CH Offshore

[opmi]

they should up the offer to 59.5 cents

who should up the offer price?

[Louhan]

they should up the offer to 59.5 cents

who should up the offer price?

Why 59.5 cents?

[Jacmar]

IMHO, you can put this down as one of those failed GO. Reason is simple, J Peh/CH has sent a cleared message to FE that they are not in agreement to the GO by bringing up the mkt price to be just above the GO price. What was status quo previously and sharing the board room control between CH and FE has now been seen as a lost of control by CH to FE. Notice that the GO did not have CH as a concerted party.

As for FE it was brilliant move, only if it works bcos by taking control to above 51% they can consolidate CHO cleaned b/s to their stretch b/s. So suddenly now FE b/s as a group looks pretty good. will FE up the price to be able to cross 51%? Not likely unless they raise it to very high for CH to walk away; maybe like >$0.70 as CHO will make them pay. This is not likely going to happen as FE b/s is already stretch and don't have the resources to pay up. Notice that FE intends to have CHO still listed even after the GO ie not enough deep pocket to take it fully private.

With that as the scenario, CHO will stay listed and failed GO. the price will drop as most of the boats that CHO owns is for deep sea which means earnings will suffer in the coming years but with a clean b/s no problem for them to sit it out. One thing I must credit CHO mgt is that they have the foresight not to be aggressive and contract to build more boats. this was one of complaints of the investing public that they are not expanding their biz(WYSIWYG). now it shows how wise they are.

Pls DYODD as this is just my 2 cents worth.

[Bluechipfan]

Why Falcon kept buying back own shares? Especially after XD? It is increasingly unlikely for them to succeed in the GO judging from the traded CHO share price since GO is made. I guess I can throw away the FAA liao. Most the most price drop 2 cents if GO fail and by then, there could be good news from UK law suit anyway.

[smallcaps]

I also no answers, only more questions...
Wonder if this could be a repeat of 2009 whereby Deep Sea Supply suddenly emerged with a 5% stake in CHO:

http://online.theedgemalaysia.com/featur...shore.html
http://www.tradewindsnews.com/finance/55...stake-sale
In May 2009 Deep Sea Supply, the offshore vessel operator controlled by John Fredriksen, bought a 5% stake in CH Offshore.
Deep Sea Supply described the acquisition as “opportunistic” and the stake was later sold in November last year.

[smallcaps]

http://infopub.sgx.com/FileOpen/CHO.Desp...eID=330937

...

Despatch of Offeree Circular

The Board wishes to announce that the Company has today despatched to shareholders of
the Company (the “Shareholders”), a circular dated 8 January 2015 (the “Offeree Circular”)
containing, inter alia, the advice of Provenance Capital Pte. Ltd., the independent financial
adviser to the Directors of the Company who are independent for the purpose of making
recommendations to the Shareholders in respect of the Offer (the “Independent Directors”),
and the recommendations of the Independent Directors in respect of the Offer.

...

[Bluechipfan]

http://infopub.sgx.com/FileOpen/CHO.Desp...eID=330937

...

Despatch of Offeree Circular

The Board wishes to announce that the Company has today despatched to shareholders of
the Company (the “Shareholders”), a circular dated 8 January 2015 (the “Offeree Circular”)
containing, inter alia, the advice of Provenance Capital Pte. Ltd., the independent financial
adviser to the Directors of the Company who are independent for the purpose of making
recommendations to the Shareholders in respect of the Offer (the “Independent Directors”),
and the recommendations of the Independent Directors in respect of the Offer.

...

Haven't received the circular yet, I wonder what will be the recommendations? Incidentally, today's price movements appear lack of strength and if this is anything to go by, the recommendations could be neutral as best?

[BeDisciplined]

It also says that the circular is found at sgx.com. But there are so many links/sub categories there, which one?

[smallcaps]

CIRCULAR TO SHAREHOLDERS

http://infopub.sgx.com/FileOpen/CH%20Off...leID=25023

10.3 Advice of the IFA
Unless otherwise defi ned or the context otherwise requires, all terms and expressions used in the
extracts below shall have the same meanings as those defi ned in the IFA Letter.
After carefully considering all available information and based on Provenance Capital’s assessment
of the fi nancial terms of the Offer, Provenance Capital has advised the Independent Directors to
make the following recommendations to Shareholders in relation to the Offer:
“Based on our analysis and after having considered carefully the information available to us
as at the Latest Practicable Date, we are of the view that, the fi nancial terms of the Offer, on
balance, are not fair and not reasonable, in particular, from the perspective of the premium
being offered by the Offeror to acquire statutory control of the Company. Accordingly, we
advise the Independent Directors to recommend Shareholders to REJECT the Offer and for
Shareholders who wish to realise their CHO Shares, to sell their CHO Shares in the open
market if they can obtain a price higher than the Offer Price (after deducting transaction
costs).”
Shareholders should read the extracts in paragraphs 10.2 and 10.3 above in conjunction
with, and in the context of, the full text of the IFA Letter which is set out in Appendix 1 to
this Circular.

11. RECOMMENDATIONS OF THE INDEPENDENT DIRECTORS
11.1 Recommendations
The Independent Directors, having considered carefully the terms of the Offer and the advice given
by Provenance Capital in the IFA Letter, concur with the advice given by Provenance Capital in
respect of the Offer as extracted from the IFA Letter and reproduced in paragraph 10.3 above.
Accordingly, the Independent Directors recommend that:
“Shareholders to REJECT the Offer and for Shareholders who wish to realise their CHO
Shares, to sell their CHO Shares in the open market if they can obtain a price higher than
the Offer Price (after deducting transaction costs).”
Shareholders are advised to read the full text of the IFA Letter set out in Appendix 1 to this
Circular carefully before deciding whether to accept or reject the Offer. Shareholders should
note that the IFA’s opinions should not be relied upon by any Shareholder as the sole basis
for deciding whether or not to accept the Offer.

[smallcaps]

http://webcache.googleusercontent.com/se...clnk&gl=sg

ROLLS BUILDING
COURT 25
Before MR JUSTICE LEGGATT
Tuesday 13 January 2015
At 10:30
APPLICATION
2013-955 CH Offshore Ltd v PDV Marina S.A.