Kader buys Sanda Kan

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Kader buys Sanda Kan

Postby Arthur » Sat Nov 15, 2008 1:20 pm

Just picked this up on the 'LargeScaleOnLine' website, might have some implications for all scales.

Kader Manufacturing Trust has agreement to purchase Sanda Kan Industrial.

Sanda Kan Industrial are the people that have been making your large scale trains for several years. Sanda Kan is based in Hong Kong and makes trains for Aristo-Craft, Athearn, Atlas, Hornby, Life-Like, Lionel, Marklin, USA Trains, Walthers and more.

Kader specializes in the manufacture of model railroads for OEM customers and under their own proprietary brands: Bachmann, Williams, Bachmann Branchline, Graham Farish, Liliput and Bachmann.
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Re: Kader buys Sana Kan

Postby dilbert » Sat Nov 15, 2008 1:46 pm

Oh well, more speculation...there is also this announcement http://www.kader.com.hk/investor_relati ... 081113.pdf - a somewhat different position...dilbert
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Re: Kader buys Sana Kan

Postby Bilbo » Sat Nov 15, 2008 1:54 pm

I am sure I read somewhere that SandKan had a stake in Hornby - I may be wrong - but it makes for an interesting situation even if that is not correct.
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Re: Kader buys Sana Kan

Postby Andy Y » Sat Nov 15, 2008 2:17 pm

Can we please ensure that any forthcoming content in this topic is based upon fact and substantiated as with dilbert's post rather than speculation and associated opinion?

Thanks.
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Re: Kader buys Sana Kan

Postby A Do Ron Ron » Sat Nov 15, 2008 3:02 pm

Andy, this news appears to be correct.
Hornby now find themselves relying on a competitors parent company for production of their own products.

I could post various links (HK, US etc), but I'm sure others can do this for themselves.
Kaders shares are suspended, pending the official announcement.
Sanda Kan's web site has gone offline too.
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Re: Kader buys Sana Kan

Postby Andy Y » Sat Nov 15, 2008 3:16 pm

A Do Ron Ron wrote:Hornby now find themselves relying on a competitors parent company for production of their own products.


I'm just concerned as the text on Kader's site is as follows:

KADER HOLDINGS COMPANY LIMITED

SUSPENSION OF TRADING
The board of directors (the ???Board???) of Kader Holdings Company Limited (the ???Company???)
announces that trading in the shares of the Company has been suspended at the request of the
Company with effect from 9:30 a.m. on 13th November 2008 (Thursday) pending the release
of an announcement relating to a very substantial acquisition of the Company.
By Order of the Board
Kader Holdings Company Limited
Ivan Ting Tien-li
Executive Director
Hong Kong, 13th November 2008


'acquisition of the Company' - if the statement is literally correct with the use of the word 'of' it means that Kader have been bought as opposed to use of the word 'by' which would indicate Kader had bought something - hence a calming note regarding speculation until official statements are made that clarify who has bought what etc.
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Re: Kader buys Sana Kan

Postby Graham_Muz » Sat Nov 15, 2008 3:17 pm

A Do Ron Ron wrote:Andy, this news appears to be correct.
Hornby now find themselves relying on a competitors parent company for production of their own products.

I could post various links (HK, US etc), but I'm sure others can do this for themselves.
Kaders shares are suspended, pending the official announcement.
Sanda Kan's web site has gone offline too.


Do Ron Ron, I agree with Andy here Kaders announcement clearly stated "announcement relating to a very substantial acquisition of the Company." that it is Kader that is subject to being acquired as it says "of the" not by the.

At this moment in time the only substantiated information is the Kader announcement. Which does not support the OP statement.
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Re: Kader buys Sana Kan

Postby The Fatadder » Sat Nov 15, 2008 3:55 pm

Just been having a bit of a search on the net, so far everything I have found mentioning this buyout has been on model rail websites/forums, none of which seem to have any reliable references (though a couple of do reference the press release from kader about the cease in trading of their shares)
There dosnt seem to be anything serious 'business' orientated websites, or from either of the companies involved.

