Defensive Tactic

1. A white knight
A white knight is a company (the "good guy") that gallops in to make a friendly
takeover offer to a target company that is facing a hostile takeover from another party
(a "black knight"). The white knight offers the target firm a way out with a friendly
takeover.
For example, acquire expertise and reserves out of their horizon to ride sectoral
growth. Singapore-based Deloitte & Touche LLP's tax partner and leader for South-
East Asia mergers and acquisitions Steven Yap said that this would likely be seen
within the upstream and midstream segments.
2. Sandbag
With the sandbag tactic the target company stalls with the hope that another, more
favorable company (like "a white knight") will make a takeover attempt. If
management sandbags too long, however, they may be getting distracted from their
responsibilities of running the company.

For example, Moving forward, Nizar said that institutional investors such as pension
funds and private equity firms could start to pour more money into the O&G sector
due to high demand for upfront investments that had to be made in the industry.Not
many local players have this kind of capacity today. Don't be surprised when
institutional investors such as Permodalan Nasional Bhd, the Employees Provident
Fund and Lembaga Tabung Angkatan Tentera jump on the bandwagon as well, he
said.






Article
Malaysias oil and gas acquisitions are expected to total RM15bil this year
Malaysias O&G acquisitions are expected to total between RM10bil and RM15bil this year,
PETALING JAYA: Malaysia's oil and gas (O&G) acquisitions are expected to total between
RM10bil and RM15bil this year, as players look to acquire expertise and reserves out of their
horizon to ride sectoral growth. Singapore-based Deloitte & Touche LLP's tax partner and
leader for South-East Asia mergers and acquisitions Steven Yap said that this would likely be
seen within the upstream and midstream segments.
This (projected) figure of RM10bil RM15bil this year is not going to be surprising. Should
Petroliam Nasional Bhd (Petronas) decide to (launch another) acquisition offer for MISC
Bhd, you would easily meet RM10bil quite fast. It can be quite huge, Yap said at a press
briefing at the Deloitte O&G Summit yesterday. He noted that acquisitions within the O&G
sector were not only limited to the local front but were increasingly becoming more
international as well.
Deloitte Malaysia's corporate finance and financial advisory services executive director Nizar
Najib said that this was in line with the global trend of huge capital expenditure allocation
budgets. On this note, Nizar said the marginal oilfields financing space might see smaller
players with very limited financing capacity facing difficulties.Not many local companies
have this sort of financial capacity. If you look at the smaller offshore support vessels, their
chances are a bit slim, given that they would need bigger capacities and higher gearing to
boot. The ones that have secured the contracts thus far are the big boys: SapuraKencana
Petroleum Bhd, Dialog Group Bhd and Petra Energy Bhd, as they would need the financial
capacity for these (projects), he said.
We foresee that for the next round of risk service contracts (from Petronas), if the first
mover players like Sapura Kencana and Dialog execute their contracts well, this could very
well see them (being) at the forefront for subsequent contracts, Nizar added.
Moving forward, Nizar said that institutional investors such as pension funds and private
equity firms could start to pour more money into the O&G sector due to high demand for
upfront investments that had to be made in the industry.Not many local players have this
kind of capacity today. Don't be surprised when institutional investors such as Permodalan
Nasional Bhd, the Employees Provident Fund and Lembaga Tabung Angkatan Tentera jump
on the bandwagon as well, he said.




























Defensive Tactic on Merger and Acquisition

white knight and sandbag
Fin 538









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