MISC in RM3.2b reverse takeover bid for Ramunia
Malaysian shipper MISC Bhd, the world's biggest owner of liquefied natural gas tankers, has made a RM3.2 billion (S$1.4 billion) takeover bid for oil-services firm Ramunia Holdings, in line with its aim to develop a regional business building oil rigs.
Likely outcome: Given the size of the consideration, MISC will likely emerge as a major shareholder in Ramunia, say analysts Deal will allow MISC to use oil-services firm’s construction yard in Johor
Ramunia revealed the offer, a reverse takeover that would see the smaller firm issue shares worth well in excess of its current market value to MISC in return for MISC's unlisted ship-building unit, Malaysia Marine and Heavy Engineering, yesterday.
'It will unlock the hidden value of MISC's unit through the back-door listing,' said Pankaj Kumar, who manages about US$460 million as chief investment officer at Kurnia Insurans Bhd. 'I think this is an opportunity for MISC to list its shipyard unit,' Mr Kumar said.
MISC may later offer a stake in the enlarged Ramunia to a strategic partner, said Mr Kumar, without elaborating. He owns MISC stock but not Ramunia's. 'It's clever thing to do.'
The transaction would give MISC, controlled by state oil company Petroliam Nasional Bhd, use of Ramunia's construction yard in Johor, according to HwangDBS Vickers Sdn.
Both firms have shipyards in Johor, which Malaysia wants to develop as a regional oil-services hub. The MISC offer was due to lapse at 0900 GMT yesterday.
'The board will review and consider the offer and further announcements in relation to the offer will be made in due course,' Ramunia said in a statement.
'An alliance between Ramunia and Malaysia Marine would be symbiotic' and 'will improve productivity in Ramunia's yard, which is currently underutilised and undervalued', Thong Jung Liaw, an analyst at Aseambankers Bhd, wrote in a report yesterday.
'The deal would fast-track Malaysia Marine's listing via reverse takeover exercise.' He has a 'hold' on Ramunia stock.
'Given the size of the consideration, MISC will likely emerge as a major shareholder in Ramunia,' analysts led by Wong Ming Tek at HwangDBS Vickers wrote in a note yesterday.
Ramunia, with a market value of RM675 million, has reported five years of sales growth.
Ramunia shares last traded at RM1.21 per share, valuing the company at RM675 million. The stock had been suspended on Friday pending the announcement.
MISC stock was also halted from trade yesterday. Shares in the firm last traded at RM9.65, valuing it at RM35.9 billion.
Likely outcome: Given the size of the consideration, MISC will likely emerge as a major shareholder in Ramunia, say analysts Deal will allow MISC to use oil-services firm’s construction yard in Johor
Ramunia revealed the offer, a reverse takeover that would see the smaller firm issue shares worth well in excess of its current market value to MISC in return for MISC's unlisted ship-building unit, Malaysia Marine and Heavy Engineering, yesterday.
'It will unlock the hidden value of MISC's unit through the back-door listing,' said Pankaj Kumar, who manages about US$460 million as chief investment officer at Kurnia Insurans Bhd. 'I think this is an opportunity for MISC to list its shipyard unit,' Mr Kumar said.
MISC may later offer a stake in the enlarged Ramunia to a strategic partner, said Mr Kumar, without elaborating. He owns MISC stock but not Ramunia's. 'It's clever thing to do.'
The transaction would give MISC, controlled by state oil company Petroliam Nasional Bhd, use of Ramunia's construction yard in Johor, according to HwangDBS Vickers Sdn.
Both firms have shipyards in Johor, which Malaysia wants to develop as a regional oil-services hub. The MISC offer was due to lapse at 0900 GMT yesterday.
'The board will review and consider the offer and further announcements in relation to the offer will be made in due course,' Ramunia said in a statement.
'An alliance between Ramunia and Malaysia Marine would be symbiotic' and 'will improve productivity in Ramunia's yard, which is currently underutilised and undervalued', Thong Jung Liaw, an analyst at Aseambankers Bhd, wrote in a report yesterday.
'The deal would fast-track Malaysia Marine's listing via reverse takeover exercise.' He has a 'hold' on Ramunia stock.
'Given the size of the consideration, MISC will likely emerge as a major shareholder in Ramunia,' analysts led by Wong Ming Tek at HwangDBS Vickers wrote in a note yesterday.
Ramunia, with a market value of RM675 million, has reported five years of sales growth.
Ramunia shares last traded at RM1.21 per share, valuing the company at RM675 million. The stock had been suspended on Friday pending the announcement.
MISC stock was also halted from trade yesterday. Shares in the firm last traded at RM9.65, valuing it at RM35.9 billion.