Nowadays,there are plenty of news on public listed companies being taken private.[ click here for major reasons for going from public listed to private]
Append below in the month of October ,updates on two public listed companies which might goprivate:
MEDIA PRIMA BHD INTENDING TO TAKE NSTP PRIVATE
- Media Prima Bhd is making a conditional takeover offer of The New Straits Times Press (M) Bhd via a one-for-one share swap together with one free Media Prima warrant for every five shares of the latter.
- The offer values Media Prima shares at RM2 a piece,thereby attaching a value of RM2.10 per share for NSTP shares (considering the one-for-one ratio and the free warrants). The valuations were based on the historical average prices of both companies in the past one year. Also it was said to be based on analysts’ target prices and price earnings multiples of other media companies.
- Both NSTP and Media Prima’s share counters were suspended on Friday. NSTP closed at RM2.46 on Thursday while Media Prima closed at RM1.77.
Rationale for going private by Media Prima group managing director Datuk Amrin Awaluddin “The shareholders of both Media Prima and NSTP will see their investments benefit from the synergy,growth potential and focus that will result from the opportunities which the enlarged group will offer,” Amrin said.
SARAWAK STATE GOVERNMENT INTENDING TO TAKE SARAWAK ENERGY BHD PRIVATE
- The Sarawak State Government vide its Delegateam Sdn.Bhd which is a wholly-owned subsidiary of Sarawak government’s State Financial Secretary intends to own shares which they are not owning yet by offering RM2.65 per share. (Delegateam Sdn Bhd,The State Financial Secretary is the largest shareholder in Sarawak Energy with 64.65% stake and the second largest shareholder in Sarawak Energy is the Employees Provident Fund,with 5.1% stake.
- Sarawak Energy,formerly known as Sarawak Enterprise Corp Bhd,generates and distributes electricity in Sarawak. The company is also involved in a joint venture with Tenaga Nasional Bhd in the development of the undersea cable connecting the Bakun dam in Sarawak to peninsular Malaysia.
- The joint advisers for the exercise,AmInvestment Bank Bhd and Newfields Advisors Sdn Bhd,said in an announcement to Bursa Malaysia on behalf of Delegateam that the offer would be satisfied in cash.
- Trading in the company’s shares was suspended yesterday pending the announcement. Sarawak Energy closed at RM2.14 last Friday. ( hence the offer to go private is attractive as it’s a 24% above the traded price)
Some comments from analysts:
- There was little to make the company an attractive privatisation prospect as it is not sitting on any hugh cash reserve.
- Rationale of going private is maybe that as a wholly-owned government entity,it could be easier for the company to raise cash.( It was reported early last month that Sarawak Energy and consortium partners were to issue by early next year the first tranche of an RM10bil bond programme to finance the undersea cable component of the Bakun dam project.)
Incidentally,Sarawak Energy is the latest company listed on the local stock exchange where an offer has been made to take the company private.
- Malaysian Privatisation:UDA Holdings Bhd Proposes Scheme To Take It Private
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- 2008 Highest Paid CEO Of Public Listed Companies
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FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach.
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