Portek International

[dydx]

HSBC, acting for and on behalf on ICTSI, has extended the closing date of their GO for Portek at $1.20/share to 10Aug11, without changing their offer price.....
http://info.sgx.com/webcoranncatth.nsf/V...3001ACD09/$file/ExtensionofClosingDate20Jul.pdf?openelement

After lunch break today (20Jul11), some parties have decided to take all the Portek shares from the sellers queuing at $1.405, likely motivated by the above announcement. It certainly looks like there are now 2 elephants in the ring planning to have a fight towards the last round.

[brattzz]

I am guessing that ICTSI is just trying to "act interested" and put in a higher bid or two to squeeze more $ out of MITSUI..

17% of shares in hand, they will want to let go at as much a high price as possible..

[dydx]

With a stake of 17.27% in Portek as of today (20Jul11)....
http://info.sgx.com/webcoranncatth.nsf/V...3004C09AD/$file/LevelofAcceptances20Jul.pdf?openelement
I suppose ICTSI is in a pretty good bargaining position against Mitsui & Co, perhaps over a cup of green tea!

[portuser]

What is ICTSI planning to achieve by keeping its $1.20 offer alive, given that Mitsui is already assured of more than half of Portek shares?
If delisting of Portek is critical, then Mitsui has to acquire the Portek shares currently held by ICTSI, and buy up as many Portek shares as possible.
It seems that extension of the offer period has led minority shareholders to hold on to their Portek shares; in the belief that ICTSI is counter-bidding.
But ICTSI has to offer a very high price to tempt Mitsui into ceding control; and this seems unlikely. The extension of the offer period by ICTSI is therefore pointless if ICTSI's objective is to gain control of Portek.
ICTSI's objective is therefore to extract as high as possible, a revised offer price from Mitsui. The extension has prevented Mitsui from scooping up Portek shares, and strengthened ICTSI's bargaining position.

[dydx]

Nomura Singapore and Mitsui & Co have despatched their formal offer document (dated 27Jul11) today.....
http://info.sgx.com/webcoranncatth.nsf/V...A002C57F1/$file/Mitsui_Offer_Document.pdf?openelement

I guess most Portek shareholders - except ICTSI - will be happy to accept Mitsui & Co's $1.40/share offer and see their money soon. I just hope that ICTSI will be able to persuade Mitsui & Co to raise its offer by a little more in order to privatize Portek. If this happens, it will make it even sweeter for all Portek shareholders.

[dydx]

Just one day into the formal offer period, Mitsui & Co has already received approx. 47.89% in acceptances - raising their stake in Portek to approx. 62.34% - and accordingly has declared their GO unconditional.....
http://info.sgx.com/webcoranncatth.nsf/V...B00442082/$file/Mitsui_Unconditional_Announcement.pdf?openelement

Meanwhile, Portek's business in Africa continues to grow....
http://info.sgx.com/webcoranncatth.nsf/V...B002FFAB1/$file/Portek-Announcement_DRC_28-07-2011.pdf?openelement

[pianist]

7 more days to the extended dealine of ICTSI's offer excluding 9 Aug public holiday, plus Mitsui has already gotten a commanding 62.34%, I doubt ICTSI will ever revise up their offered price...guess I will tender in my acceptance this coming week.

[yeokiwi]

ICTSI withdraws the offer.
http://info.sgx.com/webcoranncatth.nsf/V...E00719B10/$file/WithdrawalofOfferAnnouncement31Jul.PDF?openelement

It also said...
“We intend to tender into the offer from Mitsui in due course”, added Mr Razon.
Not sure how to interpret the above statement.

Are they going to fight for a higher exit offer??

[dydx]

From the wordings, it looks like ICTSI has decided to give in to Mitsui & Co's offer of $1.40/share and take a gain of a few million S$. It doesn't look like ICTSI is going to push for something extra for its 16+% block (after returning those shares tendered in by some minority shareholders under its own offer at $1.20/share offer).

I guess we are at end stage of this most interesting GO exercise. There are good lessons for ICTSI and its advisors. With the benefit of hindsight, ICTSI shouldn't have launched its GO without first securing Larry Lam's support. I guess minority shareholders should thank ICTSI for its tactical mistake!

For all involved - including Mitsui & Co - celebrations are in order!

[brattzz]

yipee!

finally elephants fight is over...