Taking Lingui Private

This one is good. Real Good.

Appeared on Saturday Bizweek.

• Taking Lingui private

About ten months ago, the Samling Group made an offer to take Lingui Developments Bhd private. The offer price of RM1.01 did not create much of a stir. The Samling Group raises offer price in a second attempt.

Have a look:

• Saturday January 27, 2007
  
  
  Taking Lingui private
  
  By JOSE BARROCK
  
  The Samling Group raises offer price in a second attempt.
  
  ABOUT ten months ago, the Samling Group made an offer to take Lingui Developments Bhd private. The offer price of RM1.01 did not create much of a stir. This is evident in the fact that the parent company since then has only managed to mop up about 20% of the shares it did not own, bringing its shareholding up to 60.6%.
  
  Well, they say that if at first you fail, try again, and that is exactly what Samling plans to do. It will soon launch its second attempt to privatise Lingui.
  
  This time around, however, BizWeek understands that the offer price will be about RM4 per share. Samling, helmed by Datuk Yaw Teck Seng @ Hiew Teck Seng and his son Yaw Chee Ming, have appointed CIMB Investment Bank as the merchant banker for the exercise. At RM4 per share, Samling will fork out slightly above RM1bil for the 259.5 million shares it does not own in Lingui.
  
  The offer price of RM4 is a premium of 54% to Lingui close of RM2.59 on Thursday. The last time the shares were traded at these levels was in September 2000. As at end September last year, Lingui had a net asset per share of RM2.20 per share.
  
  Trading of Lingui shares heightened in mid November last year, and since then the company’s stock has gained almost 120%.
  
  Good prospects
  
  However a source says that much of the premium offered could be because of the strong timber prices at present and the company’s New Zealand timber operations, which is ripe for felling.

I WONDER AGAIN... WHO ARE THESE SOURCES??

Now what is more incredible... i noted this posting dated on 28th Jan 2007. Hmm... so serious, that Lingui took the time and post the announcement on Bursa Website?

Have a look:

• LINGUI DEVELOPMENTS BERHAD ["LINGUI" OR "COMPANY"] ARTICLE ENTITLED "TAKING LINGUI PRIVATE"]

Type : Announcement
Subject : LINGUI DEVELOPMENTS BERHAD ["LINGUI" OR "COMPANY"]
ARTICLE ENTITLED "TAKING LINGUI PRIVATE"]

Contents :

We refer to the news article appearing in page BW3 of the Star on Saturday, 27 January 2007, which states, amongst others, the following:

(i) "It (Samling Group) will soon launch its second attempt to privatise Lingui."

(ii) This time around, however, BizWeek understands that the offer price will be about RM4 per share.

The Company wishes to announce that it has on 27 January 2007 received a letter from Samling Strategic Corporation Sdn Bhd ("SSC") stating that it does not have any plan itself or through its subsidiaries to privatise Lingui and it is not aware of the basis of the statements to that effect in the abovementioned article.

By order of the Board

Tan Ghee Kiat (MICPA 811)
TV Sekhar (MICPA 1371)
Company Secretaries

28 January 2007

Oh.... today, the stock rose 24 sen.

Must have been some punters chasing up the stock upon reading such a news. But did anyone notice that announcement? A news which is denied by the company!

So what do you think?

How?