Frencken / Juken

Frencken / Juken: both companies lift trading halt at 8.30am. Makes a pre-conditional voluntary general offer to acquire all shares in Juken, via i) cash consideration of $0.18 per Juken share (vs last close at $0.164), or ii) share consideration of one new Frencken share for every 1.8 Juken shares held. Frencken also intends to make an offer to Juken warrants holders The Offer will be made only after Frencken receives sh/h approval for the proposed acq of Juken at an EGM. Frencken believes there is a strategic and operational fit btwn its EMS division and Juken, which specializes in precision moulded plastic components. Also believes Juken’s existing manufacturing bases in China and India will accelerate its expansion into these regions. Frencken had earlier been in discussions with Juken Board of Directors on a possible acq, but had decided in Apr ’12 to pursue the proposed acq with other major sh/h instead. Frencken has a mkt cap of $90m, trades at 21.8x P/E. Juken has a mkt cap of $41m, trades at 13.2x P/E.