New Toyo

[Stockerman]

New Toyo to buy Anzpac in $60m deal
Friday, 24 October 2008

Sold: BATA to collect $60m for the sale of Anzpac, home to the world’s longest sheetfed press, this 40m KBA Rapida Sold: BATA to collect $60m for the sale of Anzpac, home to the world’s longest sheetfed press, this 40m KBA Rapida Tags:foiltoyoSydney based printed folding carton manufacturer Anzpac, a wholly owned subsidiary of British American Tobacco Australia (BATA), is set to be acquired by Singapore based packaging company New Toyo International Holdings for $60m.

The acquisition, which is expected to be finalised by the end of the month comes with a right to a seven year supply agreement to supply 100 per cent of BATA’s printed carton requirements in Australasia as well as in Malaysia, Singapore and Vietnam. When settled, Anzpac will operate as a Hong Kong-based joint venture between New Toyo and its Malaysia-based subsidiary, Tien Wah Press Holdings.

Anzpac has been on the market for several months, with BAT looking to shed non-core businesses. Tien Wah is one of the region’s biggest cigarette packaging companies. Its extensive printing operation includes gravure and litho onto foil laminated paper and paperboard, and it prints cigarrete tipping paper. It has print sites in Malaysia, where it is one of the top five printers in the country, and in Vietnam.

Anzpac, which is a single facility operation, based in Smithfield produces cigarette packages as well as a number of products for the food industry. The facility houses gravure presses, offset presses and downstream converting equipment. Three years ago Anzpac gained wiorldwide fame when it installed the world’s biggest sheetfed press, a KBA Rapida 142, size 6 (55”) specified with eight printing units, a perfecting unit, two coating units, three drying units, a triple extended delivery drying unit and automated paper feed and delivery logistics, all adding up to a total length of more than 40 metres

The company’s operations will remain in Sydney and according to Geoff Boshell, general manager of Anzpac, it will be business as usual for the 180 staff employed by the company. While all staff will be retained, Boshell adds that he himself will now pursue other interests.

Boshell says, “BAT wanted to realise the value that was locked up in Anzpac, and we will now become a part of a company where packaging is its core business.” He adds, “I think it will be a positive for our employees as they will find more opportunities as part of a larger packaging group, which has a solid reputation in the market.”

Anzpac was established as a family owned company, Deaton & Spencer, in 1900, just before the separate colonised states became a federation. It experienced rapid growth during the 1960s and 70s as a supplier of cigarette cartons to Rothmans, and was then bought by the customer in 1986. A new greenfield site was established in 1992, and with it came new gravure presses and a 50” sheetfed litho press. In 1999 the merger of Rothmans and BAT resulted in Anzpac becoming the regional printing and packaging arm of BAT Australasia.

Anzpac produces work for BAT’s four Australasian regions – Australia, New Zealand, Papua New Guineau and the South Pacific – but is also printing for a growing number of non-group customers, including McDonalds, Colgate and Mars, with the outside work now accounting for 35 per cent of throughput. Some 20 per cent of its work is exported. It is one of only two gravure and litho packaging plants in Australia, and has 180 staff producing packaging 24 hours a day.

what is anzpac and meil?

didnt know NT has investment properties..care to share more where are they located?

---

The Board of Directors of New Toyo International Holdings Ltd (the
“Company” or “NTIH”) hereby announces that the Company and its subsidiary,
Tien Wah Press Holdings Berhad (“TWPH”), have subscribed for 8,575,000
and 8,925,000 new ordinary shares of USD1.00 each in the share capital of Max Ease International Limited (“MEIL”) respectively (“Joint Subscription”).

The Company and TWPH have paid cash sums of USD8,575,000 and
USD8,925,000 respectively for the Joint Subscription.

TWPH is a public listed company whose shares are listed and quoted on the Bursa Malaysia Securities Berhad. The Company holds an aggregate equityinterest of 54.1% in TWPH.

MEIL owns the entire share capital of Anzpac Services (Australia) Pty Limited (“Anzpac”) which manufactures printed cartons and labels. Prior to the Joint Subscription, the Company and TWPH have shareholding interests of 49% and 51% in MEIL respectively. After the Joint Subscription, the percentage shareholdings of the Company and TWPH in MEIL remain unchanged.

what is anzpac and meil?

didnt know NT has investment properties..care to share more where are they located?

[Underdogger]

Anzpac value was realized when it was bought over by New Toyo/Tien Wah, as cited by BAT.

So, who would help to realize New Toyo/Tien Wah's value?

Full-yr profit from Anzpac (FY2012) is currently = 15mil RM / 49% = 30.6mil RM or 12.2mil SD per annum.

Was $60mil (Aussie dollar) a good deal for Anzpac, at the expense of New Toyo?


