We got another mention -- not much, but sounds nice:
We are way down, bolded!Thursday, March 9, 2000
TAKEOVERS
Bid propels Freight Links
KAI PETER YU
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The shares of Freight Links Express Holdings rocketed yesterday after the freight forwarder said it was the target of a takeover by a consortium led by Samsung's financial-services arm and a technology fund run by GE Capital.
The counter shot up from its last closing price of 59 cents to peak at $2.35 in early trading yesterday. It then settled back to close at $1.65.
Freight Links said it would diversify into Internet-related businesses and e-commerce logistics after the takeover.
"The company intends to allocate all of the net proceeds of $495.7 million to develop and invest in Internet and technology-related businesses with a view to increase competitiveness of the company's existing business as well as to diversify into Internet and technology-related businesses," Freight Links said.
Samsung Consortium said it would have access to parent Samsung Group's funds for investing in Internet and high-technology projects.
But brokers and analysts were mostly downbeat on the deal, which is the latest in a number of Internet venture capitalist groups to list through the backdoor in Hong Kong's technology-crazed market.
Howard Gorges, vice-chairman of South China Brokerage, said investors were spurred by the big names but questioned the links the new company would have with the Samsung Group and General Electric.
"I doubt they'll be bringing dynamic leadership to the company," Mr Gorges said. "At the end of the day, companies have got to have management, content and products, not just concepts."
Daiwa Securities vice-president for Asian equities Michael Liang doubted there would be sufficient market liquidity for Freight Express to realise what he suspected was its game plan.
"They're hoping their share price will rise, they'll place more shares and then use the paper to buy something," he said.
"But there's probably room for only a couple of these companies in Hong Kong, maybe [Softbank's] Cheung Wah [Development] and [Hikari Tsushin's] Golden Power, but not enough for 10."
Freight Links has agreed to place $496 million worth of shares to the consortium, giving it a combined stake of 69.3 per cent.
Under the agreement, which has yet to be made formal, Freight Links would also issue $112.4 million in share options to the consortium, to be exercised within two years at 10 cents.
After the options are exercised, Samsung Consortium will have a 26.7 per cent stake, followed by GE Technology Fund with a 20 per cent stake. Local partners Yu Ming Investments and Polylink will hold 14.9 per cent an 12.4 per cent respectively.
scmp.com |
