OUE (formerly: Overseas Union Enterprise)

Agree! I like Hotel Grand Central in particular.

(20-09-2012, 11:28 AM)godjira1 Wrote: Think there are better property companies out there to own. Looking for upside agree mandarin orchard cannot fetch this kind of valuation.

In my book, hpl/hotel g c/hotel royal are better due to better gearing, more "upside" in their property holdings.

(21-09-2012, 12:46 AM)bookworm Wrote: Agree! I like Hotel Grand Central in particular.

(20-09-2012, 11:28 AM)godjira1 Wrote: Think there are better property companies out there to own. Looking for upside agree mandarin orchard cannot fetch this kind of valuation.

In my book, hpl/hotel g c/hotel royal are better due to better gearing, more "upside" in their property holdings.

OUE announced that it is in talks to buy F & N. A few days ago, it was interested to buy F & N hospitality arm. Does OUE have enough funds, or will they issue rights or place out shares?

Would OUE have enough funds?

The possibility that Mandarin Mandarin Orchard and Gallery being sold to ADIA and asset manager Pramerica is high. Hence, OUE could be making the move for FNN's hospitality business to plug the potential earnings shortfall. In this scenario, OUE would receive S$1-S$1.5 bil from the sale which it could redeploy for the FNN acquisition.

Alternatively, should the MO and MG sale not go ahead, having the FNN hospitality business would accelerate OUE's plans to launch a hospitality REIT. We also note that FNN has a REIT platform - which OUE intends to build. So acquisition of FNN's hospitality business could be of strategic long term importance.

Either way, OUE is likely to bring in a partner for FNN's beverage businesses. This is because the Riadys' diversified business empire does not have a F&B arm. This is likely to be Japan's Kirin Holdings.

Would OUE place out shares or do a rights?

The entire FNN could cost at least c. S$9 billion. OUE would have to leverage up its balance sheet - which it still has capacity to do so. At where they are trading vs NTA, an equity placement or rights would be dilutive. Likewise, issuing OUE script to FNN shareholders would be dilutive to existing OUE shareholders.

In my view, the best outcome for OUE shareholders is a sale of MO and MG, OUE failing to muster a bid for FNN and consequently rewarding its shareholders with a special dividend.

Lately, Riady/Lippo is quite aggressive in their acquisitisions and it's has been in the news, including Lippo Trust. Will the price of OUE go up?

(21-10-2012, 12:45 PM)newyorkcityboy Wrote: Would OUE have enough funds?

The possibility that Mandarin Mandarin Orchard and Gallery being sold to ADIA and asset manager Pramerica is high. Hence, OUE could be making the move for FNN's hospitality business to plug the potential earnings shortfall. In this scenario, OUE would receive S$1-S$1.5 bil from the sale which it could redeploy for the FNN acquisition.

Alternatively, should the MO and MG sale not go ahead, having the FNN hospitality business would accelerate OUE's plans to launch a hospitality REIT. We also note that FNN has a REIT platform - which OUE intends to build. So acquisition of FNN's hospitality business could be of strategic long term importance.

Either way, OUE is likely to bring in a partner for FNN's beverage businesses. This is because the Riadys' diversified business empire does not have a F&B arm. This is likely to be Japan's Kirin Holdings.

Would OUE place out shares or do a rights?

The entire FNN could cost at least c. S$9 billion. OUE would have to leverage up its balance sheet - which it still has capacity to do so. At where they are trading vs NTA, an equity placement or rights would be dilutive. Likewise, issuing OUE script to FNN shareholders would be dilutive to existing OUE shareholders.

In my view, the best outcome for OUE shareholders is a sale of MO and MG, OUE failing to muster a bid for FNN and consequently rewarding its shareholders with a special dividend.

OUE is so much smaller than F&N. How can it afford the buy F&N?? No wonder OUE share price has dropped in the past weeks!!! It's better OUE not to make any offer to buy F&N, otherwise OUE price will drop... drop on 15 Nov 2012, which the date that OUE will announce their intention whether to buy F&N!!!

(21-10-2012, 05:11 PM)Louhan Wrote: Lately, Riady/Lippo is quite aggressive in their acquisitisions and it's has been in the news, including Lippo Trust. Will the price of OUE go up?

(21-10-2012, 12:45 PM)newyorkcityboy Wrote: Would OUE have enough funds?

The possibility that Mandarin Mandarin Orchard and Gallery being sold to ADIA and asset manager Pramerica is high. Hence, OUE could be making the move for FNN's hospitality business to plug the potential earnings shortfall. In this scenario, OUE would receive S$1-S$1.5 bil from the sale which it could redeploy for the FNN acquisition.

Alternatively, should the MO and MG sale not go ahead, having the FNN hospitality business would accelerate OUE's plans to launch a hospitality REIT. We also note that FNN has a REIT platform - which OUE intends to build. So acquisition of FNN's hospitality business could be of strategic long term importance.

Either way, OUE is likely to bring in a partner for FNN's beverage businesses. This is because the Riadys' diversified business empire does not have a F&B arm. This is likely to be Japan's Kirin Holdings.

Would OUE place out shares or do a rights?

The entire FNN could cost at least c. S$9 billion. OUE would have to leverage up its balance sheet - which it still has capacity to do so. At where they are trading vs NTA, an equity placement or rights would be dilutive. Likewise, issuing OUE script to FNN shareholders would be dilutive to existing OUE shareholders.

