Friday, December 14, 2012
SC Global / Wheelock
SC Global / Wheelock: SC Global shares are +8.8% at $1.98, with the spike likely due to Wheelock upping the ante in Simon Cheong's bid to take SC Global private. Wheelock announced yday that it had acquired 1.066m SC Global shares from the open market at ~ $1.81/ sh, 1ct higher than Mr Cheong's offer price. The acquisition takes Wheelock's stake in SC Global to ~16.09%. Wheelock says, in its assessment, the current share price represents a discount of some 40-50% of RNAV, and it would be unable to buy property assets directly at anything like these prices. The group added that it has appointed Goldman Sachs as its financial adviser in relation to Mr Cheong's voluntary unconditional cash offer. However, some market watchers note that Wheelock's move to buy more SC Global shares reduces the counter's free float – and moves Mr Cheong closer towards his goal of taking the company private. Once the free float falls below 10%, the counter is vulnerable to delisting. In a separate announcement, SC Global said that it had appointed PrimePartners Corporate Finance as independent financial adviser to advise the company's independent directors on the offer. Mr Cheong controls 55.06% of SC Global. As at 5pm yesterday, aggregate holdings of the offeror and parties acting in concert have risen to 60.74% after he had acquired or agreed to acquire shares representing ~ 5.68% of the co.