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The Straits Times
Feb 29, 2012
Wilmar buys 10.1% stake in Goodman Fielder
MELBOURNE: Singapore palm oil firm Wilmar International yesterday said it had acquired a 10.1 per cent stake in Goodman Fielder, Australia's largest listed food company, for US$124 million (S$156 million) and that its brands were a good fit.
The news sent Goodman Fielder shares soaring 30 per cent as investors bet on a potential takeover offer, but Wilmar said in a statement it was still assessing whether to increase its stake.
'We look forward to working with Goodman Fielder and its management team to improve Goodman Fielder's performance over time,' said Wilmar chairman and chief executive Kuok Khoon Hong.
Wilmar is among several Asian companies that have been snapping up Australian food businesses.
It bought Australia's largest sugar miller, CSR's Sucrogen, for A$1.75 billion (S$2.35 billion) in 2010, and last year took over Proserpine Sugar Cooperative for A$120 million.
It beat off competition for Proserpine from Chinese state-owned food giant Cofco Group, which earlier took over mid-sized sugar miller Tully Sugar.
Most recently, Thailand's Mitr Phol moved to complete the takeover of MSF Sugar.
Goodman Fielder is prized for its top-selling Australian brands, including Meadow Lea and Praise margarines, White Wings cake mixes, and Helga's and Vogel's breads.
Wilmar said the purchase would make it the largest shareholder in Goodman Fielder, adding that its brands were complementary to Wilmar's consumer business, which sells products in China, India, Indonesia and Vietnam.
Goodman Fielder said earlier that Wilmar already held a small stake in the company, and had been looking to buy some assets that it had put on the block.
It said in a statement it had not received any proposals from Wilmar or any other party to acquire the company.
The assets for sale include its New Zealand milling and its Integro Foods businesses, which make edible oils, breakfast cereals, sauces and cake mixes.
The Australasian firm, dual-listed in Australia and New Zealand, held talks with Wilmar over its interest in the Integro business after it was put up for sale last November.
Australian food manufacturers have been facing a tough market in recent years, with the main customers - Australia's top two supermarkets Woolworths and Coles - slashing prices in a bid to win customers, and squeezing the margins of suppliers.
Earlier this month, Goodman Fielder posted a 77 per cent slide in first-half net profit, citing a 'very tough' operating environment, and said it had cut 300 jobs.
It pointed to subdued consumer confidence, heavy discounting, a resurgence of supermarket home brands and a decline in margins for the result, which its chief executive Chris Delaney described as 'unacceptable'.
Goodman Fielder's shares rocketed 30 per cent to 67 Australian cents yesterday, its highest level since last August.
REUTERS
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Sounds like commodities companies are going more into vertical integration to capture the entire supply chain. This strategy seems somewhat complementary to the projections of massive global food shortage.. hmm..
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I vested in Wilmar last Friday. Hope at current price, it's a decent buy.
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How do you know if the value of their biological assets stated on the balance sheet is the "real" value? Im scared of companies with biological assets...reminds me of Oceanus.
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How do you know if the value of their biological assets stated on the balance sheet is the "real" value? Im scared of companies with biological assets...reminds me of Oceanus.
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(05-03-2012, 09:00 PM)propertyinvestor Wrote: How do you know if the value of their biological assets stated on the balance sheet is the "real" value? Im scared of companies with biological assets...reminds me of Oceanus.
i have refrained from investing in such companies.
One fine day, it may just say due to the El Nino effect, our trees are not growing as well and they write off their biological assets, the company books a loss and the share price plummets. Anyway, i am also not comfortable with the large current debt on its balance sheet
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*For the full article, please visit the website.
The Straits Times
www.straitstimes.com
Published on Aug 04, 2012
PLAY OF THE WEEK
Wilmar crushed by host of worries
Share price dips 9.5 per cent, wiping out $2.2b in market value
By Goh Eng Yeow Senior correspondent
PLANTATIONS giant Wilmar International has slumped to levels last seen in the aftermath of the global financial crisis three years ago and now there are worries that it may head even lower.
In the past two weeks alone, the former investor darling has nosedived about 9.5 per cent, wiping out about $2.2 billion of its market value. It closed unchanged at $3.24 yesterday.
The latest drop in share price means that Wilmar has fallen by more than one-third in price since the start of the year.
This works out to $11.3 billion in value terms - a sum not to be sneezed at, to say the least, since it is equivalent to the market capitalisation of a property giant such as City Developments.
As it comes under selling pressure, Wilmar's trading volume has also shot up. For the week, about 11.92 million shares changed hands on average a day - 21.8 per cent higher than the average 9.79 million shares changing hands daily so far this year.
The reasons for Wilmar's fall from grace are varied. Investors were initially spooked by the losses it had incurred in its problematic oilseeds and grains division when it reported its first quarter results in May.
This division's losses had also been responsible for previous sell-downs in the counter in November 2010 and again in February last year.
Then in the past week, a fresh stampede out of the stock came after a wire story reported that the China authorities were asking cooking oil suppliers such as Wilmar to hold prices steady to avoid adding to inflation pressures unnecessarily.
