Stockwatch- Rotary Engineering (S'pore) S$0.59
Rotary Engineering recently presented at a Citigroup small cap conference and last friday some conference participants visited its Jurong worksite. I believe it is in the right sector and will benefit from the short supply of terminal storage facilities for the next few years.
The risk is if Rotary is not able to continue to win contracts to continue its growth in its order book and also Rotary has not been institutionalised yet, i.e. shares are not in strong hands and it may not performed as well as we wish; currently only OCBC has a coverage on it, its fair value for Rotary is 88cts, but note it estimates a dip in profit in 2007 relative to 2006.
If Rotary can win enough contracts to continue to keep its growth momentum in its order book and as a result allow analysts to project a higher profit in 2007 and 2008 year on year, in my view, Rotary will be "discovered" then.
Here's an write up in a blog that I follow that talk abt the sector for yr reference:
http://hottrendswatch.blogspot.com/2006_07_01_hottrendswatch_archive.htmlExtracts from The Edge Singapore 7 Aug 2006:
1. Rotary recently set up 2 joint ventures with the Rafid Group, a Saudi company that provides services to the oil and gas and petrochemical industries. Aided by Rafid Group, the company is hoping to make inroads into the Saudi Kingdom.
2. Representatives from Saudi Aramco, the national oil and gas company, recently visited Rotary's work sites in Jurong Island and pre-qualified Rotary within 48 hours.
3. According to management, the upswing in the industry is so strong that there are too many jobs chasing after too few service providers.
4. On Jan 4 2006, Rotary announced a contract worth $535 million to build an oil terminal in Jurong Island for Universal Terminal Pte Ltd- its biggest contract ever. Universal Terminal is a subsidiary of Singapore's biggest oil trader Hin Leong Trading and Chinese oil and gas giant PetroChina.
When completed in Oct 2007, Universal Terminal will be the single largest independently owned oil terminal in the world. All other storage terminals of this scale are owned by oil and gas multinationals like Shell and ExxonMobil.
The big independent terminal operators, include Vopak of the Netherlands and Oiltanking of Germany. These tanks are used to store products like crude oil, jet fuel and diesel.
5. Chairman and Managing Director, Chia Kim Piow, says, "I have gone through many cycles, maybe 4 or 5 times. And demand for terminals this time around is very strong."
As Chia sees it, the rapid development in India and China is making the difference. With more exploration and production taking place in and around these countries, the need for storage will rise in tandem. Also, China is intently building up its strategic stockpiles of oil, adding to the demand for storage facilities.
Moreover, to reach less developed interior areas and communities, China and India are building smaller tanks and infrastructure inland. So the nest step for Rotary is to start building depots. These depots or smaller storage tanks will be connected to larger terminals by rail or pipeline.
6. With the surge of investments in alternative fuels like biodiesel, such plant will need storage tanks and pipelines as well.
7. Further down, Rotary hopes to get into the offsite and utilities business. Refineries and petrochemical complexes typically have extensive networks of pipelines transporting fuel, gas, steam, water and the like to and fro. Rotary is in talks to co-own these pipes, which will give it a lease income and throughput fee.
Citigroup, 24 Aug 2005 (Not Rated)
Corporate Day Takeaways: A Regional EPCM Specialist
Business — Rotary is a provider of engineering, procurement, construction and maintenance services, supporting the oil and gas and petrochemical industries. Established in 1972, the group has a total workforce of 3,000 employees and has strong client base that includes companies such as Oiltanking, Vopak, Thai Tank Terminal, Hin Leong, BP and Tankstore to name a few.
Key ratios and 1H06 results — Mkt cap S$237m. Consensus PER: 6.3x FY06E and 7.5x FY07E. 1HFY06 results: revenues up 150% yoy to S$202m, gross profits up 81% yoy to S$31.7m and net income up 395% yoy to S$16m. Net cash: S$47.9m. 1H06 revenue split: 84% Singapore (due largely to Universal Terminal), 11% China, 4% Thailand, and 1% Others.
Record order book — Group order book as at 30 Jun 06 stands at a historical record of S$525m, the bulk of which comes from the construction of Universal Terminal, which is one of the largest independent oil terminals in the world. The new terminal will house 73 storage tanks for crude and petroleum products. PetroChina has invested US$160m to take a 35% stake in Universal Terminal.
