Sinomem Technology

[Nick]

CLEAN WATER INVESTMENT LIMITED LAUNCHES VOLUNTARY CONDITIONAL CASH OFFER FOR SINOMEM TECHNOLOGY LIMITED

Another good S-Chip (though Management took up Singapore citizenship) is being privatized by a private equity firm. I have always felt that this was the cheapest water stock listed here but it seems that my slow actions will cause me to miss out on this hehe !

http://info.sgx.com/webcoranncatth.nsf/V...A00217DAA/$file/PressRelease.pdf?openelement

[mrEngineer]

Interesting. I have a feeling that the counter will emerge in HK market soon.

[corydorus]

Apology if i mis-spoke.

I will not touch at all.
Just have this bad feeling it's going to end badly somewhere. Ofcourse i can be totally wrong.


Cory

[Nick]

Interesting. I have a feeling that the counter will emerge in HK market soon.

I think this is highly likely. Based on its EPS of over 5 SG cents and its growing treatment capacity (and membrane technology). I think this company could easily trade at a much higher price elsewhere.

The Management has close ties to Singapore so I am surprised he is choosing to delist instead of dual-listing.

[Musicwhiz]

Business Times - 07 Mar 2011

Sinomem receives $351.3m takeover bid

By EMILYN YAP

A PRIVATE equity firm set up by former employees of a Chinese investment bank has made a $351.25 million voluntary conditional cash offer for listed water treatment company Sinomem Technology Limited.

Sinomem announced the takeover bid from Clean Water Investment on Saturday. The latter is offering to pay 70 cents per share.

The offer price is a premium of 28.44 per cent over Sinomem's last transacted price of 54.5 cents per share on Tuesday last week. It is also 31.63 per cent higher than the firm's net asset value of 53.18 cents per share.

Trading in Sinomem's shares was halted on Wednesday last week at the company's request. Trading will resume today.

Sinomem founders Lan Weiguang and Chen Ni have provided their irrevocable undertakings to accept the offer, in respect of 281.27 million shares or 56.05 per cent of the total number of issued shares (excluding shares held by Sinomem as treasury shares).

Mr Lan is also Sinomem's managing director and chairman. Ms Chen is the group's executive director.

Clean Water is a special purpose vehicle owned by CDH Water which is, in turn, a wholly owned subsidiary of CDH Fund IV. CDH China Management Company (CDH) manages the fund.

CDH is a private equity firm with around US$6 billion of assets under management. It was founded in 2002 by a team which had worked in the private equity department of China Investment Capital Corporation.

Clean Water is looking to privatise and delist Sinomem from the Singapore Exchange. It believes this will create more flexibility to manage Sinomem's business.

The low trading volume of Sinomem's shares was cited as another reason for the privatisation. The average daily trading volume in the 12 months up to March 1 was 1.56 million shares, representing some 0.31 per cent of the total number of issued shares (excluding any shares held by the company as treasury shares).

Sinomem will be appointing an independent financial adviser to advise its independent directors on the offer.