Unsurprisingly, some analysts are dour about Wilmar's prospects.
"We think Wilmar's share price may trade lower into the upcoming second quarter results. The tough operating environment has not been fully factored into consensus earnings estimates," said JPMorgan analyst Chan Ying-Jian in a report on Monday.
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(04-08-2012, 11:33 AM)Musicwhiz Wrote: *For the full article, please visit the website.
The Straits Times
www.straitstimes.com
Published on Aug 04, 2012
PLAY OF THE WEEK
Wilmar crushed by host of worries
Share price dips 9.5 per cent, wiping out $2.2b in market value
By Goh Eng Yeow Senior correspondent
PLANTATIONS giant Wilmar International has slumped to levels last seen in the aftermath of the global financial crisis three years ago and now there are worries that it may head even lower.
In the past two weeks alone, the former investor darling has nosedived about 9.5 per cent, wiping out about $2.2 billion of its market value. It closed unchanged at $3.24 yesterday.
The latest drop in share price means that Wilmar has fallen by more than one-third in price since the start of the year.
This works out to $11.3 billion in value terms - a sum not to be sneezed at, to say the least, since it is equivalent to the market capitalisation of a property giant such as City Developments.
As it comes under selling pressure, Wilmar's trading volume has also shot up. For the week, about 11.92 million shares changed hands on average a day - 21.8 per cent higher than the average 9.79 million shares changing hands daily so far this year.
The reasons for Wilmar's fall from grace are varied. Investors were initially spooked by the losses it had incurred in its problematic oilseeds and grains division when it reported its first quarter results in May.
This division's losses had also been responsible for previous sell-downs in the counter in November 2010 and again in February last year.
Then in the past week, a fresh stampede out of the stock came after a wire story reported that the China authorities were asking cooking oil suppliers such as Wilmar to hold prices steady to avoid adding to inflation pressures unnecessarily.
Unsurprisingly, some analysts are dour about Wilmar's prospects.
"We think Wilmar's share price may trade lower into the upcoming second quarter results. The tough operating environment has not been fully factored into consensus earnings estimates," said JPMorgan analyst Chan Ying-Jian in a report on Monday.
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I have not or never really been in this sector before. i think it is a very difficult sector to invest in. But then who says so? Go and ask Sinkapore's famous Peter Lim. i may nimble when the time is right. May be only?  
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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From the way and extent Wilmar's share price has fallen in the last 6 months (since late Feb12).....
http://finance.yahoo.com/q/bc?s=F34.SI&t...&z=l&q=l&c=
it appears to me the clock has finally struck 12:00 mid-night, and the party is coming to an end, quite abruptly!
While many people in the past had made money from investing in Wilmar, this time round many have lost a big bundle, especially in the last 6 months.
It pays to take a look at the just released 2Q result.....
http://info.sgx.com/webcoranncatth.nsf/V...A00341F4E/$file/Wilmar_2Q12_Results_Announcement.pdf?openelement
Based on the latest 2Q numbers, basically Wilmar as a business is now having only a 7.8% GP Margin, and earns a PBT Margin of only a little over 1.3% on revenue. Apart from its low and fallen profitability, I guess another worry is Wilmar's massive debts, which totalled some $19.5b on gross basis and $14.0 on net basis as at 30Jun12.
I think we have a big company's woes here! Any views from fellow forumers to share?
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(15-08-2012, 10:18 AM)dydx Wrote: From the way and extent Wilmar's share price has fallen in the last 6 months (since late Feb12).....
http://finance.yahoo.com/q/bc?s=F34.SI&t...&z=l&q=l&c=
it appears to me the clock has finally struck 12:00 mid-night, and the party is coming to an end, quite abruptly!
While many people in the past had made money from investing in Wilmar, this time round many have lost a big bundle, especially in the last 6 months.
It pays to take a look at the just released 2Q result.....
http://info.sgx.com/webcoranncatth.nsf/V...A00341F4E/$file/Wilmar_2Q12_Results_Announcement.pdf?openelement
Based on the latest 2Q numbers, basically Wilmar as a business is now having only a 7.8% GP Margin, and earns a PBT Margin of only a little over 1.3% on revenue. Apart from its low and fallen profitability, I guess another worry is Wilmar's massive debts, which totalled some $19.5b on gross basis and $14.0 on net basis as at 30Jun12.
I think we have a big company's woes here! Any views from fellow forumers to share?
Surprising, there are numerous insider trades done (BUY) on the 10th Aug. Why are they buying if they know the numbers are going to be lousy.
10 Aug 2012 Wilmar Kuok Khoon Hong 1,000 -
Note
10 Aug 2012 Wilmar Martua Sitorus 800 -
Note
10 Aug 2012 Wilmar Teo Kim Yong 500 -
Note
10 Aug 2012 Wilmar Kuok Khoon Chen 200 -
Note
10 Aug 2012 Wilmar Kuok Khoon Ean 200 -
Note
10 Aug 2012 Wilmar Leong Horn Kee 200 -
Note
10 Aug 2012 Wilmar Yeo Teng Yang 250 -
Note
10 Aug 2012 Wilmar Tay Kah Chye 200 -
Note
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