Posted by KC Loh > 2012-12-01 11:26 | Report Abuse

simple way of putting it, if i want to offer suitors, i don't raise new shares and dilute currently existing ones for them to come in. Why would suitors want to buy stocks already diluted? that will not make sense to tell them its discounted 10%! to have suitors, you need sweetened deals, not sour ones! hope this can help clarify!

Posted by tonylim > 2012-12-01 11:37 | Report Abuse

kcloh, same with protasco albeit at a premium price.
confusing to FA

Posted by KC Loh > 2012-12-01 12:37 | Report Abuse

speaking of FA, capital intensive companies are high stakes companies! they bet big! if successful, their price hits the strastophere! if they don't, downside can be very nasty! with today's mindset of "instant" profit or short-termism, market becomes volatile!

perisai you can hold a longer view i think! if they find a suitor, and better yet if its a big boy in the industry, things can be rosy again pretty fast! but somehow i always like Graham's theory of a margin of safety and discounting away all the possible dangers!

here's some reading:

http://blogs.law.harvard.edu/corpgov/2011/07/04/lessons-of-the-financial-crisis-the-dangers-of-short-termism/

Posted by Wong Yi Shen > 2012-12-01 14:24 | Report Abuse

Thanks kcloh for very interesting view.

Posted by Matsaham Mashuk > 2012-12-02 12:58 | Report Abuse

Nice--)uptrend mode.TP1.47 by RHB.possible price will move higher.smile--)

Posted by limsk25 > 2012-12-02 17:53 | Report Abuse

Yes Kc loh... indeed oil prices have come off quite abit from the highs of above USD100/barrel. However, with Operation Twist coming to an end this December and QE3 taking over, a weakening USD will result in oil prices moving upwards and we will soon see deepwater wells coming back into business as these are the ones which benefit the most from high oil prices =)

Posted by KC Loh > 2012-12-02 18:14 | Report Abuse

Yup limsk, need to monitor how inflation rear its ugly head first. Not if, but when! :)

Posted by cwkhor > 2012-12-02 21:35 | Report Abuse

from CIMB:
Perisai's proposed private placement to partly fund the construction of jack-up rigs, purchase of 51% of an FPSO facility and sale of a 50% stake in a pipe installation unit will enhance earnings through the ownership of higher-margin assets while keeping gearing in check.

Perisai has proposed a placement of up to 85m new shares or 10% of its paid-up share capital to raise funds, mostly for part-financing of the construction of jack-up drilling rigs.
Meanwhile, an announcement by Emas Offshore Construction (EOC)
reveals that Perisai plans to 1) acquire a 51% stake in EOC's FPSO facility, Lewek Arunothai, and 2) sell a 50% stake in SJR Marine, which owns a pipelay barge, Enterprise 3, to EOC (see overleaf). EOC is a unit of Ezra (EZRA SP, Outperform),
which has a 16.1% stake in Perisai.

We are positive on the placement and stake sale which will help Perisai kill three birds with one stone 1) improve its earnings through the ownership of higher-margin assets, 2) keep its gearing at manageable levels, and 3) facilitate its eventual exit
from the pipe installation segment to focus on drilling and FPSO
operations (see overleaf). Based on prospective profits, Perisai
will sell the stake in SJR Marine at a P/E of 5.5x. While this may not seem attractive, we note that Perisai's acquisition P/E for the stake in Lewek Arunothai is also 5.5x, which is cheap.

Posted by Wong Yi Shen > 2012-12-02 23:32 | Report Abuse

2) Perisai's acquisition of 51% equity interest in EOC's FPSO unit named Lewek
Arunothai for US$89m (RM271m).
The purchase price will be satisfied by 1) the issuance of 145m new Perisai
shares, and 2) US$37m proceeds from the sale of 50% of SJR Marine.
Assuming an exchange rate of RM3.04 to US$1, the 145m new Perisai shares
will be issued at RM1.10/share, which is the weighted average market price for
five trading days up to 29 Nov. We understand that the transaction is expected
to be completed around mid-2013. Perisai's sale of the 50% equity interest in
SJR Marine is slated for completion later at around Aug 2013 to make sure that
Perisai is not exposed to conversion and contract risks relating to Lewek
Arunothai.

