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(08-10-2012, 06:31 PM)l0nEr Wrote: (08-10-2012, 06:01 PM)psolhawk Wrote: (08-10-2012, 05:53 PM)freedom Wrote: don't think the 4% is from CKP.
probably from other shareholders.
Could it be senior people from the management since Lam Soon has been only in talks with CBB? Who else could Lam Soon have bought that 4% from?
it could have been open market purchases over the weeks/month (when its <5%). The deal took a few months to complete.
The 4% is transacted today, total 5 married deals today @ $0.735
- 3000 lots
- 11000 lots
- 27236 lots
- 20000 lots
- 9764 lots
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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Wonder what took them so long to decide. More than meets the eye? It could only be about the price or the % to be sold. There might be some price weakness because market was expecting a GO, unless they announce the div and/or bonus shares soon or Lam Soon decides to go for a larger stake from the open market. The price sold to Lam Soon may have already included the impending corporate moves.
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wow.. how did you get those information...
yeah, i guess the price will soften tomorrow, as it had before closing (down from the 0.725).
Doubt Lam Soon will go for a larger stake from the open market. Makes more sense to acquire the rest from CBB as compared to accumulating from the open market, afterall any addition stock would have to be disclosed and will probably spark a rally above the 0.735 acquisition price. The round 20% stake seems to indicate thats all they want. Btw, its weird they havent made the Notice of Substantial Shareholder Interest announcement to announce Lam Soon's stake.
Initially I thought the deal dragged so long because CKP refused to sell (can tell he seems determined to protect his company from someone else including his son, for whatever reason). Perhaps the deal got cut short because Lam Soon realised they could never force CKP out, so may as well settle with just a minority position. (meaningless conspiracy theories).
In any case, its interesting they settled down for a 20% stake, enough to be considered an associate (instead of investment), and enough to bring in board members and create synergies. Hopefully the new stakeholder could bring about opportunities to new markets, distribution channels, synergies, etc...
So Now
CBB = 19.83%
CKP = 38%
Lam Soon = 20%
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I think we have to assume the transacted price of $0.735/share was negotiated at length by CBB and Lam Soon Group, bearing in mind the announced proposed but withheld 1-for-1 bonus issue and the yet-to-be decided/announced Final dividend for FY12 (ended 30Jun12). Now the deal is done, I think the bonus issue will proceed, and the Final dividend when announced should be a pretty good one.
Bearing in mind Viz Branz and Lam Soon Group already has a business relationship - as Lam Soon Group through a Malaysian subsidiary is the exclusive distributor of Viz Branz's products in Malaysia - today's share purchase deal by Lam Soon Cannery P/L should lead to greater business co-operation between the 2 groups to come. My guess is that Lam Soon Group could soon be appointed as distributor for Viz Branz's products in Thailand and even Vietnam; and conceivably, Viz Branz could help distribute Lam Soon's products into Myanmar and into those provinces in PRC where Viz Branz already has established channels and supply chains. Overall, enhanced business relationship and co-operation between 2 like-minded groups and people should bring positive results.
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It's been one exhilarating ride. A multibagger for many in this forum, I suspect. The best is yet to come?
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The recent price hike is due to key factors below
- likelihood of general offer
- bonus issue and/or special dividend
The likelihood of general offer is slim base on current observation
Bonus issue is proposed by CBB during the "dog-fight". The proposal is likely be voted down by CKP and probably by Lam Soon as well IMO
I might be wrong, but the likelihood is there
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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Drop a lot today, hit 0.660...
Actually, does bonus issues help? To me, it seems like just increasing the outstanding no. of shares, but doesnt change anything about the company. More like to help liquidity... probably so that CBB can acquire more shares, no use now anymore.
Special dividends wise,
The company issued 2.25 cents of dividends in FY2011
The company has issued 3.3cents of dividends in FY2012 already.
Assume that the company doubles the dividend (maintain the payout ratio), then... final dividend is 1.2cents?
More curious about their growth prospects in Myanmar? And how they can boost their margins in the region.
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Haha Is this like the only food stock that has not rallied with the others like Petra, Super, Yeo hiapseng etc...
Been quite some time, no news of AGM EGM Dividend Earnings...
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