Prospects I — Management appears optimistic on the outlook. Strong growth in oil consumption for emerging Asia (accounting for 45% of total world increase) should drive the continued need for related facilities. The International Energy Agency estimates that oil consumption in Emerging Asia should more than double to 33.6m bbl/day by 2025 from 15.1m in 2002.
Prospects II — According to management, there is strong growth potential in China for storage terminals as the government builds up the nation’s strategic stockpile of petroleum resources. In Singapore, tankage capacity is set to grow with storage for 41mbbls in the pipeline. This is up from 22m bbl of current storage capacity, which has been running at 90% for the past five years.
Prospects III — Further, Shell and Exxon-Mobil are planning to invest in Singapore for two major petrochemical facilities. Management expects other supporting plants to be set up which could provide opportunities. Rotary is also optimistic on the Middle East and Thailand.
Industry implications — Management said it has a 50-60% hit rate in Singapore for projects from multinational companies and independents. The group’s optimism reinforces our positive view on the offshore and marine industry.
Some recent company announcements/events by Rotary engineering:
21 Aug 2006- awarded a S$24mil contract by Nexsol (Singapore) Pte. Ltd, a subsidiary company of Peter Cremer (Singapore) GmBH for the Engineering, Procurement and Construction (EPC) of a biodiesel process plant and its related facilities on Jurong Island (the "Project") to produce biofuel and other downstream derivatives, targeted to be completed by end June 2007.
3 Aug 2006- post first half 2006 net profit of S$9.3mil, up 395% from previous year
8 May 2006- secures S$41mil contract for petroleum storage project (Oiltanking phase 7 involves construction of nine storage tanks, one jetty topside facilities, piping, civil, structural, equipment installation and electrical & instrumentation. It is scheduled for completion in December 2006.)
10 May 2006- incorporation of a 50/50 JV in Saudi Arabia, Petrol Steel Company Limited (Saudi Arabian parties named ABDUL AZIZ ABDUL MEHSON ABDUL WAHAB AL MANDIL(25%) and ADEL ABDUL MEHSON ABDUL WAHAB AL MANDIL (25%))
23 Feb 2006- post full year 2005 net profit of S$16mil, up 70% from previous year, 1 cts dividend less tax (up from 0.8ct previous year)
2 Feb- dispose its leasehold property located at No. 2, Gul Street 2, Singapore 629287 (the "Property") to its 70% owned subsidiary, Supermec Pte Ltd ("Supermec") at a cash consideration of $530,000 due to restructuring of businesses within the Group as well as expansion of business by Supermec
20 Jan 2006- entered into a Sale and Purchase Agreement ("the Agreement") to acquire the balance of the 50% equity interest in IMC Heavy Equipment Pte Ltd ("IMCH"), from its existing shareholder, Tiong Woon Crane & Transport Pte Ltd, for a consideration of S$521,843.8313 Jan 2006- disposed of the entire equity interests in Paper Dimension ("Disposal") to a non-related third party (the "Purchaser") on 13th January 2006, for the purpose of streamlining the Rotary's Group business
4 Jan 2006- awarded its biggest contract to date to build an oil storage terminal, worth S$535 million, in Jurong Island
22 Dec 2005- listing of associated company, TRC Construction Public Company Limited ("TRC"), TRC has officially commenced trading on the Stock Exchange of Thailand ("SET") on
22 December 2005 ("Listing"). Rotary's stake has been reduced from 37.5% to 30% as a result of the expanded paid up capital.
14 Dec 2005- entered into a Joint Venture Agreement with the Saudi Arabian parties namely ABDUL AZIZ A. AL MANDIL (20%), RIYADH AL NASSAR (10%) and AL TA'AFUF COMPANY FOR ELETRICAL WORKS (20%) and has incorporated a company in the Kingdom of Saudi Arabia known as Rotary Arabia Company Private Limited ("JVCO") on December 11, 2005 to pursue potential business opportunities and projects in the Kingdom of Saudi Arabia; will engage in the business of engineering and procurement services with primary focus in the electrical and instrumentation aspects supporting the oil and gas, petrochemical, water and waste treatment industries in Saudi Arabia.
5 Sep 2005- appointment of CFO Alex Goh
4 Aug 2005- post first half 2005 net profit of S$3.2mil, up 7% from previous year
Some useful news links:
http://www.iss-shipping.com/news/item.asp?niid=3280
Stockwatch- China Sky Chemical Fibre Co., Ltd (Singapore) $1.07
2005 Annual Report:COMPANY OVERVIEW
Established in 2002, the China Sky Group is a manufacturer and supplier of chemical fi bres, mainly quality high-end nylon fibres, to the textile and garment manufacturers in Fujian and the surrounding Zhejiang, Jiangsu and Guangdong provinces in the People’s Republic of China (“PRC”).
