JES

JES: JES has terminated its proposed 51%-stake acquisition in Forestry Company, SCIBOIS, after talks broke down, as well as a new share placement agreement with two parties, Brilliant Choice International and Sun Yiyi.

In addition, company has requested for a trading suspension to undergo an asset restructuring involving its loss-making shipbuilding arm and its creditors.

JES' first light of trouble came at the start of 2013, where the group sank into losses as its core shipbuilding business got dragged by lower vessel contract prices and equipment delivery delays, resulting in a sharp contraction in margins.

One-year on (Jan'14), JES decided to take a stab in the mining sector with a highly inconceivable deal, where JES is required to pay only $127m (0.0006x P/B) for a US$500b value mine.

Subsequently, JES replaced the mining deal three months later after talks broke down, with a proposed 51% stake acquisition in a US$3b value forestry company for just US$65m (0.04x P/B).

One may wonder where JES' management gets such seemingly irresistible deals from.