Boustead Singapore

http://infopub.sgx.com/Apps?A=COW_CorpAn...1.2015.pdf

http://infopub.sgx.com/Apps?A=COW_CorpAn...9Nov15.pdf

PROPOSED ACQUISITION OF
ENERGY ASSET IN INDONESIA
Singapore, 9 November 2015
1. Introduction
The Board of Directors of Boustead Singapore Limited (“Boustead” or the “Company”, together with its subsidiaries, the “Group”) is pleased to announce that Boustead as part of a consortium together with One North Energy Private Limited and Lamara Energy Pte Ltd (together, the “Consortium”), has entered into an agreement with ASX-listed Triangle Energy (Global) Ltd (“TEG” or the “Seller”) in relation to acquiring TEG’s 100% interest in Pase Production Sharing Contract (“Pase PSC”) in Aceh, Sumatra, Indonesia (the “Acquisition”).
Boustead will have a shareholding of 83% of the Consortium, which will incorporate a Singapore entity for the purposes of the Acquisition in the future.
2. Principal Terms of Acquisition
2.1 Acquisition Price
Under the terms of the Acquisition, the Consortium has agreed to offer TEG the firm purchase consideration of US$3.9 million (the “Purchase Price”) and terms as laid out in the attached TEG announcement titled “Superior Proposal of up to A$45 million” released on 9 November 2015 over the ASX. Other potential purchase consideration to be paid to TEG or the relevant authorities will depend on the performance of Pase PSC.
The Purchase Price was arrived at after arm’s length negotiations on a willing buyer-willing seller basis and shall be satisfied wholly in cash.

Indonesia's a tough place to do business...

Anyway, does it mean the management thinks energy asset prices are bottoming out?

Acquisition too small to move the needle. nothing to get excited about.

(09-11-2015, 09:24 AM)greengiraffe Wrote: http://infopub.sgx.com/Apps?A=COW_CorpAn...1.2015.pdf

http://infopub.sgx.com/Apps?A=COW_CorpAn...9Nov15.pdf

PROPOSED ACQUISITION OF
ENERGY ASSET IN INDONESIA
Singapore, 9 November 2015
1. Introduction
The Board of Directors of Boustead Singapore Limited (“Boustead” or the “Company”, together with its subsidiaries, the “Group”) is pleased to announce that Boustead as part of a consortium together with One North Energy Private Limited and Lamara Energy Pte Ltd (together, the “Consortium”), has entered into an agreement with ASX-listed Triangle Energy (Global) Ltd (“TEG” or the “Seller”) in relation to acquiring TEG’s 100% interest in Pase Production Sharing Contract (“Pase PSC”) in Aceh, Sumatra, Indonesia (the “Acquisition”).
Boustead will have a shareholding of 83% of the Consortium, which will incorporate a Singapore entity for the purposes of the Acquisition in the future.
2. Principal Terms of Acquisition
2.1 Acquisition Price
Under the terms of the Acquisition, the Consortium has agreed to offer TEG the firm purchase consideration of US$3.9 million (the “Purchase Price”) and terms as laid out in the attached TEG announcement titled “Superior Proposal of up to A$45 million” released on 9 November 2015 over the ASX. Other potential purchase consideration to be paid to TEG or the relevant authorities will depend on the performance of Pase PSC.
The Purchase Price was arrived at after arm’s length negotiations on a willing buyer-willing seller basis and shall be satisfied wholly in cash.

Boustead's gas deal in Aceh today appears to be one where they overtaken a previous deal that wass strucked between sellers and another buyer... The initial purchase consideration of the deal at US$3.9m will reach a max of US$32.4m on fulfillment of certain conditions of the E&P deal... I suspect its a no gas no pay deal... little wonder why Boustead said that the risks is manageable

V typical of Boustead especially in high risks deals like E&P... however, I suspect this initial deal will be that of a foothold into the E&P area and if they hit more gas within the area... there will be bonuses... anyway the infrastructure to pipe gas from E&P is available and hence likely to be less risks as well


Moreover O&G prices at bottomend as well... v typical of Boustead GG style... (Garang Guni)

Vested

Request for Trading Halt - 6 Nov Friday 8.37am
Announcement on Proposed Acquisition - 9 Nov Monday 8.22am
Request for Lifting of Trading Halt - 9 Nov Monday 8.37am

Within about half a hour (in the morning rush hour), the investing public is supposed to know of the announcement, and processed the information.

Is this how the lifting of trading halt supposed to work? If rationale is due to No significant Financial Impact deemed by Management -
The Acquisition is not expected to have a material impact on the Group’s earnings per share, profitability and net asset value per share in the financial year ending 31 March 2016.

Then, there should be no Trading Halt in the first place. Whether this development has an impact to the investor, should it be determined by the investor himself, or can be determined by Boustead management in its request for immediate lifting of trading halt after the announcement.

