Important day ahead for NatSteel takeover battle
January 3rd, 2003 will be an important day for the endless battle to takeover Singaporean steel maker NatSteel. The confronting parties, namely 98 Holdings and Sanion Enterprises, have already taken their positions.
98 Holdings has announced on December 24th that its offer of S$2.06 per share to takeover NatSteel is final. The company has reportedly acquired 32.15% of NatSteel shares so far as of late December, but is not able to increase its stake as market price of NatSteel shares has increased over S$2.06 level. It is also reported that the 98 Holdings has acceptances for its offer representing another 4.57% of NatSteel, but it must increase its stake over 50% by January 3rd to make its offer unconditional.
On the other hand Sanion Enteprises of Mr.Oei Hong Leong, holds 29.79% of NatSteel shares but failed to place their takeover offer by the given deadline of December 9th, 2002. According to 98 Holdings, Sanion Enterprises have no right to increase its stake over 30% and make another offer for NatSteel for six months from December 9, without permission from Singaporean Securites Industry Council.
However, Sanion Enterprises has been pushing the NatSteel board for a S$1.55 per share cash
distribution to shareholders against the board's idea of S$0.97 per share. 98 Holdings said Sanion's offer is against the interests of NatSteel.
Sanion has already announced that, if 98 Holdings fails to takeover NatSteel until the January 3 deadline, it will call for an extraordinary general meeting to vote for the appointment of nine additonal directors to the board, and consider its offer for cash
distribution.
In the meantime, reports say Sanion owner Mr.Oei could be in discussions with Chinese groups,
China International Iron and Steel Investment Corp. (CIISIC), and Capital Steel Holdings, who are known to be interested in forging strategic partnerships with NatSteel.