CWT

From 2006 til 2014, coy has blown 690mio into investments, funded thru 20mio of operating cashflow and 600+mio of debt.

Net gearing has spiked from net cash to net debt of 130%.

So the balance sheet is looking rather wobbly, but despite this, dividends has stepped from 2.5c in 2011 to 4c in 2014, with 0.5c step up p.a. - essentially paying dividends out of debt i/o FCF.

Personally, I don't think this is the most prudent way of managing one's balance sheet (certainly not mine). One also has to question the reasoning behind the dividend policy in the absence of FCF thru the years, esp with such a huge acquisition of MRI.

From a biz point of view, I never like anything with <5% NPM - the margin of error is just too small. The argument that the biz of capturing the spread is "riskfree" is also rather dubious - just look at LTCM.

Bloomberg latest headlines:

CWT's controlling Holders said to explore sale of logistics arm...

Where is the policemen?

(17-06-2015, 09:42 AM)greengiraffe Wrote: CWT has been inching up and sustaining @ record high levels in the midst of mkt turbulence...

I strongly suspect that there is more than meet the eyes...

Unfortunately, I am just a drama watcher...

Odd Lots
Certificate
Vested
GG

CWT’s Controlling Holders Said to Explore Sale of Logistics Firm
2015-07-22 01:37:50.428 GMT


By Joyce Koh and Elffie Chew
(Bloomberg) -- The controlling shareholders of Singapore’s CWT Ltd. are exploring a sale of their stakes in the logistics company, people with knowledge of the matter said.
The parties are working with investment banks and could reach out to potential buyers in the next few months, the people said, asking not to be identified as the process is private.
Under Singapore listing rules, a purchase of their stakes would trigger a general offer for the rest of CWT, which has a market value of S$1.3 billion ($968 million).
CWT, founded in 1970, today employs about 6,000 people and offers services including commodity logistics, freight forwarding, warehousing and defense procurement. It also controls MRI Group Pte, a trader of base metals and petroleum products, and helps manage Cache Logistics Trust, which owns warehouses in Singapore, Australia and China.
Loi Kai Meng, CWT’s chairman, controls 49.6 percent of the company, according to its annual report. Some of his shares are held through C&P Holdings Pte, which he jointly owns with CWT director Liao Chung Lik and businessman Lim Soo Seng. Chief Executive Officer Loi Pok Yen, who is the chairman’s son, holds a 5.4 percent stake, the annual report shows.
Shares of the company have risen 38 percent this year, outpacing the 0.1 percent increase in the benchmark Straits Times Index. A representative for CWT didn’t respond to e-mails seeking comment.
CWT’s net income increased 6 percent last year to S$112.4 million, as revenue jumped 67 percent to S$15.2 billion.

(22-07-2015, 09:51 AM)greengiraffe Wrote: Bloomberg latest headlines:

CWT's controlling Holders said to explore sale of logistics arm...

Where is the policemen?

(17-06-2015, 09:42 AM)greengiraffe Wrote: CWT has been inching up and sustaining @ record high levels in the midst of mkt turbulence...

I strongly suspect that there is more than meet the eyes...

Unfortunately, I am just a drama watcher...

Odd Lots
Certificate
Vested
GG

CWT new high again...

still no mata... Unbelivable...

https://www.youtube.com/watch?v=9_lyJt2T3GY

http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

mata tidur... record close of 235

http://infopub.sgx.com/FileOpen/CWT_2Q20...eID=363145

Earnings down but interim div of 3 cents declared... cash stripping ahead of potential deal

Meanwhile, CWT board of directors has been informed by its controlling shareholder, C & P Holdings Pte
Ltd ("C & P") that the shareholders of C & P are considering a strategic review of the business and assets
of C & P, which may or may not lead to a transaction involving the Group. A separate announcement on
this matter has been lodged with the Singapore Exchange today.

http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

All the way no roadblocks until today... seriously amazing... mata mata where are u?

Looks like more pressure on cwt. Copper prices under pressure and also exposure to china. Http://mobile.reuters.com/article/idUSL2N0X900V20150420

While not likely to have a material impact on the core contributions from logistics division, this poses a real risk to group revenues. According to the ar2014, 30 over percent revenues derived from china and sizable revenues also coming from commodity trading.

(16-05-2015, 09:30 PM)thinknotleft Wrote: Well, wasn't CWT around 1.50-1.60 two months ago? And its chairman have heavily bought its shares at around 1.50-1.60.

Since the chairman will know more about CWT than most people, I can just follow him and start adding at 1.50-1.60 and below. No need to think so much.

Hi Thinknotleft,

If you had followed your point and added at 1.5-1.6 you would have a 20% gain by now.

Looks like it is on a downtrend, maybe it will drop down to 1.5 in the coming months

S$2.33 per share

Pre-Conditional Voluntary General Offer by HNA BELT AND ROAD INVESTMENTS (SINGAPORE) PTE. LTD., a wholly-owned subsidiary of HNA HOLDING GROUP CO. LIMITED

HNA Belt and Road Investments (Singapore) Pte. Ltd. (the "Offeror"), a wholly-owned subsidiary of HNA Holding Group Co. Limited ("HK ListCo"), wishes to announce that, subject to the fulfilment or waiver (as applicable) of the Pre-Conditions (as defined in paragraph 2.1 below), it will make a voluntary conditional offer (the "CWT VGO") for all the issued and paid-up ordinary shares (the "CWT Shares") in the capital of CWT Limited (the "Company" or "CWT"), other than those already owned, controlled or agreed to be acquired by the Offeror, its related corporations, and their respective nominees (the "Offer Shares") in accordance with Rule 15 of the Singapore Code on Take-overs and Mergers (the "Code").

The CWT VGO will not be made unless and until the Pre-Conditions are fulfilled or waived bythe Offeror (as applicable) on or before the date falling 5 months after the date of this Announcement, being 9 September 2017, or such other date (the "Long-Stop Date") as the Offeror and the Company may determine in consultation with the Securities Industry Council (the "SIC"). Accordingly, all references to the CWT VGO in this Announcement refer to a possible voluntary general offer which will only be made if and when such Pre-Conditions are fulfilled or waived by the Offeror (as applicable). Nothing herein shall constitute an offer to sell or a solicitation of an offer to subscribe for the securities of HK ListCo and/or CWT.

More details in http://infopub.sgx.com/FileOpen/Pre-cond...eID=447113

Formal VGO has been launched.

VOLUNTARY CONDITIONAL OFFER FOR THE COMPANY  

OFFER ANNOUNCEMENT VOLUNTARY CONDITIONAL GENERAL OFFER

The offer will become unconditional upon the vendors tendering their 65.13% of CWT shares to the offeror. Also in BIG BOLD CAPITAL WORDS

Quote:THE OFFEROR DOES NOT INTEND TO AND WILL NOT INCREASE THE OFFER CONSIDERATION OR REVISE ANY OTHER TERMS OF THE CWT VGO. AS SUCH THE OFFER CONSIDERATION IS THE FINAL PRICE FOR THE OFFER SHARES.