KUALA LUMPUR: UMW Holdings Bhd’s 22.3% associate company, WSP Holdings Ltd, has received a takeover bid in New York.
The group yesterday also refuted rumours it has submitted a bid for Khazanah Nasional Bhd’s 42.7% equity stake in Proton Holdings Bhd.
According to WSP’s filing with the New York Stock Exchange (NYSE), the company said it had received a non-binding proposal letter from HDS Investments LLC notifying of its interest in acquiring all of WSP’s shares for US$0.60 per share. This is to be paid in cash. At the price tag of US$0.60, UMW’s 22.3% stake in WSP would translate into US$13.7 million (RM43.8 million).
Following the proposed acquisition, the WSP board formed a special committee of independent directors to consider strategic alternatives to enhance shareholder value.
In its filing with NYSE, WSP said its majority shareholder Expert Master Holdings Ltd, which has a 50.9% stake and is wholly-owned by WSP chairman and CEO Longhua Piao, has had preliminary and informal communications with HDS.
HDS had proposed to acquire all of the shares held publicly and by certain significant shareholders through a special purpose vehicle. However, WSP said the special committee has made no decisions pertaining to the proposal.
“There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated,” it said.
WSP, which had been listed on the NYSE since 2007, is a Chinese manufacturer of seamless oil country tubular goods (OCTG) including equipment used for the exploration, drilling and extraction of oil and natural gas.
It has seen its earnings erode steadily over the past few years. WSP registered a net loss of US$118.8 million for its financial year ended Dec 31, 2010, from a profit of US$4.18 million the year before. Revenue dwindled to US$470.5 million last year from US$5.7 billion in 2009.
The company said it suffered a significant operating loss, working capital deficiency and negative operating cash flow last year.
Additionally, it said there was a significant amount of short-term borrowings to be refinanced. Its current liabilities stood at US$877.9 million in 2010, from US$764.4 million the year before.
It also said sales in the US had declined substantially in the past two years due to the anti-dumping and countervailing duty on seamless pipes manufactured in China.
Shares in WSP closed higher at US$0.46 on Wednesday from US$0.44 the day before. The stock has lost 65.7% year-to-date.
UMW told Bursa Malaysia yesterday it had not submitted a bid to buy Khazanah’s stake in Proton. The statement was in response to a media article.
This article appeared in The Edge Financial Daily, December 16, 2011.
The group yesterday also refuted rumours it has submitted a bid for Khazanah Nasional Bhd’s 42.7% equity stake in Proton Holdings Bhd.
According to WSP’s filing with the New York Stock Exchange (NYSE), the company said it had received a non-binding proposal letter from HDS Investments LLC notifying of its interest in acquiring all of WSP’s shares for US$0.60 per share. This is to be paid in cash. At the price tag of US$0.60, UMW’s 22.3% stake in WSP would translate into US$13.7 million (RM43.8 million).
Following the proposed acquisition, the WSP board formed a special committee of independent directors to consider strategic alternatives to enhance shareholder value.
In its filing with NYSE, WSP said its majority shareholder Expert Master Holdings Ltd, which has a 50.9% stake and is wholly-owned by WSP chairman and CEO Longhua Piao, has had preliminary and informal communications with HDS.
HDS had proposed to acquire all of the shares held publicly and by certain significant shareholders through a special purpose vehicle. However, WSP said the special committee has made no decisions pertaining to the proposal.
“There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated,” it said.
WSP, which had been listed on the NYSE since 2007, is a Chinese manufacturer of seamless oil country tubular goods (OCTG) including equipment used for the exploration, drilling and extraction of oil and natural gas.
It has seen its earnings erode steadily over the past few years. WSP registered a net loss of US$118.8 million for its financial year ended Dec 31, 2010, from a profit of US$4.18 million the year before. Revenue dwindled to US$470.5 million last year from US$5.7 billion in 2009.
The company said it suffered a significant operating loss, working capital deficiency and negative operating cash flow last year.
Additionally, it said there was a significant amount of short-term borrowings to be refinanced. Its current liabilities stood at US$877.9 million in 2010, from US$764.4 million the year before.
It also said sales in the US had declined substantially in the past two years due to the anti-dumping and countervailing duty on seamless pipes manufactured in China.
Shares in WSP closed higher at US$0.46 on Wednesday from US$0.44 the day before. The stock has lost 65.7% year-to-date.
UMW told Bursa Malaysia yesterday it had not submitted a bid to buy Khazanah’s stake in Proton. The statement was in response to a media article.
This article appeared in The Edge Financial Daily, December 16, 2011.
