More research on green energy vital

Updated 28 November 2012
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More research on green energy vital

The Renewables Made in Germany exhibition continued to draw visitors from local business and industry on its second day in Riyadh yesterday.
"As oil is a depleted wealth, an effort should be made to create alternative sources of energy," Prince Saud bin Abdullah bin Thunayan, chairman of the Royal Commission for Jubail and Yanbu, said in a statement.
He said this could be carried out through intensified scientific research to overcome challenges facing the production and storage, and increasing the feasibility of using renewables and clean energy, solar energy in particular.
Industry players agree. Hartmut Gross, Centrotherm's director of sales and marketing, said his company was doing this as it stood for uncompromising technology, products and solutions. He attended the second day of the exhibition with his colleague Steffen Mueller, head of technical marketing.
"We constantly set new standards through innovations across the entire PV value chain. Customers with existing turnkey production lines also benefit from this approach. We bring their systems up to state-of-the-art standards, such as selective emitter or centaurus technology, with our technology and equipment upgrades," he said.
This creates the basis for higher cell efficiency and helps customers to achieve competitive advantages and that Centrotherm guarantees key performance benchmarks, such as production capacity, efficiency and completion dates, he said.
"This positions us as a highly dependable partner in the solar industry for both market entrants and well-established solar companies. We also develop high-tech production systems and processes for the manufacture of semiconductor components for the semiconductor industry," he said.
Peter Hofmann, German counselor for economic affairs, encouraged the use of renewable energy instead of gas and oil which could be used for other purposes.
"Oil and gas should not be wasted on electricity generation. These could be used to produce pharmaceuticals and plastics. Hence the need for renewable energy," said Hofmann who had earlier served his country's diplomatic missions in Washington, Kuwait, Brussels, and Greece.
For Saudi Arabia, photovoltaics and solar thermal energy are also ideal for desalination instead of fossil fuels like oil and gas, he said, adding that wind energy could also be included as part of technology in the southwestern part of the Kingdom.
Hofmann, who attended the University of Munich, said that it will take many years before fossil fuel like oil and gas could be depleted. However, he said, these are bound to be depleted.
"Not now or tomorrow; there are many more oil and gas resources that are still undiscovered. The Red Sea may be sitting on more oil and gas and other mineral resources than are currently known but making them available may not be feasible due to prohibitive costs," he said.
However, he added that renewable energy will always be available after gas reserves have run out.
"So it's better to invest now and gain technical experience and use the fossil resources like oil and gas for better purposes," he said.
Hofmann added that there are many ways of saving energy, and energy efficiency is a major issue in Germany.
"Industry can improve its processes. Households can invest in energy-friendly appliances. In this way, all of us can contribute," he said. In Germany, much progress has been made in energy-friendly automation. German cars use less gasoline than comparable vehicles, he added.
"And Germany has also made much progress in the development of electric cars as well. The technology is simple but you need to invest in electric car infrastructure. It is possible to buy an electric car for daily trips to work and charge the battery at the end of the day at your house," he said.
The exhibition moves to Dammam on Nov. 30-Dec. 2 and to Jeddah on Dec. 5-7.


Market unsure over Shire's backing of $64 billion Takeda bid

Updated 25 April 2018
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Market unsure over Shire's backing of $64 billion Takeda bid

  • Takeda shares fell 7 percent on news of possible deal.
  • Combined company would have its primary listing in Tokyo and also offer American Depository Receipts

