Viz Branz

[Trader88]

It seems that the relationship between the father and son are not as bad. Son sold all shares to Lam Soon, Son then bought all shares from father, triggering a Mandatory cash offer. Son knows that Lam Soon won't let go and hence will counter offer. Ultimately, Lam Soon gets the company and father and son happily laughing all the way to the bank. All parties are winners, including minority investors. Ben Chng is one smart and shrewd investor. He probably planned all this.

[MrValue]

Would have expected the offer to be made by lam soon.

wonder how Ben got the resources to make the offer unless he uses big leverage or he has already got plan to on sell to 3rd parties.
or unless he made fantastic returns with the proceeds from the sale of 20% stake to lam soon last year!

[brattzz]

wait a minute, 78cts?!!

COME ON!! tat's stingy!

[pianist]

If those who had attended last year agm, one would probably know that senior chng is a very traditional Asian. No way father and son would dislike one another.

[l0nEr]

sigh too them long enough...
too bad i wasnt patient enough... haix

[freedom]

I wonder where Ben gets money from.

100+ million is not a small number. Don't think the shares he holds can raise so much money from banks.

[Trader88]

CBB has no intention to takeover the company.

Two possible outcomes:
1. LS rejects offer. Life goes on;
2. LS counter offers as what CBB hopes to achieve, then CBB sells all shares to LS.

[freedom]

It is quite interesting that Lam Soon was not mentioned in the offer at all. It is unlikely that CBB did not talk to Lam Soon first before making such offer as Lam Soon owns quite substantial stake, which could make the offer expensive and complicated.

Monday will be interesting.

[Trader88]

BUSINESS TIMES
PUBLISHED JULY 06, 2013
Viz Branz MD makes mandatory cash offer
BYCARINE LEE CARINEL@SPH.COM.SG
 
THE managing director of Viz Branz Limited has through his special purpose vehicle made a 78 cents per share mandatory unconditional cash offer for all the issued and paid-up ordinary shares in the Singapore-listed manufacturer and exporter of instant beverages.
 
Pluto Rising Pte Ltd, which is wholly owned by Mercury Rising Pte Ltd, whose sole director is Viz Branz's managing director and deputy chairman Ben Chng Beng Beng, made the offer yesterday.
 
While Mr Chng does not hold any shares in Viz Branz directly, he is deemed to have an interest in all the shares held by Pluto Rising.
 
At 78 cents apiece, the offer represents a 9.09 per cent premium over Thursday's last transacted price of 71.5 cents.
 
The offer comes after Pluto Rising raised its stake in Viz Branz by 38.25 per cent to 58.09 per cent, triggering an obligation to make a mandatory unconditional cash offer for all the shares.
 
Pluto Rising intends to have Viz Branz continue with its existing activities. However, it intends to make the company its wholly owned subsidiary and to delist it.
 
Viz Branz has manufacturing operations in Singapore, China, Myanmar, Thailand and Vietnam. Its products are sold under various brands in markets such as China, South-east Asia, Indochina, Iran, Japan, Africa, the Middle East and the US.
 
For the third quarter ended March 31, 2013, Viz Branz posted a profit of $4.6 million, or 1.30 cents per share, on revenue of $42.78 million. Nine-month profit was $14.18 million, or 3.99 cents per share, on turnover of $128.86 million.
 
The group had a net asset value of 29.8 cents as at March 31, 2013, and cash and cash equivalents of $52.89 million.
 
Viz Branz did not pay dividends for the recent quarter. A year ago, it paid out an interim dividend of 2 cents per share.
 
It said then that the major markets it operates in have become more competitive and challenging, while its ability to increase selling prices and fluctuation in raw material prices will continue to have an impact on the group's performance.
 
The offer will be open for acceptance by shareholders for at least 28 days from the date of posting of the offer document.
 

[greengiraffe]

ST: Viz Branz feud: Son acquires father's stake, gaining control

Published on Jul 08, 2013


Mr Ben Chng (above) acquired his father Chng Khoon Peng's 38.25 per cent stake last Friday, taking his holding in the company to 58.09 per cent. -- PHOTO: VIZ BRANZ

Mr Ben Chng (above) acquired his father Chng Khoon Peng's 38.25 per cent stake last Friday, taking his holding in the company to 58.09 per cent. -- PHOTO: VIZ BRANZ

Mr Ben Chng (above) acquired his father Chng Khoon Peng's 38.25 per cent stake last Friday, taking his holding in the company to 58.09 per cent. -- PHOTO: VIZ BRANZ
Mr Ben Chng acquired his father Chng Khoon Peng's (above) 38.25 per cent stake last Friday, taking his holding in the company to 58.09 per cent. -- PHOTO: VIZ BRANZ

http://www.straitstimes.com/sites/strait...34997e.jpg

Mr Ben Chng (above) acquired his father Chng Khoon Peng's 38.25 per cent stake last Friday, taking his holding in the company to 58.09 per cent. -- PHOTO: VIZ BRANZ
http://www.straitstimes.com/sites/strait...34996e.jpg

Mr Ben Chng acquired his father Chng Khoon Peng's (above) 38.25 per cent stake last Friday, taking his holding in the company to 58.09 per cent. -- PHOTO: VIZ BRANZ

By Dennis Chan Deputy Money Editor

CONTROL of Viz Branz, which had been the subject of a father and son feud, has passed back to the son after he acquired his father's entire stake in the cereal and beverage maker.

Viz Branz managing director Ben Chng Beng Beng acquired his father Chng Khoon Peng's 38.25 per cent stake last Friday, taking his holding in the company to 58.09 per cent.

This has triggered a mandatory unconditional offer for the remaining shares of Viz Branz, which sells instant coffee brands like Gold Roast, that he does not already own under the Singapore Code on Take-overs and Mergers.

Mr Ben Chng will offer all shareholders 78 cents for every Viz Branz share they own.

The offer is the latest twist in a long-running feud that was resolved only in June last year with the transfer of 15 per cent of the company's shares from son to father.

The settlement resulted in Mr Chng Khoon Peng owning 38.25 per cent while the younger Chng was left holding 35.89 per cent of the company.

In October, Mr Ben Chng sold about 16 per cent of his stake, sparking talks that control of Viz Branz would fall into the hands of a third party.

However, his emergence last Friday as the majority shareholder has put paid to such speculation for the time being.

But a change of control could still happen down the road, analysts say. While Mr Ben Chng has said, in the offer document, that there are currently no plans to introduce any major changes to the business, he reserves the right to review management and operations and restructure shareholdings, including "unlocking value" at an opportune time.

Malaysia-based food group Lam Soon has emerged as a substantial shareholder of Viz Branz and could be interested in raising its stake, some analysts have speculated.

Given Mr Ben Chng's stranglehold on the company, any further increase in Viz Branz stake by Lam Soon would have to be a friendly deal.

Mr Ben Chng intends to delist and privatise Viz Branz if the percentage of acceptances plus his stake hits 90 per cent or more.

Viz Branz shares rose to a six-month high of 71.5 cents last Thursday. Trading was halted last Friday pending the offer announcement.

dennis@sph.com.sg

Background story

Mr Ben Chng intends to delist and privatise Viz Branz if the percentage of acceptances plus his stake hits 90 per cent or more.