GMG Global announced early on Monday morning that it would be halted pending an announcement. Given that it had a rights issue last year and that in terms of price movement before trading was halted, there was nothing spectacular, my guess is that the trading halt has got to do with developments in Africa. We will only know probably after the trading day has ended. BB.
Edit
Looks like I got it wrong. GMG intends to acquire a Thai rubber processor, which is in negative equity. GMG intends to turnaround this target by 2011. read more here http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_FC49C640D3F3C192482577EA0015FF36/$file/Announcement_Acquisition_TBH.pdf?openelement
Added (29 November 2010 11.30pm Singapore)
here are some little known facts:
1. the target is part of the Tan Kah Kee group of businesses
2. it once monopolized the Thai rubber market in the very early days till political reforms set in
3. based on 2008 figures, TBH is the 9th largest rubber exporter.
Edit
Looks like I got it wrong. GMG intends to acquire a Thai rubber processor, which is in negative equity. GMG intends to turnaround this target by 2011. read more here http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_FC49C640D3F3C192482577EA0015FF36/$file/Announcement_Acquisition_TBH.pdf?openelement
Added (29 November 2010 11.30pm Singapore)
here are some little known facts:
1. the target is part of the Tan Kah Kee group of businesses
2. it once monopolized the Thai rubber market in the very early days till political reforms set in
3. based on 2008 figures, TBH is the 9th largest rubber exporter.
In your opinion, do you think the GMG announcement is positive? After all, they are acquiring a loss-making company.
ReplyDeleteThanks!
MW, I will do something on this issue, but my short answer is that this acquisition is definitely more strategic to China than the retail investors. I do not expect dividends for FY10 coming from GMG Global.
ReplyDelete