Jaya Holdings

[Nick]

Lenders seize controlling shareholder’s stake on loan default

http://www.remisiers.org/cms_images/rese...d_DBSV.pdf

Pretty interesting piece of news. I wonder how many controlling shareholders might have leveraged using their shares as collateral ?

(Not Vested)

[Nick]

MANDATORY UNCONDITIONAL CASH OFFER

http://info.sgx.com/webcoranncatth.nsf/V...500188BA8/$file/MGO_Offer_Announcement_120211.pdf?openelement

MGO is offering $0.48 per share to be paid in cash. This is at a 27.3% discount to the last traded share price of $0.66. I don't think it is normal for cash offer to be given at such low prices unless they are not interested in delisting it ?

[freedom]

MGO, mandatory only, does not mean they really want to make an offer...

[Nick]

Reminds me of the Glencore offer for Chemoil for US$0.355 when the share price was US$0.45.

The share price never really recovered since then.

[Musicwhiz]

Would this imply the Company isn't worth the 66 cents last traded price?

(Not vested), but always curious.

[Nick]

Jaya Holdings is currently trading at $0.55.

http://www.remisiers.org/cms_images/14022011dailyex.pdf [Lim & Tan would recommend a Buy if the price drops]

http://www.remisiers.org/cms_images/rese...d_DBSV.pdf [DBSV recommends a Hold]

(Not Vested)

[freedom]

I think DB bought the stake from the substantial shareholders at 0.48 according to SGX announcement. 48 cents, probably is fire-sale price since the substantial shareholders owed HSBC quite some ammount and was forced to sell their stake in jaya.

whethere jaya is worth more than 48 cents, I did not study their financial report, so no comment.

[lonewolf]

Just another example of a moronic and archaic requirement of the listing manual that requires a MGO. Of cos SGX will maintain that the rules is there so that minority shareholders are not prejudiced. But forcing the shareholders to make a half-hearted offer is not the solution either. In the end, the person laughing all the way to the banks are the lawyers and the printers. And maybe Singpost! (Vested in Singpost)

[dzwm87]

Possible takeover bid for Jaya Holdings.. but more important to wait for their announcements first..


CIMB says 'highly likely' JAYA HOLDINGS would be taken over by IHC

Analyst: Yeo Zhi Bin

Our channel checks suggest that corporate actions could be on the cards, potentially reversing Jaya’s fortunes.

Dutch shipbuilder IHC Merwede has identified Jaya as a possible acquisition target. The Dutch shipbuilder had been talking to two yard operators in Batam, Indonesia: Dubai Drydocks World and Jaya Holdings. The asking price by Dubai was found too high, and IHC was exploring an option with Jaya.

The company has lined up bank financing for its planned yard acquisition.

Even if there are no M&As, the stock offers an attractive risk-reward balance.

Takeover on the cards? There is a high likelihood that IHC could acquire Jaya. We think that IHC could offer up to S$0.65/share for Jaya (its net assets excluding debt obligations), translating into 34% upside for Jaya’s share price.

Jaya’s extensive networks in the region and specialisation in low-mid-end vessels would complement IHC’s higher value offerings, we believe. Further, a takeover would mean immediate earnings accretion for IHC.

Limited downside; we see value: Even if a takeover does not materialise, downside is limited, in our view. The stock is trading at 0.6x P/BV vs. its trough of 0.5x.

If we were to break up the company today, we estimate its RNAV at S$0.72 (factoring in the market value of its charter fleet only and excluding the potential value of WIP), or 48% upside to Jaya’s trading price.


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http://www.nextinsight.com.sg/index.php/...taken-over-

[dzwm87]

Jaya's bid may not be a takeover offer but perhaps an asset purchase?

http://www.nracapital.com/netresearchV4/...log_no=664

one of the comments:
"I have taken a relook at the media report regarding IHC Merwede's interest in Jaya and also Jaya's written response to SGX in which it clearly highlighted that it has received an expression of interest by IHC "to acquire certain of the company's assets". The market has been misled and the press reports are all speculative issues. The Dutch group has thrown some hints regarding this matter. It has given some physical location as clues, viz. "Batam and Vietnam". I think what IHC is looking at is not the purchase of the company, but its assets, i.e. the shipyards. The whole issue in on asset sale and not the company, per se. Jaya could be considering selling its Batam shipyard and retaining only its Tuas shipyard since it is scaling down on vessel building. Remember it closed down its PRC shipyard a couple of years ago."