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Redhall - Bids £18.6m for Chieftain Group

November 2008

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • RHC
  • Price:
  • 30p
Redhall has announced a recommended cash offer for AIM-listed Chieftain (CFT; 200p), which values Chieftain at £18.6m. To help pay for it, Redhall has placed 8.1m new shares at 245p to raise £20m. Established 30 years ago, Chieftain’s mainstay historically has been the outfitting of warships and oil & gas platforms. Outfitting historically involved the fitting out and refits for offshore oil & gas installations, with work mostly relating to BP, Shell and Agip rigs where Chieftain installs well heads, decks and acoustic units on board platforms. On the warship side it specialises in the supply and installation of thermal and acoustic insulation, fireproofing, HVAC systems and architectural outfitting (the installation of ceili ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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