Rare disease specialist Shire has announced it was willing to recommend a sweetened $64 billion offer from Japan’s Takeda Pharmaceutical Co. to shareholders, in what would be the biggest acquisition of a drug company this year.
But shares in Takeda extended recent losses, tumbling 7 percent as investors fretted over its ability to buy a company twice its size, raising doubts about whether Shire shareholders will accept a bid that is 56 percent in new Takeda shares.
The stock slide — 18 percent since the news of a possible bid broke — makes the cash-and-share deal less appealing to Shire shareholders, some of whom may be reluctant or unable to hold Takeda shares.
“While this offer represents a solid improvement over Takeda’s third bid (38 percent cash), we still wonder if it is enough to satisfy Shire shareholders,” said Jefferies analyst David Steinberg.
Shire shares slipped 0.8 percent to 39 pounds by 0850 GMT, well below Takeda’s 49 pounds offer, signalling skepticism about the deal as Takeda’s falling stock price erodes the bid’s $64 billion headline value.
Without a deal, Shire shares could fall back to mid-March levels of 30-32 pounds, pressuring management to find other ways to realize value. Prior to Takeda’s approach, Shire was already considering divestments and a split in its operations.
It is now four weeks since Takeda first revealed it was considering a bid and the absence of firm interest from rivals means investors see only a low chance of an interloper emerging.
The latest development, first reported by Reuters, comes after London-listed Shire rejected four previous offers from Takeda.
The fifth offer is worth 49.01 pounds per share, comprised of 27.26 pounds per share in new Takeda shares and 21.75 pounds per share in cash. That represents a 4.3 percent premium to Takeda’s fourth proposal on April 20 and an 11.4 percent premium to its first approach on March 29.
Shire, a member of Britain’s benchmark FTSE 100 stock index, said its board agreed to extend a Wednesday regulatory deadline to May 8 so Takeda can conduct more due diligence and firm up its bid. Shire added the deadline may be extended further if needed.
Any deal is subject to the resolution of several issues, including completion of due diligence by Shire on Takeda, the Dublin-based company said.
A deal would significantly boost Takeda’s position in gastrointestinal disorders, neuroscience, and rare diseases, including a blockbuster haemophilia franchise.
If successful, it would be the largest overseas acquisition by a Japanese company and propel Takeda, led by Frenchman Christophe Weber, into the top ranks of global drugmakers.
Weber, who became Takeda’s first non-Japanese CEO in 2015, has said publicly it was looking for acquisitions to reduce its exposure to a mature Japanese pharmaceutical market.

FINANCIAL STRETCH
The combined company would have its primary listing in Tokyo and also offer American Depository Receipts — a move that would give Shire investors an opportunity to cash out more easily.
But the transaction would be a huge financial stretch, and Takeda investors have been skeptical about the merits of a Shire deal, given the size of the potential purchase and concerns that a large share issue will be needed to fund it.
Moody’s said the deal would pile up debt and hit Takeda’s credit ratings. “This huge acquisition bodes a spike in leverage that could result in a multi-notch downgrade,” said analyst Yukiko Asanuma.
Ambitious cost cutting is also seen as necessary to make the deal pay, and the uncertainties facing an enlarged group would spell a big change in the investment case for holding Takeda.
“Takeda’s shares have been valued for their stability and relatively high dividend,” said Daiwa Securities analyst Kazuaki Hashiguchi, adding this made them attractive even to investors without specialist knowledge of the drug sector.
Takeda, now worth $33 billion by market value, had 466.5 billion yen ($4.3 billion) in cash and short-term investments as of the end of December. It said yesterday it intended to maintain its dividend policy and investment-grade credit rating following the deal.
Dealmaking has surged in the drug industry this year as large players look to improve their pipelines. A Takeda-Shire transaction would be by far the biggest.
Shire has long been seen as a likely takeover target.
Botox-maker Allergan Plc said last week it was considering making a rival offer, only to scrap it hours later due to pushback from shareholders. Shire was also nearly bought by US drugmaker AbbVie Inc. in 2014, until US tax rule changes caused the deal to fall apart.
Shire traces its roots back to 1986, when it began as a seller of calcium supplements to treat osteoporosis, operating from an office above a shop in Hampshire, southern England. Since then, it has grown rapidly through acquisitions to generate revenues of about $15.2 billion last year.
But it has been under pressure in the past 12 months due to greater competition from generic drugs and debt from its $32 billion acquisition of Baxalta in 2016, a widely criticized deal.
It announced last week a sale of its oncology business to unlisted French drugmaker Servier for $2.4 billion.