Marketed under the “Tianyu” trademark and brand name, the Group’s nylon fi bres have a wide and diverse range of commercial applications. They can be found in high-end sportswear, casual wear, shoes, bags, travel appliances and
in consumer durables like upholstery and nylon webbings used in the home furnishing industry.
The Group’s principal product lines are the nylon Full Drawn Yarn (“FDY”) and the nylon High Oriented Yarn (“HOY”).
Having commenced the commercial production of the nylon (lustrous) FDY in FY2005, it has plans to develop another four new product lines during 2006 and 2007.
The Group operates a 27,000 square metre production facility in Quanzhou City, Fujian province, which is strategically located amongst clusters of textile manufacturers in the region. As at the end of FY2005, the Group operated seven units of automated production equipment in commercial production with a total production capacity of approximately 39,000 metric tonnes of nylon yarns per annum.
Competitive StrengthsThe performance of the past year is the result of successful and careful execution of growth strategies by a dedicated team, driven by a strong vision of China Sky and of the nylon industry in China.
Instrumental to the Group’s success are several factors, including the strategic location of our facilities which keep us close to our customers while reducing transportation costs and delivery times. The strong management team is led by the Group CEO and Executive Director, Huang Zhong Xuan, and Executive Director, Song Jian Sheng, who heads the Research and Development Team with his expertise in chemical fi bres in the PRC. Both men have more than 20 years of industry experience between them. The Research and Development Team has also been infl uential in identifying new commercial products, developing and improving production techniques and processes to raise the overall efficiency.
Having established a track record for producing quality high-end chemical and nylon fi bres, the Group’s “Tianyu” trademark and brand name is synonymous with quality and good personalised after-sales service support. The Group was a recipient of a “Gold Medal of Quality New Chemical Fibre Product of China” from the China Chemical Fibre Association in 2004.
To further improve our work processes, we have invited Dr Yu Yang Ming, Director of the Chinese Institute of Strategic Planning, to be stationed at our facilities for one month. Dr Yu will provide his assessment and recommendations to help improve our operation workflow procedures.
Expansion Plans and Strategies For Growth
The Group is confident about the potential of the nylon fibre business in the PRC as growing affl uence and better living standards will spur demand for high-quality nylon via use for
higher-end apparel. As PRC textile manufacturers improve their technologies in dyeing, fabric-treatment and other pre-production services, these improvements will also stimulate the demand for chemical fibres.
There are currently about 50 to 60 domestic competitors with capacity of 5,000 to 10,000 tonnes per year each; many of them producing lower-quality nylon. Nylon consumption in the PRC reached an estimated 1.0 to 1.2 million tonnes, with imports accounting for a third of PRC nylon usage. Such is the demand that nylon producers such as China Sky have been able to pass on increases in raw material prices to customers.
With the European Union and the USA increasing the PRC export quotas for garments after rounds of talks in the past year, sentiment in the industry has greatly improved and has led to
higher demand for our yarns.
China Sky currently commands an estimated 3% to 4% share of the PRC market for nylon fibre. The Group intends to raise this to 6% to 7% in FY2006 and further to 10% by the end of
FY2007. The capacity expansion, which was outlined in its IPO prospectus, had begun in FY2005 with the increase in machinery or orders for equipment. Production capacity will increase from 39,000 tonnes in FY2005 to 72,000 tonnes by installing two new lines (six units of production equipment) before the second quarter of FY2006, at least two month ahead of the July 2006 deadline we had previously outlined in the prospectus. This expansion will
involve capital expenditure of about RMB 100 million and is being met by IPO proceeds or internal resources, without having to incur borrowings.
Beyond capacity expansion, the Group is also seeking to offer higher-value products. Out of total new capacity of 33,000 tonnes earmarked for FY2006, 30,000 tonnes will comprise FDY and the balance 3,000 tonnes HOY.
The Group plans to produce two new products, Nylon Super Resilient Full Drawn Yarn (“SR-FDY” which has extra resilient capability while maintaining its softness, making it suitable for
outdoor sports clothing) and Nylon Super Resilient High Oriented Yarn (“SR HOY” which has same qualities as SR-FDY but is of medium strength with stronger stretchability). When these
production capabilities are in place, China Sky will be the first in China, and only the second such factory in the world, to offer such quality products.
