Hmm.. my curiosity on the costly deal finally revealed. But me believe many people still holding (chased at high prices) and confident the price will shoot up again.. perhaps close to 1.45 hmm. Well.. gudluck ya..
Based on my thoughts, this will be around here till T4 All contra out, then it will spurt
If I am a new buyer at 1.45 for the block, I will be stupid to continue buying at above 1.45 I will mop up at below 1.00., till I get almost 32% under 1.45 Then GO, 1.45 or less
Founder sold it maybe coz of 1) EPS dropping year to year 2) Selling price is Rm1.45 to Korean that can make him and family retired
Can buy coz Korean can make the company E-commerce hub in the region and share technical transfer / customer based / operation based / company asset from both company.
Agreed with Eric. Korean is not stupid people & sure that they've foreseen a good opportunity of business growing, else they weren't pay for that share price (1.45) .......
Sell la...korean investor comes in...they just need to control the company with 31%, then work Century to the ground and in years to come will have very low profits, then strip it of all its value because USD $43.17mil is peanuts for them
there is huge opportunity in internet business, see how poslaju business transformed and making tonnes of money out of courier business. this koreans they are looking at regional growth, asean. the japanese are already in, now its their turn...
what the Koreans pay is just a guide. that say, they are in for the long term and in their valuation they would have embedded in value for controlling the company and the synergies to their own operations elsewhere, neither of which are applicable to retail investors, so we shouldn't benchmark ourselves to them. the company financials in recent quarters doesn't look good and valuation also not cheap. the only reason you should buy this counter is if you believe that the financials will improve, which won't happen overnight but for medium to long term
and please stop misleading people by saying koreans will takeover the company at 1.45. it is obvious that the deal is structured to avoid the MGO trigger. based on the revised takeover code by SC, SC has the discretion to order a MGO if it's borderline 33% and after taking into account other factors. but any competent lawyer would also insert a breakout clause in the S&P in case a MGO is required, so it is very highly unlikely
i believe deal will on. They are appear in media few week ago and take picture together. Big company, the reputation is important ,face important le. Ma look at FA lo. If have confidence on future prospect then ma start accumulate.
The deal is on. See the announcement on 8.9.2016, the deal is expected to be completed on 31 October 2016. See also the announcements on 9.9.2016, Datuk Phua and his other partners have ceased to be Century's substantial shareholders...
Could it be accumulation of more shares by somebody (or some parties?) ahead of deal's SPA? The current prices stay above the past 1 year's high (closed prices), it looks like at strong support level.
One point we should take note, the MD, Datuk Phua's nephew, Mr. Steven Teow has no intention to sell off his shares, and will remain as the MD after the Korean's M&A...
The Star's news on 12.9.2016 above has reported this statement by CJ-Korea's VP:
"CJ Korea, a unit of South Korea’s biggest public-listed logistics provider CJ Korea Express Corp, said the group viewed Century Logistics as the perfect fit for it to achieve its goal of becoming a dominant player in Malaysia.
Century Logistics, on the hand, would be able to leverage on CJ Korea’s strengths, including its technology systems and solutions.
“We can leverage on Century Logistics’ strong local customer base. We are now operating a parcel delivery service but it is still in its infancy. As we see e-commerce growing, we would like to focus on parcel delivery,” CJ Korea’s vice-president for the strategy planning division, Ahn Jaeho, told the press earlier.
“We would like to strengthen and expand the parcel delivery service to become a major player in Malaysia,” he added."
So we should focus on Century's mid to long-term growth prospects after merger with CJK, who intend to transform Century into a major player of express parcel delivery in this region.
Apparently, CJK has chosen Century as their new partner and as the hub in this region, because of Century's new Document Management Services and it's new Multilevel Warehouse in Klang, ready for operations in 2017 next year. This new warehouse is big enough to fit their e-commerce / parcel delivery business growth plans perfectly.
It was stated in the announcement the deal is based on conditions in the agreemet.However I couldn't find what were the conditions for the deal.Does anyone know?
Understand from Klang logistics companies, business slow down alot.. singapore Import/export down for many Quarters. Next year will be worst. they had close down lots of logistic offices at port klang and bukit tinggi/nearby.
Still in downtrend.. Century continuously 3 Q results downtrend, think will down 20% more.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
The One •
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Posted by The One • > 2016-09-08 21:37 | Report Abuse
Hmm.. my curiosity on the costly deal finally revealed. But me believe many people still holding (chased at high prices) and confident the price will shoot up again.. perhaps close to 1.45 hmm. Well.. gudluck ya..