Crunch time for UMW Oil & Gas: The board of UMW Oil & Gas Corp Bhd (UMW-OG) is expected to decide today on the proposed acquisition of Icon Offshore Bhd and Orkim Sdn Bhd amid differing opinions on the valuations of the two assets. The group’s board is also expected to weigh in on whether the assets that are on the table would be able to secure enough contracts from national oil company Petroliam Nasional Bhd (Petronas) to ensure its high utilisation. - StarBiz
If valuation is too high, then have to negotiate with Ekuinas to reduce the price. Don't think there is anything to announce at the moment until there is an outcome with Ekuinas on revised pricing.
Don't see any news on Bursa announcement this week but Star news caused fluctuation of both Icon and UMW OG share price.
Posted by offshore > Apr 29, 2017 10:01 AM | Report Abuse If valuation is too high, then have to negotiate with Ekuinas to reduce the price. Don't think there is anything to announce at the moment until there is an outcome with Ekuinas on revised pricing.
If merger fail who has power to object? EPF, minority shareholders or who? How they want to object? Not in EGM?
Posted by Rowie > Apr 29, 2017 10:35 AM | Report Abuse Lim........deemed interest cos on impending deal announced on 19 Jan. Don't read too much into it
Rowie, whatever I know I have already posted. If the meeting really did happen, they still need to go back to Ekuinas for negotiation. Till then, nothing to announce.
Cikam, Naga 1 is an old rig made in the 60s. Even then, the disposal price is very low because no matter how old that rig is, it is a working rig. Furthermore, the rig has gone to Japan to do some upgrade 5 years ago. Are they so desperate for money that they have to sell rig at such deep discount?
Posted by offshore > Apr 29, 2017 05:33 PM | Report Abuse The rig is not scrap metal. It is a working rig. If no job can sell off the rig, are they going to sell Naga 3 and 4 as well since it has no job now?
As I said previously, Petronas don't have work for all their rigs. I believe they are in thin margin now. One or two idling rigs are enough to wipe out whatever profit they can get from working rigs. As I have also said, this share is short term buy long term sell. Look back my previous posts. If you are holding this share hoping it will one day fly back to RM2.80 or even RM4.40, unlikely to happen. Even if oil price reach USD80, it will take some time for the day rate to climb due to rig over supply. It will also definitely take some time for this company to get back to positive retained earnings.
That statement that they need 50%-60% rigs working to show profit was probably made some time ago and things have changed a lot since then. There is no rig oversupply here but the worldwide rig oversupply will still drag the day rate and they will still need to match that day rate when contracting with Petronas. Your investment strategy seems to suggest you know that this merger will fail.
Election Lor,mesti tolong punya,Pos,drb also loses,Pos from rm2.2 now rm5 above ,drb rm80 Sen now 1.45 maybe 1.8,Maybank from rm7.2 now rm9.6,many more counter up up n up,anything can happen in mood election, If u look more bad news n price still Low,U should focus n buy before price Super rocket,oil sure come back again 80-100 usd,no more Ron 95 below rm2 this year,experience will teach u,
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Hunter Cho
289 posts
Posted by Hunter Cho > 2017-04-28 15:25 | Report Abuse
good catch...