Of course the statement from kader could just be a poor translation, I guess we will find out when they release more details.
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Re: Kader buys Sana Kan

Postby woodenhead » Sat Nov 15, 2008 4:10 pm

Whichever way round it is, at least it refers to an acquisition.

Given the economic situation at the moment this has to be positive in some manner regarding longevity in the modelling market albeit two companies becoming one may have some impact on competition.

Last thing we want is shares suspended for some other sort of announcement.
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Re: Kader buys Sana Kan

Postby lapford34102 » Sat Nov 15, 2008 4:38 pm

an announcement relating to a very substantial acquisition of the Company


Hi,
I have to say I read that as Kader having made an acquisition not the other way around. Perhaps something of the original meaning has been lost in translation :? Whatever it's a development I'm sure we'll all be following with interest.
Hornby haven't made much of a secret about India as a possible alternative for production though.
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Re: Kader buys Sana Kan

Postby Trains4U » Sat Nov 15, 2008 6:17 pm

Indeed - Kader will be the acquirer - Kader is possibly the worlds largest manufacturer of toy products - Model railways is only part of their portfolio. (they have many factories producing toys for other well known brand names) So I imagine they have purchased Sanda Kan.
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Re: Kader buys Sanda Kan

Postby 34C » Sat Nov 15, 2008 7:18 pm

Hornby 2008 report:
"However the Group (Hornby) does not have exclusive arrangements with its suppliers and there is a risk that competition for manufacturing capacity can lead to delays in introducing new products or servicing existing demand. Furthermore there is a risk that input price escalation could reduce or remove the Group??™s pricing advantage. The Group seeks to mitigate these risks by closely monitoring production through locally-based employees (who also ensure the maintenance of quality standards) and by the development of its supplier portfolio, including a significant supplier in India."

They knew there was a risk, and now it has arrived big time. Would you want your product manufactured by the same sub-contractor which makes your principal competitors goods? Doesn't matter which has taken over the other, you are in the same company. Back to your roots Hornby, if Vi-trains can do a product competitive with yours from Italy, it should be possible in the UK.
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Re: Kader buys Sanda Kan

Postby Andrew1974 » Sat Nov 15, 2008 7:30 pm

34C wrote:Would you want your product manufactured by the same sub-contractor which makes your principal competitors goods?


Don't know anything else about this aledged takeover BUT this happens ALL the time in all sorts of industries.


Bilbo wrote:I am sure I read somewhere that SandKan had a stake in Hornby - I may be wrong - but it makes for an interesting situation even if that is not correct.


If they do it is very small. All listed companies (inc Hornby) have to list shareholders who own more than 3% of their shares in their annual report.

In Hornby's 2008 Annual report principal shareholders were all investment funds or two individual shareholders, a PJ Wood (10.5%)and a JJ Hosking(4.4%)
It is better to be silent and have people think you are stupid than to open your mouth and remove all doubt.

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Re: Kader buys Sanda Kan

Postby The Fatadder » Sat Nov 15, 2008 7:33 pm

Andrew1974 wrote:
Bilbo wrote:I am sure I read somewhere that SandKan had a stake in Hornby - I may be wrong - but it makes for an interesting situation even if that is not correct.


If they do it is very small. All listed companies (inc Hornby) have to list shareholders who own more than 3% of their shares in their annual report.

In Hornby's 2008 Annual report principal shareholders were all investment funds or two individual shareholders, a PJ Wood (10.5%)and a JJ Hosking(4.4%)


Glad to hear that, would not be a good state of affairs kader getting a large stake in hornby!
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Re: Kader buys Sanda Kan

Postby shortliner » Sat Nov 15, 2008 7:34 pm

Oh Dear!, Here we go again - all froth and conjecture and speculation without any FACTS - why not just all wait until some of them appear - which is unlikely to be before Monday - this is as bad as a wishlist! Can't we all just wait and see?
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Re: Kader buys Sanda Kan

Postby BlazeyBridge2 » Sat Nov 15, 2008 7:48 pm

Its pretty standard practise to suspend shares in ones organisation prior to a large acqusition, mainly to stabilise the share price and prevent speculative trading upsetting the deal....thats also why such deals are often carried out over a week end..

