Great Eastern Holding

(16-10-2012, 10:01 PM)toiletsiao Wrote:

(16-10-2012, 02:12 PM)kbl Wrote: 1890 m + 530.9 m divide 473.3m = $5

The GEH group will realize a total pre-tax gain of approximately S$2,183.7 million, based on historical book cost, arising from the sale of APB Sale Shares and F&N Sale Shares. The average historical book cost per APB Sale Share and per F&N Sale Share as at 31 March 2012 were S$2.13 and S$0.98, respectively. On completion, most of the gains would accrue to the insurance funds with the balance to the shareholders’ funds. Based on the price of S$45.00 per APB Sale Share and S$8.88 per F&N Sale Share, in respect of the shares held through shareholders’ funds of the GEH group, GEH group will realise a post-tax gain of approximately S$421.6 million from the sale of the APB Sale Shares and the F&N Sale Shares

421mil is realized as profit to GEH

Hi Toiletsiao san,

yes 421m is realized as profit to GEH.

If GE did not sell APB and FNN-there will be no $5-there will be no 421m profit.
All eyes will be on OCBC on what they are going to do with the $5?

(16-10-2012, 10:49 PM)kbl Wrote:

(16-10-2012, 10:01 PM)toiletsiao Wrote:

(16-10-2012, 02:12 PM)kbl Wrote: 1890 m + 530.9 m divide 473.3m = $5

The GEH group will realize a total pre-tax gain of approximately S$2,183.7 million, based on historical book cost, arising from the sale of APB Sale Shares and F&N Sale Shares. The average historical book cost per APB Sale Share and per F&N Sale Share as at 31 March 2012 were S$2.13 and S$0.98, respectively. On completion, most of the gains would accrue to the insurance funds with the balance to the shareholders’ funds. Based on the price of S$45.00 per APB Sale Share and S$8.88 per F&N Sale Share, in respect of the shares held through shareholders’ funds of the GEH group, GEH group will realise a post-tax gain of approximately S$421.6 million from the sale of the APB Sale Shares and the F&N Sale Shares

421mil is realized as profit to GEH

Hi Toiletsiao san,

yes 421m is realized as profit to GEH.

If GE did not sell APB and FNN-there will be no $5-there will be no 421m profit.
All eyes will be on OCBC on what they are going to do with the $5?

think they at most can onli utilise 421mil nia... because the rest of the money goes to the participating funds leh..which is the pool of money that belong to the policy holders ie any profits from this funds are entitled to policy holders as bonus etc for their policies.....

(16-10-2012, 11:20 PM)toiletsiao Wrote:

(16-10-2012, 10:49 PM)kbl Wrote:

(16-10-2012, 10:01 PM)toiletsiao Wrote:

(16-10-2012, 02:12 PM)kbl Wrote: 1890 m + 530.9 m divide 473.3m = $5

The GEH group will realize a total pre-tax gain of approximately S$2,183.7 million, based on historical book cost, arising from the sale of APB Sale Shares and F&N Sale Shares. The average historical book cost per APB Sale Share and per F&N Sale Share as at 31 March 2012 were S$2.13 and S$0.98, respectively. On completion, most of the gains would accrue to the insurance funds with the balance to the shareholders’ funds. Based on the price of S$45.00 per APB Sale Share and S$8.88 per F&N Sale Share, in respect of the shares held through shareholders’ funds of the GEH group, GEH group will realise a post-tax gain of approximately S$421.6 million from the sale of the APB Sale Shares and the F&N Sale Shares



421mil is realized as profit to GEH

Hi Toiletsiao san,

yes 421m is realized as profit to GEH.

If GE did not sell APB and FNN-there will be no $5-there will be no 421m profit.
All eyes will be on OCBC on what they are going to do with the $5?

think they at most can onli utilise 421mil nia... because the rest of the money goes to the participating funds leh..which is the pool of money that belong to the policy holders ie any profits from this funds are entitled to policy holders as bonus etc for their policies.....

I did ask around but no one can give me a definite answer. I hope OCBC will make a 3rd GO for GE.

Great Eastern Q3 net profit soar to S$619.6m
02 Nov 2012 08:13
Great Eastern Holdings on Friday posted a S$619.6 million net profit for the third quarter ended Sept 30, 2012. Net profit for the same quarter last year was S$40.4 million.

The spike in earnings included the S$421.6 million post-tax gain arising from the sale of the group's shares in Asia Pacific Breweries Ltd and Fraser and Neave Ltd.

Earnings per share for the quarter thus increased to S$1.31 compared to 9 cents a year ago.

Total weighted sales for the quarter was stable at S$202.5 million with steady sales performance reflected by overall higher demand for regular premium products.

