Sinomem

sinomen\'s subsidary reython has dispose its entire shares in wholly owned subsidary in jiangxi,(jangxi reython). Although the diaposal is made at a loss, I view the news as general positive. To be frank, Reython is an eyesore to me, particularly after the auditor comments on its books. With this disposal, i feel that the wild card in sinomen (In terms of coporate governace) is gone. Secondly, sinomen has made good its words to divest some of these downstream business, I might actually use some of these preceeds into the water business as they have stated that they will do so in the annual report. Hence there might not be all hot air in their aim to get 40 water deals by 2012 This is not to say its a good price to jump into the company, given the volaity of the markets and that dow just dropped more than 100 points overnight, but i guess this is a good stock to buy on weaknesses.

Posting by a Chinese in CNA forum on Friday: D key 2 Sino success n future growth n development is Dr Lan. Dr Lan came to Spore 2 study, then lecture n then found Sinomem. Hes now a Sporean n was recently featured in ST as 1 of the richest Chinese Sporean here. In China, he is known as \"membrane king\" bcause many China companies used his technology. EVen BioWater (Pi Shi Yan) biggest listed China water company shared his technology Right now, he is involved in v big China project - abt 500 million RB. Dr Lan is v much involved in this project – even if he is in his personal capacity, he will b using a lot of Sino techonology. He is v conscious about money, that is y he don’t want 2 borrow much money from bank.

Posting 2 by the Chinese forumer: Aft BioWater (Pi Shui Yan), e listed in China n bcom No 1 water co in Ch, Sino got many enquiries fr many orgnisations. Y? Bcause Biowater uses its membrane concept . Analysts + media chk n studied Sino n find it actually cn use Sino as a benchmark 4 membrane techno in China…Many papers dubbed Dr Lan as “membrane king” (more on this of Spore later) Now, membrane is v hot in Ch… more n more Ch co pay attn to environ water….water treatment has many priorities But definitely membrane is d best 4 water treatment… so in Ch, d govt is paying attn 2 water issue n more people is paying attn 2 membrane…n when u pay attn 2 water membrane n people consider Dr Lan as membrane king… you cn understand d prospects of Sino - Sino\'s membrane tech 4 the environment has v bright future esp in Ch…n eventually d world as well (more of dis on Spore later)

The recent article on sinomem by nextinsight got me confused. According to Mr Lan, they have ink 2 city water treatment contracts in JUly. Why is there no annoucements to SGX till now? They have a target of 40 water deals by 2012, according to the annoucements from sgx, they have not announce any water deals since last august? why is this so? Are we missing something? or are they just trying to mislead the investors???

Cash offer of S$0.70 per share
Singapore, 5 March 2011 – Clean Water has announced today its intention to make a voluntary conditional cash offer (the "Offer") to acquire all the issued and paid-up ordinary shares in the capital of Sinomem (the "Shares"), a company listed on the Main Board of SGX-ST.
The Offer is conditional upon the Offeror having received, by the close of the Offer, valid acceptances in respect of such number of Shares which will result in the Offeror holding not less than 90% of the total number of issued Shares (excluding any Shares held by Sinomem as treasury shares and those Shares held, directly or indirectly, by the Offeror as at the date of the Offer).
The founders of Sinomem, Dr. Lan Weiguang and Madam Chen Ni, have provided their irrevocable undertakings to accept the Offer in respect of an aggregate of 281,269,000 Shares, representing approximately 56.05% of the total number of issued Shares (excluding Shares held by Sinomem as treasury shares). Dr. Lan Weiguang is also the Managing Director of Sinomem and Chairman of the Sinomem's board of directors. Madam Chen Ni is also an Executive Director of Sinomem.
The Offeror believes that the Offer Price of S$0.70 in cash for each of the Shares in Sinomem (excluding Shares held by Sinomem as treasury shares and those Shares held, directly or indirectly, by the Offeror as at the date of the Offer) represents an attractive proposition to shareholders to realise their investment in the Company for cash without incurring brokerage and other trading costs. The Offer Price in cash values Sinomem at approximately S$351.25 million.

Sad to see Sinomem go - honestly run by Dr Lan & his team, I believe.

The premium they are offering @70 cents will be welcomed by shareholders as this is a premium of approximately 31.63% to the NAV per Share of S$0.5318 as at 31 December.

The premium to last traded price is  about 28%.

No one should complain about this 70 cents offer, which is generous.
On a PE basis, the 70cents is  13X last year's earnings. I salute Sinomem