The news: Pacific One Energy (POE), a wholly-owned company by the Wiluan family (Kris Wiluan: 15%, Rija Holdings which is controlled by Richard James Wiluan – 85%), has offered to acquire all shares of KS Energy for S$1.07/share, representing a 11.46% premium to Friday’s closing of S$0.96. As of announcement of acquisition, POE and interested parties have already owned or controlled a 40.4% stake and 32.8m warrants which represent 5.8% of shares.
Our thoughts: Five years since the entry of Kris Wiluan as the major shareholder of the predecessor of KS Energy Services – the predecessor of KS Energy, the Indonesian tycoon now intends to privatise the entire KS Energy. This has come on the back of a loss-making 1Q11 results, KS Energy’s first results since its formation through merger of KS Energy Services, Aqua-Terra, and SSH. However, the company mentioned that the benefits of merger will be seen only in 2H11 during the 1Q11 results release. Currently, KS Energy’s net gearing stands at 0.7x while it is trading at 13x FY12 Bloomberg consensus earnings. We do not have a rating on this counter.
No comments:
Post a Comment