A day after we had Stockland (SGP) and Australand (ALZ) and possibly Wotif (WTF) emerge as possible takeover situations, Brambles (BXB), the big logistics group, emerged in a situation in Singapore that got hearts a’fluttering on a day when the wider market was decidedly weak.
Brambles was forced to confirm that it had recently approached Singapore’s Goodpack Ltd about making a possible takeover bid for the packaging company.
Goodpack had forced Brambles to make a statement after revealing in Singapore on Wednesday that it had been approached by parties potentially interested in making "an offer for the shares in the company".
Brambles confirmed it had approached Goodpack on several occasions, including in the recent past.
But that was as far as it went, with Brambles saying, "However, these discussions did not progress and Brambles is not currently in active discussions with Goodpack”.
Brambles said it would continue to "monitor the situation”, without elaborating.
BXB 1Y – Brambles outed sniffing round Singapore company
Goodpack operates in what are called IBCs or Intermediate Bulk Containers.
IBC companies provide the bulk storage for goods before they go into the manufacturing process, such as bulk sugar before it is turned into a finished product and subsequently put on pallets (Brambles’ strength) to go to retail shelves.
Goodpack primarily provides IBC services to the rubber sector in south-east Asian manufacturing.
Analysts say it is an area in which Brambles doesn’t have a significant involvement, unlike pallets (plastic and wood).
Goodpack has a market value of about $US1 billion, but its Singapore-listed shares have risen in recent trading, which is why it made a statement to the market.
Brambles demerged its $1.5 billion document management business Recall late last year in an issue to shareholders.
Brambles shares fell more than 2% at the opening after the news was made public. They recovered slightly to end the day down 1.5% at $9.40.
Meanwhile Australand securities rose another 6c yesterday to close at $4.04, adding to the cost for Stockland to make a full bid for the company after snaring a 19.9% stake earlier this week.
In contrast Stockland securities rose a cent to $3.76 as investors remained suspcious about the company’s ability to complete a takeover without overpaying.
And Wotif shares went off the boil, shedding more than 11%, or just over half Wednesday’s 60c rise, after investors realised the big share trade on Wednesday was merely a big shareholder selling, not someone acquiring a strategic stake. Wotif shares fell 35c to $2.65.
