- Issue price represents a 17.4% discount to weighted average price of S$1.937 for trades done on 29 May 09.
- Temasek Holdings to become second largest shareholder (13.76%) after main sponsor, Kewalram Chanrai Group.
- Major shareholders, Kewalram Singapore Ltd and Mr. Sunny George Verghese, which together hold approx 32%, have undertaken to vote in favour of this proposal.
- Reasons for raising capital:
a) Not de-gear its balance sheet.
b) To be able to resume and accelerate organic and inorganic growth.
c) Require S$437.5m to fund growth over next 2-3 years.
- Net proceeds will be used for:
i) To finance new capital expenditures and acquisition of assets for the Group (80-100%)
ii) General corporate purposes of the Group (0-20%)
- With the S$473.5m of capital, Olam could raise US$600m of debt.
- Olam is still seeking acquisition targets and may seek a 5-7 years of banking facility once it identifies acquisition targets if the pricing is right.
Based on consensus forecasts, Olam is trading at 16.9x FY10 P/E (19.6x FY09 P/E) and 3.6x FY10 P/B (4.2x FY09 P/B).
Click here for more Commodity Stocks Technical Analysis
Sponsored Links
Comments
No response to “On Temasek Holdings to become second largest shareholder of Olam”
Post Comments (Atom)
Post a Comment |
Post a Comment