CH Offshore

(11-12-2014, 05:18 PM)Louhan Wrote: I think single-digit premium is about 4 cents above the latest price.

(11-12-2014, 05:13 PM)Bluechipfan Wrote:

(11-12-2014, 04:39 PM)sgpunter Wrote: Single digit percentage premium is a joke...but regardless, it can only be good news for CH Offshore/Chuan Hup.

So the offer price can be anywhere between 0.4654 to 0.4691 if it is true. 2 days back only traded at 0.445. Might as well buy from market straight

10% above latest traded price will be 4.65 cents. My bad. Single digit percentage would be anything between 0.469 to 0.511 then. Anyway still don't know the cause of the halt. Guess just have to wait and see.

(11-12-2014, 04:24 PM)ngcheeki Wrote: Falcon Energy to launch takeover offer for CH Offshore: source

SINGAPORE (Dec 11): Falcon Energy Group ( Financial Dashboard), the biggest shareholder in CH Offshore (Financial Dashboard), will launch a takeover offer for the rest of the company it doesn’t already own, according to a person with knowledge of the matter.

“It’s a general offer. Falcon wants to buy out the rest of the company,” the person told theedgemarkets.com.

Falcon Energy, which provides offshore support vessels and logistics services, owns 29.1% of CH Offshore, an operator of anchor handling tug supply (AHTS) vessels.

Shares of Falcon Energy, CH Offshore and Chuan Hup Holdings ( Financial Dashboard), which owns 23.8% of CH Offshore, are halted from trading.

“The offer price is a single-digit percentage premium over the latest share price,” the person said, declining to reveal additional details.

Falcon Energy bought its 29.1% stake in CH Offshore from Malaysia-listed Scomi Marine ( Financial Dashboard) in 2010.

Scomi Marine acquired the CH Offshore stake in 2005 from Chuan Hup.

CH Offshore operates 15 AHTS vessels, nine of which are wholly owned, according to its website.

For the quarter ended Sept 30, the company earned US$5.6 million, down from US$7.4 million a year earlier despite a 15% rise in revenue. The results in the previous quarter were boosted by a write-back of provisions.

http://www.theedgemarkets.com/sg/article...ore-source

Does this means news leaked?

Announcement in SGX - Cash offer of CH Offshore at $0.495.

(11-12-2014, 06:05 PM)GPD Wrote:

(11-12-2014, 04:24 PM)ngcheeki Wrote: Falcon Energy to launch takeover offer for CH Offshore: source

SINGAPORE (Dec 11): Falcon Energy Group ( Financial Dashboard), the biggest shareholder in CH Offshore (Financial Dashboard), will launch a takeover offer for the rest of the company it doesn’t already own, according to a person with knowledge of the matter.

“It’s a general offer. Falcon wants to buy out the rest of the company,” the person told theedgemarkets.com.

Falcon Energy, which provides offshore support vessels and logistics services, owns 29.1% of CH Offshore, an operator of anchor handling tug supply (AHTS) vessels.

Shares of Falcon Energy, CH Offshore and Chuan Hup Holdings ( Financial Dashboard), which owns 23.8% of CH Offshore, are halted from trading.

“The offer price is a single-digit percentage premium over the latest share price,” the person said, declining to reveal additional details.

Falcon Energy bought its 29.1% stake in CH Offshore from Malaysia-listed Scomi Marine ( Financial Dashboard) in 2010.

Scomi Marine acquired the CH Offshore stake in 2005 from Chuan Hup.

CH Offshore operates 15 AHTS vessels, nine of which are wholly owned, according to its website.

For the quarter ended Sept 30, the company earned US$5.6 million, down from US$7.4 million a year earlier despite a 15% rise in revenue. The results in the previous quarter were boosted by a write-back of provisions.

http://www.theedgemarkets.com/sg/article...ore-source

Does this means news leaked?

Guess it all depends on wats Chuan Hup going to do about this offer from Falcon?

http://infopub.sgx.com/FileOpen/SGXNET_V...eID=327896

Holdings of the Relevant Persons. As at the date of this Announcement (the
“Announcement Date”), the Relevant Persons (as defined in Section 8.1 below) own an
aggregate of 205,170,000 CHO Shares, representing approximately 29.10% of the total
number of issued CHO Shares

Offer Price. The consideration for each Offer Share will be as follows:
For each Offer Share: S$0.495 in cash (the “Offer Price”)

Offeror’s Intentions. It is the current intention of the Offeror to maintain the listing status of
the Company on the SGX-ST following completion of the Offer.

If CHO wins the suit in UK, and if they were to be awarded the amount of damages they sought, it would be equivalent to about 8 cents per CHO shares. Falcon is trying to be cheeky. Lets see what CHH does about this.

Get more money from them la!

(11-12-2014, 07:14 PM)smallcaps Wrote: Guess it all depends on wats Chuan Hup going to do about this offer from Falcon?

http://infopub.sgx.com/FileOpen/SGXNET_V...eID=327896

Holdings of the Relevant Persons. As at the date of this Announcement (the
“Announcement Date”), the Relevant Persons (as defined in Section 8.1 below) own an
aggregate of 205,170,000 CHO Shares, representing approximately 29.10% of the total
number of issued CHO Shares

Offer Price. The consideration for each Offer Share will be as follows:
For each Offer Share: S$0.495 in cash (the “Offer Price”)

Offeror’s Intentions. It is the current intention of the Offeror to maintain the listing status of
the Company on the SGX-ST following completion of the Offer.

