WBL takeover: IFA rejects Straits Trading's offer

The independent financial adviser (IFA) to the takeover of WBL Corporation, KPMG Corporate Finance, has rejected Straits Trading Company's offer as "not fair from a financial point of view".

In a letter to WBL independent directors on Feb 13, KPMG said it has evaluated Straits Trading's S$3.36 a share cash offer or share swap offer of 1.0543 new Straits Trading shares per WBL share after considering various factors, such as WBL's sum of the parts valuation and comparison of the offer to WBL's average price and premiums or discounts of precedent takeovers.

Accordingly, WBL's independent directors has also advised stockholders and convertible bondholders to reject Straits Trading's offer.

WBL, a technology, motor and property group, is being courted by both Straits Trading and United Engineers. UE said it intends to offer S$4 a share for WBL late last month.

Above taken from The Business Times. Article by Cai HaoXiang

Thai tycoon takes majority control of Singapore's F&N

SINGAPORE: A Thai tycoon has clinched majority control of Singapore conglomerate Fraser and Neave (F&N), making his offer to fully takeover the company unconditional.

TCC Assets, owned by Thai billionaire Charoen Sirivadhanabhakdi, said in a statement late Wednesday that its stake in F&N stands at 50.92 per cent after further purchases in the stock market and more shareholders accepting its offer.

With majority control now in the hands of the Thai parties, "accordingly, the F&N offer has become unconditional in all respects," the statement added.

TCC Assets is offering to buy F&N shares it does not already own at S$9.55 apiece, valuing the drinks, property and publishing conglomerate at S$13.75 billion.

The deadline for the rest of the shareholders to accept the offer was extended from February 4 to February 18, according to the statement.

Indonesia-led property firm Overseas Union Enterprise (OUE) averted a bidding war earlier this month when it declined to match the offer by the Thais. OUE is linked to Indonesian tycoon Mochtar Riady.

The takeover is said to be the biggest in Singapore's corporate history if it pushes through.

F&N became a takeover target after it sold off its most prized asset, Tiger Beer maker Asia Pacific Breweries, to Dutch giant Heineken in September.

It still has lucrative beverages, property and publishing operations.

Analysts believe more shareholders are likely to accept the offer as it is the only bid on the table.

The market however is closely watching whether Japanese brewer Kirin, which holds a 15 per cent stake in F&N, will sell its interests or remain a minority shareholder.

Kirin had allied itself with OUE in the bidding war. Its 15 per cent stake is worth more than S$2.0 billion at the rate offered by TCC Assets.

Charoen's TCC Group has a real estate unit, and the tycoon also owns Thai Beverage, which sells Chang beer

- AFP/jc

Singapore Takeover : WBL by UE

by Cheryl Tay

United Engineers Limited (UE), through its subsidiary UE Centennial Venture Pte Ltd, plans to launch an all-cash pre-conditional voluntary general offer to takeover WBL Corporation Limited (WBL) at S$4.00 per share.

"UE has been exploring opportunities to make a substantial acquisition that will be transformational in nature. We believe that WBL will give us the scale and scope, as well as the geographic diversification, to achieve our strategic ambition," said Jackson Yap, Group Managing Director and CEO of UE.

The offer, which values WBL at around S$1.1 billion, is for the "remaining 61.7 percent of WBL, or 167.6 million shares, and all outstanding convertible bonds in WBL" that are not owned by UE Centennial Venture and its concert parties.

Owning 38.3 percent interest in WBL, the involved parties comprise the Great Eastern Group, the OCBC Bank Group, the Lee Group and the directors of UE Centennial Venture.

Meanwhile, the offer price "is at a 19.0 percent premium to a competing cash offer (adjusted for dividend)" and represents a "14.0 percent, 13.3 percent and 12.0 percent premium to the last transacted price on 23 November 2012, one-month volume weighted average price (VWAP) and three-month VWAP up to 23 November 2012, respectively."

As a major transaction under Chapter 10 of the SGX-ST's Listing Manual, the offer is subject to the approval of UE shareholders at an extraordinary general meeting to be held on 31 May 2013.Cheryl Tay, Editor of CommericalGuru, wrote this story. To contact her about this or other stories, email cheryltay@allproperty.com.sg Related Stories:2012 a record investment year for SingaporeKeppel REIT to acquire 50% interest in Perth office towerChangi Road office building up for tender