It is Malaysia ’s biggest wire harness manufacturer for the auto industry in terms of market share, is up for sale and its board of directors has invited the public to put in competitive bids.
WRC has rejected TSM Global Bhd’s request for better offer terms including the price and this has seen the latter resolving to consider other offers. WRC’s offer price would remain at rm1.25 per share. WRC had agreed to extend the acceptance deadline for the offer. Its MD Datuk Lim holds 60% equity interest in West River while his son Tze Thean holds the rest.
The deadline for acceptance of the offer, which Lim had made on Feb 28, 2012 was extended to April 6, 2012.
West River collectively held a 28.07% stake in TSM Global when it made the takeover offer. Buying out the remaining shares it does not own will cost West River about rm115 million cash.
However, TSM Global’s cash and cash equivalents stood at about rm132 million while bank borrowings amounted to rm19 million as at Oct 31, 2011. In fact, the company is in a net cash position of about rm113.5 million or 89 sen per share.
Given TSM Global’s cash balance, West River will fork out no more than rm20 million for the general offer to take over the company.
TSM Global gas said the board will consider any credible offers for the business undertaking, including all assets and liabilities of the company received by April 2, 2012.
Taking out the company’s cash of about rm100 million, the acquirer is paying a very low price for a profitable business that has growth opportunities and recurring income of over rm30 million a year.
The company had slipped into loss for the nine months ended Oct 31, 2011 because of losses resulting from the liquidation of 85.47% stake owned HDD mfg.
The reported loss does not reflect the fundamental value of TSM Global.
In Fy2011 ended Jan 31, TSM Globa;s net profit jumped when it enjoyed the full impact of its supply contract with Proton.
It is a dominant player in the local wire harness market with more than a 50% market share. Most of the local automakers are its customers.
WRC has rejected TSM Global Bhd’s request for better offer terms including the price and this has seen the latter resolving to consider other offers. WRC’s offer price would remain at rm1.25 per share. WRC had agreed to extend the acceptance deadline for the offer. Its MD Datuk Lim holds 60% equity interest in West River while his son Tze Thean holds the rest.
The deadline for acceptance of the offer, which Lim had made on Feb 28, 2012 was extended to April 6, 2012.
West River collectively held a 28.07% stake in TSM Global when it made the takeover offer. Buying out the remaining shares it does not own will cost West River about rm115 million cash.
However, TSM Global’s cash and cash equivalents stood at about rm132 million while bank borrowings amounted to rm19 million as at Oct 31, 2011. In fact, the company is in a net cash position of about rm113.5 million or 89 sen per share.
Given TSM Global’s cash balance, West River will fork out no more than rm20 million for the general offer to take over the company.
TSM Global gas said the board will consider any credible offers for the business undertaking, including all assets and liabilities of the company received by April 2, 2012.
Taking out the company’s cash of about rm100 million, the acquirer is paying a very low price for a profitable business that has growth opportunities and recurring income of over rm30 million a year.
The company had slipped into loss for the nine months ended Oct 31, 2011 because of losses resulting from the liquidation of 85.47% stake owned HDD mfg.
The reported loss does not reflect the fundamental value of TSM Global.
In Fy2011 ended Jan 31, TSM Globa;s net profit jumped when it enjoyed the full impact of its supply contract with Proton.
It is a dominant player in the local wire harness market with more than a 50% market share. Most of the local automakers are its customers.
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