Posted by Wong Yi Shen > 2012-12-02 23:37 | Report Abuse

Potential earnings impact
We view the developments positively. In one fell swoop, Perisai will gain three
high-margin assets (an FPSO facility and two jack-up drilling rigs) without
putting too much strain on its balance sheet. As at 30 Sep 2012, net gearing
stood at 0.9x. Management caps the net gearing at 2x. Assets that are currently
in Perisai's fleet are E3, a mobile offshore production unit (MOPU) and eight
marine support vessels.
The deal with EOC is particularly sweet because it will allow Perisai to own an
asset with a 3+1+1+1 contract in place starting mid-2013 (Lewek Arunothai)
and eventually sell an asset for which it would otherwise have to find a contract
for after the expiry of the existing 4½-year contract in mid-2013 (E3).
Lewek Arunothai will be the production solution at Kamelia. Assuming 1) a
daily charter rate of US$250,000, 2) a 35% net margin, 3) 365 utilisation days
p.a., and 4) an exchange rate of RM3.04 to US$1, Perisai's 51% stake in the
FPSO facility could add RM49.5m to the company's net profit p.a.
Imputing Perisai's 10% private placement, acquisition of 51% of Lewek
Arunothai and sale of 50% of SJR Marine, we arrive at potential EPS
enhancement of 2.8% in FY13 and 3.9% in FY14 (Figure 1). The EPS accretion is
not overly exciting because RM73m of the RM84m placement proceeds
earmarked for the construction of the jack-up rigs will only be utilised when the
first rig is delivered in Jul 2014, 18 months after the expected completion of the
placement.
Perisai has yet to land a contract for the first jack-up rig but has roped in KCA
Deutag as a partner. Headquartered in Aberdeen, KCA operates more than 100
rigs in over 22 countries and employs 8,000 people in Africa, Europe, Russia,
the Middle East, the Caspian Sea and Southeast Asia. Assuming 1) a daily
charter rate of US$150,000, 2) a 25% net margin, 3) 365 utilisation days p.a.,
and 4) an exchange rate of RM3.04 to US$1, one rig could add RM42m to
Perisai’s net profit p.a., thereby securing substantially more growth for Perisai
from FY14.

Posted by Wong Yi Shen > 2012-12-02 23:38 | Report Abuse

From CIMB reports.

Posted by reyes430 > 2012-12-02 23:41 | Report Abuse

can i have the source?

Posted by KC Loh > 2012-12-03 00:14 | Report Abuse

apologies then. Dilution coming! i thought it was esos!

Posted by cwkhor > 2012-12-03 07:53 | Report Abuse

yes, it comes with dilution. but we can expect higher EPS from this deal.

Posted by cwkhor > 2012-12-03 08:39 | Report Abuse

here is the annoucement of Perisai and EOC deal:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1135473

Posted by littleshark > 2012-12-03 08:45 | Report Abuse

Is Perisai suspended this morning?

Posted by limsk25 > 2012-12-03 08:55 | Report Abuse

Yeaps! =)

Posted by Wong Yi Shen > 2012-12-03 09:01 | Report Abuse

trading halt..hmm, no action today.

Posted by Wong Yi Shen > 2012-12-03 09:06 | Report Abuse

until 10 am..

Posted by reyes430 > 2012-12-03 09:13 | Report Abuse

thanks for the info

Posted by ahhmadd76 > 2012-12-03 09:31 | Report Abuse

berita baik ke buruk ni...

Posted by Hustle > 2012-12-03 09:44 | Report Abuse

PERISAI石油科技 擬私下配售籌8429萬

　（吉隆坡30日訊）PERISAI石油科技（PERISAI，0047，主要板工業）建議私下配售，預計籌資約8429萬令吉償債，並充作升降式鑽油台資本投資。

　該公司向馬證交所報備指出，將私下配售股本10%或8513萬7540股；若發售價定價每股99仙，總籌資額將達8429萬令吉。

　文告指出，籌資所得中7269萬令吉將用來償還銀行貸款和為升降式鑽油台做資本投資，1000萬令吉做未來1年營運資本，上市經費約160萬令吉。

　截至今年9月底，PERISAI石油科技共負債4億2869萬令吉，計劃完成后負債率將從0.71倍減少至0.37倍，若以1.94%利息計算，節省資金高達141萬令吉。

　該公司指出，這項計劃亦將取代銀行融資，為今年4月獲得的升降式鑽油台建造合約新融資。

Posted by buybackma > 2012-12-03 09:55 | Report Abuse

boleh tahan ma news tu : proposed acquire 51% in Emas Victoris for usd 89m acquire 51% in Victoria Prdctn and proposed dispose 505 in Sjr marine for RM37m ... Hustle you paste Chinese words our Malay frens cannot understand ma! I think not suitable for this forum since many investors here are 1M .. true guys? smiles ...

