Market sources talk of accumulation of up to 51% stake at $1.30 a share

By VEN SREENIVASAN

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Leading players: Chairman David Teo and his wife Te Lay Hoon together control some 24 per cent of Super Coffeemix

BT understands from market sources that Russian business interests may have accumulated, or are close to accumulating, up to 51 per cent of the company's stock. And the purchase price is said to be around $1.30 per share.

Indeed, the stock of the company has surged in recent days on high volumes amid speculation of a possible takeover.

At its closing price of $1.04 yesterday, the stock has risen some 60 per cent over the past week. But it is still below the rumoured takeover price.

Nevertheless, the octane-fuelled stock price performance prompted queries from the Singapore Exchange last week. And the company confirmed late last week that it had 'received a preliminary approach concerning a possible transaction' and was in early stages of discussions.

But some market insiders believe that a deal could be close, or even possibly already inked.

The leading players in Super Coffeemix are its chairman David Teo and his wife Te Lay Hoon, who together control some 24 per cent; and 'Popiah King' Sam Goi, who has almost 17 per cent. Also among its biggest shareholders is Centurion Investments, which is led by star UOB-Kay Hian deal-makers David Loh and Han Seng Juan.

And Mr Goi, together with Mr Teo and other directors, have continued actively purchasing the shares in the open market. In fact, the stock enjoyed the biggest shareholder trades by value in the market last year with $154 million worth of purchases. This included some 205 million shares acquired by four shareholders - led by Messrs Goi and Teo - between March and August 2007 at an average 75 cents each. The bulk of the acquisitions were made in August after the counter fell from $1.07 in July to 74 cents.

And the sporadic stock purchases have continued this year.

But these transactions have not attracted the same attention as tycoon Oei Hong Leong's decision in July last year to sell his entire stake of 13.17 per cent stake in Super Coffeemix, and in the process, reap an estimated gain of at least $40 million. Most of the shares were sold to food and beverage firm Yeo Hiap Seng, which paid $1 per share.

So why would Russian businessmen want to buy into a Singapore-listed instant beverage maker?

Since he became a substantive shareholder of the company, Mr Goi has been actively helping the company chart its strategic direction, especially its expansion into offshore markets. These have included, among others, Russia.

In fact, Super Coffeemix has been one of a handful of Singapore companies which has aggressively moved into the fast growing Russian market.

And for good reason.

The Russian retail market is estimated to be worth US$280 billion in annual consumer spending. And Russia's income per head has been galloping along at an annual growth pace of nearly 29 per cent.

Indeed, several Singapore companies have already moved into Russia.

But Super Coffeemix may have done such a good job that it could have attracted keener domestic business interests. And if, indeed, that is the case, Super Coffeemix may be poised to lift its game to a new - global - plane.

Yes, confirmed Sam Goi bought into PSC.

It is now into China property development. It has entered into a MOU with Sam Goi Seng Hui and Peter Chang, to form a joint venture for the purpose of undertaking a commercial property development project in Taihuwan, Wujin District, Changzhou City, Jiangsu Province.