Grand Banks Yachts

[dydx]

Grand Banks has justed released its Q3 (ended 31Mar11)-FY11 results which shows another loss.....
http://info.sgx.com/webcoranncatth.nsf/V...F0035BB44/$file/GrandBanks3rdQtrFY11Announcement.pdf?openelement [Q3 results]

While Q3's net loss of $1.67m looks quite bad, we should note that Q3's revenue of $11.24m is higher than Q2's $8.0m, and Q1's $2.28m.....
http://info.sgx.com/webcoranncatth.nsf/V...900263063/$file/GrandBanks1stQtrFY11Announcement.pdf?openelement [Q1 results]
http://info.sgx.com/webcoranncatth.nsf/V...40023253E/$file/GrandBanks2ndQtrFY11Announcement.pdf?openelement [Q2 results]
Together with the latest order backlog of $12.0m (as at 31Mar11), we do have some early signs of a business turnaround.

When we add back the non-cash depreciation/amortization, forex loss and other non-operating items, in Q3 Grand Banks actually had a cash loss (or burned cash) of only $780k, or an average of $260k/month. I suppose the company just needs to sell another 1 (a big one) or 2 (smaller ones) boats in a quarter, in order to achieve cash break-even.

With a cash reserve of $16.0m - and more cash from the sale of the company-owned stock boats (part of inventories) - there is every reason to believe Grand Banks will survive this market downturn.

Forumers can view some of Grand Banks' beautiful boats at this weekend BOAT Asia show being held at Marina at Keppel Bay and Promontory@Marina Bay....
http://www.boat-asia.com/aboutus/show_information.asp
or just visit Grand Banks' beatiful website....
http://www.grandbanks.com/index.cfm

[dydx]

Grand Banks is planning to undertake a major new shares placement to raise approx. $44.9m (based on 136,136,364 new shares at $0.33/share) in new capital from European private equity group Investindustrial, which will become the new controlling shareholder with a 58.7% stake, post the placement.....
http://info.sgx.com/webcoranncatth.nsf/V...000411A83/$file/ProposedSubscriptionAnnouncement.pdf?openelement
The proposed placement is subject to shareholders' approval via an EGM to be convened.

The above share placement will trigger and require Investindustrial to make a GO at the same price of $0.33/share and, accordingly, Investindustrial has appointed DBS Bank to make a Pre-Condional Offer on its behalf....
http://info.sgx.com/webcoranncatth.nsf/V...00043135C/$file/PreConditionalMandatoryCashOfferAnnouncement.pdf?openelement

With a strengthened B/S post the placement, why should minority shareholders accept the offer at such a low price from Investindustrial, I wonder!

[Musicwhiz]

The Straits Times
Aug 20, 2011
Yacht builder to issue shares in buyout deal

By Daniel Ho

FINANCIAL difficulties have forced boat builder Grand Banks Yachts to engineer a buyout by investment firm Investindustrial Asian Development Holdings.

Grand Banks will initially issue more than 136million subscription shares to Investindustrial priced at 33 cents each - about 9.59 per cent below the last traded price of the Grand Banks stock on Thursday. The transaction will cost Europe-based Investindustrial about $44.9 million.

The subscription shares constitute about 58.65per cent of the firm's enlarged share capital.

Once that deal has been completed, Investindustrial will follow the Singapore Code on Takeovers and Mergers and make a mandatory cash offer for any outstanding Grand Banks shares.

Shareholders will first have to approve the deal at an upcoming extraordinary general meeting.

Grand Banks chairman Robert Livingston, who controls 28.58 per cent of the current share capital, said he will back the proposed subscription deal.

Mainboard-listed Grand Banks has been struggling amid the downturn and had considered obtaining external capital injections to tide it over. It posted a net loss of $1.67 million for the three months to March 31 despite a 25.2 per cent increase in revenue compared with the same period last year.

Grand Banks also recorded net losses for the past two financial years, and looks set for a third year in red with a total net loss amounting to $6.23million so far. The firm contacted several firms, and eventually began negotiations with Investindustrial.

Grand Banks directors said in a statement yesterday that the capital would give the firm extra time to navigate the difficult business conditions. They were also confident that Investindustrial could help in recruiting, product design and distribution.

Investindustrial specialises in Asian investments and is owned by a fund managed by Investindustrial, a leading European investment group.

[Musicwhiz]

Business Times - 06 Sep 2011

Grand Banks Yachts gets waiver from watch-list

It obtains deferment in light of $45m share subscription

By NISHA RAMCHANDANI

GRAND Banks Yachts has been granted a waiver from entry on the Singapore Exchange's (SGX) watch-list until Dec 1, in light of a $45 million share subscription by European private equity firm Investindustrial Asian Development Holdings SA.

'An application was made by the company to (SGX) for the deferment . . . taking into account the proposed subscription,' Grand Banks Yachts said in a release to SGX yesterday. 'On Sept 5, SGX advised the company that it has granted a waiver until Dec 1, 2011.'

But if the company's average market capitalisation is less than $40 million over the last 120 market days at the next review in December, it will be placed on the watch-list immediately.

SGX places a company on the watch-list when it records pre-tax losses for the three last consecutive financial years, and has an average daily market capitalisation of less than $40 million over the last 120 market days.

