Viz Branz

[brattzz]

Will Lam Soon counter offer?

Or Lam Soon won't bulge...

[Trader88]

OCBC Securities' view...

Viz Branz Limited – Finally, a GO
• Offer of S$0.78/share
• No counter-offer expected
• Shareholders should ACCEPT OFFER

CEO launches takeover bid -
Viz Branz announced Friday that its current CEO, Chng Beng Beng (CBB), has launched a general offer for the company. The offer is valued at S$0.78/share, representing a premium of 15.5% over the one-month weighted average trading price of S$0.675. Mr. Chng currently has a majority stake of 58.1% after acquiring the 38.3% from his father (ex-CEO). Shareholders should start to receive the offer document issued by Credit Suisse from 19 Jul 2013.

Lam Soon expected to yield -
In our view, Lam Soon (who has a 20.1% stake) is expected to accept the offer and not launch a separate ounter-offer – despite only buying into the company less than a year ago – as the offer price represents an exit opportunity with a reasonable 6% gain.

Conclusion to a long-drawn event -
Speculation over a GO was triggered by the Lam Soon acquisition, and we have called for the possibility of a GO for slightly under a year. Nonetheless, we are finally vindicated by this favourable outcome. While our long stated target price of S$0.74 falls slightly under the offer price of S$0.78, the expectation for a less aggressive acquisition price was still satisfied.

Accept offer -
CBB intends to take the company private and delist from SGX. Therefore, with an offer price that we deem fairly values the company, and limited upside and recourse for minority shareholders going forward, we urge shareholders to ACCEPT THE OFFER. (Lim Siyi)

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Someone bought at 78.5 cents. Why buy at 78.5 when it will sold at a loss of 78 later? Only LS and Ben CBB are possible buyers at 78.5.

[dydx]

Believe it or not - Mr Market has bought up all those shares queued at $0.785 and $0.79!

Someone is challenging CBB and has fired his first salvo!

[freedom]

Lam Soon expected to yield? if that's the case, why did not CBB talk to Lam Soon first and get their undertaking before making an offer? It is much more effective that way.

I expect Lam Soon to do something.

[Trader88]

Believe it or not - Mr Market has bought up all those shares queued at $0.785 and $0.79!

Someone is challenging CBB and has fired his first salvo!

Looks like LS is challenging CBB as what CBB wishes?? Looking very interesting.

[brattzz]

i remember this, similar to APB take-over?

Lam Soon is "forcing" CBB to up the offer price!

[CityFarmer]

Looking at today trade summary

0.780 ; 1693 lots
0.785 ; 767 lots
0.790 ; 525 lots

and dealing disclosure
http://infopub.sgx.com/Apps?A=COW_Corpor...7_2013.pdf

Out of total 2985 lots, only 78 lots were done by the offeror. It seems more than one parties at play

[Trader88]

Who bought at 78.5 and 79.0??
Lam Soon is acquiring more shares before they counter offer?
Traders are expecting counter offer from Lam Soon?

[CityFarmer]

Who bought at 78.5 and 79.0??
Lam Soon is acquiring more shares before they counter offer?
Traders are expecting counter offer from Lam Soon?

If bought by Lam Soon, we shall see the announcement soon.

IMO, likely due to speculative parties.

(not vested)

[freedom]

some fireworks?

0.79 now, above the offer price.