Quoteworthy: I hope and expect that the next step for OpenAI would be to go public. Having the opportunity for every retail investor in America to share in the upside that gets created by AI at a time we’re going to have massive social disruption, jobs lost and other things, I think it’s critically important. –— Brad Gerstner, CEO and founder of Altimeter Capital
Stand-off as Hanwha keeps 60-cent offer price for Dyna-Mac in offer document
In the offer document dated Oct 2, Hanwha Group has kept its offer price of 60 cents for Dyna-Mac’s shares, although it has not said this is the final offer. However, as of Oct 2, no third party has announced an offer for Dyna-Mac. The offer currently represents the only offer available for acceptance by shareholders.
Hanwha has said it intends to keep Dyna-Mac listed. According to the independent financial advisor’s (IFA) letter for the non-privatisation mandatory general offer for Datapulse Technology BKW , the average premiums and discount to the one-, three-, six- and 12-month volume weighted average prices (VWAPs) for all non-privatisation offers on the Singapore Exchange S68 from 2020 to 2023 across 17 deals are –1.5%, –1.5%, –0.1% and 8.9% respectively.
As such, Hanwha’s offer price, in this case, represents a 6.2%, 14.1%, 29.3% and 50% premium over the one-, three-, six- and 12-month VWAP, respectively.
Analysts from Maybank Securities, OCBC Investment Research (OIR) and Lim & Tan Securities have recommended investors “wait” for the final offer. At the same time, they have maintained their “buy” call on the company. Thiveyen Kathirrasan, the analyst for The Edge Singapore, said Dyna-Mac’s intrinsic value is 61 cents.
See also: BOK surprises with rate cut as Trump win boosts trade risks
Of note is that last month, Hanwha dropped its bid for Australian Securities Exchange-listed Austal. In a Sept 25 letter, Hanwha CEO Hyek Woong Kwon cited Austal’s unexpected demands and lack of cooperation as key reasons for terminating discussions, Australian media reported.
Currently, Hanwha has irrevocable undertakings for 24.31% of Dyna-Mac. That leaves 25.69% of Dyna-Mac it does not own to get to the 50% threshold, failing which shareholders who have accepted the offer will have their shares returned.
Hanwha Group says it intends to work with Dyna-Mac after the takeover to “extend the reach of digital transformation into yards, bringing to life smart yards, while delivering low and zero-carbon solutions that can power the energy transition”.
See also: ECB’s Schnabel sees only limited room for further rate cuts
Additionally, Hanwha’s offer comes on the back of its consideration of macroeconomic uncertainties. In the face of volatility risks, Hanwha adds that it believes “in the need for a patient and sustainable approach to the company’s growth by targeting market opportunities in energy transition more broadly”.
If successful, Hanwha’s acquisition will enable the company to advance new technologies and investments in the Singapore energy market, the offer document says. The offer closes at 5.30pm on Oct 30. — Ashley Lo
Elite UK REIT to divest Scotland office at 41.7% above valuation
The manager of Elite UK REIT says the REIT has entered into a sale contract for the divestment of Sidlaw House, Dundee.
According to an Oct 2 bourse filing, the property is currently vacant and has a sale consideration of about GBP1.28 million ($2.2 million).
The sale consideration represents a 41.7% premium above its valuation of GBP900,000 as at June 30, based on an independent valuation conducted by CBRE.
Net proceeds from the divestment are set to be used for the repayment of the REIT’s outstanding borrowings. — Ashley Lo
To stay ahead of Singapore and the region’s corporate and economic trends, click here for Latest Section
The Edge’s only agenda is to serve the truth, says chairman Tong as publication unveils book on 30-year journey
The Edge Malaysia’s only agenda is to serve the truth and earn the readers’ trust, said its chairman and owner, Tong Kooi Ong, reinforcing that the publication has no political or personal agenda.
Reflecting on the publication’s journey since 1994 at the unveiling of a book recounting that journey in conjunction with The Edge Malaysia’s 30th anniversary this year, Tong said he started the publication with one mission in mind: to provide credible news that empowers readers to make informed business and investment decisions.
“I was a stockbroker and banker back then,” Tong said in his keynote address during the Oct 1 event, held at the Four Seasons Hotel Kuala Lumpur.