I dont know what the outcome of this purchase will be but Im sure is pretty normal practice...
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Re: Kader buys Sanda Kan

Postby Doddy » Sat Nov 15, 2008 8:35 pm

Posted by Lewis Polk on the Aristocraft forum - Aristocraft Trains USA 14th November 04.41PM

Dear All,

Sanda Kan, our OEM maker, was sold yesterday to Kader, who owns Bachmann among many other primarily real estate companies. Sanda Kan was sold previously on a leveraged buyout to JP Morgan who did the usual by firing the expensive, experienced staff, closing facilities and extending payment times to parts suppliers.

The marriage of the two largest train producers in the world is made in heaven and will allow Sanda Kan to restore itself to a premier producer of model trains. At this moment, both operations will be kept separate, but with a common ownership. Mr. W.S. Ting, who ran Sanda Kan from the beginning, has come back and I'm sure some of his original team will too.

Sanda Kan makes for Lionel, Atlas, Lifelike, Walthers, Brawa, Hornby and a host of some 50 other model train companies. Their capabilities are astounding and will soon return to that status under the partnership with Kader. Kader's owners are dedicated to the model train industry, unlike a pure financial play, so the focus is back on trains, rather than numbers.

It's a positive move and bodes well for the model train industry and for Aristo-Craft. It will take several months for the newer production to reach the market place, but we have put many new changes into place during my recent visit to the factory.

All the best,
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Re: Kader buys Sanda Kan

Postby 34C » Sat Nov 15, 2008 8:56 pm

Andrew1974 wrote:
34C wrote:Would you want your product manufactured by the same sub-contractor which makes your principal competitors goods?


Don't know anything else about this aledged takeover BUT this happens ALL the time in all sorts of industries. ..

True indeed. I have direct experience of the consequent tight grip that could then be exerted on a tender part of my anatomy.
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Re: Kader buys Sanda Kan

Postby Arthur » Sat Nov 15, 2008 9:00 pm

In the original post I should have explained that this news was not posted as 'rumour' by a forum member but by the forums owner starting thus:

"We have been sitting on this news for a few days and were told to wait until Monday, but it appears that the information is getting out so here it is:

Kader Manufacturing Trust has agreement to purchase Sanda Kan Industrial. .................."

Having used this website for some time I trusted the veracity of this statement, and it would seem that this news is correct.
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Re: Kader buys Sanda Kan

Postby Graham_Muz » Sat Nov 15, 2008 10:49 pm

Arthur, Doddy and Gareth thanks for the clarification and the substantiation of the news.
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Re: Kader buys Sanda Kan

Postby Garry D100 » Mon Nov 17, 2008 1:23 pm

Some information posted on http://www.mremag.com/ today
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Re: Kader buys Sanda Kan

Postby Mod1 » Mon Nov 17, 2008 4:36 pm

For further information as of today, see http://www.kader.com.hk/investor_relati ... 081117.pdf
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Re: Kader buys Sanda Kan

Postby Pugsley » Mon Nov 17, 2008 4:47 pm

If I'm reading that press release correctly, then they're getting a bargain for $8.5 million!
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Re: Kader buys Sanda Kan

Postby Ravenser » Mon Nov 17, 2008 7:57 pm

And if I'm reading it correctly the creditors have taken a terrible bath on their loan.... They must have been quite desperate
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Re: Kader buys Sanda Kan

Postby neal » Tue Nov 18, 2008 8:46 pm

Hornby's shares have been shocking in the last 12 months (like many others). But they have dropped a further 1/6th since the weekend.

My cousin has just returned from Hong Kong, he says ports are log-jammed with container ships with nowhere to go.

Scary times.

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