Portek International

SIC required the white knight to clarify its intention by the 50th day ICTSI depstached its offer document.
As a shareholder, I just received the offer document dated 22 June 2011. The offer document set a deadline of 20 July 2011 to accept their offer.
May I ask how am I going to handle this and decide when the white knight announcement might arrive only after 2o July?

Hi, I suspect it's ok to tender your share. if there is a competing offer, you are allowed to re-tender the shares. This way, minority like us will not be at the mercy of the offerors.

(23-06-2011, 11:52 PM)pianist Wrote: SIC required the white knight to clarify its intention by the 50th day ICTSI depstached its offer document.
As a shareholder, I just received the offer document dated 22 June 2011. The offer document set a deadline of 20 July 2011 to accept their offer.
May I ask how am I going to handle this and decide when the white knight announcement might arrive only after 2o July?

http://info.sgx.com/webcoranncatth.nsf/V...A000A53E6/$file/Settlement_of_Profit_Sharing_in_GPM_250611R.pdf?openelement

In the first half of the cureent FY, Portek provided $1.4m for payment to the Gabonese party.
First half profit would have been $8.66 instead of the reported $7.26m in the absence of the profit-sharing agreeement.
Portek is very valueable.

(24-06-2011, 10:25 AM)guru Wrote: Hi, I suspect it's ok to tender your share. if there is a competing offer, you are allowed to re-tender the shares. This way, minority like us will not be at the mercy of the offerors.

(23-06-2011, 11:52 PM)pianist Wrote: SIC required the white knight to clarify its intention by the 50th day ICTSI depstached its offer document.
As a shareholder, I just received the offer document dated 22 June 2011. The offer document set a deadline of 20 July 2011 to accept their offer.
May I ask how am I going to handle this and decide when the white knight announcement might arrive only after 2o July?

how did u know we are allowed to re-tendered our shares?

This once-and-for-all settlement with the local Gabonese partner means henceforth, Portek will enjoy 100% of the recurrent earnings from the 2 Gabonese ports presently under management. Presumably this will make Portek even more valuable.

Looking at its historical price chart, Mr Market had been so wrong in under-pricing Portek in the last 3 years.....
http://finance.yahoo.com/echarts?s=P09.S...=undefined

How I wish I had put it a lot more of my investible funds into Portek!

there is a paper advertisement today to invite Portek shareholders to an exclusive SIAS-organised dialogue session with the Offeror at 7pm 12 July 2011 ar MND? the details can be found at http://www.sias.org.sg.

Hope to see fellow Portek shareholders at the event so that we can ask ICTSI and clarify matters with them.

What does SIAS expect to achieve?
The gathering will be superfluous if it is for the offeror to convince shareholders of Portek that its offer price is attractive. The offeror 's case rests solely on the huge premium over the historical price of Portek share. To conclude that the offer price is fair, the fundamentals of Portek have to be assessed. The huge premium is illusory as the price of Portek share had been depressed mainly because the company has never been covered by any broking firm. The unwarranted perception that Portek operates in unstable regions also does not help.
Portek's historical profit was $12.6m after providing for a profit share of $2.7m. The just-concluded termination of the profit sharing arrangement would justify a profit restatement of $15.3m, or an EPS of 10c. At $1.20, the offer price is 12 times of Portek historical profit, against the PER of offeror's own share of around 20 times. The offer price is indeed attractive, but to the offeror alone.
Moreover, indications from the Edge magazine and the recent business update of its engineering arm suggest that Portek should have done much better in the current FY that is ending tomorrow.
The IFA report should be ready before the 12-Jul gathering. Will the offeror be willing to field questions on points covered in the report?
Another interesting point concerns what is the offeror's plan in the face of Portek share trading way above the offer price. The call for shareholders to tender their shares, for counter-bid may not emerge, rings hollow as the correct course of action would be to sell the shares in the open market. The declared aim of gaining control of Portek also seems far-fetched without the support of the management team that holds close to half of the outstanding shares.
Shareholders who are members of SIAS may want discuss with the organiser to make the gathering meaningful.

Portek's Circular to Shareholders dated today (4JUl11) containing recommendations of the recommending directors and the opinions of CIMB (as the appointed IFA) on ICTSI's GO....
http://info.sgx.com/webcoranncatth.nsf/V...30030DE6E/$file/Circular_dated_4July2011.pdf?openelement

Since the release of the Circular to Shareholders (dated 4Jul11) via the SGX website in the evening of 4Jul11, Portek's share price has gone through a mild roller-coaster ride, having fallen on 5Jul11 from $1.24 (4Jul11's closing price), to as low as $1.20 (ICTSI's GO price) yesterday, and rebounded today (7Jul11) to an intra-day high of $1.245, with over 3,000 lots transacted so far in the last 2+ days.

Quite clearly, some of the shareholders have decided to sell into the market for the higher price than the $1.20 GO price (conditional on ICTSI securing over 50% of Portek), instead of having to endure the uncertainty and waiting for the emergence of a white knight together with a likely superior offer. It is relevant to note that all the shares sold were picked up by other investors, including possibly the white knight.

Who is the white knight, I wonder. Do fellow forumers have any guesses to share?

(07-07-2011, 04:01 PM)dydx Wrote: Since the release of the Circular to Shareholders (dated 4Jul11) via the SGX website in the evening of 4Jul11, Portek's share price has gone through a mild roller-coaster ride, having fallen on 5Jul11 from $1.24 (4Jul11's closing price), to as low as $1.20 (ICTSI's GO price) yesterday, and rebounded today (7Jul11) to an intra-day high of $1.245, with over 3,000 lots transacted so far in the last 2+ days.

Quite clearly, some of the shareholders have decided to sell into the market for the higher price than the $1.20 GO price (conditional on ICTSI securing over 50% of Portek), instead of having to endure the uncertainty and waiting for the emergence of a white knight together with a likely superior offer. It is relevant to note that all the shares sold were picked up by other investors, including possibly the white knight.

Who is the white knight, I wonder. Do fellow forumers have any guesses to share?

With uncertainty in the air and "minority insiders" selling out, what do you think a retail investor should do, bearing in mind that he/she had bought the shares at below $0.70 and a possibility to sell at a price higher than $1.20?