In my view, the best outcome for OUE shareholders is a sale of MO and MG, OUE failing to muster a bid for FNN and consequently rewarding its shareholders with a special dividend.

(13-11-2012, 03:07 PM)Louhan Wrote: OUE is so much smaller than F&N. How can it afford the buy F&N?? No wonder OUE share price has dropped in the past weeks!!! It's better OUE not to make any offer to buy F&N, otherwise OUE price will drop... drop on 15 Nov 2012, which the date that OUE will announce their intention whether to buy F&N!!!

OUE will not venture in alone. OUE will do it with partners.

Even if OUE bid for F&N with partners, it will definitely affect OUE share price adversely.

(13-11-2012, 07:59 PM)CityFarmer Wrote:

(13-11-2012, 03:07 PM)Louhan Wrote: OUE is so much smaller than F&N. How can it afford the buy F&N?? No wonder OUE share price has dropped in the past weeks!!! It's better OUE not to make any offer to buy F&N, otherwise OUE price will drop... drop on 15 Nov 2012, which the date that OUE will announce their intention whether to buy F&N!!!

OUE will not venture in alone. OUE will do it with partners.

(13-11-2012, 03:07 PM)Louhan Wrote: OUE is so much smaller than F&N. How can it afford the buy F&N??

Think thaibev. Both have parents' backing.

Still no announcement from OUE. Better don't bid for F&N! Sell MO & MG, and realize some profits for shareholders for dividend distribution!

(13-11-2012, 03:07 PM)Louhan Wrote: OUE is so much smaller than F&N. How can it afford the buy F&N?? No wonder OUE share price has dropped in the past weeks!!! It's better OUE not to make any offer to buy F&N, otherwise OUE price will drop... drop on 15 Nov 2012, which the date that OUE will announce their intention whether to buy F&N!!!

(21-10-2012, 05:11 PM)Louhan Wrote: Lately, Riady/Lippo is quite aggressive in their acquisitisions and it's has been in the news, including Lippo Trust. Will the price of OUE go up?

(21-10-2012, 12:45 PM)newyorkcityboy Wrote: Would OUE have enough funds?

The possibility that Mandarin Mandarin Orchard and Gallery being sold to ADIA and asset manager Pramerica is high. Hence, OUE could be making the move for FNN's hospitality business to plug the potential earnings shortfall. In this scenariio, OUE would receive S$1-S$1.5 bil from the sale which it could redeploy for the FNN acquisition.

Alternatively, should the MO and MG sale not go ahead, having the FNN hospitality business would accelerate OUE's plans to launch a hospitality REIT. We also note that FNN has a REIT platform - which OUE intends to build. So acquisition of FNN's hospitality business could be of strategic long term importance.

Either way, OUE is likely to bring in a partner for FNN's beverage businesses. This is because the Riadys' diversified business empire does not have a F&B arm. This is likely to be Japan's Kirin Holdings.

Would OUE place out shares or do a rights?

The entire FNN could cost at least c. S$9 billion. OUE would have to leverage up its balance sheet - which it still has capacity to do so. At where they are trading vs NTA, an equity placement or rights would be dilutive. Likewise, issuing OUE script to FNN shareholders would be dilutive to existing OUE shareholders.

In my view, the best outcome for OUE shareholders is a sale of MO and MG, OUE failing to muster a bid for FNN and consequently rewarding its shareholders with a special dividend.

OUE has offered $9.08 per F&N share.

(14-11-2012, 09:42 PM)Louhan Wrote: Still no announcement from OUE. Better don't bid for F&N! Sell MO & MG, and realize some profits for shareholders for dividend distribution!

(13-11-2012, 03:07 PM)Louhan Wrote: OUE is so much smaller than F&N. How can it afford the buy F&N?? No wonder OUE share price has dropped in the past weeks!!! It's better OUE not to make any offer to buy F&N, otherwise OUE price will drop... drop on 15 Nov 2012, which the date that OUE will announce their intention whether to buy F&N!!!

(21-10-2012, 05:11 PM)Louhan Wrote: Lately, Riady/Lippo is quite aggressive in their acquisitisions and it's has been in the news, including Lippo Trust. Will the price of OUE go up?

(21-10-2012, 12:45 PM)newyorkcityboy Wrote: Would OUE have enough funds?

The possibility that Mandarin Mandarin Orchard and Gallery being sold to ADIA and asset manager Pramerica is high. Hence, OUE could be making the move for FNN's hospitality business to plug the potential earnings shortfall. In this scenariio, OUE would receive S$1-S$1.5 bil from the sale which it could redeploy for the FNN acquisition.

Alternatively, should the MO and MG sale not go ahead, having the FNN hospitality business would accelerate OUE's plans to launch a hospitality REIT. We also note that FNN has a REIT platform - which OUE intends to build. So acquisition of FNN's hospitality business could be of strategic long term importance.

Either way, OUE is likely to bring in a partner for FNN's beverage businesses. This is because the Riadys' diversified business empire does not have a F&B arm. This is likely to be Japan's Kirin Holdings.

Would OUE place out shares or do a rights?

The entire FNN could cost at least c. S$9 billion. OUE would have to leverage up its balance sheet - which it still has capacity to do so. At where they are trading vs NTA, an equity placement or rights would be dilutive. Likewise, issuing OUE script to FNN shareholders would be dilutive to existing OUE shareholders.

In my view, the best outcome for OUE shareholders is a sale of MO and MG, OUE failing to muster a bid for FNN and consequently rewarding its shareholders with a special dividend.