial plan for the acquisition of Copeinca would boost its peruvian catch quota by 10.7% in North and Central Peru, and an additional 3% of catch quota in South Peru- enabling China Fish to become the largest fishmeal co in Peru with a total of 16.9% catch quota in North and Central Peru and 14.7% in South Peru, and one of the top producers in the world.

 

Is the closing date 15 April for CF's tender still stay ??? Anyone please help ....

 

Yeah... looks like the vote by the Norwegian Govt is the deciding factor to me... If the vote is NO, then CF got chance...

JMS213      ( Date: 11-Apr-2013 09:33) Posted: " Cermaq said its tender offer would be launched in late April. The group, which is 43.5% owned by the Norwegian government, will then need the approval from the Norwegian parliament for the deal, in a vote scheduled in May."   " The Dyer-Coriat family, which will own 7.5% of shares in Cermaq as part of the sale, intends to remain a long-term investor in the company, he said. The family has accepted a two year lock up period for the shares in Cermaq they receive as part of the transaction."     CF is able to make quick and decisive move, watch and see ...... don't be surprise ......

 

" Cermaq said its tender offer would be launched in late April. The group, which is 43.5% owned by the Norwegian government, will then need the approval from the Norwegian parliament for the deal, in a vote scheduled in May."  

" The Dyer-Coriat family, which will own 7.5% of shares in Cermaq as part of the sale, intends to remain a long-term investor in the company, he said. The family has accepted a two year lock up period for the shares in Cermaq they receive as part of the transaction."    

CF is able to make quick and decisive move, watch and see ...... don't be surprise ......

 

 

....The Board would like to announce that the Offeror will amend the terms and conditions of the Voluntary Cash Offer and will be increasing the Offer Price of the Voluntary Cash Offer from NOK53.85 to NOK 59.70, so as to match the competing bid of NOK 59.70 by Cermaq ASA...

Personally, as of current situation, I don't think CF will eventually be successful even with this revised offer. But I think CF is giving it a try...

 

Looks like china fish has up its offer to match cermaq..

Full article on:
http://www.chinafisherygroup.com/attachment/2013041107570517_en.pdf

 

... buying interest is building up ... generally... pm session sentiment seems improve....

...last done: $0.445... 

 

For your reading pleasure:

http://www.undercurrentnews.com/2013/04/05/cermaq-offer-leaves-china-fishery-little-room-to-maneuver-in-bid-for-copeinca/

http://www.undercurrentnews.com/2013/04/05/copeinca-to-be-cermaqs-third-pillar/ 

China Fish is holding  9.9% stake in Copeinca. Personally I hope  China Fish  would withdraw its acquisition offer & not up the offer. Let us see how China Fish respond.

 

one good example will be ipco.. ipco is cash rich just like what CF is going to have now.. but the price doesnt goes up.. u guys can just hope positive news come out from what they going to do with the cash, just like how im waiting for ipco to break news on what they going to do with their cash lol

cheongsl      ( Date: 06-Apr-2013 10:19) Posted: Cash rich does not implies that price will go up, will need to observe whether is there any good investment on the cash. starlene      ( Date: 05-Apr-2013 23:08) Posted:   Recall how CF dropped from 75cts to 57cts after the takeover,don't be surprise CF may go up instead as it is now cash rich with the rights issue. CF may then become cash rich with its recent rights issue...since deal to acquire the Peru fish co did not materalise as the major shareholders agree to sell to another co and not to CF. Cermaq's per share price offer excludes Copeinca's proposed dividend of 3.56 kroner per share, and represents a premium of 10.9 percent to the offer price of 53.85 kroner per share launched by CFGL on March 13. It also represents a 55.8 percent premium to the closing price of the Copeinca share on February 22, the second last trading day prior to CFGL's announcement of the intended voluntary offer.

 

Fundamental this counter profit margin is good, but in short terms will be affect by the rights issue and especially those that look for quick bargain since the right is 1:1 the dilution is quite large. and exercise price at 0.34 which is quite low, thus if some shareholder did not take up the right, and those that take up the excess right might look for quick profit, thus usually after rights issue, short terms there is sell pressure. It may take half or one year before starting to show the real potential again. If the take up rate for the rights by shareholder is  alot, then likely the sell pressure will not be great and in shorter duration the potential will be realise, thus currently will need to check the take up rate by shareholder.

