Cerebos Pacific

[cif5000]

The bright spot is in China. They have been investing there for quite a while already and it is still losing money. This to me is a big plus. It's a matter of time they cut loss or turn profitable, while maintaining a decent overall return.

[hongonn]

Recently Cerebos is in the news that some of its child supplements was discovered with DEHP, and since then has been put off shelf.

About the China venture, it has been more than past 5 years without success, according to the management is that the China man habit not used to drink liquid supplement (or soup) straight from the bottle. Not sure a valid explanation. I remembered they just recently (last year?) changed the person in charge in China.

Added: I remember now, China man think the soup from the bottle is not fresh. Yup, they can take package preserved chicken leg, pig intestine, but not bottled soup.

[VestedInterest]

Have been following this counter too. Yes, the price is not cheap but they have been quite generous with the dividends and they are cash rich. Their flagship brand 'Brands' is every where- supermarkets, petrol stations, pharmacies, hampers, etc. A lot of us grew up with Brand's. Our mother's probably drank it as well while we were in the womb. Some people use it for their cooking! This brand is a great one. There is a small chance that its parent group Suntory may take it private (owns more than 80% already)- some years back there was such a speculation. However, it is facing some competition from Eu Yan Sang and New Moon and a slew of other China originating chicken essence brands. Also should there be a new bird flu outbreak, its share price will be affected- should wait until then to buy, perhaps. However, despite their claims, the health benefit of drinking essence of chicken is yet to be proven conclusively. All in all, I will be waiting for this stock at a lower price.

[Zip113]

what a crazy ride!

+ 0.13 today, +2.51%!

[corporatefatcat]

From Biz Daily

Cerebos Bids US$57 million for New Zealand’s Comvita
Looking to diversify and expand its business, international food group Cerebos Limited Friday made a US$57.0-million (S$72.8-million) cash offer for New Zealand’s honey products company Comvita Ltd.
The group made an offer of NZ$2.50 for each Comvita share, a 19-per cent premium to Comvita’s closing price on Thursday.
“We can provide strategic assistance in sales and marketing in Asia where the Comvita brands are not yet well established,” said Trevor Kerr, Chairman of Cerebos Greggs, a subsidiary of the group.
He said Cerebos would look to invest in Comvita even if it crimped near-term earnings.
So far this year, Comvita shares have ranged between NZ$1.38 and NZ$2.12. They were untraded on Friday, but have gained about 40 per cent year to date, compared with a flat showing for the benchmark NZX-50 index.
Comvita makes skincare and health products from honey, exporting about 80 per cent of its output to 20 countries.
Cerebos is best known for its Essence of Chicken brand in Singapore. In New Zealand, it is best known for coffee and powdered drinks, herbs, salt and sauces.
Cerebos Limited closed on Friday at S$4.810.

[wsreader]

I read a news report that the offeree consider the ofer as hostile and unwelcome.
From this response, I think the likelihood of success is low at the current offer price. It may turn out to be an expensive acquisition, if successful.
Just look at SGX how much was spent to launch an unsuccessful M&A.
Perhaps the moeny should be channelled to handle any adverse impact of the flood on its Thailand operations/sales.

[Musicwhiz]

Business Times - 15 Oct 2011

Cerebos makes hostile bid for NZ firm

But honey products maker Comvita says NZ$71.6m bid is too low, opportunistic

By VEN SREENIVASAN

CASH-RICH Cerebos Pacific has made a hostile NZ$71.6 million (S$72.5 million) takeover bid for New Zealand-listed honey products company Comvita Ltd. The takeover is being done via newly established unit Cerebos New Zealand.

The offer price of NZ$2.50 for each ordinary share represents a 19 per cent premium to the closing price of Comvita's shares on the NZ Stock Exchange on Thursday. The offer price is also a 25 per cent premium to the one-month volume weighted average price (VWAP) and a 38 per cent premium to the three-month VWAP up to and including Thursday.

The offer is conditional on 90 per cent acceptance and certain other conditions specified in the proposed offer document. If the offer is successful, Comvita will be delisted from the NZ stock exchange and operated as a Cerebos subsidiary company.

Cerebos - which had some $153 million in cash and cash equivalents at half year to end-June 2011 - said it intends to take a long-term perspective, focusing on sales growth and delivering shareholder value.

Cerebos will soon forward its offer document to Comvita shareholders. Meanwhile, Comvita is required to prepare a Target Company Statement, including an Independent Adviser's Report on the merits of Cerebos' offer, and a recommendation to shareholders from its directors. The outcome of the takeover bid is likely to be known in the next few months and is subject to clearance by the Overseas Investment Office of New Zealand.

But the offer is being resisted by the NZ company.

