F&N board to resign, give Charoen "free hand"
Posted: 29 January 2013 2033 hrs
SINGAPORE - Fraser & Neave said on Tuesday that all of its board members, including chairman Lee Hsien Yang, will resign from the company next week, paving the way for Thai billionaire Charoen Sirivadhanabhakdi, the largest shareholder, to have a greater say in the Singapore company's future.
The nine board members decided to resign to allow Mr Charoen's TCC Assets to have a "free hand to chart a new direction" for Fraser & Neave, a Singapore property and soft drinks conglomerate, Mr Lee told shareholders at the company's annual general meeting.
Mr Charoen, who holds a 46% stake in Fraser & Neave, had raised his offer to S$9.55 a share for the company's remaining shares - 7.5 percent higher than his previous offer of S$8.88. The increase was aimed at fending off a rival bid from a group led by Stephen Riady's Singapore-listed property firm Overseas Union Enterprise. Mr Charoen's offer closes on Monday.
The Overseas Union group decided not to raise its S$9.08-per-share offer, saying such a move was no longer attractive after recent measures taken by the Singapore government to cool the city-state's property market.
Fraser & Neave said the board will resign whether or not Mr Charoen acquires more than 50% of the company before the offer closes, in which case the offer would become unconditional.
"As clearly the largest shareholder of the company today, and probably a controlling shareholder of the company in a few days' time, it's not inappropriate for them to have that full flexibility and to want a clean slate, where they would want to move things forward," said Mr Lee.
The AGM started with shareholders lobbing wide-ranging questions about the takeover before annual financial matters of the company were addressed.
Some questioned how TCC Assets managed to secure an additional 90 million F&N shares on the eve of the auction, as most shareholders would have held on to their shares until the auction ended.
"The 90 million shares were a very sizeable block. TCC's broker must be very effective in persuading shareholders to sell on the eve of the auction," one of the shareholders said.
Several of them expressed disappointment that an auction called by the Securities Industry Council (SIC) failed to get into full swing when the Overseas Union group bowed out on January 21, the first day of the sale.
The auction was triggered because neither bidder declared a final offer by a January 20 deadline set by the Singapore securities watchdog.
The SIC had stepped in after Mr Charoen extended the deadline of his previous offer seven times and the Overseas Union group twice, testing the patience of investors.
"I was disappointed too that OUE Baytown, after extending on numerous occasions presumably with an interest to bid in due course, chose not to bid when the auction process was initiated," Mr Lee said.
But Mr Lee said Mr Charoen had raised his offer before the auction, creating a "clear gap" with the Overseas Union group's S$9.08-per-share bid.
When asked if he was satisfied with the outcome, Mr Lee said: "It would have been good to get a better outcome for shareholders but it's a good outcome."
Separately, Japanese brewer Kirin Holdings, Fraser & Neave's second-largest shareholder with a 14.8% stake, said it will decide whether to sell its stake to Mr Charoen by Monday.
- CNA/ir
- wong chee tat :)
Thursday, January 31, 2013
Ex-SMRT bus drivers report abuse allegations in online video
Ex-SMRT bus drivers report abuse allegations in online video
By Saifulbahri Ismail | Posted: 30 January 2013 1044 hrs
SINGAPORE: Police said two defendants who had been charged for their roles in an SMRT bus strike in November 2012 have made serious allegations in a video online that they been assaulted while in police custody.
Police said in a statement on Tuesday night that they are aware of the video interviews.
They urged the two men, 32-year-old He Jun Ling and 33-year-old Liu Xiang Ying, to make a police report so that they can investigate the case.
Police said the defendants' lawyers can also raise this matter in court when the case against them is heard.
Police added that as the case is currently before the court, it is not appropriate for them to comment on it.
- CNA/ck/fa
- wong chee tat :)
By Saifulbahri Ismail | Posted: 30 January 2013 1044 hrs
SINGAPORE: Police said two defendants who had been charged for their roles in an SMRT bus strike in November 2012 have made serious allegations in a video online that they been assaulted while in police custody.
Police said in a statement on Tuesday night that they are aware of the video interviews.
They urged the two men, 32-year-old He Jun Ling and 33-year-old Liu Xiang Ying, to make a police report so that they can investigate the case.
Police said the defendants' lawyers can also raise this matter in court when the case against them is heard.
Police added that as the case is currently before the court, it is not appropriate for them to comment on it.
- CNA/ck/fa
- wong chee tat :)
SIA to axe 76 pilots due to surplus
SIA to axe 76 pilots due to surplus
By Yvonne Chan | Posted: 30 January 2013 1815 hrs
SINGAPORE: Singapore Airlines (SIA) said on Wednesday that it has taken the difficult decision of asking 76 pilots on fixed-term contracts to leave by end of June.