China Sky is also on the lookout for growth opportunities beyond organic means. The textile sector has received support from the PRC Government as it seeks to develop rural areas and increase employment rates. However, China Sky remains focused on its core competency within the nylon sector as it believes it will continue to have a competitive edge in this sector.
OUTLOOK AND FORWARD STRATEGYThe Board is confident of the outlook for the nylon industry in China. To tap the opportunities in this sector, the Group has embarked on a two-pronged strategy.
The first is to increase its share of nylon fi bre market in China from 3% to 4% in 2005, to 10% in 2007, starting with an increase in production capacity from 39,000 tonnes in 2005 to 2,000 tonnes by the second quarter of 2006.
The second is to offer products of higher-value. China Sky is moving further up the value chain to produce Nylon Super Resilient Full Drawn Yarn (“SR-FDY”) and Nylon Super Resilient High Oriented Yarn (“SR HOY”). When these production capabilities are in place, China Sky will be the fi rst in the PRC and only the second such factory in the world to offer such quality products.
Over the longer term, we are seeking to grow beyond organic means and we are on the lookout for suitable M&A opportunities.
2006 1H Result Announcement:Outlook commentariesThe demand for nylon fibre remained strong in second quarter of FY2006 mainly due to the growing demand for high nylon content products in the domestic PRC market and exports to overseas markets.
In second quarter of FY2006, we have completed the installation of six new production units,
increasing our production capacity from the current 39,000 tonnes to 77,000 tonnes of nylon per year. Commercial production commenced towards the end of the second quarter of FY2006 and is expected to contribute to our financial performance from the second half of FY2006 onwards.
We have commenced the initial groundwork on the construction of a new factory building at our existing location which will be used to house our new production facility to produce our two new products: ATY and DTY. ATY and DTY have a wide range of applications in textile and fabric manufacturing, and are suitable for higher end and higher value apparels that require very high tensile strength and resilience. The planned facility will comprise two production lines with an expected total capacity of 16,000 tonnes per annum and is targeted to commence operations by the end of FY2006.
We are also in the evaluation and design stages of a proposed new production facility for the
production of another two new products, namely SR-FDY and SR-HOY. The construction of the new factory, which will be sited at our existing location, is targeted to commence by the end of FY2006 or the early part of FY2007.
We are confident of our performance for the rest of FY2006 and we expect the growth momentum achieved in 2Q FY2006 to continue in view of the growing demand for high nylon
content products in the domestic PRC market and exports to overseas markets. Apart from
growing our business operations organically, we are constantly on the lookout for suitable
companies to acquire, which would complement our business strategies and to bring additionalvalue to our shareholders.
Production for Q12006 was affected as the plant has to be shut down for two weeks to facilitate the installation of the newly expanded production equipment and facilities which were expected to enter commercial production towards the end of Q2. Consequently, revenue and profitability has been affected as compared to Q1 2006.
Stockwatch- Media Prima BHD (Malaysia) RM$1.66
Media Prima now controls Malaysia's commercial free-to-air sector, owning all 4 private channels: TV3, 8TV, TV9 (target the mass Malay market) and NTV7.
It controls New Straits Times Press (NSTP), operating the biggest-selling Malay-language newspaper, as well as the eponymous English-language paper.
It also runs 2 national radio channels, including Hot Fm, the 2nd highest-rated channel.
Cross-media capability should make an impact: marketing costs are starting to fall, as it can now promote TV programming through its own radio stations; the company also now embarks on more multi-platform promotions, broadening impact across the stable of media platforms.
Media Prima will benefit from a stronger ringgit as it will pay less from imported content.
For The Edge articles on Media Prima Bhd, read :
http://www.theedgedaily.com/cms/search.jsp?query=%22media+prima%22&sort=date&page=1Media Prima Bhd hopes to list its 70%-owned subsidiary TV3 Network Ltd (TV3 Ghana) on the Ghana Stock Exchange by year-end to realise its investment and to expand its operations in Malaysia. CEO Abdul Rahman said Media Prima aims to maintain its strong performance this year after reporting a 28% growth in turnover to RM99.87 million in the first quarter from a year earlier.
