outlook on m&a opportunities for catalist companies in singapore
DESCRIPTION
Market capitalisation of Catalist declined 59% compared to Main Board of 46%. Average market value of a Catalist company is $23 million compared to average value of $559 million for a Main Board company. An average Catalist company is only 4% of the market value of an average Main Board company.TRANSCRIPT
5 March 2009
Presented By : Tay Woon TeckOutlook on M&A Opportunities
Where Are The Opportunities ?
OPPORTUNITIES ARE NOWHERE
OPPORTUNITIES ARE NO WHERE
OPPORTUNITIES ARE NOW HERE
Catalist Market Capitalisation (Jan 2008 to February 2009)Market Capitalisation of SGX Main Board and Catalist
In billion
Number of companies
In millionMkt Cap Main Catalist Total Main Catalist Average
Jan‐08 $663.20 $655.57 $7.63 765 611 154 $866.93 $1,072.95 $49.53Feb‐08 $689.00 $680.86 $8.14 768 614 154 $897.14 $1,108.90 $52.85Mar‐08 $671.80 $664.58 $7.22 770 617 153 $872.47 $1,077.12 $47.16Apr‐08 $694.60 $687.24 $7.36 770 618 152 $902.08 $1,112.04 $48.43May‐08 $715.90 $707.79 $8.11 769 621 148 $930.95 $1,139.76 $54.81Jun‐08 $661.20 $653.41 $7.80 772 623 149 $856.48 $1,048.80 $52.32Jul‐08 $643.12 $635.92 $7.20 774 630 144 $830.90 $1,009.39 $50.00Aug‐08 $596.96 $590.49 $6.46 776 631 145 $769.27 $935.80 $44.57Sep‐08 $506.21 $500.81 $5.40 775 631 144 $653.18 $793.68 $37.50Oct‐08 $382.87 $378.94 $3.94 770 632 138 $497.24 $599.58 $28.54Nov‐08 $370.11 $366.57 $3.55 769 635 134 $481.29 $577.27 $26.46Dec‐08 $384.60 $381.10 $3.50 767 633 134 $501.43 $602.05 $26.12Jan‐09 $385.60 $382.19 $3.41 768 635 133 $502.08 $601.87 $25.67Feb‐09 $358.70 $355.55 $3.15 768 636 132 $467.06 $559.04 $23.88
% drop 46% 46% 59%
Market capitalisation of Catalist declined 59% compared to Main Board of 46%. Average market value of a catalist company is $23 million compared to average value of $559 million for a Main Board company. An average catalist company is only 4% of the market value of an average Main Board company.
Revenue Size of Catalist Companies
Revenue Size of Catalist Companies % of catalist companies
Less than $30 million 46%Between $30 million and $50 million 20%Above $50 million 34%
Total 100%
About 66% of our catalist companies have revenue of less than $50 million. In today’s global economy, without the scale and size, it is hard to compete for business and
continue to attract serious blue chip investors.
CASE STUDY
PROPOSED MERGER OF ELECTROTECH AND ETLA BY WAY OF A SCHEME OF ARRANGEMENT
UNDER SECTION 210 OF THE COMPANIES ACT.
Proposed Merger of ElectroTech & ETLA
The combined entity has a $300 million revenue with gross profit of $42 million and potential significant cost savings
derived from operational synergies
Proposed Merger of ElectroTech & ETLA
In $ million Electrotech ETLA Combined
Data Storage $0 $46 $46
Semiconductor $29 $9 $38
Medical $68 $10 $78
Analytical $47 $0 $47
Electronics/Automation $70 $10 $80
Others $13 $5 $18
Total Revenue $227 $80 $306
Data Storage 0% 57% 15%
Semiconductor 13% 11% 12%
Medical 30% 12% 25%
Analytical 21% 0% 15%
Electronics/Automation 31% 13% 26%
Others 6% 6% 6%
Total Revenue 100% 100% 100%
The combined entity reduced their exposure in data storage and semiconductor industries, and position them well in recession resilence medical and analytical segments.
Proposed Merger of ElectroTech & ETLA
The combined entity has net cash of $20 million and shareholders funds in excess of $200 million
Lessons From This Case Study
Learning to Love Recessions – McKinsey Quarterly 2002 Special Edition Risk and Resilence. By Richard F. Dobbs. Tomas Karakolev and Francis Malige
Creating New Market Leader During Recession
