Nov
02
2011
You likely have heard or read that Grande Cashe Coal (TSX:GCE) Monday received a takeover offer from a Chinese/Japanese partnership apparently formed for the purpose of making the bid. The bid, valued at Cdn$10, is a 70% premium to last Friday’s closing price. See ‘Grande Cache Coal gets $1-billion takeover offer’ – reading time 3 minutes.
I find the following things interesting about this bid:
- It is a joint bid by a partnership of a Chinese and a Japanese company, which I think is somewhat unusual. Query: Is this a harbinger of things to come in the context of Chinese companies joint venturing with strategic partners from other countries to make bids for assets they consider strategic to them?; and,
- The ‘premium to market’ is unusually large in circumstances where a ‘norm’ has always broadly been thought to be +/-30%. Query: Does this speak to possible large premiums being forthcoming in the current markets in other resource company takeovers?
As I have said in many of my prior e-mails, and continue to believe, “watch for more acquisitions on a world scale by Chinese companies and the Chinese Government of assets they see as strategic to their respective future economic well-being”.
See also ‘Asia firms to buy Grande Cache Coal for $1-billion’ – reading time 2 minutes.
Visit Stock Research Portal for stock market data, analysis, and research on over 1,600 Mining, Oil and Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.
Possibly Related Posts:
Oct
24
2011
In the aftermath of Libyan dictator Gaddafi’s death on October 20, I suggest you take the time to watch a 4 minute video titled ‘Arab autumn’. The lead-in to the video says “If Tunisia and Egypt heralded the Arab Spring, the death of Muammar Gaddafi in Libya perhaps signals the Arab Autumn”. With the momentum of uprisings waning across the region Lex’s John Authers and Vincent Boland analyze how the Arab economies will fare and the impact of the upheaval on the oil price.
Visit Stock Research Portal for stock market data, analysis, and research on over 1,600 Mining, Oil and Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.
Possibly Related Posts:
Oct
11
2011
On September 19 we included in our Daily E-mail a Survey dealing with Toronto Stock Exchange (‘TSX’) proposed ‘Corporate Director Election’ Policy Rule Changes. The TSX invited public feedback. Today, in accord with the TSX request, I sent a letter to Michal Pomotov, Legal Counsel, The Toronto Stock Exchange. I appended a PDF of the Survey Results, and copies of the comments made by Survey Participants to that letter. Given StockResearchPortal.com’s privacy policies those comments were not attributed to specific Respondents, nor were Respondents names or e-mail addresses included.
There were 144 Survey completions, which I believe suggests statistical validity of +/-3% for our website Subscriber population. The Survey asked five questions. The Survey Results are as follows:
- of 144 Respondents, 139 (96.5%) directly or indirectly owned shares listed on the Toronto Stock Exchange;
- of 144 Respondents, 113 (78.4%) directly or indirectly owned shares listed on other Stock Exchanges;
- 142 Respondents, given choice of selecting from a ‘Strong No Vote’ (1 ranking) to a ‘Strong Yes Vote’ (5 ranking), generated a weighted average ‘Yes Vote’ of 4.4 out of 5.0 in favour of being allowed to cast votes for individual directors. 35 of those 142 Respondents commented on this Proposal;
- 142 Respondents, given choice of selecting from a ‘Strong No Vote’ (1 ranking) to a ‘Strong Yes Vote’ (5 ranking), generated a weighted average ‘Yes Vote’ of 4.0 out of 5.0 in favour of a Proposal that Company Boards could no longer be staggered with different directors up for election in different years. 27 of those 142 Respondents commented on this Proposal; and,
- 140 Respondents, given choice of selecting from a ‘Strong No Vote’ (1 ranking) to a ‘Strong Yes Vote’ (5 ranking), generated a weighted average ‘Yes Vote’ of 4.2 out of 5.0 in favour of a Proposal that would require companies to disclose in their annual proxy circulars whether they have adopted a majority voting policy. 18 of those 140 Respondents commented on this Proposal.
You can read my letter to Mr. Pomotov, and review the Survey Results. I have invited Mr. Pomotov to contact me, and it will be interesting to see if he does that.
As I am sure you have figured out, both Corporate Governance and Corporate Social Responsibility are high on my list of what I think is ‘corporately important’. As further ‘Corporate Governance Survey Opportunities’ arise we will be asking you, a group I think is a particularly well informed with strong vested interests, for your views and opinions.
Visit Stock Research Portal for free stock market data, analysis, and research on over 1,600Mining,Oil & Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.
Possibly Related Posts:
Oct
11
2011
This past weekend China energy company Sinopec International Petroleum Exploration bid Cdn$2.2 billion for the outstanding shares of Daylight Energy Ltd. Daylight is a former Oil & Gas Trust that converted to a corporation. It holds a portfolio of natural gas properties in Canada’s Provinces of British Columbia and Alberta.
An important differentiator that marks this bid, which is for $10.08 per share (a 120% premium to last Friday’s closing price of $4.59), is that this bid is a direct 100% bid by a Chinese corporation for a Canadian company. To date, Chinese acquisitions in Canada have occurred in circumstances where the target was in financial difficulty, or for only small percentages of companies.
Because the Daylight transaction price is over the Cdn$299 million 2010 Investment Canada Act threshold, a review by the Canadian Federal Minister of Industry will be completed in the next 45 days to determine whether or not the acquisition will be allowed to proceed. To some degree, I think this is ‘crunch time’, as if the transaction is allowed it strikes me as being large enough to be to some degree precedent setting. I will be surprised if Washington does not do more than simply act as an observer in this.
I will be following this transaction as it progress over the next month and a half, and will comment further in these e-mails on it. You can read about this transaction in an article titled ‘Sinopec bids $2.2 billion for Alberta energy company’ – reading time 4 minutes.
Visit Stock Research Portal for free stock market data, analysis, and research on over 1,600Mining,Oil & Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.
Possibly Related Posts:
