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Need only another 1% to cross over the 30% mark to kick in the takeover process, the question is at what price and how soon...
Analyst: Wei Bin
Is privatisation possible? We cannot rule out the possibility that Indofood will some day privatise Minzhong. Our reasons are as follows:
1. Minzhong?s integrated vegetable processing capacity is what has attracted Indofood, in our view. Indofood raised its stake in the company to 29% only two weeks after first acquiring a 15% holding. This shows its eagerness to secure a bigger control of the company. However, we do not think 29% is the end of the story. Indofood will likely continue to increase its holdings or
even privatise Minzhong if it wants absolute control of the company.
2. Minzhong?s current cheap valuation also makes it a good candidate to be privatised.
The stock is trading at 4.4x PER and 0.9x P/BV vs Indofood?s corresponding valuations of 18.6x and 2.8x. In our view, the huge valuation gap between the duo will benefit Indofood?s shareholders if an acquisition eventuates.
3. Minzhong?s shareholding structure is also favourable for a privatisation. Indofood already owns 29% of the company, followed by Templeton (14%) and CMIA (5%). Management owns about 5% of the company.
We understand that CMIA, as a p re-IPO investor, has been investing in Minzhong since 2004 and given the nature of private equity firms, it is a natural progression for them to liquidate their investments post IPO and return the capital to their investors.
Thus, it should not be too difficult for Indofood to take over CMIA?s share in the future. With the top four shareholders accounting for 51% of the company, privatisation would seem a lot more feasible in our view.
Is privatisation possible? We cannot rule out the possibility that Indofood will some day privatise Minzhong. Our reasons are as follows:
1. Minzhong?s integrated vegetable processing capacity is what has attracted Indofood, in our view. Indofood raised its stake in the company to 29% only two weeks after first acquiring a 15% holding. This shows its eagerness to secure a bigger control of the company. However, we do not think 29% is the end of the story. Indofood will likely continue to increase its holdings or
even privatise Minzhong if it wants absolute control of the company.
2. Minzhong?s current cheap valuation also makes it a good candidate to be privatised.
The stock is trading at 4.4x PER and 0.9x P/BV vs Indofood?s corresponding valuations of 18.6x and 2.8x. In our view, the huge valuation gap between the duo will benefit Indofood?s shareholders if an acquisition eventuates.
3. Minzhong?s shareholding structure is also favourable for a privatisation. Indofood already owns 29% of the company, followed by Templeton (14%) and CMIA (5%). Management owns about 5% of the company.
We understand that CMIA, as a p re-IPO investor, has been investing in Minzhong since 2004 and given the nature of private equity firms, it is a natural progression for them to liquidate their investments post IPO and return the capital to their investors.
Thus, it should not be too difficult for Indofood to take over CMIA?s share in the future. With the top four shareholders accounting for 51% of the company, privatisation would seem a lot more feasible in our view.
Gd luck.
Peter_Pan ( Date: 08-Apr-2013 10:09) Posted:
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Waiting for below $1.00.
opening was firm...seems like selling presuure is creeping in.
Octavia ( Date: 18-Apr-2013 09:08) Posted:
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Sitting dangerously at 100 days. 
aputako ( Date: 18-Apr-2013 11:33) Posted:
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$1.01 already. See will get cheaper.
I think more dwnside in the near term.
Can pick up cheap.
China minzhong may crash to and rebound from 102 today ..
for more details see my ming zhong chart
hello123 ( Date: 17-Apr-2013 16:52) Posted:
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Break 106.
Hence forth based on TA, shd head towards 90cents.
That is juicy.
Will wait meantime.
Hence forth based on TA, shd head towards 90cents.
That is juicy.
Will wait meantime.
Minzhong falling fast , u may wanna cover your shorts at 102.
for more details , see my minzhong chart ( click here) .tq
hello123 ( Date: 16-Apr-2013 04:39) Posted:
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chinaMinzhong - Good level to accumulate! (better pricing then indofood)
DJ MARKET TALK: Maybank-KE Tips Potential Singapore Takeover Plays
11 Apr 2013 12:40
DJ MARKET TALK: Maybank-KE Tips Potential Singapore Takeover Plays
0440 GMT [Dow Jones] STOCK CALL: In the wake of Thai F& B player Minor (MINT.TH) taking a 10% stake in BreadTalk (5DA.SG), Maybank-Kim Eng tips nine Singapore small-caps with favorable chances for positive corporate action, including investments by private-equity or industry peers, privatization exercises, new substantial shareholders or unsolicited takeover offers. " In a world of record low interest rates against a backdrop of macro uncertainties, acquirers can control their own fate by buying out good assets," it says. Its picks straddle various sectors, but it gave extra weight to consumer plays. " Our choices also reflected attractive underlying valuations as well as positive growth potential, which will be supportive of further share price appreciation even in a non-event, meaning we would be comfortable holding on to these stocks in the long term even if a corporate action does not pan out." It tips China Minzhong (K2N.SG), Dukang Distillers (GJ8.SG), Hotel Properties (H15.SG), Midas (5EN.SG), Sarin Technologies (U77.SG), Sing Holdings (5IC.SG), Super Group (S10.SG), Viz Branz (L5J.SG) and Yongnam (Y02.SG). (leslie.shaffer@dowjones.com)
ozone2002 ( Date: 16-Apr-2013 10:22) Posted:
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now sino grandness much higher price than CMZ..
Sino had overwhelming response for their product at the trade shows..
gd luck dyodd
whoopps.... it is no wonder i'm always losing money.
i'm making decisions based on old news...hmmmm
oldflyingfox ( Date: 15-Apr-2013 10:49) Posted:
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1.05 must hold..... else its a goner. Good luck.
that was old news, one month ago. No impact on the present price now.
tostubi ( Date: 15-Apr-2013 10:13) Posted:
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or i may have made a bad mistake, maybe he sold it to indo food... hmmm....
16546000 shares, couldn't have been on open market.
arrrgggh can't stand the lossess... pulling my hair.
Usually it's not a good sign. But he must have made so much since he got it cheap. Anyway can't expect him to hold forever. Maybe sold some to get cash buy new car.
Not vested (but waiting to)
Not vested (but waiting to)
tostubi ( Date: 15-Apr-2013 10:13) Posted:
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