On Aug 29, Grand Banks Yachts issued a notice stating that it has recorded pre-tax losses for the three most recently completed consecutive financial years and that its market capitalisation on the day of the announcement stood at $31.7 million.

On Aug 18, Grand Banks Yachts announced that it had entered into a subscription agreement under which it will issue 136.14 million new shares at $0.33 per share to Investindustrial. The price represents a discount of 9.59 per cent to the volume-weighted average price per share for trades done on Aug 18.

Upon completion, the new shares would constitute about 58.7 per cent of the company's enlarged share capital.

If all the conditions are met, Investindustrial will make a general offer for all the shares that it does not own in Grand Banks Yachts.

'The new capital . . . provides the company with additional security and time to manage through the unfavourable industry business conditions. Further, the subscriber would be able to assist the company's existing management team in expanding the product range quickly to attract new customers, strengthening the distribution system and recruiting additional executives,' Grand Banks Yachts said.

[Nick]

http://info.sgx.com/webcoranncatth.nsf/V...70043BC7F/$file/ReAppointment_of_Directors.pdf?openelement - RE-APPOINTMENT OF DIRECTORS

http://info.sgx.com/webcoranncatth.nsf/V...70032CA94/$file/Results_of_AGM_AND_EGM.pdf?openelement - RESULTS OF AGM AND EGM

I never realized it was possible for the Board to appoint directors who were just voted out a few hours ago ? Or did I mis-read this announcement ? Would appreciate some clarification here.

(Not Vested)

[Musicwhiz]

Wow what a saga!

The Straits Times
Oct 13, 2011
Yacht-maker's CEO, chairman voted out

By Jonathan Kwok

INVESTORS in money-losing luxury yacht-maker Grand Banks Yachts yesterday staged something of a coup by voting both the chief executive and the non-executive chairman off the company's board.

It was a rare case of minority shareholders succeeding in voting off the founding members of a company.

The investors also voted against a deal to invite a proposed white knight on board.

But in a twist to the saga, the company said late last night that it was going to reappoint those voted off.

What should have been a routine annual general meeting (AGM) ended with a shocking result when Grand Banks founder and chairman Robert Livingston, 71, as well as his son, chief executive officer (CEO) Robert Livingston II, 42, were voted off the board.

Proposals for the re-election of independent directors Michael Gray, 65, and Roger Langdale, 76, also failed to go through.

That meant the six-man board would have only two members.

Grand Banks reacted quickly, and last night announced that the remaining members of the board decided it was in the interests of the company for the four men to be reappointed 'so that there is a full complement of directors familiar with the business of the company to oversee its management'.

Among them, the elder Mr Livingston is the company's largest shareholder, with 28.58 per cent of the firm. He was reappointed as non-executive chairman.

Grand Banks said it will consider new candidates for the board of directors and may restructure the entire board 'in an expeditious and orderly manner'.

What may have made shareholders fed up with the current management is Grand Banks' pre-tax losses for the last three financial years. Its market value has fallen below $40 million.

Although this meant it entered the dreaded Singapore Exchange watchlist for money-losing firms, last month, it was granted a waiver from entering the watchlist until Dec 1, due to a proposed $45 million share subscription by a white knight, European investment firm Investindustrial Asian.

Under the deal, Grand Banks was to have sold new shares to Investindustrial at 33 cents each, giving the firm majority control.

This was meant to give the company a new lease of life but at the extraordinary general meeting following the AGM, shareholders also voted this deal down.

Investors were arguing that the 33-cent offer price to Investindustrial undervalues the company. Although the stock last traded at 32 cents, the net asset value per share at June 30 was over 50 cents.

Shareholders were suggesting that Grand Banks could have asked marine or shipyard firms for investments, rather than Investindustrial.

The meetings, attended by some 100 shareholders, lasted some three hours. After the results were announced, both Mr Livingstons left quickly.

Grand Banks was listed in Singapore in 1987 and has cultivated a name for itself in the yacht business.

[email protected]

[Musicwhiz]

Strange case indeed. Please see attached article(s) from today's BT.

[Musicwhiz]

The Edge has a good write-up on Grand Banks this week (see attached).

[dydx]

Loss-making motor yacht maker Grand Banks is introducing another 2 new boat models in the all-important U.S. market.....
http://info.sgx.com/webcoranncatth.nsf/V...A00257B6A/$file/New_Model_Announcement_21Feb12.pdf?openelement

Without doubt, Grand Banks makes very beautiful and high-quality boats.....
http://www.grandbanks.com/

Grand Banks' latest Q2 results announcement is showing some early signs of increasing new boat orders and clearing of existing stock boats.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument

Will the financial fortune of this grand boat company ever turn around?

[dydx]

Based on the latest issue of e-newsletter Sem@phore just released, Grand Banks' new orders and production level at its only boatyard at Pasir Gudang, Johore, seem to be picking up quite nicely.....
http://www.grandbanks.com/discovery/expe...index.cfm#
http://trk.cp20.com/Tracking/t.c?RXDD-SQnF-eGa6O5

Would it be quite fair to say that it is no longer a question of if Grand Banks' business and profits will recover, but how soon ?