Goodpack

[CityFarmer]

Once the discussion passed over to adviser, the likelihood is slim, IMO...

(not vested)

--------
The Company wishes to inform shareholders that the Company has been approached by parties in
connection with a possible transaction, which may or may not lead to an offer for the shares of the
Company. Discussions are on-going and there is no certainty whatsoever that these discussions
will result in any transaction. The Company has appointed Rippledot Capital Advisers Pte Ltd as its
financial advisor in connection with such approaches.

http://infopub.sgx.com/FileOpen/HoldingA...eID=289184

[opmi]

Once the discussion passed over to adviser, the likelihood is slim, IMO...

(not vested)

--------
The Company wishes to inform shareholders that the Company has been approached by parties in
connection with a possible transaction, which may or may not lead to an offer for the shares of the
Company. Discussions are on-going and there is no certainty whatsoever that these discussions
will result in any transaction. The Company has appointed Rippledot Capital Advisers Pte Ltd as its
financial advisor in connection with such approaches.

http://infopub.sgx.com/FileOpen/HoldingA...eID=289184

Not too bad.

http://rippledot.com/?page_id=24

[AlphaQuant]

David Lam only has 32% holdings.

Perhaps Brambles is making a move?

http://www.brambles.com/

[portuser]

Is the appointment of financial advoisor at this early(?) stage unusual?

[GreedandFear]

Is the appointment of financial advoisor at this early(?) stage unusual?

Not at all unusual. The company will want proper advise and, if a bid is forthcoming, the Board will want advise as to its reasonableness. In my view, appointing an advisor is just Standard a Operating a Procedure. If anything it indicates that the Company and Board view this as a serious expression of interest (why else would they start to pay fees to an advisor......) but, of course, that doesn't necessarily lead to an actual bid.

(Vested)

[cif5000]

Once the discussion passed over to adviser, the likelihood is slim, IMO...

Care to explain why the likelihood is slim?

I think Lam wants to act together with the other shareholders. He could very well negotiate a price for his stake and then leave it for the minority to accept/reject the offer.

[CityFarmer]

Once the discussion passed over to adviser, the likelihood is slim, IMO...

Care to explain why the likelihood is slim?

I think Lam wants to act together with the other shareholders. He could very well negotiate a price for his stake and then leave it for the minority to accept/reject the offer.

IMO, once the discussion passed over to adviser with a similar public announcement, it means a deadlock in the negotiation. The same occurred for Armstrong Ind's first round of takeover.

Well, I might be wrong this time.

(not vested)

[portuser]

Goodpack’s market capitalisation is $ 1,260 m with its current share price of $2.25.

This is 11 times FY 2013 EBITDA of US$ 89m (or $ 111 m), rather high.

Rising trade of synthetic rubber and gradual adoption of intermediate bulk containers by the auto parts industry should boost cash flows.

Is Goodpack on the verge of reaping the benefits of more efficient deployment of IBCs through the use of RFID devices?
http://www.rfidjournal.com/articles/view?9201/2

The potential buyer has to be convinced of high profit growth in the near future.

[greengiraffe]

Brambles looks to diversify
DAMON KITNEY THE AUSTRALIAN MARCH 21, 2014 12:00AM

BRAMBLES has confirmed its appetite to diversify into new parts of the global supply-chain logistics market by revealing it held discussions with Singapore-listed Goodpack about a potential takeover.

Brambles said yesterday it had ended "active discussions" with Goodpack "in the recent past".

It declined to comment further but it is believed the discussions were taking place earlier this year.

The Australian company's chief executive, Tom Gorman, has been keen to further expand into the transcontinental intermediate bulk container market following Brambles' acquisition of Pallecon for $US177 million more than 18 months ago.

Goodpack is known as a major intercontinental transporter of rubber products from Asia, but has more recently looked to diversify into the automotive sector.

The $US1 billion ($1.1bn) Singapore company revealed on Wednesday that it had "been approached by several parties in connection with a possible transaction, which may or may not lead to an offer for the shares of the company".

The revelation and queries from analysts prompted yesterday's statement from Brambles .

"(Goodpack) has long been a logical target for Brambles and is considered to be one of the last remaining sizeable potential opportunities, especially given its existing intercontinental scale and recent push into automotive (a key target for Brambles' Containers division)," UBS analyst Simon Mitchell said.

[greengiraffe]

DBS maintained BUY raised target to $2.60:

Who could be the buyer?
• In talks for potential takeover offer; Brambles
denied
• Strong fundamentals; making good progress in
relatively untapped China market
• Autopart penetration offers upside to long-term
growth
• Maintain BUY; TP raised to S$2.60
Takeover offer resurfaces. Goodpack announced that it
has been approached by undisclosed parties, which could
potentially lead to a general offer for its shares. Discussions
are ongoing and it is premature to speculate on the
likelihood of a takeover offer, price, and consequences to
Goodpack at this stage. While Goodpack’s founder, Mr
David Lam, who has a controlling stake of 32%, is open to a
takeover offer, we believe current low valuations could be a
hurdle, given that the autopart business could be an X factor
for further re-rating of the stock.
Brambles denied; then who else? Goodpack was
reported to have received several offers back in 2007/2008,
from Australian peers Brambles and Loscam, when the stock
was trading at S$1.50-2.00 (or 17-22x PE). This morning,
Brambles denied the rumour that it is the offeror. However,
the last sentence in its official release -“Brambles will
continue to monitor the situation…” leaves room for further
speculation. Loscam is an Australian packaging company
that was bought out by a private equity firm Affinity Equity
Partners in Aug 2005. We view that Goodpack’s sole IBC
supplier, CIMC – the world’s largest container manufacturer
may also be interested in Goodpack, which provides
synergies to its logistics businesses.
Possesses a wide economic moat. As the only IBC player
with an extensive global presence, Goodpack has built up a
niche business that has a wide economic moat. This is not
just limited to its capital intensive 3m IBC fleet but also the
global network and supply chain management that it has
built up over the decades, which is hard to replicate. We like
its resilience during downturns and ability to leverage the
upcycle with continuous market share gains. We reiterate
BUY on Goodpack. We raise our target price to S$2.60 as
we roll over our DCF valuation (WACC 9.1%, terminal
growth 2%) to FY15 (FYE Jun), translating to 17x FY15F PE
and 2.7x P/BV, in line with its 10-year historical mean.