Not that I am displeased with the development, but concerned as to why stock exchange permitted lifting in the absence of ample time window. I also failed to understand why the proposed acquisition cannot be announced over the weekend if Boustead management wanted the trading to commerce in Monday morning.

November 9, 2015 - http://www.theedgemarkets.com/sg/article...tract-aceh

Boustead Singapore ( Valuation: 1.80, Fundamental: 2.50) as part of a consortium with One North Energy Private Limited and Lamara Energy has agreed to acquire Triangle Energy (Global)’s 100% interest in the Pase Production Sharing Contract in Aceh, Sumatra, Indonesia.

The consortium has agreed to the purchase consideration of US$3.9 million ($5.5 million).

Boustead will have a shareholding of 83% of the consortium, which will incorporate a Singapore entity for the purposes of the acquisition in the future.

Boustead’s share of the purchase price will be funded through its internal resources.

Pase PSC encompasses 922 sqkm of explorable acreage and has a proven field containing natural gas reserves in Aceh.

This means the group will be able to shift into upstream ownership, production and potential development of natural gas, which is seen as the primary alternative and a cleaner fuel for power plants compared to coal.

Boustead Singapore says the acquisition will provide the group with “an excellent opportunity” to expand its energy-related engineering division, which is the second largest revenue contributor to the group after the real-estate solutions division under Boustead Projects ( Valuation: N/A, Fundamental: N/A).

The acquisition will also provide the group with the ability to grow its recurring revenue base further.

Meanwhile, the current business environment in the global oil & gas industries is depressed due to low crude oil prices. This has in turn resulted in attractive valuations for energy assets.

Boustead Singapore last traded at $1.03.

(09-11-2015, 11:41 AM)Yoyo Wrote: Request for Trading Halt - 6 Nov Friday 8.37am
Announcement on Proposed Acquisition - 9 Nov Monday 8.22am
Request for Lifting of Trading Halt - 9 Nov Monday 8.37am

Within about half a hour (in the morning rush hour), the investing public is supposed to know of the announcement, and processed the information.

Is this how the lifting of trading halt supposed to work?  If rationale is due to No significant Financial Impact deemed by Management -
The Acquisition is not expected to have a material impact on the Group’s earnings per share, profitability and net asset value per share in the financial year ending 31 March 2016.

Then, there should be no Trading Halt in the first place.  Whether this development has an impact to the investor, should it be determined by the investor himself, or can be determined by Boustead management in its request for immediate lifting of trading halt after the announcement.

Not that I am displeased with the development, but concerned as to why stock exchange permitted lifting in the absence of ample time window.  I also failed to understand why the proposed acquisition cannot be announced over the weekend if Boustead management wanted the trading to commerce in Monday morning.

Wah buddy,

I can sense the fire in you... 

Not that I m please with SGX these days but the halt was lifted at 920, a cool 21 minutes after official trading starts today...

To be fair... Boustead could have only gotten permission from the Sellers to release their announcements...

Anyway, i think yr fire should be directed at SGX...

On the investors' part... depending on yr time horizon, the announcement may not have that sort of impact should u be a wrong term investor...

This morning was some sort of concussion for me as well to digest this announcement alongside that of FCL...

Busybody
GG

hey peeps edge markets singapore giving away movie tickets for their fb post 'greatsingaporestocks' contest. but not sure the t&c, go try for fun bahz. looks simply enough lol

Hi GG

The fire in me has gone down since. You are right that I am aiming more at SGX. Your point that Boustead may have just got permission is a valid one. Thanks.

Vested.

Good companies must not be forgotten and written off... v frank outlook statement by the man himself:

http://infopub.sgx.com/Apps?A=COW_CorpAn...1.2015.pdf

Mr Wong Fong Fui, Chairman and Group Chief Executive Officer of Boustead said, “The difficult global business environment and specific market conditions in the global oil & gas industries and within Singapore’s industrial real estate market are being reflected in our results. We are already in the midst of a ‘winter’ – whether it be short or a long-drawn out one, we do not know. For strategic purposes and prudence, we decided to reduce the interim dividend to one cent per share which shareholders can choose to take in cash and/or scrip. Conserving our healthy cash resources in this environment is the right thing to do so that we can capitalise on great acquisition or investment opportunities when the time arrives.”

Profit before income tax decreased by 27% to S$18.1 million, primarily due to lower gross profit contributions from the Energy-Related Engineering Division and Real Estate Solutions Division. Despite the significant challenges, all three operating divisions remained profitable in 2Q FY2016, with the Geo-Spatial Technology Division improving profit before income tax even in the face of currency headwinds.

http://www.triangleenergy.com.au/ 
http://www.triangleenergy.com.au/asset/pase-field

- a vulture deal?

Vested
GG