Jaya Holdings

(02-12-2014, 04:28 PM)specuvestor Wrote:

(02-12-2014, 11:01 AM)desmondxyz Wrote: surprisingly Mr. Market didn't react much on the claim...ppl are willing to pay such premium to a empty shell....

How much do you think an empty shell for an RTO "option" is worth vs a lengthy IPO process?

The last number I got from a RTO financial adviser, was around S$20 mil. What your numbers?

>$10m to $25m depending on how clean the shell is and which exchange, base on observing Mr Market.

This also gives us a clue on how much margin a privatisation offer is (to the buyer that is), because otherwise the other option is for these owners to buy out the assets separately and sell the listed shell later.

IF Jaya lose the warranty claim of 15.6 mil, then the company will be left with ~ 4 mils cash, let's say the shell worth 20 mil based on Cityfarmer's number:

24 mils / 771,702,000 = ~ 0.031 cts / share

Current trading price at 0.038, 18% premium....

(02-12-2014, 05:10 PM)desmondxyz Wrote: IF Jaya lose the warranty claim of 15.6 mil, then the company will be left with ~ 4 mils cash, let's say the shell worth 20 mil based on Cityfarmer's number:

24 mils / 771,702,000 = ~ 0.031 cts / share

Current trading price at 0.038, 18% premium....

The working should comes with a IF, IF there is a buyer. The "option" has a limited time value.

There were expired shells, without a buyer e.g. Elite KSB...

What will happen IF there is no buyer within a year? Delist?

(02-12-2014, 09:18 PM)desmondxyz Wrote: What will happen IF there is no buyer within a year? Delist?

Yes, with remaining cash return to its shareholders. The value of the "option" is zero after expired.

It is a huge gamble on Jaya. If the claim of $15 mil is going through, there is nothing left for Jaya shareholders.
I wont pay 3cts for a potential $0.005 ( $4 / 771 mil shares ).

The option is out-of-the-money. The shell is valued at about 20 mil, @ 2.6 cents per share, which is within industrial norm.

The market cap now, is about $35 mil, @4.7 cents.

(not vested)

Jaya Holdings in RTO acquisition of Indonesian plantation company Izzisen Global

SINGAPORE (May 27): Jaya Holdings ( Financial Dashboard), the former vessel charterer which became a cash company after disposing its core business, is seeking a new business in planting palm oil and timber.

Jaya is proposing the acquisition of the entire equity interest in Izzisen Global.

Izzisen Global comprises 24 Indonesian plantation companies, which hold concessions to parcels of agricultural permits, and two timber management companies, which are engaged in the provision of services relating to timber and plantation concessions development.

The target assets are located on Sulawesi Island, Indonesia and have a land permit area of 263,000 hectares.

The purchase consideration for the proposed acquisition will be between $150.5 million to $173.8 million, based on an enterprise value of Izzisen Global.

The sellers of Izzisen Global and its assets are Hery Hermawan Herijanto and his family.

The consideration will be satisfied by the issue of new Jaya shares at 2.6 cents each or some other price to be mutually agreed between the parties.

The proposed acquisition, if undertaken and completed, is expected to result in a reverse takeover of the company.
...
http://www.theedgemarkets.com/sg/article...sen-global

Now all the RTOs are injected with assets that cannot IPO - palm oil (Jaya) and coal-related (P99).

In HK, the 'price' of listed shell is HK500m. About SGD 90m.

(28-05-2015, 10:23 AM)opmi Wrote: Now all the RTOs are injected with assets that cannot IPO - palm oil (Jaya) and coal-related (P99).

In HK, the 'price' of listed shell is HK500m. About SGD 90m.

Any sample to provide? We need to discount cash, if any.

If true, then the "valuation" of listing in SEHK, is 4-5x of SGX , which is out of my expectation. A variance of 2-3x is more reasonable, IMO