It said in a statement that it is releasing them before their contracts expire.
The airline had previously been releasing pilots only when their contracts expired.
SIA said it will help the pilots find jobs within the SIA Group and with other airlines.
The airline currently has a surplus of pilots as the global financial crisis of 2009-10 had resulted in excess capacity and slower-than-expected growth.
SIA saw its net profit in the first-half of the current fiscal year ending March fall by 30 per cent on-year. This followed a 69 per cent drop in net profit in the airline's financial year ending March 2012.
It had earlier put in place other measures to address the surplus. These included voluntary no-pay leave and the suspension of cadet pilot recruitment.
No financial details of the cuts have been released.
Leithen Francis, editor of Aviation Week, said: "Things are pretty good in Asia in terms of economic growth but a lot of SIA business is long-haul, places like the Europe and the US where the economic situation is not so good.
"A lot of the growth last year was in short-haul international services, so that means a lot of flights between say Singapore and Malaysia, and Malaysia and Thailand... So even though the market will grow in 2013, we may have a situation where the growth is on short-haul and not so much on long-haul, which doesn't really help Singapore Airlines mainline."
He added: "Another factor why SIA is announcing cuts is because its announced recently that its retiring its five A340 aircraft. These are the non-stop aircraft that flew from Singapore to New York and Los Angeles.
"The fact that its retiring those A340 aircraft means it no longer requires its A340 pilots. So some of the pilots have lost their contracts are A340s pilots, although the majority of the pilots from what I understand are (Boeing) 777 pilots."
Pilots employed on fixed-term contracts make up about 4 per cent of Singapore Airlines' total pilot workforce.
- CNA/al/ac
- wong chee tat :)
By Yvonne Chan | Posted: 30 January 2013 1815 hrs
SINGAPORE: Singapore Airlines (SIA) said on Wednesday that it has taken the difficult decision of asking 76 pilots on fixed-term contracts to leave by end of June.
It said in a statement that it is releasing them before their contracts expire.
The airline had previously been releasing pilots only when their contracts expired.
SIA said it will help the pilots find jobs within the SIA Group and with other airlines.
The airline currently has a surplus of pilots as the global financial crisis of 2009-10 had resulted in excess capacity and slower-than-expected growth.
SIA saw its net profit in the first-half of the current fiscal year ending March fall by 30 per cent on-year. This followed a 69 per cent drop in net profit in the airline's financial year ending March 2012.
It had earlier put in place other measures to address the surplus. These included voluntary no-pay leave and the suspension of cadet pilot recruitment.
No financial details of the cuts have been released.
Leithen Francis, editor of Aviation Week, said: "Things are pretty good in Asia in terms of economic growth but a lot of SIA business is long-haul, places like the Europe and the US where the economic situation is not so good.
"A lot of the growth last year was in short-haul international services, so that means a lot of flights between say Singapore and Malaysia, and Malaysia and Thailand... So even though the market will grow in 2013, we may have a situation where the growth is on short-haul and not so much on long-haul, which doesn't really help Singapore Airlines mainline."
He added: "Another factor why SIA is announcing cuts is because its announced recently that its retiring its five A340 aircraft. These are the non-stop aircraft that flew from Singapore to New York and Los Angeles.
"The fact that its retiring those A340 aircraft means it no longer requires its A340 pilots. So some of the pilots have lost their contracts are A340s pilots, although the majority of the pilots from what I understand are (Boeing) 777 pilots."
Pilots employed on fixed-term contracts make up about 4 per cent of Singapore Airlines' total pilot workforce.
- CNA/al/ac
- wong chee tat :)
TCC Assets moves one step closer to F&N takeover
TCC Assets moves one step closer to F&N takeover
By Yvonne Chan | Posted: 30 January 2013 1943 hrs
SINGAPORE: TCC Assets is yet another step closer to gaining full control of Fraser & Neave (F&N).
In a statement to the Singapore Exchange on Wednesday, TCC Assets said it had purchased an additional 3.3 million F&N shares (0.23 per cent) at S$9.55 per share on January 29.
Together with Singapore-listed ThaiBev, TCC Assets now owns 46.36 per cent of F&N (not inclusive of acceptances).
Earlier this week, F&N said Thai tycoon Charoen Sirivadhanabhakdi's revised offer of S$9.55 per share for the drinks and property conglomerate was "fair". The company added that its chairman Lee Hsien Yang and three other independent directors, who hold the firm's shares, intend to accept the revised offer.
