Hutchison Port Holdings Trust

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#1
PROPOSED SPIN-OFF AND SEPARATE LISTING OF HUTCHISON PORT HOLDINGS TRUST ON THE MAIN BOARD OF SINGAPORE EXCHANGE SECURITIES TRADING

http://info.sgx.com/webcoranncatth.nsf/V...C000538E0/$file/E-Spin-off_revised_.pdf?openelement

This is pretty unexpected. A port business trust hmm. Wonder how will this impact local port operators like Portek !
It is proposed that the HPH Trust Initial Business Portfolio will comprise the Group’s entire
effective interests in the deep-water container ports in Hong Kong and the Guangdong province
of the PRC, the Group’s entire effective interests in its port ancillary interests in the same
geographical area as well as the Group’s entire economic benefits in certain river ports in the
PRC. Specifically, the HPH Trust Initial Business Portfolio consists of the Group’s entire
interests in:

• HIT, the owner and operator of Terminals 4, 6, 7 and two berths in Terminal 9 at
Kwai Tsing, Hong Kong;

• COSCO-HIT, the owner and operator of Terminal 8 East at Kwai Tsing, Hong Kong;

• YICT, the operator of Yantian International Container Terminals Phases I and II at Yantian
district, Shenzhen, in the Guangdong Province of the PRC;

• YICTP3, the operator of Yantian International Container Terminals Phase III and
its expansion project, which is being developed;

• SYWPT, the operator of Shenzhen Yantian West Port Terminals Phase I and Shenzhen
Yantian West Port Terminals Phase II which is being developed;

• the economic benefits in the river ports in Nanhai, Jiangmen and Jiuzhou in Zhuhai,
the PRC (together the “River Ports”), which serve predominantly as feeder ports to the
deep-water facilities referred to above and hence are complementary to the operation of
these deep-water ports;

• APS, which is mainly engaged in providing port ancillary services to shipping lines and
other customers and which operates the mid-stream business in Hong Kong. APS also
offers empty container storage, container repair and feeder services between ports in Hong
Kong and the Pearl River Delta in southern China;

• SHICD, which operates an inland container depot and warehouse and provides value-added
warehousing and distribution services; and

• Hutchison Logistics, which provides supply chain solutions logistic services.

Measured by throughput, and considering Hong Kong and Shenzhen as one market by virtue of
their geographical proximity, in 2009, Hong Kong and Shenzhen were the world’s busiest
container port market and trading hub with a total throughput of approximately 39.2 million
TEU. The Group’s deep-water container ports in the HPH Trust Initial Business Portfolio are
the market leaders by throughput in Kwai Tsing Port in Hong Kong and Shenzhen Port of the
PRC, with market shares of approximately 60% and 47% in 2009, respectively.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#2
I seriously think investment trust will play a big role in the next crisis. With billions transferred from investors to companies and again e same billions are reinvested into e businesses, it is like a big multiplier effect that entails bubble brewing and ignorance of counterparty risks.
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#3
Hi Nick,

My views - anything that can be spun off and sold to retail investors is happening right now. IMHO, we are reading news of more impending REIT offerings in 2011, more "mega-deals", and now this announcement which you have posted.

A lot of hot and smart money are flowing to such asset classes and pushing prices up, where upon they sell them to the unsuspecting public.

For me, I'd stay clear for now.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#4
spin-off from Cheung Kong?

better run far far way from it.
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#5
reminds me about PSA's overdue giant listing Smile
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#6
Just remember that only 2 business trust which IPO'ed here (PST and HWT) have out-performed 1.5% FD since listing.

Be wary and study the prospectus well.

Related to this, I wonder how the payout structure will be like ? If the dividend payout ratio is small (ie 40-70%), it may allow some space for growth.

FY 09
Net Profit: HK$2.67 billion
NAV: HK$5.782 billion.

I think it is highly geared since the total assets amount to nearly HK$33 billion.

Not too sure how much they are seeking to raise.
(18-01-2011, 12:05 PM)Nick Wrote: Just remember that only 2 business trust which IPO'ed here (PST and HWT) have out-performed 1.5% FD since listing.

Be wary and study the prospectus well.

Related to this, I wonder how the payout structure will be like ? If the dividend payout ratio is small (ie 40-70%), it may allow some space for growth.

FY 09
Net Profit: HK$2.67 billion
NAV: HK$5.782 billion.

I think it is highly geared since the total assets amount to nearly HK$33 billion.

Not too sure how much they are seeking to raise.

Ok...got the target IPO amount from online news source -


Hutchison Eyes US$6 Billion IPO for Ports Unit

http://online.wsj.com/article/SB10001424...07550.html

If successful, this will be the largest IPO in SGX history !
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#7
Ports normally have some form of monopoly status but at the same time, the fortune of the port live and die with the economy around the port.
But, the intention of LKS to list its port businesses at this time indicates that LKS believes that the market is going to give it a good valuation. In another word, LKS believes that the market is closed to its peak???



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#8
I think it is more likely that the port business requires a huge dose of liquidity.

Their liabilities to equity ratio is around 5. For every $1 of equity, there is $5 of liabilities. They need a massive pump of equity in order to grow the port in tandem with the rising Chinese economy ?
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#9
I am wondering why they chose to list the trust in Singapore instead of Hong Kong, with corresponding cross listing in US to improve marketability and value. But for sure, no one is going to IPO if sentiment is poor. For us to get here just two years after the largest global financial crisis in recent memory, should be a cautionary tale onto itself.
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#10
(18-01-2011, 01:35 PM)thefarside Wrote: I am wondering why they chose to list the trust in Singapore instead of Hong Kong, with corresponding cross listing in US to improve marketability and value. But for sure, no one is going to IPO if sentiment is poor. For us to get here just two years after the largest global financial crisis in recent memory, should be a cautionary tale onto itself.

SGX is the largest market for REITs and Business Trust in Asia. Don't think SEHK got any biz trust (besides REITs).
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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