Vard (formerly: STX OSV)

[CY09]

Wish they could come out with the announcements later, was doing my research into seeing if they were an attractive proposition. Now have to pay slightly more

[Salty]

That Mr kopi for the order book graph. Reminds us that order book is larger now
Hohoho milk is growing

[Salty]

OZ fund has been selling in the market.
The more they sell and absorbed by the market, the higher the chance the deal will fail.
Those buying from them at market this time period does not intend to tender at lower price.

[Salty]

IFA opinion is out

8.4 The IFA’s advice to the Independent Directors on the Offer and the Options Proposal
The advice of the IFA to the Independent Directors in respect of the Offer and the Options Proposal
have been extracted from the IFA Letter and are set out in italics below. Unless otherwise defi ned,
all terms and expressions used in the extract below shall have the same meanings as those
defi ned in the IFA Letter. Shareholders and Optionholders should read the following extract in
conjunction with, and in the context of, the full text of the IFA Letter.
“In summary, based on our analyses set out in this letter and after having considered
carefully the information available to us and based on the market, economic, strategic and
other relevant conditions prevailing as at the Latest Practicable Date, we are of the view
that the Offer Price and the Options Proposal are, on balance, not attractive and there are
generally insuffi cient compelling reasons to recommend the acceptance of the Offer and
the Options Proposal. Accordingly, we advise the Independent Directors to recommend
that Shareholders REJECT THE OFFER and that Optionholders REJECT THE OPTIONS
PROPOSAL.
Shareholders may wish to sell their Shares in the open market if they are able to obtain a
price higher than the Offer Price, net of related expenses (such as brokerage and trading
costs).

[smallcaps]

Shareholders may wish to sell their Shares in the open market if they are able to obtain a
price higher than the Offer Price, net of related expenses (such as brokerage and trading
costs).

I have always wondered why IFA need to suggest shareholders 'may wish to sell' simply because market price is higher than offer price, without supporting reasons/considerations? Market price might also undervalue the company.

[Salty]

I believe in another words it meant, "why you want to take up offer when stock is trading above the offer price?"

This special situation should get interesting from now

[l0nEr]

Shareholders may wish to sell their Shares in the open market if they are able to obtain a
price higher than the Offer Price, net of related expenses (such as brokerage and trading
costs).

I have always wondered why IFA need to suggest shareholders 'may wish to sell' simply because market price is higher than offer price, without supporting reasons/considerations? Market price might also undervalue the company.

Actually its not just because of the market price...

They did get a lot of supporting reasons, such as the by comparing the PE PB EV/EBITDA ratios vs existing peers, and also the EV/EBITDA vs precedent buyout cases...etc....
you have to read the entire circular to find it. Scroll down.... the supporting is quite a few pages so i wont paste it here.

[KopiKat]

Shareholders may wish to sell their Shares in the open market if they are able to obtain a
price higher than the Offer Price, net of related expenses (such as brokerage and trading
costs).

I have always wondered why IFA need to suggest shareholders 'may wish to sell' simply because market price is higher than offer price, without supporting reasons/considerations? Market price might also undervalue the company.

Actually its not just because of the market price...

They did get a lot of supporting reasons, such as the by comparing the PE PB EV/EBITDA ratios vs existing peers, and also the EV/EBITDA vs precedent buyout cases...etc....
you have to read the entire circular to find it. Scroll down.... the supporting is quite a few pages so i wont paste it here.

Now everyone who reads the Circular knows $1.22 is clearly not a fair price... But, do look at Q4 results which showed a sharp drop in earnings... But, the forward statement is cautiously optimistic of a recovery in one of the segment. Hmm... headache...

[freedom]

the business is highly cyclical. In the good time like 2011, profit is amazing. In the bad time like in 2009, it makes loss. It takes a lot of nerves to hold it over cycles, but it could be very rewarding.

[Salty]

Hmm 700mil book value + 20b nok order book with 10% margin is worth another 400mil sgd.
The rest of the business and future contracts are valued at 300mil.
(The construction loans I am not sure if we should really take it as a liability because its loan taken on behalf of the shipper)
Although not below book but quite attractive priced.

Stx surely isn't in the brightest prospect league now. But this also meant its not wanted and thus inexpensive!