Sakari Resources (formerly "Straits Asia Resources")

[mrEngineer]

Thanks for the post. My hypothesis is that the coal inventories hanging in the ports are delivered but the buyers have defaulted and refused to take in the higher priced coal compared to the prices now. So someone has to take the Sh** before these coal inventories will clear the way.

[mrEngineer]

Congrats to all shareholders who bought during the lows

[csccc]

Congrats to all shareholders who bought during the lows

Mr engineer and other buddies,
Was there any trend or patterns in sakari's transaction volume and price earlier this year, that could have possibly given some indication to this general offer?

Appreciate buddies response!!

[mrEngineer]

I have no clue and I did not buy this stock. It was just in my watchlist during the low period.

[Nick]

I feel stupid for selling out too soon !

I guess the parent is using the depressed coal price as an opportunity to take full control of 2 quality mines in Indonesia.

[sgd]

I'm vested in coal but I didn't buy this haiz ...

[Musicwhiz]

*For the full article, please visit the website.

The Straits Times
www.straitstimes.com
Published on Aug 28, 2012
Coal player Sakari gets $1.2b offer from PTT, faces delisting

MAINBOARD-LISTED coal player Sakari Resources is the latest company on the local bourse facing a possible delisting.

The company said yesterday it had received a $1.2 billion bid from a subsidiary of Thailand's largest fully integrated oil and gas company.

PTT Mining, a unit of the investment arm of PTT Public Company (PTT), is offering $1.90 for each share of Sakari it does not already own.

PTT already controls 45.27 per cent of Sakari, via PTT Asia Pacific Mining.

The offer price implies a market value of $2.2 billion for Sakari, which mines coal in Indonesia.

The news boosted Sakari's share price by 40.5 cents, or about 27 per cent, to $1.895 yesterday. It was also the most actively traded counter yesterday with nearly 107.7 million shares changing hands.

However, the deal will go through only if PTT obtains at least a 50 per cent stake after the offer.

DMG and Partners Research analyst Joshua Low yesterday said this was possible given the size of the stake PTT already owns.

"Given that at $1.90, valuations only appear fair and not at a premium to peers... we believe that not all shareholders will take up the offer. Nonetheless... it would not be difficult for it (PTT) to cross the 50 per cent mark," he said.

PTT said it now does not intend to maintain Sakari's listing status if Sakari's free float falls below 10 per cent, but may change its mind depending on the level of acceptances it receives and prevailing market conditions.

Mr Low said PTT was unlikely to reach the 90 per cent shareholding level that would trigger a mandatory takeover of all remaining shares.

He recommended that shareholders accept the offer, pointing out that the offer price of $1.90 was 28 per cent higher than last Friday's closing price and was a fair price.
-----------------------

[sgd]

Just for conversation I think the biggest unintended consequence for coal could come from Japan.

Japan has very few mining resources but like most developed countries that have strict environment legislation against pollution, coal mining in japan has been in decline since the 80s and now since fukushima disaster it has powered down it's 55 nuclear power stations initially for system checks but due to rising public opnion against use of nuclear power only 2 have come back online, other 53 stations are still offline.

Where or how is Japan going to get the power for their economy or to light all their iconic street neon displays or run their train systems. If they not going to use use nuclear power means it's going to be a bright future for coal LNG and oil for Japan.

The other biggest addict we seen recently is india running on obsoleted 1970 era energy infrastructure facing now more critical blackouts. because of their politics their ethnic difference, caste system and deep rooted corruption in their culture I predict it will take 10yrs or more to get enough investments to overhaul that infrastructure meantime coal will be a big factor for india.

forget china demand, don't need.

[mrEngineer]

Japan has restarted nuclear

http://online.wsj.com/article/SB10001424...50482.html