Kindly be advised that at the request of PERDANA, trading in the Company's securities will be suspended with effect from 9.00 a.m., Thursday, 14 May 2015 pending an announcement. Accordingly, all structured warrants relating to PERDANA will also be suspended at the same time.
DAYANG - Suspension of Trading DAYANG ENTERPRISE HOLDINGS BERHAD
Kindly be advised that at the request of DAYANG, trading in the Company's securities will be suspended with effect from 9.00 a.m., Thursday, 14 May 2015 pending an announcement. Accordingly, all structured warrants relating to DAYANG will also be suspended at the same time
Let's hope for the best... RM 2.00 offer? Maybe in my dreams... lol. I was hoping the share price will recover even more before the takeover offer, but I guess Dayang foreseen the risk of the share price recovering and hence, make a takeover offer while the price is still fairly low...
It should be above RM1.80 because the Tabung Haji's block of slightly more than 5% was bought at RM1.80. Surely TH wouldn't want to sell at a loss to allow Dayang to take Perdana private. But. well, you never know how the final price will work out. I bought at RM1.48 on Monday before prices started to fall, based on my TA. Cheers.
All systems GO? As highlighted in our 26 Mar note, we think that a general offer (GO) for Perdana shares by Dayang is possible, more so following separate announcements by Perdana and Dayang today on the trading suspension of their shares tomorrow. We maintain our Add call and target price on Perdana, although its share price has rallied by 25% since we released our 26 Mar note - leaving just a 7% upside to our target price - pending the release of details. We continue to value the stock at 10.5x CY16 P/E, still at a 30% discount to the oil & gas big caps. Perdana remains our top oil & gas small-cap pick. What Happened Perdana announced today that the trading of its shares will be suspended tomorrow. Earlier today, the company received a letter from its largest shareholder Dayang that intends to enter “into a material corporate transaction involving Perdana”. Dayang also announced that the trading of its shares will be suspended tomorrow. No further information was disclosed. What We Think We think that Dayang is set to launch a GO for Perdana shares it does not already own. We highlighted this possibility in our 26 Mar note following Dayang’s aggressive buying of Perdana shares the week before. Currently, Dayang owns a 29.9% stake in Perdana. To recap, Dayang became Perdana’s shareholder in Dec 2011 through a 10% private placement and has since increased its stake to the current level. The synergies between the two companies are in the area of brownfield services, which require workbarges and workboats. Perdana currently has five workbarges and a workboat deployed to Dayang on long-term charters. More than 70% of Perdana’s vessels are on long-term charters. The control of Perdana would give Dayang better access to Perdana’s young fleet of 19 vessels, of which 17 are in operation and two are due for delivery in FY16. The fleet’s average age is 4.8 years. Perdana has an order book of around RM1.1bn up to FY19. Perdana’s share price has rallied by 25% and outperformed the KLCI by 26% since we released our 26 Mar note. The current share price of RM1.50 – the highest YTD – is just 7% shy of our RM1.61 target price, which we are maintaining for now pending the release of transaction details. What You Should Do We advise shareholders to hang on to their shares.
Tomorrow may see a fierce battle between the bulls and the bears. Dayang may try to drive Perdana price down while Perdana may try to drive it up. At this moment, it seems the biggest loser is Tabung Haji which has a 8.43% block of shares reportedly bought at RM1.80 each. So what will it do? Let's sit back and watch the battle unfold.
How to drive down (means sell) when you want take over? Dayang will keep buying till 90% to mandatory take over. So start offer low first, some will sell. Then up bit, more sell. Then up up till final push to acquire 90%.
The SSA is between Dayang and Affin Hwang Asset Management and it is concluded on a willing-buyer, willing seller premise. It is this block of slightly more than 5% shares which has given Dayang more than the 30% stake that triggers the MGO to other shareholders of Perdana. What Dayang is interested is the remaining shares of the significant shareholders of Dayang. And it is this price of RM1.55 which Dayang has agreed to pay Affin (which is has accepted) that Dayang is offering to buy out the remaining shareholders. Unfortunately, this price may not be attractive to some of the shareholders such as Tabung Haji, Poh Eng Kho, EPF, and others in Perdana who have substantial shareholding. Dayang does not need to own the company 100%. What it wants is a controlling stake. It is not taking Perdana private. Perdana will maintain its listing on Bursa. So if Perdana price keeps going up, then the remaining shareholders will be discourage to sell at RM1.55. Also the SSA is conditional and Affin may ask for a higher price or withdraw from the deal. Let's see what will happen today which may provide us with some signs of how this deal will work out. Happy trading!
Rm1.7 hardly possible ... unless you have rm300mil on hand to fry it or oil price hits $150 bucks by noon time. My view this morning price of Rm1.53 its a good price to run and take profit, no point waiting for another month of so .. just to get that extra 2 cents
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Posted by pujut > 2015-05-13 18:19 | Report Abuse
REQUEST FOR SUSPENSION
PERDANA PETROLEUM BERHAD
Kindly be advised that at the request of PERDANA, trading in the Company's securities will be suspended with effect from 9.00 a.m., Thursday, 14 May 2015 pending an announcement. Accordingly, all structured warrants relating to PERDANA will also be suspended at the same time.