TODAY'S HEADLINE  


NERA BUYOUT BY ST ENGG FAILS  
Requisite majority required to vote in favour of the scheme of arrangement was not obtained at meeting  Minority shareholders of Nera Telecommunications have blocked Singapore Technologies Engineering's (ST Engg) bid to take it private. ST Engg's electronics arm ST Electronics had planned to grow its communications infrastructure business by acquiring Nera for $141.1 million.

Shareholders were to be paid 45 cents a share. This comprises 6 cents per share payable by Nera as a cash dividend amounting to $21.7 million, and 39 cents to be paid by ST Engg amounting to $141.1 million. In an announcement about the meeting to vote on the proposal yesterday, Nera said that "the requisite majority required to vote in favour of the scheme under the Companies Act was not obtained and the parties will not be proceeding with the scheme". For the scheme of arrangement to pass, it had to be approved by a majority in number of shareholders and 75 per cent in value of shares voted.

"Accordingly, the company will remain listed, and the shares will continue to trade, on the SGX'ST (Singapore Exchange)," Nera said. Established in 1978 and headquartered in Singapore, Nera o'ers a range of products and services from satellite communications and wireless infrastructure networks, to internet protocol, optical and broadcast network infrastructure.

ST Engg announced the takeover plan in February. It said that the acquisition will "complement and enhance (its) existing business in terrestrial and wireless broadband networks." Meanwhile, a letter from independent 'nancial adviser (IFA) Deloitte and Touche to independent directors said the scheme was "fair and reasonable but not compelling". The valuation for the company implied by the scheme was also lower than that of comparable companies, the IFA said. BT understands that minority shareholders did not 'nd the o'er attractive enough.


NEWS BUZZ

CapitaLand (S$2.98) 
Increases registered capital
CapitaLand says its 51.7% owned subsidiary, Chongqing CapitaLand Guyu Xiongguan Real Estate Co Ltd, has increased its registered capital from $377mil to $657mil, by way of a cash injection of $280mil by Chongqing CapitaLand's sole shareholder, CMA China Investment 1 Pte Ltd. CMA China is a wholly'owned subsidiary of CTM Property Trust, a joint venture between CapitaLand, CapitaMalls Asia and Singbridge Holdings ' a unit of Temasek Holdings. Chongqing CapitaLand is the project company for a prime site in Chongqing, China, which will be developed into a landmark mixed development. Following the capital increase, CapitaLand Chongqing remains a 51.7% owned subsidiary of CapitaLand.

World Precision Machinery (S$0.455) 
Increases investment in China unit
World Precision Machinery has increased its investment in its wholly owned subsidiary, World Heavy Machine Tools (China) Co Ltd, by way of a cash injection of US$4mil. Following the above capital injection, the paid'up capital of the unit increased to US$10.5mil. World Precision Machinery said the purpose of the capital injection is to increase the general working capital of its unit for the expansion of its business.

LionGold (S$1.265) 
Continues acquisition spree
In yet another strategic move, LionGold has entered into two agreements with Australian base and precious metal producer Bass Metals Limited (BSM). The 'rst is to buy a full subsidiary of BSM, Hellyer Mill Operations (HMO), for A$13.5mil in cash (S$17.5mil). The second is to subscribe for 58mil new BSM shares representing 16.5% of BSM's enlarged share capital at a price of A$0.01 per share. This costs A$580,000 and represents a 50 per cent discount to the volume' weighted average price of BSM shares before their trading halt. At the end of June, LionGold said it was acquiring an 11.2% stake in Citigold Corporation for A$10mil, making LionGold the single'largest shareholder in the Australian gold'mining company.

Source: The Business Times