Towards Financial Freedom
AmFraser - Morning Buzz - News : 27 August 2012
TODAY'S HEADLINE
SAKARI RESOURCE LIMITED
PTT Mining Limited ("PTT Mining"), a wholly owned subsidiary of PTT International Company Limited ("PTT International"), today announced a voluntary conditional cash offer (the "Offer") for Sakari Resources Limited ("Sakari Resources"). Listed on the SGX-ST since 2006 (SGX ticker: AJ1, Bloomberg ticker: SAR.SP), Sakari Resources is primarily engaged in the mining and marketing of thermal coal from the Sebuku coal operation located on Sebuku Island, South Kalimantan, Indonesia and the Jembayan coal opera ti on located in East Kalimantan, Indonesia.
Through the Offer, PTT Mining wishes to increase its shareholding in Sakari Resources to a majority shareholding of over 50 percent.
Under the terms of the Offer, PTT Mining is making an offer for all the shares in Sakari Resources that it does not already own at a price of S$1.90 per share, implying a market capitalisa ti on of S$2.2 billion for Sakari Resources.
The Offer price of S$1.90 per share represents a premium of:
- 27.5% to the closing price on 24 August 2012
- 34.9% to the 1 month volume weighted average price2 ("VWAP")
- 39.1% to the 3 month VWAP2
- 23.1% to the 6 month VWAP2
The Offer Price represents an attractive premium over the market prices of the Sakari Resources' shares. Through the Offer, shareholders may realise their investment in Sakari Resources at the attractive premium without incurring brokerage and other trading costs.
The offer price of 1.90 effectively represents a 30% premium to our fair value of 1.46. We view this as an excellent opportunity for investors to sell out.
Raffles Education Corp (S$0.365)
Sinks into the red with $76.8m full-year loss
Raffles Education Corp has posted a net loss of $76.8 mil for the full year as a result of goodwill impairment and a loss on disposal of land use rights. Turnover for the fiscal year ended June 30 fell 10% to $131.1mil, owing to a lower enrolment of students in China and the reduced contribution from Zhongfa College atier the disposal of a 50% stake in Value Vantage.
Venture Corp (S$7.72)
Buying A-Reit's Techplace property for $38m
Ascendas REIT (A-Reit) has entered into an agreement to sell a leasehold property at Techplace II to Venture Corp for $38mil. It has a tenure of 40 years and a gross floor area of 18,018 square metres. The manager of A-Reit, said the Reit's trustee, HSBC Institutional Trust Services, has entered into a put and call option agreement with Venture Corp for the divestment of the leasehold estate. The sale is subject to approval from the relevant authorities and is expected to be completed in the current financial year. In-principle approval has been obtained from JTC.
Assuming that the divestment was completed on April 1 last year, the proforma impact on A-Reit's net property income and distribution per unit for FY11/12 is about $1.46mil and 0.01 cents respectively. Proceeds from the divestment will be used as A-Reit's working capital.
Kian Ann Engineering (S$0.335)
Reports 4% fall in Q4 earnings
Kian Ann Engineering reported net profit for the 4Q12 rose 4% to $4.52mil while revenue fell 2.8% to $42.36mil. EPS for the quarter were 1.03 cents. Despite a reduction in sales from Malaysia (forestry sector), China and India, the group said it recorded an overall increase in its sales due to growing demand for parts from the mining sector of Indonesia and other Asean countries as well as strong sales to non-Asian countries. A rise in demand for parts from the construction and infrastructure sectors in Singapore also contributed to the increase in sales, it said. The group has declared a final dividend of 0.82 cent.
KS Energy (S$0.675)
Drilling jobs in Indonesia and Mexico
KS Energy has clinched new contracts for drilling rig operations in Indonesia and Mexico. The first deal - a one-year contract with an option for another year - is valued at US$87.6mil, assuming the option is exercised. The joint operation, which is expected to begin in the fourth quarter of this year, will provide exploration and development drilling and work-over drilling services with a cantilever type jack-up drilling rig that can operate in water depths of up to 300 feet and drill to depths of 15,000 feet. In another announcement, through subsidiary KS Drilling Pte Ltd, it has entered into agreements with Mexico's Pemex Exploraci''?n Y Producci''?n and EPNP SA de CV to operate two jack-up rigs. The lease terms for the two platiorms are 1,311 and 1,251 days respectively. The rigs are able to operate 300 feet in water and have a minimum drilling capacity of 25,000 feet.
Source: The Business Times
Source: AmFraser
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