(08-06-2011, 08:40 AM)dydx Wrote: [ -> ]Portek and its Chairman/MD Larry Lam are now talking to an interested white knight to come out with an alternative GO or counter bid to ICTSI's.....
http://info.sgx.com/webcoranncatth.nsf/V...90000DBAD/$file/Portek-Ann_of_discussions_08-06-2011.pdf?openelement
Let's hope the white knight comes sitting on a stallion with a good pedigree!
Hehe.. this time huat liao..
I suppose the upper limit should be $1.50?
I hope the white knight is able to let Portek runs its business as usual.
It is a pity that another gem is going the way of privatization.
Indeed... huat liao wakaka
Thankfully I held on, was going to cash out when it hit 80cents within a short period but decided to wait instead. Normally would have been good practice to do so. Then came the trading halt and offer. And now this?!
Damn lucky I say
Same here. Was planning to sell at 0.80 but not successful. Damn lucky.
Following this morning's announcement by Portek, a total of 4,027 lots were transacted today between $1.19 and 1.21, and Portek closed at $1.20. Presumably, the buyers today would include ICTSI, and those who are betting on an alternative GO from a white knight at a higher price. I guess the stage is set for a likely very interesting M&A drama.
Would there be a hot contest of wits, tactics and PR efforts from both sides if a white knight does emerge? Would there be competitive bidding by both sides?
I welcome fellow forumers to share your thoughts here.
sgx announcement - "....The Board of Directors of the Company is pleased to announce that the Company has appointed CIMB Bank Berhad, Singapore Branch as the independent financial adviser (“IFAâ€) to advise the Board of Directors of the Company, in connection with the Offer...."
just some real easy storytelling. i was in UK during the royal wedding period and i kept bumping onto knights riding on their mighty strong horses on the streets of central london..hmm now this white knight appears for Portek..it altogether feels so strange & special for me..feeling thankful & glad that i haven't sold a single of my shares yet bought to-date. personally this is more exciting than going to cinema for a movie.
Today's BT report on Portek, re-produced in full below....
Published June 9, 2011
Another suitor eyeing Portek
By JOYCE HOOI
(SINGAPORE) The possibility of a bidding war looms larger, now that Portek International has officially stated that one other party has expressed interest in buying it.
An announcement by the container terminal operator on the Singapore Exchange yesterday said that it is 'currently in discussions with a potential bidder who has expressed an interest to make an offer for up to 100 per cent of the shares in the company'.
According to Portek, this unnamed suitor had expressed interest in Portek to Larry Lam even before International Container Terminal Services, Inc (ICTSI) made its voluntary conditional cash offer of $1.20 per share for the rest of Portek shares that it did not own, last Wednesday.
Yesterday, Portek's share price broke ICTSI's offer price mark, trading at $1.21 at one point, before closing at $1.20.
Portek said that despite ICTSI's offer, the other party is still interested in discussing the possibility of an offer. It also stressed that there is no assurance that these discussions will result in any 'firm intention' by the party in question to make an offer.
Portek's announcement confirms a week of speculation that ICTSI was not the only entity with an eye on acquiring Portek.
BT understands that at least one trading house from an Asian developed economy had started the process of looking at Portek as an acquisition target.
When asked to confirm the possibility of other buyers last week, Mr Lam had told BT, 'Whatever we know, we would have announced already.'
At $1.20, the offer price is at a substantial premium - 69 per cent - to the stock's last traded price of 71 cents before ICTSI's bid was announced.
'This kind of investment suits either a strategic investor that is another terminal operating company or somebody who'll look at infrastructure investment for long-term use,' said Divay Goel, head of Asia operations at Drewry Shipping Consultants.
'So this is not (for) private equity or a normal institutional bank. This is more for a strategic investor who will add Portek's portfolio of terminals to their own terminals or for a financial institution which looks at infrastructure-funding type of projects.'
The day after ICTSI's bid was announced, Mr Lam's brother, Lam Soon Onn, sold 180,000 of his shares at $1.20 per share. On the same day, a director of a Portek subsidiary - Yap Cheng Hua - also sold 56,000 of his shares at the same price.
After ICTSI's open market purchase of Portek's shares at a price of $1.19-$1.20, it currently holds 16.93 per cent of Portek, up from 4.82 per cent from before it announced its bid.
It is a sure-win deal for ICTSI. If they get Portek, it will add to their portfolio synergistically. If not, they profit out of the additional 10% share acquired from the public due to the offer at white knight. Perhaps they have already predicted this and thus do not need due diligence to perform this deal.
Ultimately, the banks always get to win.
When we say sure-win deal we assume the incremental benefits for ICTSI to acquiring Portek far outweighs the offer price... assuming there's no higher offer eventually. Looking at the trading history though the offer already seems very attractive, 'fundamentals' are nothing without recognition realistically. Wonder if the IFA would time their 'advice' to more clarity from the new party.
Digressing, Hiap Hoe looks really interesting these 2 days. Stay tuned.
Let's look forward to the IFA's advise.
Portek gained concessions of the two Gabonese ports in 2008, beating terminal operators from Spain and the UK. Are these firms eyeing Portek to set foot in Gabon (and Malta and Algeria) where trade is thriving, and political situations relatively stable?