GL Limited (formerly: Guoco Leisure)

Unlikely QLC will sell any hotel but may take GL private and delist it.
He has 67 % and why should he face so many listing regulatary rules ?

(25-08-2012, 01:28 PM)valueinvestor Wrote: Unlikely QLC will sell any hotel but may take GL private and delist it.
He has 67 % and why should he face so many listing regulatary rules ?

Pay 67% and control 100% of the company. Why not?
Complying to listing rules is not exactly very difficult. Those thick skin ones can even ignore listing rules.

And why should he pay a premium to acquire the rest of the shares by delisting?
He can take his time to accumulate for the next 10-20 years. Look at Lee Kim Tah.

What happened to Orchard parade is really an one-off affair. I would not expect HPL, GoucoLeisure to do the same.

Property counters are liked that and they will always be selling at high discount to NTA.

(25-08-2012, 03:36 PM)yeokiwi Wrote: Pay 67% and control 100% of the company. Why not?
Complying to listing rules is not exactly very difficult. Those thick skin ones can even ignore listing rules.

And why should he pay a premium to acquire the rest of the shares by delisting?
He can take his time to accumulate for the next 10-20 years. Look at Lee Kim Tah.

What happened to Orchard parade is really an one-off affair. I would not expect HPL, GoucoLeisure to do the same.

Property counters are liked that and they will always be selling at high discount to NTA.

I fully agree with you. this is why for property companies we need to look deep for catalyst or else it will end up as value traps. possible catalyst is the owner has hand over to next generation and the next generation is squabbling among each other leading to a break up... ie hiap hoe?another catalyst is the majority owner needs cash for his other biz and hands out many rich div.

(25-08-2012, 03:36 PM)yeokiwi Wrote:

(25-08-2012, 01:28 PM)valueinvestor Wrote: Unlikely QLC will sell any hotel but may take GL private and delist it.
He has 67 % and why should he face so many listing regulatary rules ?

Pay 67% and control 100% of the company. Why not?
Complying to listing rules is not exactly very difficult. Those thick skin ones can even ignore listing rules.

And why should he pay a premium to acquire the rest of the shares by delisting?
He can take his time to accumulate for the next 10-20 years. Look at Lee Kim Tah.

What happened to Orchard parade is really an one-off affair. I would not expect HPL, GoucoLeisure to do the same.

Property counters are liked that and they will always be selling at high discount to NTA.

No property counters do not have to be like that. There is no reason why the price should trade at a discount to the NAV. If its making money and has a solid landbank and a portfolio of quality assets, there is no reason why it should trade at a discount to the NAV.

(25-08-2012, 07:19 PM)Behappyalways Wrote: unless there is a corporate raider or that the management or significant shareholder wants to privatise it, a company deeply discounted to the NAV may continue to be trading below NTA. The management might be happy with the current situation for he is still drawing a salary from the company while what minority shareholders get is dividend. The management can further boost their income with share options, bonus, directors fee, company's car and etc.....NTA is what we get if the company breaks up but what if the significant shareholder is happy with present situation and does not see a need to 'break up' his company.

My experience is that a deeply discounted to NTA company will remain deeply discounted till 'someone' decided to do something to it. Hence nowadays, I look at ROE and fast growth instead of NTA play. Even if you made a mistake in paying too high for a fast growth company, if it continues to grow fast enough, then your mistake will be minimised or even rewarded. Nevertheless NTA is still an important gauge.

A deeply discounted price to NTA company is precisely what lead to Cheng Wai Keung doing a partial takeover offer for Wing Tai.

(25-08-2012, 08:52 PM)Behappyalways Wrote: which goes back to what i said.....unless the significant shareholder do something about it ^^

Which can only happen if the NTA is at a deep discount to NAV.

So its a sure win situation for those buying now.

(25-08-2012, 03:36 PM)yeokiwi Wrote:

(25-08-2012, 01:28 PM)valueinvestor Wrote: Unlikely QLC will sell any hotel but may take GL private and delist it.
He has 67 % and why should he face so many listing regulatary rules ?

Pay 67% and control 100% of the company. Why not?
Complying to listing rules is not exactly very difficult. Those thick skin ones can even ignore listing rules.

And why should he pay a premium to acquire the rest of the shares by delisting?
He can take his time to accumulate for the next 10-20 years. Look at Lee Kim Tah.

What happened to Orchard parade is really an one-off affair. I would not expect HPL, GoucoLeisure to do the same.

Property counters are liked that and they will always be selling at high discount to NTA.

Do they pay premium on RNAV or depressed share price ?

(26-08-2012, 10:25 AM)cfa Wrote:

(25-08-2012, 03:36 PM)yeokiwi Wrote:

(25-08-2012, 01:28 PM)valueinvestor Wrote: Unlikely QLC will sell any hotel but may take GL private and delist it.
He has 67 % and why should he face so many listing regulatary rules ?

Pay 67% and control 100% of the company. Why not?
Complying to listing rules is not exactly very difficult. Those thick skin ones can even ignore listing rules.

And why should he pay a premium to acquire the rest of the shares by delisting?
He can take his time to accumulate for the next 10-20 years. Look at Lee Kim Tah.

What happened to Orchard parade is really an one-off affair. I would not expect HPL, GoucoLeisure to do the same.

Property counters are liked that and they will always be selling at high discount to NTA.

Do they pay premium on RNAV or depressed share price ?

on depressed share price of course.

Time is not on LC side, non of his 3 children is interested in his business.

If LC's children are not interested, Leng beng's children will happily look after it for them.