On its recently acquired television network, ntv7, Abdul Rahman said it was showing signs of financial recovery boosted by its position as a licensed host broadcaster of the current World Cup. He said TV9 was also garnering increasing viewership, with 6% of total audience of 23 million just two months into its full broadcast, comparable with the average viewership of its two-year old 8TV.
Media Prima also hopes to progressively increase its dividend payout ratio in the future following a maiden dividend of two sen or a payout of more than 20% of its net profit.
(The Edge 28 June 2006)Media Prima Bhd’s HOT FM and FLY FM, targeted at listeners between the ages of 15 and 29, have gained a total of 3.4 million listeners, according to a recent survey conducted by Nielsen Media Research. In a statement on June 6, Media Prima said HOT FM had attracted 2.92 million listeners since it started operations on Feb 6, 2006, making it the second biggest radio station in Malaysia in eight weeks.
It said having been on air for six months, FLY FM had managed to accumulate a listernership of 434,000 bringing it to the position of the second biggest English radio station for listeners between the ages of 15 and 30.
Media Prima’s head of radio, Ahmad Izham Omar, said extra efforts were taken to attract a core group of listeners. “All our efforts will be in recognition of the listeners’ tastes and changing lifestyles. "There will be definite emphasis on the effort to extend and concentrate radio listenership in the future, as we strive further to be an essential part of our listeners’ lives,” he said. Media Prima said both stations were placed in a competitive environment and would continue to build and improve its network to ensure all areas as well as programmes appealed to its listeners. (The Edge 6 June 2006)Media Prima Bhd posted a 27% increase in operating profit to RM12.24 million in the first quarter ended March 31, 2006 from RM9.64 million a year earlier as a result of strong revenue growth and prudent cost management. However, it recorded a net loss of RM6.9 million due to losses incurred by its 43%-owned associate, The New Straits Times Press (Malaysia) Bhd (NSTP), arising from a one-off exceptional voluntary separation cost of RM29 million undertaken to improve the cost efficiency of NSTP. In a statement on May 18, Media Prima said revenue rose 28% to RM99.87 million from RM77.98 million previously due to strong quarter-on-quarter growth registered by TV3 and 8TV, and additional revenue from NTV7 and two radio stations, Hot.FM and Fly.FM.
It said TV3 maintained its position as the nation’s leading free-to-air TV station in Malaysia, while both 8TV and NTV7 continued growth in viewership.
It said all three networks now collectively held a 48% of total Malaysia television viewership, up from 44% a year earlier. (The Edge 18 May 2006)TV9, the nation’s new free-to-air TV station, which will begin transmission from on April 22, has targets to reach seven million viewers in the country, with Malays as its target audience.
Ch-9 Media Sdn Bhd chief operating officer Bukhari Che Muda said its prime-time programmes would be aired to cater to Malay audiences aged between six to 14 years old, and 15 to 34 years old. He said the television station, the fourth under the Media Prima Bhd stable, had invested about RM20 million in programming and transmission. “Our strength is content and branding; we’ve done extensive research on the audience’s profile and their needs.
“We’re very confident about TV9; we believe we’ll reach seven million viewers, including those who seldom or never watch TV,” Bukhari said after the signing ceremony between Ch-9 Media and Senheng Electric (KL) Sdn Bhd in Petaling Jaya on April 21 to provide nationwide frequency-tuning and antenna-fixing services.
Citing a research by Nielsen Media, Bukhari said 96% of the country’s Malay population watch TV. “The TV station (TV9) positions itself as a Malay-focussed station, with 85% of the programmes aired in the Malay language, 10% in English and 5% in other languages. Some 45% of our programmes are local content and the rest are foreign programmes imported from the US, the Philippines, Indonesia, India, Korea, Thailand and Hong Kong,” he said.
TV9 will broadcast a two-hour live interactive talk show "Salam di 9" to launch its official transmission in the peninsula at 8.30pm on April 22.
On the revenue it expected from TV9, Bukhari said: “We do have a forecast, but it’s too early to reveal it.” Bukhari said it would extend TV9’s coverage to Sabah and Sarawak later. (The Edge 21 Apr 2006)Other would-be winners flagged by CLSA include the motor sector, airline stocks and the media companies. Imported car parts and jet fuel should cost less, while television operators like Astro All Asia Networks plc and Media Prima Bhd will pay less for imported content. "…programming costs make up about 30% of total costs", says CLSA.(The Edge 12 April 2006 on Stronger Ringgit)Media Prima, MediaCorp team up to create Chinese programmes By Isabelle Francis
Media Prima Bhd has teamed up with Singapore-based MediaCorp Pte Ltd to co-produce Chinese programmes in Mandarin for the local and regional markets, Media Prima adviser Amrin Awaluddin said.
