Transport Sector, China and Asia-focused Research

Charles De Trenck

Thematic (Sector/Industry)

Another report of potential suitors made it to market on Friday, forcing NOL to disclose there have been talks with French carrier CMA and global leader Maersk. NOL&rsquo;s shares rose some 6% to $1.05 and closer to book NAV per share around&nbsp;S$1.4 (and higher when the US dollar drifts higher). But what would make a potential transaction more interesting, if at all, keeping in mind the Hapag IPO pricing was about 25% below the original high end of the range?

Another report of potential suitors made it to market on Friday, forcing NOL to disclose there have been talks with French carrier CMA and global leader Maersk. NOL&rsquo;s shares rose some 6% to $1.05 and closer to book NAV per share around&nbsp;S$1.4 (and higher when the US dollar drifts higher). But what would make a potential transaction more interesting, if at all, keeping in mind the Hapag IPO pricing was about 25% below the original high end of the range?

NOL's Latest Potential Merger Discussions... Where is the [Partial] Exit for Temasek?

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<a href="https://www.smartkarma.com/entities/dutech-holdings-ltd" target="_blank" data-smartkarma-citation="entities:6424:1" rel="noopener">Dutech Holdings (DTECH SP)</a>, a security product - safes - manufacturer, and S-chip, has <a href="https://links.sgx.com/FileOpen/Dutech%20Holdings%20Limited%20-%20Offer%20Announcement.ashx?App=Announcement&amp;FileID=669450" target="_blank" rel="noopener">announced</a> a voluntary unconditional cash Offer from TSI Metals for S$0.40/share, in cash, a 60% premium to last close. TSI is a holding company wholly-owned by CEO, executive chairman, and director, Johnny Liu.
Any dividends declared and paid will reduce the Offer price.
Liu, via Spectacular Bright, holds 42.76%, which has given an irrevocable to accept the Offer and has also entered into a rollover arrangement which would be allocated shares in TSI. The SIC has already signed off on this arrangement. 
Willalpha, a vehicle owned by Liu Bin, Liu's brother, holds 15.79%, and has given an irrevocable to accept the Offer. 
Irrevocables, therefore, total 58.54%.
Liu does not intend to maintain the listing, nor does it intend to take any steps to restore the free float.
The pushback, if any? Dutech had net cash on hand of ~S$75mn as at FY20, around 50% of the implied market cap under the Offer.
More below the fold.

Dutech Holdings (DTECH SP), a security product - safes - manufacturer, and S-chip, has announced a voluntary unconditional cash Offer from TSI Metals for S$0.40/share, in cash, a 60% premium to last close. TSI is a holding company wholly-owned by CEO, executive chairman, and director, Johnny Liu.
Any dividends declared and paid will reduce the Offer price.
Liu, via Spectacular Bright, holds 42.76%, which has given an irrevocable to accept the Offer and has also entered into a rollover arrangement which would be allocated shares in TSI. The SIC has already signed off on this arrangement. 
Willalpha, a vehicle owned by Liu Bin, Liu's brother, holds 15.79%, and has given an irrevocable to accept the Offer. 
Irrevocables, therefore, total 58.54%.
Liu does not intend to maintain the listing, nor does it intend to take any steps to restore the free float.
The pushback, if any? Dutech had net cash on hand of ~S$75mn as at FY20, around 50% of the implied market cap under the Offer.
More below the fold.

China

DuTech Holdings Ltd. is a global provider of security and green mobility solutions. The company designs and manufactures high-security products such as ATM safes, commercial safes, and smart terminals, alongside e-bikes and other green mobility products. It was incorporated in Singapore on November 2, 2006.

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DuTech (DTECH SP)

NOL's Latest Potential Merger Discussions... Where is the [Partial] Exit for Temasek?

Another report of potential suitors made it to market on Friday, forcing NOL to disclose there have been talks with French carrier CMA and global...

Charles De Trenck

Dutech Holdings (DTECH SP): A Safe Bet

This will trade tight to, if not to/through terms. This is a done deal. If this trades a spread or two below terms, get involved.

David Blennerhassett

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