Viz Branz

Whether or not there is a deal, 70cts/share is a very rich valuation. It is no longer undervalued. I would caution against buying at such prices in anticipation of a buyout offer..

Agree. I reckon PE firms and companies looking to buy on the cheap must be feeling a tad disappointed with the high market price, makes it hard for them to bargain down by much.

Based on the evolution of the potential deal until now, it seems to me Ben Chng is a willing seller but is trying to maximise the price and choose the most appropriate buyer. The fact that there are now more than 1 suitors simply means there are a few parties who are desirous to control or even own the whole of Viz Branz's regional, well-established and profitable instant beverages business.

I guess all Viz Branz shareholders should take note of the last para of today's announcement (reproduced below in full) which is the advice from the BOD including the IDs...

"Shareholders are therefore advised to refrain from taking any action in respect of their shares in the Company which may be prejudicial to their interests, and to exercise caution when dealing in the shares of the Company."

(06-08-2012, 08:41 PM)dydx Wrote: Based on the evolution of the potential deal until now, it seems to me Ben Chng is a willing seller but is trying to maximise the price and choose the most appropriate buyer. The fact that there are now more than 1 suitors simply means there are a few parties who are desirous to control or even own the whole of Viz Branz's regional, well-established and profitable instant beverages business.

I guess all Viz Branz shareholders should take note of the last para of today's announcement (reproduced below in full) which is the advice from the BOD including the IDs...

"Shareholders are therefore advised to refrain from taking any action in respect of their shares in the Company which may be prejudicial to their interests, and to exercise caution when dealing in the shares of the Company."

IMO, the highlighted paragraph is a standard statement for corporate update, rather than a dedicated advice from BOD

Full year results announced...
http://info.sgx.com/webcorannc.nsf/Annou...endocument

FY12 (ended 30Jun12) full-year results just out.....
http://info.sgx.com/webcoranncatth.nsf/V...700225C82/$file/VB_FYResults.pdf?openelement
Overall, a good set of profit numbers. The higher GP numbers confirm the combined positive impact of raising product selling prices in the course of the year and weakened raw material input prices from 3Q onwards. The substantially higher PBT numbers are further evidence of Viz Branz management's efforts and effectiveness in controlling other operating expenses. The higher NP and positive FCF generated have further strengthened B/S, especially net cash reserve, which stood at $31.1m (as at 30Jun12), translating to approx. $0.088/share (based on the latest 355.0m issued shares).

Viz Branz's BOD this time round has deliberately withheld the decision on the quantum of the Final dividend till later by the words "to be announced later". If indeed the BOD is trying to first ascertain how much more from the net cash reserve the company can afford around Nov12 to pay out as a Final dividend, with some luck Viz Branz shareholders may be getting another big one! Let's keep our fingers crossed!

I think the potential deal includes all future dividends, so no point declared dividend since the offer price will be reduced accordingly.
It is possible the next announcement will be the offer, we might have seen the last dividend already.

The management has decided to put on hold its proposed bonus issue as announced on 25 May 2012

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Will it cause a dive of the market price tomorrow?

(03-09-2012, 06:09 PM)CityFarmer Wrote: The management has decided to put on hold its proposed bonus issue as announced on 25 May 2012

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Will it cause a dive of the market price tomorrow?

I guess the answer would lie with whether the buyers/investors who have been supporting the share price at the current $0.70 +/- level comprise those who are betting mainly on a potential GO. As technically the postponed 1-for-1 bonus issue does not really create additional real shareholders' value, rationally speaking it should not be the main motivation driving buyers/investors for this counter.

(03-09-2012, 07:21 PM)dydx Wrote:

(03-09-2012, 06:09 PM)CityFarmer Wrote: The management has decided to put on hold its proposed bonus issue as announced on 25 May 2012

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Will it cause a dive of the market price tomorrow?

I guess the answer would lie with whether the buyers/investors who have been supporting the share price at the current $0.70 +/- level comprise those who are betting mainly on a potential GO. As technically the postponed 1-for-1 bonus issue does not really create additional real shareholders' value, rationally speaking it should not be the main motivation driving buyers/investors for this counter.

Rationally, the current price should be supported by two (2) factors

- potential GO with the on-going negotiation of major shareholder with a external party
- 1-for-1 bonus issue

But i am not sure which will carry more weight to Mr Market.