During the meeting, interesting questions such as "How was the offer price at $0.40 per share determined?" and "What is the IFA's recommendation, given that the offer price does not reflect the intrinsic value of the company." Perhaps, one of the most immediate concerns of shareholders was "Where to put my money after Meiban is privatized?"
Mr. Mano Sabnani, Chairman of Rafflesia Holdings Pte Ltd, answered this question and offered a recommendation during the meeting. He recommended shareholders of Meiban to take a look at Venture Corporation Ltd.
The reasons given by Mr. Mano were the following:
- Meiban and Venture are in the same industry.
- Venture has a PE of 14 (which is similar to Meiban's exit price).
- High dividend yield of 6.9%
- NAV of $6.83
- Cash per share at $1.74
- ROE of 8.4% (compared to 6.2% of Meiban)
There were more information given but the above was what I managed to take note of during the meeting.
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From SGX:
Venture Manufacturing (S) Ltd was incorporated in 1984 to provide contract manufacturing services to companies in the electronics and computer-related industries. In 1989, the Company formed the Venture Group with the merger and acquisition of Multitech Systems Pte Ltd and Technocom Systems Sdn Bhd. The Venture group comprises about 30 companies with global clusters of excellence in South-East Asia, North-East Asia, the Americas and Europe.
Venture offers high value-added and highly efficient manufacturing services to MNCs using state-of-the-art manufacturing process technology and test development capability. In addition, Venture provides an excellent range of pre-manufacturing services including design, prototyping and engineering services, as well as post-manufacturing services including after-sales repairs, customisation and fulfillment logistics.
Venture Manufacturing (Singapore) Ltd changed its name to Venture Corporation Limited wef 17 May 2002.
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