Media Prima subsidiary Natseven Sdn Bhd will produce the programmes at MediaCorp Studios in Malaysia for the Chinese urban-focussed channel, ntv7, and for other Media Prima TV channels.
The first local Mandarin drama from the venture will be screened starting October. The 50:50 collaboration is for a period of three years.
Amrin, who is the CEO of Natseven, the operator of ntv7, hoped that the partnership would replicate the success of its Malay programmes that were now exported overseas.
He said the collaboration would be part of Natseven's RM20 million to RM30 million budget for content development this year.
“This is the first time we combine forces to collaborate and produce Chinese television programmes. Previously, we would buy the contents, which was cheaper.
“This is a long-term investment for us. We would have to focus on the local market first, then only export.
"This collaboration is a springboard for us to go regionally,” he told reporters after announcing the partnership with MediaCorp in Petaling Jaya on March 30.
Amrin said ntv7 was expected to grow its 24% share of some 145,000 Chinese audience aged six years and above across all free-to-air TV and pay-TV Chinese channels on prime time. It also holds a 36% share of viewers aged from 25 years.
Citing that 90% of Media Prima’s revenue came from advertising expenditure (adex), Amrin said the group's Chinese adex contributed 30% to 40% of its total adex last year.
Amrin added that ntv7 targeted to reduce its foreign contents to between 50% and 55% from 60% now by year end.
Meanwhile, MediaCorp deputy group CEO (television) Chang Long Jong said the alliance with Natseven would open opportunities for production experience exchange.
"We believe our experiences can play a crucial role in helping Natseven achieve its goal in becoming a leading Chinese content provider," he added.
(The Edge 30 Mar 2006)Media Prima launches ad packages to boost revenue
Media Prima Bhd has introduced an integrated cross-sell and cross-market campaign to boost its advertising revenue by combining its network of television and radio stations with its print subsidiary, The New Straits Times Press (Malaysia) Bhd (NSTP). The six-month campaign seeks to attract advertisers to tap its four television networks, two radio stations and NSTP’s stable of publications.
Speaking to reporters after the launch of the Media Combo packages on March 3, Media Prima group managing director and CEO Abdul Rahman Ahmad said it was providing advertisers a single platform to reach an audience close to 20 million people. “This includes 11.2 million television viewers, 6.8 million newspaper readers and 1.9 million potential listeners,” he said.
NSTP chief executive officer Datuk Syed Faisal Albar said the Media Combo package was a strategic step forward, involving cross marketing of the various media vehicles.
He said combining the publications under the NSTP group and Media Prima’s television and radio stations offered a varied range of market segments. The Media Combo packages are initially targeted at three markets – property, technology and corporate.
Abdul Rahman said the packages might be offered to other markets in the future, adding that the group's advertising revenue for last year was RM700 million. (The Edge 3 Mar 2006)
Stockwatch- CIMA (Malaysia) The French continue to woo Cima
Corporate: The French continue to woo Cima
By Risen Jayaseelan
The new offer by France's Vicat Group for the assets of Cement Industries of Malaysia Bhd (Cima) is for a 49% stake in the latter's assets, sources say. This is in line with what Cima had counter proposed to Vicat after the latter (Vicat) had in early March made an offer to buy 51% of Cima's assets. "This means that there is little reason why Cima should not accept this offer from a conceptual standpoint. Things, however, could go wrong if there is no agreement on valuation," says a source. It is understood that Vicat has also agreed to Cima's terms on the issue of management control. It is believed that Vicat is asking for three key management positions in Cima and is fine with not having the position of managing director. Vicat is also asking for directorships at Cima's subsidiaries — another point which Cima's board had no problem with earlier. Two other terms are believed to be that if the Cima/Vicat joint venture does agree to go overseas, then Vicat will be allowed to have a majority stake in the foreign venture. And the other is the first right of refusal clause: In the event Cima's shareholders wish to sell more of their shares, Vicat will be given the first right to buy them. The new offer by Vicat is indicative of its seriousness in acquiring Cima.
for rest of article, read
http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_c8519ce5-cb73c03a-29d65b00-a749fb1b
