Cosco Shipping launches takeover of Cogent Holdings

Fresh from having divested its shipyard business, Cosco Shipping International has launched a S$490 million cash buyout of Cogent Holdings at S$1.02 a pop, reports The Business Times.

It also plans to buy Indonesian shipping logistics company PT Ocean Global for S$14 million, also in a cash deal.

These moves by one of the big China plays on the Singapore Exchange, announced separately on Friday alongside its third-quarter earnings, confirm analysts’ speculation that the logistics business could be Cosco’s new focus.

Its voluntary conditional buyout of Singapore-listed Cogent at a price tag some 31/2 times the net tangible asset per share of 29.8 Singapore cents as at end-June 2017, is premised on its identifying the demand for logistical services in Singapore and Malaysia, where - Cosco says - Cogent has a strong presence.

The offer also offers a 5.2 per cent upside for shareholders to exit, based on the last transacted price of 97 Singapore cents on Thursday.

The counter was last traded at 99 Singapore cents on Friday, right before a trading halt pending the announcement.

Phillip Securities Research analyst Richard Leow is disappointed by the offer. Firstly, it is because it is lower than his S$1.12 target price for Cogent.

 

Cosco Shipping launches takeover of Cogent Holdings

Fresh from having divested its shipyard business, Cosco Shipping International has launched a S$490 million cash buyout of Cogent Holdings at S$1.02 a pop, reports The Business Times. It also plans to buy Indonesian shipping logistics company PT Ocean Global for S$14 million, also in a cash deal. These moves by one of the big China plays on the Singapore Exchange, announced separately on Friday alongside its third-quarter earnings, confirm analysts speculation that the logistics business could be Coscos new focus. Its voluntary conditional buyout of Singapore-listed Cogent at a price tag some 31/2 times the net tangible asset per share of 29.8 Singapore cents as at end-June 2017, is premised on its identifying the demand for logistical services in Singapore and Malaysia, where - Cosco says - Cogent has a strong presence. The offer also offers a 5.2 per cent upside for shareholders to exit, based on the last transacted price of 97 Singapore cents on Thursday. The counter was last traded at 99 Singapore cents on Friday, right before a trading halt pending the announcement. Phillip Securities Research analyst Richard Leow is disappointed by the offer. Firstly, it is because it is lower than his S$1.12 target price for Cogent.