Yes, currently is the ex-right value. Before ex-right closing is 0.6, thus ex-right adjustment should be (0.6+0.34)/2 = 0.47. The pushing down of the price shown is an interest in party to get more access rights, by generating lower interest for shareholder. But how is the effect need to wait until the right allotment annoucment.

starlene      ( Date: 06-Apr-2013 15:26) Posted: I wonder the existing 41% stake is a comfirmed deal or CF must return since CF is now unable to be successful in the takeover..being cash rich means CF can look for other better deals and CF is unlikley to fail as its financial position is strengthened..deal no successful,theoretical the price shd go up,since it dropped from 75cts to 58cts after deal is announced,and now the price is theoretical ex-rights Blanchard      ( Date: 05-Apr-2013 23:25) Posted: In addition, if CF chooses to sell her existing stake in Copeinca to Cermaq, I think  CF  might earn a few millions? Just  enough to cover the cost for this failed acquisition? Cash-rich CF can then  look for other good deals...

 

Cash rich does not implies that price will go up, will need to observe whether is there any good investment on the cash.

starlene      ( Date: 05-Apr-2013 23:08) Posted:   Recall how CF dropped from 75cts to 57cts after the takeover,don't be surprise CF may go up instead as it is now cash rich with the rights issue. CF may then become cash rich with its recent rights issue...since deal to acquire the Peru fish co did not materalise as the major shareholders agree to sell to another co and not to CF. Cermaq's per share price offer excludes Copeinca's proposed dividend of 3.56 kroner per share, and represents a premium of 10.9 percent to the offer price of 53.85 kroner per share launched by CFGL on March 13. It also represents a 55.8 percent premium to the closing price of the Copeinca share on February 22, the second last trading day prior to CFGL's announcement of the intended voluntary offer.

 

In addition, if CF chooses to sell her existing stake in Copeinca to Cermaq, I think  CF  might earn a few millions? Just  enough to cover the cost for this failed acquisition? Cash-rich CF can then  look for other good deals...

 

Report in undercurrent news: http://www.undercurrentnews.com/2013/04/05/cermaq-buys-50-7-of-copeinca/  ..." The surprise announcement means the end of China Fishery Group’s takeover ambitions for Copeinca, which were conditional on China Fishery acquiring 50.01% of shares in the company."

The China Fishery Group Board is in consultation with its advisors to explore its options in relation to the information announced by Copeinca and will update Shareholders in due course. In the meantime, the Board wishes to advise Shareholders to exercise caution in their dealings in shares of the Company and to refrain from taking any action in relation thereto, until they have sought their own financial and legal advice where appropriate.

 

I was lucky in this counter, escape in time and also get  the divident. Will continue to observe until next technical entering time.

 

Copeinca ASA : STATEMENT BY THE BOARD OF DIRECTORS OF COPEINCA ASA IN CONNECTION WITH THE VOLUNTARY OFFER FROM GRAND SUCCESS INVESTMENT (SINGAPORE) PRIVATE LIMITED

http://www.4-traders.com/COPEINCA-ASA-4006733/news/Copeinca-ASA-STATEMENT-BY-THE-BOARD-OF-DIRECTORS-OF-COPEINCA-ASA-IN-CONNECTION-WITH-THE-VOLUNTARY-16606999/

Let us see how China Fish respond...

 

Latest development :

 

Noted. Even if I purchased the rights off the market, I will make payment by ATM using the same process as the provisionally allocated rights.

Thanks for the help!!

guoyanyunyan      ( Date: 04-Apr-2013 16:26) Posted: ... first they will sent you a letter, indicating the number of rights you have... ... then you can make payment by ATM (the easier way) or by bank draft (need to send the attached form back)... lawliet      ( Date: 04-Apr-2013 16:15) Posted: After purchasing the rights off the open market and getting the confirmation letter saying the number of rights purchased, I just have to go to the ATM to apply and pay as per the process for shares provisionally allocated? Quite confused cause I was told that I have to do some bank draft and send some form if I bought the rights off the open market.

 

true.. personally think that it is quite a good time to enter for china fish now given current valuation. but might have to hold a while before the money starts coming in.. huat ah!

starlene      ( Date: 03-Apr-2013 14:52) Posted: Becoz the nil paid rights still trading downward pressure,after this the new shares  from exercise of rights at 34cts is on the way,CF may take the chance to boost its share price at this moment with its successful takeover or we hve to wait a little longer... ken_boy      ( Date: 03-Apr-2013 08:31) Posted: Haha dun flatter me.. Anyway, I bought some yesterday, just in case missed the boat. Looking to average by buying the rest on the last day.. Hmm, how come the sentiment for this stock so negative recently? (apart from the acquisition plan). Current stock price seems quite undervalued.

 

... first they will sent you a letter, indicating the number of rights you have...

... then you can make payment by ATM (the easier way) or by bank draft (need to send the attached form back)...

lawliet      ( Date: 04-Apr-2013 16:15) Posted: After purchasing the rights off the open market and getting the confirmation letter saying the number of rights purchased, I just have to go to the ATM to apply and pay as per the process for shares provisionally allocated? Quite confused cause I was told that I have to do some bank draft and send some form if I bought the rights off the open market.