WBL Corporation

[touzi]

Today's announcement by WBL under miscellaneous:ealing Disclosure. Posted about 11.03 am.

[pianist]

Today's announcement by WBL under miscellaneous:ealing Disclosure. Posted about 11.03 am.

thanks..hope u r vested too.. let us enjoy this ride...haha

[ngcheeki]

Kim Eng has done a rough estimation of the value of WBL in this morning report. They estimated that their china property worth around 800 mil to 1 billion. The estimated value for WBL is between $5 to $5.60.

http://www.maybank-keresearch.com.sg/Dow...310113.pdf

Not vested

[KopiKat]

New bid by UE in yesterday's SGX Annc,

PRE-CONDITIONAL VOLUNTARY OFFERS BY JP MORGAN (S.E.A.) LIMITED FOR AND ON BEHALF OF UE CENTENNIAL VENTURE PTE. LTD., A WHOLLY-OWNED SUBSIDIARY OF UNITED ENGINEERS LIMITED, FOR WBL CORPORATION LIMITED

---

Commentary by Lim & Tan today,

Key facts:

a. A spokesman of OCBC, which has a direct 5.84% stake in WBL, said the Bank’s investment objective is to maximize returns, which may mean retaining, not divesting of, shareholdings”.

b. UE, like OUE in the F&N saga, is staring with zero holding in WBL. It is offering $4 cash a share, vs Straits Trading’s (STC) offer of $3.41 cash or 1.07 STC share.

c. In its slide presentation, UE has demonstrated that acquiring WBL will significantly boost its earnings.

d. STC is currently the largest shareholder of WBL with a 44.6% stake. (At STC’s last traded price of $3.88, its share option values WBL at $4.15 or 5 cents below WBL’s last traded price of $4.20.)

e. Concert parties of UE, ie OCBC, Great Eastern and the Lee family, jointly own 38.3% of WBL, leaving a balance of 17% in the hands of minority shareholders which include 6 institutional names like Aberdeen, 3rd Avenue (with residual 3.76 mln shares after the swap with STC), and DBS Asset, Evermore Global Advisors, Dimensional Fund Advisors and
Well Fargo, with holdings ranging from only 32,000 shares to 757,000 shares.

COMMENTS

i. A bidding war has thus erupted, given OCBC’s stance, and STC’s stated intention to make WBL one of its “pillars” and having convinced Aberdeen and 3rd Ave to swap their WBL shares for STC shares, known for their poor liquidity.

ii. One cannot rule out an opportunistic attempt to build up a “meaningful” stake in WBL, which will be of great strategic importance, especially to STC, so close to the goal post with 44.6%. (Once it passes 50% and its offer becomes unconditional, game will be over, given UE’s bid is conditional on it getting >50%.

iii. WBL is hence not just a Hold Tight, but even a continued BUY because of the above points.

[pianist]

so u r buying ah?

[KopiKat]

so u r buying ah?

No time to do my homework as busy with CNY spring cleaning.... so, unlikely to do anything till after CNY...
Just happened to see it in Lim and Tan report, so, post it for the TikamBuddies here to perhaps put in their watch list.. oops.. I mean ValueBuddies...

[weijian]

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

Mutual funds tend to sell low and buy high. The reason is simple - Rising markets attract more inflow of $ and hence they have to use this cash to buy equities as they may risk underperforming (if they hold cash) and they are also not paid to hold cash. On the other hand, dropping markets causes outflow of $ and and mutual funds need to sell to meet margin calls due to customers' redemption.

[pianist]

i see..thanks for sharing..so u mean they are momentum players? which i think is a perfectly ok strategy as well. nothing wrong

[pianist]

ho ho ho...santa claus come early this year?

THE UE OFFERS - (a) Stockholders of the Company ("Stockholders") should note that the offer price for each Stock Unit has been revised as follows: For each Stock Unit: S$4.15 in cash

[PkNanas]

Only 2.7% of Valid acceptances.
Closing Date extended.

Question to forummer: For those that has tendered their Shares, can they withdraw their Acceptance, since the closing date is being extended?