22-01-2008: Ramunia accepts MISC offer
by Lim Shie-Lynn
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KUALA LUMPUR: Oil and gas platform fabricator Ramunia Holdings Bhd has accepted a takeover offer by MISC Bhd unit, MSE Holdings Sdn Bhd.
In a statement to Bursa Malaysia yesterday, MISC said it would own 1.40 billion shares representing 72.01% of Ramunia upon completion of the acquisition.
Ramunia received an offer from MSE Holdings on Jan 21 to dispose of its oil and gas steel structure fabricator Malaysian Marine and Heavy Engineering Sdn Bhd (MMHE) for RM3.2 billion in exchange for new ordinary shares and new irredeemable convertible preference shares in Rumania.
Trading in both MISC and Ramunia shares would resume on Jan 24. MISC was last traded at RM9.65 and Ramunia at RM1.21.
HLG Research said in a note that Ramunia’s takeover bid would augur well for the its stock in terms of deal valuation, potential synergies and parentage links to Petroliam Nasional Bhd (Petronas).
“We advocate investors to accumulate aggressively despite prevailing poor market conditions,” it said, placing Ramunia’s a fair value at RM1.60.
“With this deal, we think Ramunia and MMHE could make the switch from a sector laggard to a valuation leader,” HLG Research said, adding that investors may attach a valuation premium to Ramunia due to its linkage to Petronas.
“MMHE is the winner in this deal as they would still hold 68% of Ramunia after the proposed sale offer of 82 million shares of 50sen each in Ramunia. With this exercise, MMHE will be getting Ramunia’s preference share which carry a 3.7% cumulative preferential dividend rate,” an analyst told The Edge Financial Daily via telephone.
“As a result of this, MISC, being the parent of MSE, will be entitled to collect RM67 million in preferential dividend from Ramunia,” the analyst said.
In a separate statement, Ramunia said it is proposing a transfer to the Main Board on Bursa Malaysia when the acquisition deal is completed to reflect the status of the enlarged Ramunia Group.
“(The main board transfer) is expected to further enhance the credit standing of the enlarged Ramunia Group among its bankers and peers,” it said.
Source: http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_a1f80642-cb73c03a-10ebe180-b9ea9d14
Tuesday, January 22, 2008
US Fed cuts interest rates by 75 basis points
22-01-2008: US Fed cuts interest rates by 75 basis points
Email us your feedback at fd@bizedge.com
WASHINGTON: The following is the text of a statement released by the US Federal Reserve on Jan 22, 2008:
"The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3½%.
The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labour markets.
The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.
Appreciable downside risks to growth remain. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.
Voting for the FOMC monetary policy action were: Ben S Bernanke, Chairman; Timothy F Geithner, Vice Chairman; Charles L Evans; Thomas M Hoenig; Donald L Kohn; Randall S Kroszner; Eric S Rosengren; and Kevin M Warsh. Voting against was William Poole, who did not believe that current conditions justified policy action before the regularly scheduled meeting next week. Absent and not voting was Frederic S Mishkin.
In a related action, the Board of Governors approved a 75-basis-point decrease in the discount rate to 4%. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Chicago and Minneapolis." — Reuters
Source: http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_a203d94c-cb73c03a-10ebe180-ea7015ac
Email us your feedback at fd@bizedge.com
WASHINGTON: The following is the text of a statement released by the US Federal Reserve on Jan 22, 2008:
"The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3½%.
The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labour markets.
The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.
Appreciable downside risks to growth remain. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.
Voting for the FOMC monetary policy action were: Ben S Bernanke, Chairman; Timothy F Geithner, Vice Chairman; Charles L Evans; Thomas M Hoenig; Donald L Kohn; Randall S Kroszner; Eric S Rosengren; and Kevin M Warsh. Voting against was William Poole, who did not believe that current conditions justified policy action before the regularly scheduled meeting next week. Absent and not voting was Frederic S Mishkin.
In a related action, the Board of Governors approved a 75-basis-point decrease in the discount rate to 4%. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Chicago and Minneapolis." — Reuters
Source: http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_a203d94c-cb73c03a-10ebe180-ea7015ac
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