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The MSC Group’s other operations,
however, performed well with both
the Butterworth international smelting
business and the Rahman Hydraulic Tin
mine in Perak delivering satisfactory
profits, although these were more than
offset by losses incurred at PT Koba
Tin in Indonesia, where the delay in
the renewal of the CoW adversely
affected operations, production and
rationalisation efforts.
With its strong international business
networks and profitable smelting and
mining operations in Malaysia, the MSC
Group iswell-positioned todeliver positive
and sustainable earnings going forward.
WBL CORPORATION LIMITED
On 26 November 2012, we announced
a proposal to increase our original 17%
shareholding in WBL into a significant
stake through a share swap with two
leading institutional investors, namelyThird
Avenue Management (“Third Avenue”)
and Aberdeen Asset Management Asia
Ltd, acting in its capacity as fundmanager
and agent for its clients (“Aberdeen”).
Following implementation of this proposal
in January 2013, we together with parties
acting in concert, now own an interest
of 44.58% (as of 17 April 2013) in WBL,
making us the largest single shareholder
group of WBL at the time of printing
of this Annual Report. Through this
share swap exercise, Third Avenue and
Aberdeen now hold 11.86% and 5.5%
of Straits Trading respectively and the
Company’s level of gearing has been
reduced.
With Straits Trading’s shareholding inWBL
crossing the 30% threshold, theCompany
launched a Mandatory General Offer
(MGO) for the rest of WBL as a regulatory
requirement under Singapore’s Takeover
Code. We decided to let the MGO lapse
on 1 March 2013 as we believe it is in
the best interests of our shareholders to
preserve our financial flexibility in support
of our future growth plans.
On 30 January, 2013, United Engineers
Limited (UE), together with parties acting
in concert with it launched a takeover
bid for WBL at S$4 per share. On
12March 2013, UE raised their offer price
to S$4.15 per share. On 24 April, 2013,
UE further extended the offer period to
10 May, 2013. Subject to the outcome
of the UE Offer, we hope to work with
all shareholders of WBL to realise and
enhance value.
DIVIDENDS
We have declared an interim dividend of
4 cents per share for FY2012 andwill work
towards a fair and sustainable dividend
policy, as our businesses transform and
value is realised.
CORPORATE
TRANSFORMATION:
CREATING LONG-TERM
SHAREHOLDER VALUE
As articulated over the years, our vision
is to transform Straits Trading into a
holding company with meaningful stakes
in businesses that arewell run and provide
a reasonable return. As an investor which
takes a long-term view, we understand
that businesses need to continually
adapt to changing circumstances to
remain competitive and relevant. The
Company’s philosophy is founded on
good governance and business ethics.
To achieve the objective of creating a
holding company with meaningful stakes
in businesses, we have built up a portfolio
management team that possesses
strong corporate finance and M&A
capabilities to assist in the acquisition
of accretive business investments, to
optimise the Company’s capital structure
and to enhance shareholder value.
The Straits Trading Company Limited ANNUAL REPORT 2012 07 /