Select Group Limited

Not many people interested in this stock. Just did some calc. For knowledge only.

SELECT shareholder structure in relation to 52.5 cents offer

As at 4 April 2016,

Offeror (Tan & Dymon PE) - 42.65%

Ezra Lionel’s Mother -  23.53%

Go Mei Lin & family (Irrevocable UT) - 18.65%

% to go b4 90% Suspension due to free float - 5.1700%
(When this happen, Offeror will suspend the trading, people will sell/tender to Offeror)

% to go b4 Offer goes Unconditional 50% - 7.35%
(But Offer will confirm go UNCONDITIONAL when Go & family completes the irr Undertaking)

**Offeror will not have compulsory acq rights unless Lionel mom sell
In that scenario, Offeror will face a Keppel  Corp - Keppel Land situation. 

*** Lionel's Mom just need another 1.5% to block any special resolution by the Company.

PWC Corp Finance appointed as IFA. I am waiting to see how they justified their IFA recommendation where the comparables are NEO and Breadtalk.

Select Group auditor is RSM which is not Big 4. Must remain skeptical ya

(07-04-2016, 07:05 PM)butcher Wrote: Select Group auditor is RSM which is not Big 4.  Must remain skeptical ya

The one-liner post is childish. Please refrain from similar action.

Regards
Modearator

Hmm??? Isn't it a double standard my dear moderator? And also personal attack for being childish?
I guess either my post will be deleted or I will be banned. haha

(07-04-2016, 11:53 PM)butcher Wrote: Hmm??? Isn't it a double standard my dear moderator? And also personal attack for being childish?  
I guess either my post will be deleted or I will be banned. haha

I did differentiate posting, and moderating. I am CF for posting, and moderator for moderating. I always be caution on words in moderating, but in this case, "childish" is required to bring out the point. I regret it has brought negative feeling.

The ultimate point to moderate, is to access the value-add to our VB. Once I confirm a member is persistently value-destructing to our VB value and norm, I will act quickly without hesitation. Provocative and mocking posts are undesirable here.

Having opposing views from CF's, is absolute no problem here. I will quit from VB, once it became generally unanimous in views. IIRC, portuser and CF have never agreed on any single topics or stocks, but I do read all his posts, if time permit.

In this case, a basic warning will be issued. Further action might be carried out, upon monitoring. The posts will not be deleted, and will keep for future reference.

Regards
Moderator

Select's earnings per share has grown steadily along with its portfolio of brands over the last 2 years. To get a quick off the cuff valuation of what should be deemed fair value, I have taken the average of their last 2 years earnings which is approx 4.6cts. Given its peers like Neo Garden which currently trades at about 12.5x (which is still fairly reasonable), the computed value is approximately 57-58cts. I would say given the illiquid nature of the counter, it is an attractive offer but can be better.

Update as at 8 April 2016

SELECT shareholder structure in relation to 52.5 cents offer

Offer Closing Date extended to 20 May 2016.

Offeror (Tan & Dymon PE) - 42.65% + 18.65% = 61.30%

Ezra Lionel’s Mother -  23.53%

Go Mei Lin & family (Irrevocable UT) - 0% (Tendered shares to Offeror)

% to go b4 90% Suspension due to free float - 5.1700%
(When this happen, Offeror will suspend the trading, people will sell/tender to Offeror)

Offer is now UNCONDITIONAL since Go & family completed the Irrevocable Undertaking by tendering their shares)

**Offeror will NOT have Compulsory Acquisition rights unless Lionel's mom sell
In that scenario, Offeror will face a Keppel  Corp - Keppel Land situation.

*** Lionel's Mom just need another 1.5% to block any special resolution by the Company.

**** Offeror did not manage to acquire any shares from the open market past few days.

What? Ezra also owns shares in Select?

Select has traded slightly above its offer price at 53cts for a couple of days now. Makes the verdict in the upcoming IFA report even more interesting.

See Chairmain's Statement on Pg 6 for future corporate developments.

http://infopub.sgx.com/FileOpen/Select%2...eID=398998