Lang Corp News

Hardware and towage group Howard Smith Ltd. pointed to a difficult market for its main hardware and industrial supplies businesses on Tuesday, after posting a flat half year result. Although recent data pointed to a housing recovery, actual spending on hardware was expected to lag housing approvals and a break in economic conditions was not expected until at least mid-year. "The outlook for the next four months is tough," managing director Ian Tsicalas told reporters after the group reported a net profit of A$54.10 million for the six months to December 31, 2000, up slightly on A$53.56 million a year ago. Tsicalas said Howard Smith could still meet earlier forecasts and beat its A$102.9 million 1999/00 full year net profit, saying the first half net profit increase was "sustainable".

Holyman Ltd.'s board of directors will reportedly recommend a fresh $.71 a share takeover bid from Lang Corp Ltd. Lang Corp increased its cash offer from $.61, topping a rival $.66 a share bid from Adsteam Marine Ltd. The new bid values Holyman at about $82.5 million, compared with just $53.5 million at Adsteam's original bid price of $.46.

Stevedore company Lang Corp. Ltd. is said to be planning an offer of 93 cents per ordinary share for shipping and transport group Holyman Lt, significantly higher than the 80 cent per share bid from Adsteam Marine Ltd.

Ferry and transport group Holyman Ltd. will recommend a revised 65 cents a share cash takeover offer from Adsteam Marine Ltd. in the absence of a higher offer. Earlier, Adsteam Marine lifted its hostile bid for Holyman to 65 cents per share from 52 cents. The new offer tops a rival bid from stevedore company Lang Corp Ltd., which has a 61 cent per share offer on the table. However, managing director James Bryant said shareholders need be in no hurry to accept and should await details of Lang Corp's offer, due in early October.

Holyman Ltd.'s board of directors will recommend a fresh $.71 a share takeover bid from Lang Corp Ltd. Lang Corp increased its cash offer from $.61, topping a rival $.66 a share bid from Adsteam Marine Ltd. The new bid values Holyman at about $82.5 million, compared with just $53.5 million at Adsteam's original bid price of $.46. "We have discussed it and obviously we think it's good news for shareholders," managing director James Bryant said. "The board of directors will recommend that shareholders accept in the absence of another bid," he said. Adsteam Marine chief executive David Ryan said the company would consider its next move.

Adsteam Marine Ltd. extended its 80 cents a share takeover offer for ferry and transport group Holyman Ltd until Oct. 5. The offer was to close Sept. 27. The extension followed a rival offer on Sept. 23 from stevedore Lang Corp Ltd., which was pitched at 93 cents a share. Holyman directors recommended that shareholders accept the Lang Corp bid in the absence of a higher offer, although they should take no action until formal documentation was served in early October. Lang Corp's offer is subject to receiving a minimum of 50.1 percent of the ordinary and converting preference shares, as well as usual regulatory conditions. Adsteam, which now holds 22.8 percent of Holyman, has made its offer unconditional.

Tugboat operator Adsteam Marine Ltd.'s bid for Holyman Ltd. closed on Oct. 18 with shareholder acceptances falling well short of the level Adsteam needed to gain control of the shipping and transport group. While Adsteam remains the largest stakeholder with around 23.3 percent of Holyman's ordinary shares, stevedore Lang Corp. Ltd. now looks set to take control of the company with its bid of approximately $.70 a share, valuing Holyman at about $82 million. Adsteam originally offered $.46 a share for Holyman in late July before upping its hostile bid to $.52 in September and again to $.65 after Lang Corp. unveiled its interest last month. Its final offer valued Holyman at $76 million. "There was value in the acquisition for us up to A$1.00 ($.65).

Tugboat operator Adsteam Marine Ltd. is reportedly performing ahead of the same period in the previous year, but has not yet made a decision on whether to sell its stake in Holyman Ltd. The company posted a net profit after abnormals of $11.1 million in 1998/99, up from $10.9 million on the year. Adsteam, whose $75.3 million takeover offer for shipping and transport group Holyman was recently trumped by a $81.4 million offer from stevedore Lang Corp. Ltd., held around 23 percent of Holyman's ordinary shares and 68.3 percent of its listed options when its bid closed. Adsteam has six new tugs currently under construction, which are due to be completed by June 2000.

Adsteam Marine Ltd. is performing better than in the same period last year, but company officials said no decision has yet been made on or not to sell the firm's stake in Holyman Ltd. "Current trading after the first four months of the new financial year is ahead of the same time last year - that is revenue, earnings before interest and tax and net profit after tax," David Ryan, Adsteam's managing director, said. The company posted a net profit after abnormals of $11 million in 1998/99, up from $10.8 million on the year. Adsteam, whose $74.9 million takeover offer for Holyman was recently bettered by a $80.9 million offer from Lang Corp. Ltd., held around 23 percent of Holyman's ordinary shares and 68.3 percent of its listed options when its bid closed.

Australian towage operators threatened by foreign competition were at standstill with the Maritime Union of Australia (MUA) last Tuesday as a dispute over tug boat manning levels escalated. "Increasingly we are seeing overseas towage companies tendering for towage contracts in our ports," said Adsteam Marine Ltd. CEO Clay Frederick, noting that comparable offshore ports operated with mostly three man crews. "I don't think our customers are going to cop the fact that we are there with four men, when clearly it has been proven it can be done with three," he said. Adsteam plans to reduce manning levels in a bid to carve A$5 million annually out of its cost base.