On Tuesday, F&N's board of directors said they would resign after the close of the revised offer next week to allow the Thai tycoon to decide on the future direction of the company.
Meanwhile, Mr Charoen's TCC Group is reportedly planning to raise as much as 50 billion baht (US$1.7 billion) by injecting two Bangkok property assets into funds.
Mr Charoen has offered S$9.55 for the remaining F&N shares. This values F&N at around S$13.8 billion. His offer lapses on February 4.
-CNA/ac
- wong chee tat :)
By Yvonne Chan | Posted: 30 January 2013 1943 hrs
SINGAPORE: TCC Assets is yet another step closer to gaining full control of Fraser & Neave (F&N).
In a statement to the Singapore Exchange on Wednesday, TCC Assets said it had purchased an additional 3.3 million F&N shares (0.23 per cent) at S$9.55 per share on January 29.
Together with Singapore-listed ThaiBev, TCC Assets now owns 46.36 per cent of F&N (not inclusive of acceptances).
Earlier this week, F&N said Thai tycoon Charoen Sirivadhanabhakdi's revised offer of S$9.55 per share for the drinks and property conglomerate was "fair". The company added that its chairman Lee Hsien Yang and three other independent directors, who hold the firm's shares, intend to accept the revised offer.
On Tuesday, F&N's board of directors said they would resign after the close of the revised offer next week to allow the Thai tycoon to decide on the future direction of the company.
Meanwhile, Mr Charoen's TCC Group is reportedly planning to raise as much as 50 billion baht (US$1.7 billion) by injecting two Bangkok property assets into funds.
Mr Charoen has offered S$9.55 for the remaining F&N shares. This values F&N at around S$13.8 billion. His offer lapses on February 4.
-CNA/ac
- wong chee tat :)
UE plans to launch rival bid for WBL Corp
UE plans to launch rival bid for WBL Corp
By Lynda Hong | Posted: 30 January 2013 2324 hrs
SINGAPORE: Another corporate fight is brewing as property and engineering group United Engineers plans to launch a rival bid for WBL Corp at S$4 a share.
United Engineers said the company's growth has reached its peak after the property and construction firm raked in record revenue of S$1.19 billion in 2011.
The company is now looking for more recurring income.
To do that, United Engineers said it has to look beyond its home ground in Singapore for inorganic growth.
That is why it has offered to buy the remaining 61.7 per cent of WBL Corp that it does not own for S$687 million in an all-cash offer.
Jackson Yap, group managing director and chief executive officer of United Engineers Limited, said: "In property development, the earnings could be quite lumpy. When you have the project finishing, you have a spike in your earnings. So we are trying to spread it out and have a more recurring income.
"The auto business offers us that opportunity. It is a great business. We have seen quite good growth for them. We think that that is one of our core businesses if we are looking to take over."
United Engineers is eyeing on WBL Corp's business outside Singapore, particularly in China.
These include automotive, property development, technology and engineering.
Jack Wang from Lexico Advisory said there could be lucrative spin-offs if the acquisition is successful.
Mr Wang said: "You are not just buying one company. You are actually buying three segments of the business which I think if anyone is confident of about the fundamentals, you can spin-off some of the business, and you can get lots of value out of it."
United Engineers has the support from WBL Corp's major shareholders which include OCBC Group, Great Eastern, and the Lee Family.
Together they hold 38.3 per cent stake in WBL Corp.
United Engineers said it will fund the acquisition by internal funds and external borrowings.
WBL Corp's shares were halted for trading on Wednesday. Its shares last traded at S$4.20 apiece.
Major shareholder Straits Trading with some 44.6 per cent stake in WBL Corp has not commented on United Engineers' latest offer.
- CNA/fa
- wong chee tat :)
By Lynda Hong | Posted: 30 January 2013 2324 hrs
SINGAPORE: Another corporate fight is brewing as property and engineering group United Engineers plans to launch a rival bid for WBL Corp at S$4 a share.
United Engineers said the company's growth has reached its peak after the property and construction firm raked in record revenue of S$1.19 billion in 2011.
The company is now looking for more recurring income.
To do that, United Engineers said it has to look beyond its home ground in Singapore for inorganic growth.
That is why it has offered to buy the remaining 61.7 per cent of WBL Corp that it does not own for S$687 million in an all-cash offer.
Jackson Yap, group managing director and chief executive officer of United Engineers Limited, said: "In property development, the earnings could be quite lumpy. When you have the project finishing, you have a spike in your earnings. So we are trying to spread it out and have a more recurring income.
"The auto business offers us that opportunity. It is a great business. We have seen quite good growth for them. We think that that is one of our core businesses if we are looking to take over."
