WBL Corporation

[CityFarmer]

There is a cover story on WBL in most recent issue of The Edge Singapore. Titled as "The play for WBL"

It give an good overview and reason(s) to bid for WBL and future plan(s) of WBL

can u paste it here please?

It is not from un-accessible old issue of the magazine, but from the most recent issue, which is easily available with couple of dollars.

I suggest those interested to purchase a copy. The issue also have lot of other interesting articles and definitely worth the money.

[ngcheeki]

WBL is going to sell off/divest their US listed company MFLEX!! Will WBL share price reacted positively to the following news?

See the following for more information

Norman Ip, Chairman of WBL Corporation Limited, stated, “Once declared effective by the
SEC, the shelf registration will provide WBL an avenue to monetize our holdings, whether in whole 12.3.12 shelf and 10b5 final joint or in part, of MFLEX common stock, as we execute our strategic options for our technology
businesses to enhance shareholder value. The shelf registration will enable us to access the capital
markets in optimal market conditions.”

http://info.sgx.com/webcoranncatth.nsf/V...90028FD69/$file/News_Release_3Dec2012.pdf?openelement

[pianist]

wow wow i am about to sleep in this cozy weather and yet another late 2nd monday announcement. what is all this about? can someone enlighten me?

if i were to recall, mr norman ip, ceo was just recently seconded from Straits Trading to replace the previous ceo mr Ng. something is fishy here

[greengiraffe]

Seriously, WBL is the most under-performing OCBC linked company remaining. And it only takes Straits Trading to be eyeing a bigger stake. Ever wonder why Aberdeen and 3rd Avenue as established fund managers are willing to swap WBL for Straits Trading - mostly likely they have also given up on the volatile earnings history at WBL. With an odd combination of China property development, trading and distribution and electronics manufacturing, WBL's track record is as volatile as its main contributors. OCBC and GE could well be making noise on the miserable cash offer but they could just be whining so that they can get a better cash exit for a non-core asset. WBL is no F&N and hence will not be a game-changer for either OCBC or GE.

OCBC raises concerns over offer for WBL

Key shareholder's doubts could affect Straits Trading's bid

Published on Dec 11, 2012

By Jonathan Kwok

A LOOMING offer for diversified group WBL Corp by The Straits Trading Company could face some hurdles after a key shareholder expressed concerns that the offer may be too low.

OCBC Bank, which holds 5.85 per cent of WBL, yesterday noted that the cash offer of $3.41 a share is below the latest reported WBL net asset value (NAV).

It is also below the average price of WBL shares traded on the Singapore Exchange on Nov23, the trading day before WBL announced a possible bid.

NAV a share was $3.48 on Sept 30, said WBL's latest financial announcement. All trades on Nov 23 were $3.50 to $3.51.

"We further note that the offer price might be reduced for any dividends declared," added OCBC chief financial officer Darren Tan, responding to The Straits Times' queries on the bank's plans for its WBL stake.

OCBC did, however, keep its options open. Mr Tan said the bank "is currently reviewing its options in relation to its shareholding interests in WBL".

The concerns of OCBC could be a setback to Straits Trading's general takeover offer for WBL before it is even formally tabled.

"If a credible large shareholder expresses that the offer is not enough, the market may believe it," said remisier Desmond Leong. "The market may see it as a cue that they may up the offer. So the market may put this offer on hold and wait for a better one."

Straits Trading flagged a possible general offer for WBL on Nov 26. First, it needs to complete the purchase of 64.02 million WBL shares - 23.61 per cent of the firm - from funds managed by Aberdeen Asset Management Asia and Third Avenue Management.

About 68.5 million new Straits Trading shares will be issued to pay for the shares from the funds. The deal needs shareholder approval.

After this, Straits Trading's stake in WBL will rise, triggering a mandatory general offer for the rest of the company.

