Jan 5, 2015

IHH Healthcare and BGH, McDonalds and CPF



IHH Healthcare and Bangkok Hospital (BGH), McDonalds and CPF. These were 2 news items that caught my attention today.

IHH Healthcare is reportedly targeting a 11.5% stake in Bangkok Hospital, the Thai, acquisition-machine, behemoth otherwise known as Bangkok Dusit Medical Services. The Star broke the news about IHH possibly funding the stake with a mix of cash and issuance of new shares. The Straits Times reported the same news a few hours later (as usual!). And the latest from Reuters is BGH themselves refuting the news.

''BGH has not been contacted by IHH... BGH has no plan to issue new shares to IHH'', rest of article here.

To put things in perspective, the 11.5% stake in BGH is worth slightly over S$1.2 billion when the first article was written, based on 17.20 baht per share. Today, BGH closed at 18 baht per share, up 4.65%. That is almost S$60 million more expensive, if IHH is really going to pursue the stake.

It is not uncommon for both the target and acquirer to both come out and publicly deny this kind of news, and then a few weeks later, the acquirer makes the offer in a supposed about turn. Perhaps in this case, someone really spilled the beans too early. This could be a minor example of the ''rumor theme'' I pointed out in a previous post. Regardless of whether the offer is going to turn out real or just smoke, the +4.65% number today is real.


The second news, a piece of vinyl was found in a chicken nugget sold in an outlet in Aomori, and the offending nugget is being sent to Tokyo for investigation.

Vinyl? What the hell is that supposed to mean? A gramophone record? Or a piece of PVC?

Why are you so surprised? What did you think your chicken nugget is made of anyway? Hah!

Well, Mcdonalds Japan had been relying on three plants in Thailand for Chicken McNuggets ever since the saga of Shanghai Husi Food Co. last year. Now, did the vinyl come from McKey or Cargill?

That is not determined for now, and well, Cargill is Cargill, and McKey... GFPT owns 49% of McKey Food Services, who also distribute to McDonalds Thailand. 

GFPT is a competitor of CP Foods. If not GFPT, then who? Well, CPF will be more than happy to step up to fill the orders. Just like how they are going to feed the Russians!

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