Comvita's independent directors advised shareholders not to sell, saying the offer price is too low. 'This offer by Cerebos is unsolicited, unwelcome, opportunistic and your directors have reason to believe this offer undervalues Comvita by a considerable margin,' said chairman Neil Craig in a market statement.

Cerebos president & group CEO Eiji Koike said the takeover would benefit both Comvita and Cerebos.

'Cerebos would be looking to explore areas of collaboration,' he said. 'In particular, we can provide strategic assistance for sales and marketing in Asia where we have considerable strengths but where the Comvita brands are not yet well established. The Comvita business has clear potential which can only be fulfilled by an increased investment in R&D and brand building. If the acquisition succeeds, it would bring benefits to both sides and going forward, we would identify the most beneficial pathways for Comvita and Cerebos.'

He said Comvita shareholders should find the cash offer 'highly attractive', especially if the current market turmoil leads to further economic uncertainty.

'We are committed to the long term by providing the funds necessary to grow the business, like we do Atomic, Caffe L'Affare and Dominion Salt. In fact, the Cerebos group has recently invested in a NZ$13 million expansion at Dominion Salt in Mt Maunganui in which it is a 50 per cent joint venture partner and is currently making a NZ$6 million investment in New Zealand's only instant coffee producing plant in Dunedin.'

Comvita shares have ranged between NZ$1.38 and NZ$2.12 this year, but surged to a two-year high at over NZ$2.60 yesterday as news of the takeover offer hit the market.

The company makes skincare and health products from honey, exporting around 80 per cent of its output to 20 countries. Last month, it said it expected sales to rise as much as 16 per cent to NZ$95 million and said profits could more than double to between NZ$7.3 million and NZ$8.2 million in the year to end-March 2012.

Cerebos, whose Brand's products dominate the shelves across Asia, already owns several household brands in New Zealand, including Gregg's, Robert Harris, Bruno Rossi, Atomic and Caffe L'Affare coffees, Raro and Refresh powdered beverages, Gregg's herbs and spices, Cerebos salt, Bisto gravies, Cerebos and Whitlocks condiments & sauces, and Gregg's desserts. In Australasia, Cerebos' products include gravies, sauces, coffee and cooking aids marketed under established brand names such as Fountain, Gravox, Robert Harris and Toby's Estate.

[Musicwhiz]

Business Times - 12 Nov 2011

Cerebos posts 11% drop in Q3 profit to $20.6m

By VEN SREENIVASAN

HIGHER commodity prices and operating costs, coupled with a product recall in Taiwan depressed mainboard-listed Cerebos Pacific's third-quarter earnings by 11 per cent to $20.6 million, from $23.2 million a year ago.

Revenue for the July-September period was flat at $238.5 million, compared to $239.2 million previously.

For the nine months ended September, Cerebos posted a profit attributable to shareholders of $66 million, almost unchanged from last year's $66.1 million. Revenue rose 5 per cent to $700 million, from $665.4 million a year ago.

Earnings per share for the quarter under review came to 6.51 cents, down from 7.35 cents previously. For the nine months, EPS slipped to 20.85 cents from 20.99 cents.

The company's flagship Brand's family continued to do well during the quarter, with sales rising 6 per cent compared to last year despite the Taiwan nationwide food contamination scare which forced the company to recall its health supplement tablets.

Cerebos's food & coffee division's Q3 sales was down 8 per cent, mainly due to the discontinuation of the Riva instant coffee range and lower sales from the sauces category in Australia. Excluding the exchange translation gain of $1.2 million, Australasia sales would have been 9 per cent lower.

Operating profit for the food & coffee division declined by 38 per cent due to lower sales and increased costs of commodities.

Commenting on the results, president & group CEO Eiji Koike said that, overall, Cerebos's Q3 performance had been satisfactory amid the difficult economic environment.

'Sales of coffee and sauces ebbed slightly but our flagship Brand's range of health supplements provided continued growth,' he said. 'In line with our long-term strategic plan, we focused investments on areas where we could further strengthen our already established brand image and our reputation for high quality.'

Looking ahead, he said that the fourth quarter year would prove difficult.

'In addition to the global economic environment and increase in commodity prices, the group's results will be significantly affected by the flooding in Thailand. The impact should be for the short term and the outlook for the group's business remains positive over the mid-to-long term.'

The company had cash of some $108.1 million as at the end of September, compared to $142.5 million a year ago.

[Nick]

Delisting offer at $6.60 / share ! Anyone huat ?

http://info.sgx.com/webcoranncatth.nsf/V...D003555F9/$file/ProposedDelistingFinal.pdf?openelement [SGX Announcement]

(Not Vested)

[freedom]

another great company is going to leave SGX....

SGX will be left with more and more inferior companies(percentage).