Posted by Wong Yi Shen > 2012-12-03 09:59 | Report Abuse

Bananas like me also can't understand ler...

Posted by Ismail Abdullah > 2012-12-03 10:00 | Report Abuse

Please someone translate...

Posted by ahhmadd76 > 2012-12-03 10:02 | Report Abuse

pegi kat google translate

Posted by kltrader > 2012-12-03 10:07 | Report Abuse

Perisai news - http://klse.i3investor.com/blogs/kltrader/21674.jsp

Posted by hyzam1212 > 2012-12-03 10:07 | Report Abuse

What's actually the effect of dilution in general?

Posted by richrich8 > 2012-12-03 10:11 | Report Abuse

share price going down.... actually the deal is good right? higher and stable earnings from FPSO....

Posted by Mat Cendana > 2012-12-03 10:16 | Report Abuse

Issuance of new shares will result in the dilution of current ones. But if you'd look at that in a positive light, it also means Perisai is buying something without taking new/more debt. Let's see how the investment bank analysts view this.

Posted by Ng MC Angie > 2012-12-03 10:19 | Report Abuse

This is good news, it make company have positive financial.

Posted by ahhmadd76 > 2012-12-03 10:30 | Report Abuse

tapi kenappa drop pulak....

Posted by ongtkong > 2012-12-03 10:33 | Report Abuse

belum goreng......kena tunggu sekejap

Posted by buybackma > 2012-12-03 10:35 | Report Abuse

Ahmad76 be patient ok... KUALA LUMPUR: CIMB Equities Research is maintaining its target price for Perisai Petroleum at RM1.57, which is an upside of 41.4% from the last traded price of RM1.11.

Posted by kokping > 2012-12-03 10:35 | Report Abuse

good time to buy in?

Posted by buybackma > 2012-12-03 10:38 | Report Abuse

Although we cannot believe 100% in TP at least we have guidance with the IBank TP . Cimb had increased the TP fr 1.40 to 1.57 ...if not mistaken..smiles..

Posted by limsk25 > 2012-12-03 11:00 | Report Abuse

CHEAPP!!! Nice chance to buy-in before more reratings occur... by then, would be prob RM1.20 already...

Posted by ahhmadd76 > 2012-12-03 11:06 | Report Abuse

i beli 1.09 harap boleh naik ...

Posted by reyes430 > 2012-12-03 11:09 | Report Abuse

the looming of GE13 should be considered as market sentiment is very important?

Posted by jackie28 > 2012-12-03 11:18 | Report Abuse

buy, buy, have faith, have patience....

Posted by isupertrader > 2012-12-03 11:20 | Report Abuse

G'day alll...how has Perisai been? Good to be back...

Posted by sixteenblue > 2012-12-03 11:25 | Report Abuse

"Perisai buying 51% of Emas Victoria for RM271m"
http://biz.thestar.com.my/news/story.asp?file=/2012/12/3/business/20121203093047&sec=business

"CIMB Research keeps Malaysia's Perisai target price at RM1.57"
http://biz.thestar.com.my/news/story.asp?file=/2012/12/3/business/20121203084325&sec=business

Posted by ongtkong > 2012-12-03 11:26 | Report Abuse

isuepertrade, what's your take on short-term movement?

Posted by cwkhor > 2012-12-03 11:35 | Report Abuse

Positive TP adjustment by IBs:
TA 1.39 (-0.14) - without EOC deal
Maybank 1.40 (no change) - pending clarification from mgmt
HwangDBS 1.35 (+0.15)
HLG 1.55 (-0.05) - without EOC deal
CIMB 1.57 (no change) - pending more details

Posted by limsk25 > 2012-12-03 11:55 | Report Abuse

Am certain Perisai would wanna reward its shareholders too, plus seeing it is not a dividend-issuing counter, am pretty sure the RM1.10 is deliberately set so that those who have faith in it will have a chance to buy-in around that price before further guidance from mgmt is provided to analysts.

Posted by messiBarca > 2012-12-03 11:56 | Report Abuse

what happen suspend?

Posted by monreyes > 2012-12-03 12:30 | Report Abuse

so many recommendation, hope tis time will really fly high

Posted by Matsaham Mashuk > 2012-12-03 12:46 | Report Abuse

Mmm.support at 1.07.Uptrend mode.smile--)

Posted by Wong Yi Shen > 2012-12-03 12:47 | Report Abuse

1.08 need to hold..

Posted by richrich8 > 2012-12-03 13:57 | Report Abuse

Kenanga cut TP to 1.13... Due to eps delution.. Uncertain now...