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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.
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