Silver Bird … dated June 2012

Speculation that one or two while knights emerging at Silver Bord. Names that have cropped up even included people without access to the company’s books.

Market talk that an eventual white knights if any would likely come from Silver Bird’s existing pool of substantial shareholders.

There is some value lies in Silver Bird which is its plant.

LTH is Silver Bird’s largest shareholder with a 22.19% stake, followed by Tan Sri Vincent Tan’s Berjaya Corp Snd Bhd with a 20.53% stake. That Koperasi Permodalan Felda Malaysia Bhd has a 12.7% stake had fueled speculation of FELDA coming to the rescue, given the latter’s desire to grow bigger in the halal food segment.

Collectively, the top three shareholders own 55.4% of the company. The fourth largest shareholder with a 9.07% stake is Australian private equity firm CVC Ltd.

LTD is said to be considering a tie up with FELDA to take over Silver Bird, something that could not be immediately confirmed at press time.

Currently (June 2012) the top management is reoccupied with the FELDA Global listing so things might not move until after the listing June 28, 2012.

Many sees synergies in LTH and FELDA working together to grow bigger in the halal food business.

FGVH’s MD had previously said that the group would acquire suitable downstream businesses for growth should the right opportunities come along. That was in addition to growing ots own house brands parked under Delima Oil Products Sdn Bhd – a subsidiary of FGVH’s 49% owned Felda Holdings Bhd. KPF’s owns 51% of Felda Holdings which is not part of the FGVH IPO.

A strong downstream business would raise the goup’s profile outside Malaysia , apart from giving some demand stability to its upstream and mid stream output.

Its MD admits that the bread and confectionery could be an interesting area to explore.

Silver Bird’s MD said that it will only consider potential investors or white knights after it proposed regularization plan had been approved by shareholders and its creditors.

Silver Bird had negative shareholders’ equity of rm94 million after rm297 million worth of write offs. It had rm224 million in liabilities which exceeded assets worth of rm140 million.