Source: Business Times Breaking News


http://info.sgx.com/webcoranncatth.nsf/V...900426701/$file/2012_Q3_GEH_Media_Release_final.pdf?openelement

**Great Eastern Reports Third Quarter Net Profit of S$619.6 million
Earnings of S$963.5 million in First Nine Months 2012Singapore.**

**2 November 2012 – Great Eastern Holdings Limited today reported profit attributable to
shareholders of S$619.6 million for the quarter ended 30 September 2012 (Q3-12), compared with
S$40.4 million a year ago. The increase included a S$421.6 million post-tax gain arising from the
sale of the Group’s shareholdings in Asia Pacific Breweries Limited (“APB”) and Fraser and Neave,
Limited (“F&N”) during the quarter. Excluding this gain, the Group delivered strong performance
for the quarter with profit attributable to shareholders of S$198.0 million, underpinned by continued
growth in underwriting profit and mark-to-market gains on investments. For the first nine months
of 2012 (9M-12), profit attributable to shareholders increased to S$963.5 million from
S$316.8 million the year before.**

vested

EPS 9months 2012-$2.04
EPS 9months 2011-$0.67

GE is $2 off recent high in excess of $17.00.

Last few days, there appears to be a big seller waiting at $15.50 - on offer around 250,000 shares each day. Today there is 240,000 waiting at $15.50.

In addition, there appears to be a constant feed of sellers around $15.04-$15.05 throughout the day.

Drawing a parallel to Guoco Leisure that recently bottomed out at $0.565 and recovered on thin volume in the absence of a desperate seller, one can safely conclude that fund manager Marathon Asset is getting out of GE.

http://www.efinancialnews.com/story/2012...ng-retires

The Edge Singapore ran a story on Marathon and its 3 major holdings - GE, G Leisure (already ceased to be a substantial shareholder) and STATs recently.

It was reported that Marathon used to own more than 3% of GE. Should the 3% stake be accumulated by an equally strong buyer and offered to OCBC (ie assuming OCBC is interested at the offered price), then a delisting of GE may well be on the cards.

It has been 6 long years since OCBC tabled a buyout for GE. GE is currently trading below its embedded value estimated around $17.00. With growth and asset realisation since then, OCBC must at least offer 1.5x (the previous 2 valuations for buying out) to entice its hard headed shareholders.

All the above are table top valuations. The real thing lies in the current exit of Marathon's holdings in GE - is this the sale worth waiting for and who is the accumulator of GE recently?

Vested

Good thought. agree with you , Greengiraff, It is right time for me to add more GE shares

GE staged a good recovery today. It appears that the selling pressure has eased off a little. Will be interesting to see if selling pressure is being continually absorbed especially December is a quiet festive month for retiring fund managers from the Northern hemisphere to clean up their portfolios.

Red Lion roared past $15.50 with little resistance encountered. The previous sell order in excess of 200k is no longer there with only 69k done at 15.50 today.

It appears that Marathon's closing down sale may well be over and a stronger hands may well be holding GE shares now.

Given that OCBC controls slightly over 87% stake and Marathon was previously rumoured to hold around 3% stake plus some die-hard never sell shareholders, the strong hands that accumulated the rumoured Marathon stake would certainly be a force to reckon with.

More importantly, how can value for GE to unlock given that it is trading well below its embedded book value between S$17 - S$18 and certainly well below OCBC's previous attempts to privatise it around 1.5 times embedded book value.

(11-12-2012, 01:13 PM)greengiraffe Wrote: Red Lion roared past $15.50 with little resistance encountered. The previous sell order in excess of 200k is no longer there with only 69k done at 15.50 today.

It appears that Marathon's closing down sale may well be over and a stronger hands may well be holding GE shares now.

Given that OCBC controls slightly over 87% stake and Marathon was previously rumoured to hold around 3% stake plus some die-hard never sell shareholders, the strong hands that accumulated the rumoured Marathon stake would certainly be a force to reckon with.

More importantly, how can value for GE to unlock given that it is trading well below its embedded book value between S$17 - S$18 and certainly well below OCBC's previous attempts to privatise it around 1.5 times embedded book value.

Today is also officially the day Jeremy Hosking retires from marathon asset management...

below is an except from one of vanguard's funds recent prospectus
http://www.vanguard.com/pub/Pdf/sp129.pdf

Important Change to Vanguard Global Equity Fund
Marathon Asset Management LLP (Marathon-London) has announced the retirement of Jeremy J. Hosking effective December 11, 2012. Mr. Hosking is a co-manager of the Marathon-London portion of Vanguard Global Equity Fund. William J. Arah and Neil M. Ostrer, who serve as co-managers with Mr. Hosking, will remain as co-managers of the Marathon-London portion of the Fund upon Mr. Hosking’s retirement.