With only 29.1%, and now making a GO at $0.495/share - vs. CH Offshore's last done share price at $0.465 - Falcon Energy would need quite a lot of luck in order to attain control at minimum 50.1%.

Analyst report from L&T

Falcon Energy (23.5 cents, trading halt) which owns 29.07% of CH
Offshore (46.5 cents, trading halt) has launched a voluntary conditional
cash offer (VCCO) for the remaining shares that it does not own at
49.5 cents each, representing a 6.5% premium to its last traded price
and 8.3% premium to the volume weighted average price in the past
1 month.
If successful, CH Offshore will become a subsidiary of Falcon Energy.
This will enable Falcon Energy to explore opportunities to unlock
synergistic value in the CH Offshore Group’s businesses. In addition,
it will also allow Falcon Energy an attractive platform to build on its
businesses in offshore support services.
In the event that Falcon Energy obtains a majority control of Ch Offshore,
the company intends to undertake a review of the group’s entire
offshore marine business and may embark on programmes to optimise
effi ciency in the business operations and the capital management of
the enlarged group.
Falcon Energy currently intends to maintain the listing status of CH
Offshore on SGX, however, in the event that the free fl oat of the
company falls below the 10% statutory requirement, it reserves the right
to re-evaluate its position, including exercising its right to compulsorily
acquire the outstanding public shares.
CH Offshore’s largest shareholder Chuan Hup together with Chuan
Hup’s founder Peh Kwee Chim who owns 30.61% of the company
(6.23% direct interest and 24.38% deemed interest) have not given
irrevocable undertaking to vote in favour of the offer. The market may
thus start speculating that Chuan Hup and Peh Kwee Chim may also
be thinking of launching their own bid for CH Offshore.
Falcon Energy’s VCCO is conditional upon the company obtaining
by the close of the offer at least 50% of CH Offshore’s outstanding
shares, implying at least 20.93% acceptances before the offer will turn
unconditional.
Falcon Energy’s original stake of 29.07% stake in CH Offshore was
acquired from Scomi Marine Services in Feb’2010 at 70 cents a share.
Since then, they have received about 15 cents worth of dividends,
reducing their cost to about 55 cents a share.
At 49.5 cents a share, CH Offshore is valued at $349mln, giving it a
historical PE of 10.6x and price to book of 1.1x. While an opportunistic
move amidst the overall carnage in oil and gas related stocks, given
CH Offshore’s historically generous dividend track record (4 cents paid
last year consisting of 2 cents special and 2 cents normal) coupled with
Chuan Hup’s potential counter bid, we believe it may not be easy for
Falcon Energy to succeed in taking control of CH Offshore.

Not vested

(12-12-2014, 12:28 PM)ngcheeki Wrote: Analyst report from L&T

Falcon Energy (23.5 cents, trading halt) which owns 29.07% of CH
Offshore (46.5 cents, trading halt) has launched a voluntary conditional
cash offer (VCCO) for the remaining shares that it does not own at
49.5 cents each, representing a 6.5% premium to its last traded price
and 8.3% premium to the volume weighted average price in the past
1 month.
If successful, CH Offshore will become a subsidiary of Falcon Energy.
This will enable Falcon Energy to explore opportunities to unlock
synergistic value in the CH Offshore Group’s businesses. In addition,
it will also allow Falcon Energy an attractive platform to build on its
businesses in offshore support services.
In the event that Falcon Energy obtains a majority control of Ch Offshore,
the company intends to undertake a review of the group’s entire
offshore marine business and may embark on programmes to optimise
effi ciency in the business operations and the capital management of
the enlarged group.
Falcon Energy currently intends to maintain the listing status of CH
Offshore on SGX, however, in the event that the free fl oat of the
company falls below the 10% statutory requirement, it reserves the right
to re-evaluate its position, including exercising its right to compulsorily
acquire the outstanding public shares.
CH Offshore’s largest shareholder Chuan Hup together with Chuan
Hup’s founder Peh Kwee Chim who owns 30.61% of the company
(6.23% direct interest and 24.38% deemed interest) have not given
irrevocable undertaking to vote in favour of the offer. The market may
thus start speculating that Chuan Hup and Peh Kwee Chim may also
be thinking of launching their own bid for CH Offshore.
Falcon Energy’s VCCO is conditional upon the company obtaining
by the close of the offer at least 50% of CH Offshore’s outstanding
shares, implying at least 20.93% acceptances before the offer will turn
unconditional.
Falcon Energy’s original stake of 29.07% stake in CH Offshore was
acquired from Scomi Marine Services in Feb’2010 at 70 cents a share.
Since then, they have received about 15 cents worth of dividends,
reducing their cost to about 55 cents a share.
At 49.5 cents a share, CH Offshore is valued at $349mln, giving it a
historical PE of 10.6x and price to book of 1.1x. While an opportunistic
move amidst the overall carnage in oil and gas related stocks, given
CH Offshore’s historically generous dividend track record (4 cents paid
last year consisting of 2 cents special and 2 cents normal) coupled with
Chuan Hup’s potential counter bid, we believe it may not be easy for
Falcon Energy to succeed in taking control of CH Offshore.

Not vested

Concurred with the view especially the bold part.

How come chuan Hup no need to make mandatory offer when cross 30%? Was it exempted due to the Scomi RTO?

If >30%, can buy up to 2% in rolling 12 months before making offer.


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