Battle for NatSteel takeover continues
Following Natsteel's announcement that it is not accepting Oei Hong Leong's offer of S$1.55 per share dividend payout, Oei Hong Leong now asks for a justfication of this refusal and at the same time declares that he does not accept NatSteel's counter offer of S$0.97 per share dividend out of its divestment of NatSteel Broadway and NatSteel Brasil, that was made last Friday. Such amount is 37% less than what Oei Hong Leong looks for.
NatSteel defends this amount by stating that the company needs to reserve S$246 million for investment capital expenditure over the next 2 years, maintenance capital expenditure for the year 2003 and capital injection into certain subsidiaries and expected increase in working capital requirements for the fourth quarter.
However, Sanion Enterprises insists that NatSteel is in a position to pay the S$1.55 per share, taking into account the CCL revised offer which is indeed already rejected by NatSteel shareholders and which was undertaking to take over the group's assets and liabilities excluding the $587 million from the
investments.
What Sanion Enterprises suggests at this stage is that, considering its 110.4 million shares of NatSteel valued at S$1.55 per share, would amount to S$ 171.12 million and this amount may be utilised by NatSteel to effect the repayments and loans to the banks and foreign financial institutions and thus the S$100 million reserve can be released for the payment of S$1.55 dividend
distribution.
Sanion's Dividend Bridging Proposal is conditional on NatSteel board recommending shareholders approve the S$ 1.55 per share dividend
distribution; 98 Holdings or any other offer does not become unconditional; the candidates proposed by Sanion are appointed to the board and all regulatory approvals are obtained.