This tit-tat David vs Goliath battle is still ongoing. If you remember we wrote something earlier here Quick Comment: RPC Plc
Its appears as though RPC’s management and shareholders want to fully payout all of their retained earnings thereby rendering PTT unable to collect on overdue payments, it’ll be quite interesting to see what the outcome of this will be.
Satja Janetumnugul, PTT’s chairman, said his company should have filed the injunction before RPC’s shareholders at an extraordinary meeting on May 11 approved the dividend of 98 satang a share or 498 million baht.
Mr Satja said the dividend is from retained earnings totalling 512 million baht. RPC had total assets of 3.5 billion baht on March 31 including a refinery and biodiesel facilities.
Source: Bangkok Post
It’s been one hectic week with the holidays and updates to send out to clients, thus sorry for the slow updates here.
Just wanted to make a quick comment on Rayong Purifier Plc which had shot up quite high intraday today on rumours:
“As appeared in “Thun Hoon” newspaper on April 17, 2012 that “Petron Crop., Major
Oil Company in the Philippines is interested in the acquisition of Rayong
Purifier Public Company Limited (PCL) or “RPC” at the Book Value of 2.91 Baht””
Source: RPC SET page
This was quickly debunked by the company at just at the start of the afternoon session.
A quick background as to what is going on here:
PTT was RPC’s sole supplier of raw material and decided to magically stop supplying RPC at the end of 2011 which has put the company under quite a fair amount of distress.
“On 30 September 2009, PTT sent a letter to the Company to terminate the Agreement upon the completion of the 15-year term on 31 January 2012. The Company objected such termination letter, since both parties intended that the Agreement be made on a long-term reciprocal basis with no end date. Clause 2.1 of the Agreement clearly stipulates that the Agreement is reciprocal and made on a long-term basis with no end date (or on an evergreen basis).”
Source: RPC SET News
Since then the case is now in the arbitration process with RPC Plc suing PTT Group for breaching the contract (its fairly obvious PTT just wants to buy RPC’s refinery on the cheap, cheeky buggers…)
My very first client [the lovely lady that she is :)] had asked me about RPC a few weeks ago and we did a quick back of the envelope analysis on it.
Mind you this is a very quick n dirty calc, that only takes 10 mins to do, but if any of you are interested in trading on rumours this would help to provide a reference point.
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