Baker Tech

Baker Tech: Group has sold its entire 20.29% stake (13.3m shares) in Discovery Offshore S.A. at NOK199.33m (S$41.4m), and will be paid fully in cash by the end of the week. The sale on its stake was completed through a mandatory offer by Hercules Discovery at NOK15/share. Discovery is a Luxembourg-based listing company that owns two Keppel FELS Super A Class high specification harsh environment jackup rigs. The valuation of the offer was based on a 28.5% premium over the net book value of $32.2m as at 31 Mar 2013, and the management of Baker Tech is of the view that the disposal is in the best interests of the group. The net proceeds of $41m will be used for general working capital and future investments. At the last closing price of $0.28, Baker Tech trades at an undemanding historical P/E of 2.7x and 0.8x P/B.