****
New Toyo to buy Anzpac in $60m deal
Friday, 24 October 2008

Sold: BATA to collect $60m for the sale of Anzpac, home to the world’s longest sheetfed press, this 40m KBA Rapida Sold: BATA to collect $60m for the sale of Anzpac, home to the world’s longest sheetfed press, this 40m KBA Rapida Tags:foiltoyoSydney based printed folding carton manufacturer Anzpac, a wholly owned subsidiary of British American Tobacco Australia (BATA), is set to be acquired by Singapore based packaging company New Toyo International Holdings for $60m.

The acquisition, which is expected to be finalised by the end of the month comes with a right to a seven year supply agreement to supply 100 per cent of BATA’s printed carton requirements in Australasia as well as in Malaysia, Singapore and Vietnam. When settled, Anzpac will operate as a Hong Kong-based joint venture between New Toyo and its Malaysia-based subsidiary, Tien Wah Press Holdings.

Anzpac has been on the market for several months, with BAT looking to shed non-core businesses. Tien Wah is one of the region’s biggest cigarette packaging companies. Its extensive printing operation includes gravure and litho onto foil laminated paper and paperboard, and it prints cigarrete tipping paper. It has print sites in Malaysia, where it is one of the top five printers in the country, and in Vietnam.

Anzpac, which is a single facility operation, based in Smithfield produces cigarette packages as well as a number of products for the food industry. The facility houses gravure presses, offset presses and downstream converting equipment. Three years ago Anzpac gained wiorldwide fame when it installed the world’s biggest sheetfed press, a KBA Rapida 142, size 6 (55”) specified with eight printing units, a perfecting unit, two coating units, three drying units, a triple extended delivery drying unit and automated paper feed and delivery logistics, all adding up to a total length of more than 40 metres

The company’s operations will remain in Sydney and according to Geoff Boshell, general manager of Anzpac, it will be business as usual for the 180 staff employed by the company. While all staff will be retained, Boshell adds that he himself will now pursue other interests.

Boshell says, “BAT wanted to realise the value that was locked up in Anzpac, and we will now become a part of a company where packaging is its core business.” He adds, “I think it will be a positive for our employees as they will find more opportunities as part of a larger packaging group, which has a solid reputation in the market.”

Anzpac was established as a family owned company, Deaton & Spencer, in 1900, just before the separate colonised states became a federation. It experienced rapid growth during the 1960s and 70s as a supplier of cigarette cartons to Rothmans, and was then bought by the customer in 1986. A new greenfield site was established in 1992, and with it came new gravure presses and a 50” sheetfed litho press. In 1999 the merger of Rothmans and BAT resulted in Anzpac becoming the regional printing and packaging arm of BAT Australasia.

Anzpac produces work for BAT’s four Australasian regions – Australia, New Zealand, Papua New Guineau and the South Pacific – but is also printing for a growing number of non-group customers, including McDonalds, Colgate and Mars, with the outside work now accounting for 35 per cent of throughput. Some 20 per cent of its work is exported. It is one of only two gravure and litho packaging plants in Australia, and has 180 staff producing packaging 24 hours a day.

[Curiousparty]

With plain packaging implemented in Australia, is this a BAD buy for New Toyo? cigarette printing is a sunset business at least in developed countries such as Australia, NewZealand, etc...

it is only a matter of time that BAT (Australia) downsizes and printing volume for Anzpac will be greatly reduced...


On SAH, nothing heard out on the special dividends (1st batch) as well as the remaining cash at SAH.
Have those who bought at 18 to 19 cents in anticipation of interesting corporate development been waiting in vain?
Trading volume at SAH is now close to NIL....

Anzpac value was realized when it was bought over by New Toyo/Tien Wah, as cited by BAT.

So, who would help to realize New Toyo/Tien Wah's value?

Full-yr profit from Anzpac (FY2012) is currently = 15mil RM / 49% = 30.6mil RM or 12.2mil SD per annum.

Was $60mil (Aussie dollar) a good deal for Anzpac, at the expense of New Toyo?


****
New Toyo to buy Anzpac in $60m deal
Friday, 24 October 2008

Sold: BATA to collect $60m for the sale of Anzpac, home to the world’s longest sheetfed press, this 40m KBA Rapida Sold: BATA to collect $60m for the sale of Anzpac, home to the world’s longest sheetfed press, this 40m KBA Rapida Tags:foiltoyoSydney based printed folding carton manufacturer Anzpac, a wholly owned subsidiary of British American Tobacco Australia (BATA), is set to be acquired by Singapore based packaging company New Toyo International Holdings for $60m.

