22 January 1998: As a result of the collapse of stock values on certain Asian markets, the Italian curtain wall construction group Permasteelisa is considering buying back shares in its Asian holding …
22 January 1998: As a result of the collapse of stock values on certain Asian markets, the Italian curtain wall construction group Permasteelisa is considering buying back shares in its Asian holding company, Permasteelisa Pacific (responsible for over half of the group“s global sales), which were placed on the Singapore stock market last October. The shares, 25% of the Asian subsidiary“s total, were originally placed at S$ 0.82 but fell as low as S$ 0.195 in mid-January. Managing director Enzo Pavan pointed out that the operation could be carried out immediately by asking for specific authorization from the local stock market authorities but added that, before taking a decision, Permasteelisa prefers to wait until March-April, when it will release financial figures and thus enable both the company and investors to assess the move. Pavan confirmed that forecasts for a 1997 profit of S$ 12 million on a turnover of over S$ 200 million would be largely met, giving what he described as an “absurd” price/earnings ratio. Before the placement last October, Permasteelisa had the foresight to draw up an agreement with Singapore Technologies, which acquired 22.8% of Permasteelisa Pacific (later diluted to around 20%) for S$ 25.8 million. The group is also focussing on “blue building” technology, that which contributes in reducing heating and lighting costs.