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(07-07-2011, 10:50 PM)cif5000 Wrote: (07-07-2011, 04:01 PM)dydx Wrote: Since the release of the Circular to Shareholders (dated 4Jul11) via the SGX website in the evening of 4Jul11, Portek's share price has gone through a mild roller-coaster ride, having fallen on 5Jul11 from $1.24 (4Jul11's closing price), to as low as $1.20 (ICTSI's GO price) yesterday, and rebounded today (7Jul11) to an intra-day high of $1.245, with over 3,000 lots transacted so far in the last 2+ days.
Quite clearly, some of the shareholders have decided to sell into the market for the higher price than the $1.20 GO price (conditional on ICTSI securing over 50% of Portek), instead of having to endure the uncertainty and waiting for the emergence of a white knight together with a likely superior offer. It is relevant to note that all the shares sold were picked up by other investors, including possibly the white knight.e
Who is the white knight, I wonder. Do fellow forumers have any guesses to share?
With uncertainty in the air and "minority insiders" selling out, what do you think a retail investor should do, bearing in mind that he/she had bought the shares at below $0.70 and a possibility to sell at a price higher than $1.20? i also have no cue now as a retail investor who got e shares at 18cents and at 40cents range..i think we need to bear in mind the important deadline set out by ictsi..
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No news means good news.
If the white knight wants to give up, there is no need to wait for so long.
Besides, to reduce the cost of takeover, he should be acquiring Portek shares on the market now up to 4.99%
Since the announcement of the white knight and with the share price going above 1.20, about 7% of total portek shareholding has exchanged hands.
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07-07-2011, 11:32 PM
(This post was last modified: 07-07-2011, 11:51 PM by dydx.)
In a GO situation, every shareholder must make his own decision.
For me, I am going to simply wait for the 3rd-party or white knight to emerge with an alternative - likely higher - offer, and take the cue from Portek's management and controlling shareholders. Without them, we wouldn't have Portek today, and someone like ICTSI willing to buy the entire company at a substantial premium price via an expensive GO exercise.
Without the support of the controlling shareholders, it is most unlikely that ICTSI will be able to secure over 50% of Portek - making the GO unconditional - by 20Jul11 (the stated First Closing Date of the GO). So ICTSI will likely have to extend the closing date beyond 20Jul11.
The fact that over 3,200 lots have been transacted between $1.20 and $1.245 in the last 3 market days does provide an indication of Portek's true value as well as the potential alternative offer. Those who have sold their Portek shares have simply given away their rights for any better things to come - to others!
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What if ICTSI couldn't cross the 50% mark and the white knight decided not to make an offer?
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(07-07-2011, 11:35 PM)cif5000 Wrote: What if ICTSI couldn't cross the 50% mark and the white knight decided not to make an offer?
I guess most shareholders will take the cue from Portek's management and controlling shareholders, and ICTSI will likely have to up its GO price and launch another PR exercise!
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A new high at $1.305. Can you see the horse head sticking out?
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Today (8Jul11), DMG issued a daring, forward-looking, but also a smart report on Portek.....
http://www.remisiers.org/cms_images/rese...uy_Dmg.pdf
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May not be related but some how, a bit fishy...
PSA signs deal to manage Cuban port
SINGAPORE port operator PSA International said on Friday it has signed an agreement to run a new terminal in Cuba.
'PSA has signed a contract with Terminal de Contenedores de Marial S.A. to manage a new container terminal to be constructed at Mariel Bay,' a spokesman for the port operator said.
No further details about the deal were released.
Press reports said the terminal, currently under construction, will have the capacity to handle 850,000 to one million containers annually when it is completed by 2014.
PSA International, wholly-owned by state investment firm Temasek Holdings, is among the largest port operators globally with involvement in 29 projects across 17 countries.
For the year ended December 2010, PSA handled 65.12 million twenty-foot equivalent units of containers worldwide. -- AFP
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If ICTSI is indeed serious about gaining management control of Portek, then it must be mindful of the following.
One, Portek's profit is likely to rise quite significantly given its business model and the growth potential of the countries it operates in.
Two, if ICTSI allows its offer to lapse, it may have to wait another year to launch a new bid, at a much higher offer price, as Portek's intrinsic value will be better recognised with the passage of time.
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DMG released a report today giving Portek a TP of $1.56
http://www.remisiers.org/cms_images/rese...uy_Dmg.pdf
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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