The Singapore firm, which said it will pay US$6.75 ($9.28) for every Cascal share if it gets at least 80% of the shares, had previously set a deadline of June 21.
The STI may face more weakness in next few weeks as concerns on European sovereign debt default continue to raise risk premium for equity investment, and 2010 World Cup tournament curtails interest in stocks, says DMG.
The research house is tipping support at 2,530, based on 1 standard deviation from 12-year historical P/B of 1.6x. Notes Europe more important to Singapore as export market than US, with exports to EU accounting for 19% of total NODX (non-oil domestic exports) last year vs 14% for US.
“Given the short-term global concerns, we prefer to be defensive.” Suggests avoiding cyclical plays like SGX (S68.SG), SembMarine (S51.SG), DBS (D05.SG), buying M1 (B2F.SG), Sembcorp Industries (U96.SG), ComfortDelgro (C52.SG). STI closed +0.5% at 2,752.60 yesterday.
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Sembcorp Industries says Biwater Investments, the majority stockholder of Cascal N.V., has tendered its 17,868,543 shares of Cascal to its wholly-owned subsidiary Sembcorp Utilities. This represents 58.4% of the outstanding common shares of Cascal, based on the 30,581,343 shares reported by Cascal to be issued and outstanding as of December 31, 2009.
Sembcorp Industries says Cascal N.V. in the United States has voluntarily withdrew its complaint against the company.
This follows the decision by the United States District Court for the Southern District of New York on May 19, 2010 to deny Cascal’s motion for a preliminary injunction to stop Sembcorp from launching its voluntary tender offer.
Sembcorp Industries (U96.SG) fails to build on initial gains, off 1.0% at $3.81 vs $3.90 earlier (+1.3%), suggesting conglomerate’s foray into India’s energy market not enough to drive interest, according to Dow Jones.
Sembcorp Industries (U96.SG) says Cascal N.V. (HOO) has withdrawn its request for a “temporary restraining” order from a US Court to stop the Singapore company from making a voluntary offer for the New York-listed wastewater company.
Sembcorp, in a filing to the Singapore Exchange, said that the US Court held a hearing on Cascal’s motion on May 12 and had decided to schedule an “evidentiary hearing” on May 19.
DMG has initiated coverage of Sembcorp Industries (U96.SG) with Buy call with broker bullish due to opening of new Shell and Exxon petrochemical plans in Singapore that will bring new high-value downstream investments, benefits.
Sembcorp Industries (U96.SG) is up 1.3% at $3.96 as investors emboldened by broad market rebound accumulate stock after its steady decline since late April, according to Dow Jones.
Sembcorp Industries reported a 19% growth in net profit for the first quarter of 2010 (1Q2010). In 1Q2010, group net profit was $158.8 million compared to $133.6 million in 1Q2009, while turnover was $2.4 billion compared to $2.1 billion in 1Q2009. Sembcorp’s return on equity was 17.5%, while cash and cash equivalents stood at a $3 billion.
In 1Q2010, Marine’s contribution to group net profit grew 23% from $74 million to $91.1 million, while Utilities’ 1Q2010 net profit increased 10% from $51.1 million to $56.2 million. Contributions from overseas operations now comprise 39% of Utilities’ net profit, with earnings from China, Vietnam and the UAE growing 20% to $11.6 million in 1Q2010.
Sembcorp Industries says it has started legal action against Cascal N.V. (Cascal) in the United States in connection to the proposed voluntary tender offer for the common stock of Cascal as announced on April 26, 2010.
Sembcorp Industries says it has formed a joint venture company, SMU Energia e Serviços de Utilidades Ltda (SMU), in which its wholly-owned subsidiary Sembcorp Utilities (BVI) Pte Ltd (SCU BVI) holds a 33.3% share, Utilitas Participações S.A. holds a 33.3% share and Mitsui & Co., Ltd. holds a 33.4% share.
SMU has further signed an agreement with Comperj Participações S.A. to form an 80-20 joint venture, Companhia de Desenvolvimento de Plantas de Utilidades (CDPU), which, among other objectives, will explore the feasibility of the implementation of a utilities project in Brazil.
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Sembcorp Industries (U96.SG) down 2.1% at $4.27 on market pullback, uncertainty over outcome of recent offer to buy US-listed water company Cascal (HOO) after target’s board of directors rejected move citing inadequate price, according to Dow Jones.
Sembcorp Industries’ (U96.SG) proposed purchase of US-listed water company Cascal (HOO) is doing little to generate investor interest, according to Dow Jones.
The deal will expand Sembcorp’s water and wastewater operations in 11 countries from five and allow it to enter new markets such as South Africa and Latin America.
Sembcorp Industries (U96.SG) is up 0.3% to over five-week high of $3.71 after better-than-expected 4Q09 earnings, 36.5% dividend rise.
But buying has not widespread as volume stays thin (volume has been dwindling since Tuesday), suggesting results partly priced in given unit SembMarine’s (S51.SG) strong 4Q09 performance earlier this week.
Still, some analysts hopeful Sembcorp can continue to deliver strong results.
Sembcorp Industries reported a 157% growth in profit after tax and minority interest (PATMI) for the fourth quarter of 2009 (4Q2009).
In 4Q2009, group PATMI was $259 million compared to $100.8 million in 4Q2008, while turnover was $2.4 billion compared to $2.7 billion in 4Q2008.
For the full year ended December 31, 2009 (FY2009), group PATMI grew 35% from $507.1 million to $682.7 million, while turnover stood at $9.6 billion.
Sembcorp’s return on equity was a healthy 23%, while cash and cash equivalents stood at a strong $2.6 billion.
Sembcorp Industries, owner of the world’s second-biggest oil-rig maker, said third-quarter profit gained 2.2% on increased production of offshore structures at its marine unit.
Net income rose to $148.1 million, or 8.26 cents a share, in the three months to Sept 30, from $144.9 million, or 8.08 cents, a year earlier, the company said today in a statement. Sales gained 3% to $2.58 billion.
The Sembcorp Changi NEWater Plant (SCNP) has begun its first phase of commercial operations.
This milestone was achieved last Friday, after an uninterrupted seven-day plant-proving process, which saw the SCNP successfully meet the stringent quality criteria set out by the PUB, says Sembcorp Industries.
