Selling it for a song?

TheStarBiz: Metdist SA, which owns 51.4% of Metrod (M) Bhd, has launched a takeover to acquire the remaining 48.6% stake in Metrod for RM84.56mil or RM2.90 per share.
Metdist is a global metal trading firm based in Britain and controlled by Lord Raj Kumar Bagri, who is also Metrod chairman.Metdist yesterday informed the Metrod board that its unit MetTube Sdn Bhd had acquired 5.56 million shares, or 9.27%, for RM16.12mil in direct business transactions from Bank Perusahaan Kecil & Serdahana Malaysia Bhd and Tieton Group Ltd.The acquisitions increased Medist’s shareholding in Metrod from 42.14% to 51.4% and triggered the mandatory takeover offer. Metrod rose from RM2.70 at midday to RM2.99 at 4.52pm before trading was halted. The shares will resume trading today.

Metdist said it intended to maintain the listing status of Metrod after the acquisition of the remaining 29.16 million shares. It added that it would not compulsorily acquire any of the remaining shares.It also said the offer would not fail due to insufficient financial capability of MetTube and that every shareholder who accepted the offer would be paid in cash.It said if MetTube were unable to meet the public shareholding spread requirement, it would use “commercially reasonable endeavours” to rectify the shortfall in the public shareholding spread.MetTube was incorporated in Malaysia in 1989 and its principal activities are manufacturing and sale of copper and copper alloys products including billets, tubes, pipes and extrusion.

For the second quarter ended June 30, Metrod posted net profit of RM30.83mil on revenue of RM561.81mil.Its net asset per share was RM4.43 while it had cash of RM90.18mil as at June 30.

MyTake: I have covered this company earlier this year. I believe Metdist's offer is way too low and minority shareholders that sell it at RM2.90 will be selling it for a song. Metdist is very smart and savvy to offer a way out to its weak shareholders during this current weak market. My reasons are written here before. You do your own calculation. Now, you understand what I mean?

* ... I am shocked and angry! This is really bad!! Desperate times? Now RPK, Teresa Kok and a SinChiew reporter are under ISA's arrest.. how about Ah Mad and the likes....it will be the talk of the nation for sometime.

* Flip-flop again! BizWeek: Malaysia cops windfall tax on power producers as it was said to cause these companies unable to meet loan obligations and to raise new financing. Why can't they think carefully before implementing them? Anyway, we have always been like this....what so shocking about it? Our foreign investors will again shake their head with disbelief.

* Bloomberg: China's industrial output expands at slowest pace in 6 years on weak exports demand, power shortages and factory shutdowns during the Olympic Games.

* Bloomberg: Lehman will find a "stronger financial partner" by September 15? Treasury and Fed are set to broker a deal by then.