WBL shareholders will have two options under Straits Trading's proposed offer: 1.07 new Straits Trading shares for every WBL share they hold or selling each WBL share for $3.41 to Straits Trading.

The stock option is the same as the deal given to Aberdeen and Third Avenue.

The cash option is based on the average price of WBL shares on Nov 23.

OCBC did not give a view on the stock option, only the cash option.

The bank has, in recent years, sold stakes in non-banking firms. In July, it agreed to sell stakes in Fraser & Neave and Asia Pacific Breweries to parties linked to Thai tycoon Charoen Sirivadhanabhakdi, sparking bidding wars for those firms.

OCBC also once held a stake in Straits Trading, which it sold.

OCBC's insurance unit, Great Eastern, has 18.07 per cent of WBL. It is unclear if Great Eastern shares its parent's concerns over the Straits Trading offer.

Straits Trading has businesses in resources, hospitality and property. It developed the Rendezvous Grand Hotel, which it wants to sell to Far East group.

WBL's automotive arm is the largest distributor of Volvos in the region, its website says. It also sells brands like Jaguar and Mazda in the region and has businesses in technology, property and engineering.

Shares of WBL and Straits Trading have risen in tandem after the possible offer was flagged on the night of Nov 26.

Straits Trading posted net losses for the third quarter and nine months ended Sept 30, and investors could be hoping that the WBL acquisition would turn around its fortunes.

jonkwok@sph.com.sg

[pianist]

funny, asking me to swap profitable WBL shares into STC shares (which STC reported net losses for 3rd quarter and nine months ended sep 30). something is really not right.

[pianist]

just when the focus was shifted to the halting of kingsmen, wbl and straits trading tonite also tio halt. is something brewing at a meeting room or poolside cocktail party now?

[thefarside]

Seriously, WBL is the most under-performing OCBC linked company remaining. And it only takes Straits Trading to be eyeing a bigger stake. Ever wonder why Aberdeen and 3rd Avenue as established fund managers are willing to swap WBL for Straits Trading - mostly likely they have also given up on the volatile earnings history at WBL.

A cursory look at the combined balance sheets of both WBL and Straits Trading shows that a post-merger company would have c. $600 mil in cash ($300 mil in WBL sits at subsidary level). With the Tans holding 88% of STC currently, Chew Gek Khim could easily use a sweetened combination of cash and shares to improve on the offer price to persuade shareholders of WBL to consent to the merger, allowing for some dilution of her family's stake in STC as a currency for the acquisition.

The initial price is just an opening gambit. The next step would depend on how much time OCBC management wants to spend prodding STC for an improved offer. I suspect OCBC and GE is not really keen on a shares exchange offer since it would land them with another large stake in a company they sold out of three years ago! But once OCBC and GE (and the Lee vehicles) fold it will be just a short hop for STC to get to 90%.

[wsreader]

......The initial price is just an opening gambit. The next step would depend on how much time OCBC management wants to spend prodding STC for an improved offer.

OCBC and GE sold the lucrative APB at $45 per share. The Thai buyer then flipped and sold APB off at $53 per share within a few months.
Now OCBC and GE is spending management time to prod STC for an improved offer.
....If only it had spend equally more time and effort on the APB deal.

(not vested in STC, WBL)

[touzi]

Aberdeen buying more WBL shares after selling its previous stake to STC??

http://info.sgx.com/webcoranncatth.nsf/V...20010A42C/$file/Dealing_Disclosure_28Jan2013.pdf?openelement

[pianist]

Aberdeen buying more WBL shares after selling its previous stake to STC??

http://info.sgx.com/webcoranncatth.nsf/V...20010A42C/$file/Dealing_Disclosure_28Jan2013.pdf?openelement

strange where did u get this announcement from? i dun seem to see it on sgx..
anyway what deals did the big boys and that girl inked, we probably dun have a gd idea under their non-disclosure mtual agreement.
aberdeen may seem nut to sell low and now buy high..but we never know the underlying..hee hee