The acquisition, which is expected to be finalised by the end of the month comes with a right to a seven year supply agreement to supply 100 per cent of BATA’s printed carton requirements in Australasia as well as in Malaysia, Singapore and Vietnam. When settled, Anzpac will operate as a Hong Kong-based joint venture between New Toyo and its Malaysia-based subsidiary, Tien Wah Press Holdings.

Anzpac has been on the market for several months, with BAT looking to shed non-core businesses. Tien Wah is one of the region’s biggest cigarette packaging companies. Its extensive printing operation includes gravure and litho onto foil laminated paper and paperboard, and it prints cigarrete tipping paper. It has print sites in Malaysia, where it is one of the top five printers in the country, and in Vietnam.

Anzpac, which is a single facility operation, based in Smithfield produces cigarette packages as well as a number of products for the food industry. The facility houses gravure presses, offset presses and downstream converting equipment. Three years ago Anzpac gained wiorldwide fame when it installed the world’s biggest sheetfed press, a KBA Rapida 142, size 6 (55”) specified with eight printing units, a perfecting unit, two coating units, three drying units, a triple extended delivery drying unit and automated paper feed and delivery logistics, all adding up to a total length of more than 40 metres

The company’s operations will remain in Sydney and according to Geoff Boshell, general manager of Anzpac, it will be business as usual for the 180 staff employed by the company. While all staff will be retained, Boshell adds that he himself will now pursue other interests.

Boshell says, “BAT wanted to realise the value that was locked up in Anzpac, and we will now become a part of a company where packaging is its core business.” He adds, “I think it will be a positive for our employees as they will find more opportunities as part of a larger packaging group, which has a solid reputation in the market.”

Anzpac was established as a family owned company, Deaton & Spencer, in 1900, just before the separate colonised states became a federation. It experienced rapid growth during the 1960s and 70s as a supplier of cigarette cartons to Rothmans, and was then bought by the customer in 1986. A new greenfield site was established in 1992, and with it came new gravure presses and a 50” sheetfed litho press. In 1999 the merger of Rothmans and BAT resulted in Anzpac becoming the regional printing and packaging arm of BAT Australasia.

Anzpac produces work for BAT’s four Australasian regions – Australia, New Zealand, Papua New Guineau and the South Pacific – but is also printing for a growing number of non-group customers, including McDonalds, Colgate and Mars, with the outside work now accounting for 35 per cent of throughput. Some 20 per cent of its work is exported. It is one of only two gravure and litho packaging plants in Australia, and has 180 staff producing packaging 24 hours a day.

[Curiousparty]

While BAT might not be too concerned about declining cigarette volume because they can mitigate this via pricing strategies.
But this does not apply to printing/packaging companies like Tien Wah/New Toyo – declining volume of cigarettes would mean less businesses and revenues.

Asia Pacific volume were flat for 1H-2012.....meaning Tien Wah's revenues will stagnate too...

******
British American Tobacco - falling cigarette volumes do not mean lower profits
4th Sep 2012, 4:00 pm
The global tobacco industry took note this month of Australia’s success in banning cigarette packaging. Whether other countries follow suit remains unclear however tobacco giant British American Tobacco (LON:BATS) is sufficiently geographically diversified to mitigate such issues and maintain profit momentum.
Tobacco companies have argued that any such ban would amount to “extinguishing the value of their trade markets without compensation. Naturally investors are concerned that this new law will be rolled out globally and damage profits but the imposed packaging measures may not spread beyond Australia.
In the long-term the overall tobacco market is set for growth as growing volumes in the Asia Pacific region offset declining volumes in developed markets. Such growth is driven by rising disposable income in developing countries, which in some cases is seeing the proportion of people smoking increasing.
The fundamental nature of the industry is that by selling an addictive product, price increases can be passed through to consumers. Thus even with lower smoking rates in the developed world the tobacco giants generate reliable cash flow for investors.
BATS is a globally diversified tobacco group with the Asia Pacific region now the largest profits generator for the company. The group also sees strong profits generation from the geographic division defined as Eastern Europe, Middle East and Africa (EEMA).
For BATS, falling cigarette volumes do not mean lower profits. As revenue has grown, margins have improved and stock buy backs have boosted earnings per share.
The company’s Global Drive Brands - Dunhill, Kent, Lucky Strike and Pall Mall - saw 4% volume growth in the first half of 2012 which compares to 9% in 2011 and 7% in 2010. Asia Pacific volumes were flat while EEMA volumes rose by 2% to help offset a 2% fall in the Americas and 4% in Western Europe. In terms of profits, the strong pricing power saw all regions produce profits growth on a constant currency basis.
Thus weak conditions in the Americas and Western Europe didn’t stop a 3% and a 2% profits boost respectively, while profits rose by 3% in Asia and 15% in EEMA. Group operating margins continue to improve and - despite negative exchange rate effects - adjusted earnings per share rose by 7% with a 1% boost from stock buybacks. The group’s dividend payout was increased by 11%.
As sales outside the developed world increase as a proportion of BATS’s total sales, the group will have a further cushion against falling volumes in the West. The increasing proportion of Global Drive Brands also shows that the group is successfully increasing the quality of its sales.

