Cerebos Pacific

(02-08-2012, 12:13 PM)cif5000 Wrote: You may wish to review Del Monte. Same kind of shareholding structure, strong consumer products, stock trading at above book value, dividend yield is also comparable.

Cerebos and Del Monte are worlds apart. Del Monte although has a strongh consumer brand do not own the brand. many, many years ago they have given the distribution and the branding to a japanese company(sorry temporary lapse and cannot remember which). To buy back the rights they have to pay hundred of millions. also DM is in plantation ie pineapples etc and every few years they were hit with the El Nino weather, at least this was the excuse given for poor performance.

what I see all these companies asiapac brew, cerebos and even JEL have in common is the strong distribution channels they own that is of value. You see the companies that are trying to takeover them are in the same industry, their aim is to use this same channel to push their product to increase their market share whether is in frozen foods, beer or whisky, suntory btw is more than just a whisky brewer company

Hi cif5000,

Thanks for the recommendation. This is a good one. Anyway it won't be too bad for any companies come with the name Pacific right

Del Monte has been in my watchlist for years but i was deterred from buying it because the thin margin and ROE shows it is more like a commodity kind of business such as pineapple plantation than selling canned foods with a premium.

As for the proxy, look like very hard to overturn the resolution, since i only have 17% minority to count on. People tends to be lazy it is hard for get minority to take initiative to send into objection letter.

another key difference betw Cerebos and Del Monte is the cash.
Cerebos is cash rich and Del Monte is debt rich.

latest results shows Del Monte has USD138mil of debt and only USD18mil of cash.

(02-08-2012, 10:58 AM)hongonn Wrote: The exit condition is upon the approval of the Delisting Resolution by a majority of at least 75 per cent. of the total number of issued
Shares, and the Delisting Resolution not being voted against by 10 per cent. or more of the total number of issued Shares.

With Suntory 82.58% holding, what is the chances this offer will lapse?

I also read they will be sending out the offer letter, if i do not reply the letter, is it considered i vote against the offer?

The price should be better, considering its brand value, it should be at least $8 to $9.

Wow, Suntory offer price at 6.6+ imply a PE of 20+ and PB of 5+. At $8 to $9, i dunno who will buy. U have to ask yourself this question, at S$8 will you buy?

(02-08-2012, 10:48 PM)Bibi Wrote: Wow, Suntory offer price at 6.6+ imply a PE of 20+ and PB of 5+. At $8 to $9, i dunno who will buy. U have to ask yourself this question, at S$8 will you buy?

At $8 the Cerebos PE is around 26x, and you look at APB Tiger beer the offer price $50 has reached PE 34x.

Cerebos is selling Brand's chicken essence, i guess this thing will still sell when my generation is over, probably even my next generation is over. These are the brand value should be accounted for.

The premium of $1.22, it takes less than 5 years to get back all by dividend $0.25, not factored in special dividend.

(02-08-2012, 11:27 PM)hongonn Wrote:

(02-08-2012, 10:48 PM)Bibi Wrote: Wow, Suntory offer price at 6.6+ imply a PE of 20+ and PB of 5+. At $8 to $9, i dunno who will buy. U have to ask yourself this question, at S$8 will you buy?

At $8 the Cerebos PE is around 26x, and you look at APB Tiger beer the offer price $50 has reached PE 34x.

Cerebos is selling Brand's chicken essence, i guess this thing will still sell when my generation is over, probably even my next generation is over. These are the brand value should be accounted for.

The premium of $1.22, it takes less than 5 years to get back all by dividend $0.25, not factored in special dividend.

Felt quite disappointed that my watchlist has been shrinking recently with our best consumer staples companies, APB and Cerebos being subjected to takeover offer. Was hoping for perhaps yet another Thai flood...

Brands have a very strong market share in Singapore, commanding a 90% market share despite competition coming from New Moon and other products. It has also been very successful in Thailand, Taiwan, Hong Kong and Malaysia commanding at least 80% market share.

I guess the most impressive consumer staple company left in SGX is now QAF, though it will need to divest some divisions that are generating poor return on capital.

Sad to see more and more strong companies being privatized. Is it time to look out of Singapore for such stocks?

Lately Cerebos start giving out the proxy form and exit offer letter. Something i don't get it in the letters.

For my case i want to reject the offer, but in case the company indeed get delisted, i still want to shares to be bought over at offer price in public market.

What am i supposed to do? Ignore the proxy form but still accept the exit offer letter?

This sentence puzzled me. "Shareholders who do not accept the Exit Offer may find it difficult to sell their Shares in the absence of a public market for the shares, as there is no arrangement for such Shareholders to exit."

The de-listing offer of Cerebos Pacific goes unconditional. It is consider done deal

http://info.sgx.com/webcoranncatth.nsf/V...10046CD2E/$file/Unconditional_Announcement_and_Level_of_Acceptances_Announcement.pdf?openelement