“I knew nothing about running a newspaper, but I saw the need for the country to have a media that is credible, and one that readers can trust to report the truth and provide insights that can help them make better business and investment decisions. And one that can contribute to nation-building by advocating economic prosperity and opportunities for every Malaysian to build a better life for themselves,” Tong said.
The book, titled Behind the Stories, was jointly launched by the Sultan of Selangor, Sultan Sharafuddin Idris Shah, and the Sultan of Perak, Sultan Nazrin Muizzuddin Shah.
Also present were former prime minister Muhyiddin Yassin, former deputy prime minister Musa Hitam, Tunku Ali Redhauddin Tuanku Muhriz, and Minister of Investment, Trade and Industry Zafrul Abdul Aziz.
The event was also attended by numerous corporate leaders and business tycoons, including former CIMB Group Holdings chairman Nazir Razak, Khazanah Nasional managing director Amirul Feisal Wan Zahir, Capital A CEO Tony Fernandes, Sunway founder and chairman Sir Dr Jeffrey Cheah, and Grab Holdings co-founder and CEO Anthony Tan.
Among the guests were also current and former leaders of financial regulators and government institutions, including former attorney general Tommy Thomas, Securities Commission Malaysia chairman Mohammad Faiz Azmi, and Bursa Malaysia Bhd CEO Datuk Muhamad Umar Swift.
“Friends have asked why I want to own a newspaper because speaking truth to power will only end up offending so many. Surely it is bad for my other businesses? Yes, it is. But I am glad my wife and children understand me. They know my passion for The Edge is not about comfort or money,” Tong said.
“The biggest challenge in owning The Edge is that those who are unhappy with what The Edge reports almost always accuse us of having political or personal agendas. I would like to reinforce the fact that our only agenda is to serve the truth and to earn your trust. And I think the fact that we have no other agenda is reflected among our diverse guests here today,” he added.
Tong also paid tribute to The Edge’s publisher and CEO, Datuk Ho Kay Tat, who played a key role in the publication’s journey over the past three decades and was pivotal to its success today. “Kay Tat is a strategic and level-headed leader whose strength is his ability to bring everyone together and make the team look good even when they are having an off day.
“To The Edge, Kay Tat is what Andrés Iniesta was to my favourite football club, Barcelona — the captain, the midfielder, the brilliant playmaker of the team. Iniesta makes Messi and Neymar look good at scoring goals,” Tong quipped.
Tong said the book’s publication aims to clarify misconceptions and provide insights into the publication’s history. “I think most people, including close friends, will, for the first time, discover some new facts about what had happened. We realise we will offend some people, and there were perhaps events that should be better left untold. But, if we were to write a book, we must be honest, truthful, fair, and comprehensive.
“The way to respond to half-truths, lies and outright fiction is not to keep quiet but to call them out — putting facts and truth on record for eternity,” Tong added.
The book, he hopes, will foster dialogue about the need for inclusive political and economic reforms in Malaysia, echoing sentiments of unity and progress for the nation. The book will be available in bookstores soon. — Emir Zainul
Oracle to invest US$6.5 bil in Malaysia AI, cloud services hub
Oracle plans to spend US$6.5 billion ($8.4 billion) building a cloud services centre in Malaysia, becoming the latest global tech name to invest in Southeast Asian artificial intelligence (AI) infrastructure.
The US company will establish a cloud region in the country comprising a network of data centres providing services for corporate clients. That includes access to Nvidia chips that can accelerate generative AI development, it said in a statement.
Oracle’s pledge marks the latest major outlay by a major US tech company in Southeast Asia, which is fast becoming a centre for cloud services because of ample land, government support and rapidly growing markets.
Alphabet’s Google said it aims to invest US$1 billion to build data centres in Thailand — on top of similar projects for Malaysia — while Amazon.com unveiled its own US$9 billion investment plan in Singapore in May. Microsoft has also talked about spending some US$4 billion building data centres and other infrastructure for the region.
Oracle, which is trying to expand its cloud infrastructure business globally to vie for a slice of the AI pie, didn’t offer timeframes or specifics on what it intended to build in Malaysia. The global market for AI-related products could hit US$990 billion by 2027, as the technology’s adoption disrupts companies and economies, Bain & Co. estimates. — Bloomberg