[Underdogger]

maybe at the current price of 28 cents, it might be over-valued after all. today it will drop back to maybe 27 cents...lots of selling pressure is building up at 28cents...

with tightening tobacco control in vietnam, one of the exclusive supply region for BAT, there might be lower volume for Tien Wah..

While BAT might not be too concerned about declining cigarette volume because they can mitigate this via pricing strategies.
But this does not apply to printing/packaging companies like Tien Wah/New Toyo – declining volume of cigarettes would mean less businesses and revenues.

Asia Pacific volume were flat for 1H-2012.....meaning Tien Wah's revenues will stagnate too...

******
British American Tobacco - falling cigarette volumes do not mean lower profits
4th Sep 2012, 4:00 pm
The global tobacco industry took note this month of Australia’s success in banning cigarette packaging. Whether other countries follow suit remains unclear however tobacco giant British American Tobacco (LON:BATS) is sufficiently geographically diversified to mitigate such issues and maintain profit momentum.
Tobacco companies have argued that any such ban would amount to “extinguishing the value of their trade markets without compensation. Naturally investors are concerned that this new law will be rolled out globally and damage profits but the imposed packaging measures may not spread beyond Australia.
In the long-term the overall tobacco market is set for growth as growing volumes in the Asia Pacific region offset declining volumes in developed markets. Such growth is driven by rising disposable income in developing countries, which in some cases is seeing the proportion of people smoking increasing.
The fundamental nature of the industry is that by selling an addictive product, price increases can be passed through to consumers. Thus even with lower smoking rates in the developed world the tobacco giants generate reliable cash flow for investors.
BATS is a globally diversified tobacco group with the Asia Pacific region now the largest profits generator for the company. The group also sees strong profits generation from the geographic division defined as Eastern Europe, Middle East and Africa (EEMA).
For BATS, falling cigarette volumes do not mean lower profits. As revenue has grown, margins have improved and stock buy backs have boosted earnings per share.
The company’s Global Drive Brands - Dunhill, Kent, Lucky Strike and Pall Mall - saw 4% volume growth in the first half of 2012 which compares to 9% in 2011 and 7% in 2010. Asia Pacific volumes were flat while EEMA volumes rose by 2% to help offset a 2% fall in the Americas and 4% in Western Europe. In terms of profits, the strong pricing power saw all regions produce profits growth on a constant currency basis.
Thus weak conditions in the Americas and Western Europe didn’t stop a 3% and a 2% profits boost respectively, while profits rose by 3% in Asia and 15% in EEMA. Group operating margins continue to improve and - despite negative exchange rate effects - adjusted earnings per share rose by 7% with a 1% boost from stock buybacks. The group’s dividend payout was increased by 11%.
As sales outside the developed world increase as a proportion of BATS’s total sales, the group will have a further cushion against falling volumes in the West. The increasing proportion of Global Drive Brands also shows that the group is successfully increasing the quality of its sales.

[potatolover]

The killing blow to Tien Wah/New Toyo will not come from the implementation of plain packaging even on a worldwide basis.
If BAT can find a much lower cost base in China, then Tien Wah might lose a very substantial of its volume and revenue, especially after the end of the 7-yr supply contract in 2015.

Low cost printers are indeed plentiful in China but in terms of quality, they have quite some learning curve to climb. But Chinese are known to be fast learners...

[Underdogger]

2015 is just 3 yrs away. Is Tien Wah/New toyo working on tendering for new supply contract any time soon?
if not, then it is a REAL CAUSE for concern.

The killing blow to Tien Wah/New Toyo will not come from the implementation of plain packaging even on a worldwide basis.
If BAT can find a much lower cost base in China, then Tien Wah might lose a very substantial of its volume and revenue, especially after the end of the 7-yr supply contract in 2015.

Low cost printers are indeed plentiful in China but in terms of quality, they have quite some learning curve to climb. But Chinese are known to be fast learners...

[Underdogger]

no news of any payout of special dividends and uncertainty over whether company will continue to secure next supply contract will weigh on the counter...

[Curiousparty]

Hope it crashes back to 23 to 24 cents

no news of any payout of special dividends and uncertainty over whether company will continue to secure next supply contract will weigh on the counter...

[potatolover]

Close to 2 million shares transacted in less than 10 min of market's opening...some news must have leaked out.

the average volume for New Toyo for past few weeks was at most 0.1mil shares per day.

So the volume today is 20 times the usual daily volume. Shouldn't SGX issue a query?