United Engineers is eyeing on WBL Corp's business outside Singapore, particularly in China.
These include automotive, property development, technology and engineering.
Jack Wang from Lexico Advisory said there could be lucrative spin-offs if the acquisition is successful.
Mr Wang said: "You are not just buying one company. You are actually buying three segments of the business which I think if anyone is confident of about the fundamentals, you can spin-off some of the business, and you can get lots of value out of it."
United Engineers has the support from WBL Corp's major shareholders which include OCBC Group, Great Eastern, and the Lee Family.
Together they hold 38.3 per cent stake in WBL Corp.
United Engineers said it will fund the acquisition by internal funds and external borrowings.
WBL Corp's shares were halted for trading on Wednesday. Its shares last traded at S$4.20 apiece.
Major shareholder Straits Trading with some 44.6 per cent stake in WBL Corp has not commented on United Engineers' latest offer.
- CNA/fa
- wong chee tat :)
Thai tycoon takes majority control of Singapore's F&N
Thai tycoon takes majority control of Singapore's F&N
Posted: 31 January 2013 0144 hrs
SINGAPORE: A Thai tycoon has clinched majority control of Singapore conglomerate Fraser and Neave (F&N), making his offer to fully takeover the company unconditional.
TCC Assets, owned by Thai billionaire Charoen Sirivadhanabhakdi, said in a statement late Wednesday that its stake in F&N stands at 50.92 per cent after further purchases in the stock market and more shareholders accepting its offer.
With majority control now in the hands of the Thai parties, "accordingly, the F&N offer has become unconditional in all respects," the statement added.
TCC Assets is offering to buy F&N shares it does not already own at S$9.55 apiece, valuing the drinks, property and publishing conglomerate at S$13.75 billion.
The deadline for the rest of the shareholders to accept the offer was extended from February 4 to February 18, according to the statement.
Indonesia-led property firm Overseas Union Enterprise (OUE) averted a bidding war earlier this month when it declined to match the offer by the Thais. OUE is linked to Indonesian tycoon Mochtar Riady.
The takeover is said to be the biggest in Singapore's corporate history if it pushes through.
F&N became a takeover target after it sold off its most prized asset, Tiger Beer maker Asia Pacific Breweries, to Dutch giant Heineken in September.
It still has lucrative beverages, property and publishing operations.
Analysts believe more shareholders are likely to accept the offer as it is the only bid on the table.
The market however is closely watching whether Japanese brewer Kirin, which holds a 15 per cent stake in F&N, will sell its interests or remain a minority shareholder.
Kirin had allied itself with OUE in the bidding war. Its 15 per cent stake is worth more than S$2.0 billion at the rate offered by TCC Assets.
Charoen's TCC Group has a real estate unit, and the tycoon also owns Thai Beverage, which sells Chang beer.
- AFP/jc
- wong chee tat :)
Posted: 31 January 2013 0144 hrs
SINGAPORE: A Thai tycoon has clinched majority control of Singapore conglomerate Fraser and Neave (F&N), making his offer to fully takeover the company unconditional.
TCC Assets, owned by Thai billionaire Charoen Sirivadhanabhakdi, said in a statement late Wednesday that its stake in F&N stands at 50.92 per cent after further purchases in the stock market and more shareholders accepting its offer.
With majority control now in the hands of the Thai parties, "accordingly, the F&N offer has become unconditional in all respects," the statement added.
TCC Assets is offering to buy F&N shares it does not already own at S$9.55 apiece, valuing the drinks, property and publishing conglomerate at S$13.75 billion.
The deadline for the rest of the shareholders to accept the offer was extended from February 4 to February 18, according to the statement.
Indonesia-led property firm Overseas Union Enterprise (OUE) averted a bidding war earlier this month when it declined to match the offer by the Thais. OUE is linked to Indonesian tycoon Mochtar Riady.
The takeover is said to be the biggest in Singapore's corporate history if it pushes through.
F&N became a takeover target after it sold off its most prized asset, Tiger Beer maker Asia Pacific Breweries, to Dutch giant Heineken in September.
It still has lucrative beverages, property and publishing operations.
Analysts believe more shareholders are likely to accept the offer as it is the only bid on the table.
The market however is closely watching whether Japanese brewer Kirin, which holds a 15 per cent stake in F&N, will sell its interests or remain a minority shareholder.
Kirin had allied itself with OUE in the bidding war. Its 15 per cent stake is worth more than S$2.0 billion at the rate offered by TCC Assets.
Charoen's TCC Group has a real estate unit, and the tycoon also owns Thai Beverage, which sells Chang beer.
- AFP/jc
- wong chee tat :)
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