Eastern Holdings

According to this ad, one of the semi-detach has been sold:

http://singapore.gumtree.sg/c-Apartment-...Z467877785

Hope more to come soon, if all sold the cash flows from Grove Residences alone would be quite substantial since completion is expected in 2014

I have noticed Eastern Holdings' share price has been traded above $0.18 since 20Mar13 (last Wed), and in fact it closed at $0.195 on 22Mar13 (last Friday). Something positive - like another GO attempt by controlling shareholder Stephen Tay to privatize the company? - coming?

With property assets - mostly in the market for sale - and a large/growing cash reserve with a total realisable/distributable value of some $0.40/share, Eastern Holdings appears to be a pretty good value investing bet for those who can wait for the eventual cash distribution, or another GO likely at a higher price.

(25-03-2013, 10:05 AM)dydx Wrote: I have noticed Eastern Holdings' share price has been traded above $0.18 since 20Mar13 (last Wed), and in fact it closed at $0.195 on 22Mar13 (last Friday). Something positive - like another GO attempt by controlling shareholder Stephen Tay to privatize the company? - coming?

With property assets - mostly in the market for sale - and a large/growing cash reserve with a total realisable/distributable value of some $0.40/share, Eastern Holdings appears to be a pretty good value investing bet for those who can wait for the eventual cash distribution, or another GO likely at a higher price.

It just went up to 20 cents. Interestingly, still not much lots selling at 20 cents. Probably due to the last GO, we are left with all long term minority investors...

If Eastern is valued at $100m mkt cap (33 cts per share), it only costs $18m cash to buy out all minority shareholders.
There is >$18m cash in the company.

(25-03-2013, 02:26 PM)opmi Wrote: If Eastern is valued at $100m mkt cap (33 cts per share), it only costs $18m cash to buy out all minority shareholders.
There is >$18m cash in the company.

I guess another consideration is whether the GO price would be enough to entice at least 8% (24 mil) shares to accept so that it crosses the 90% mark.

(25-03-2013, 05:27 PM)smallcaps Wrote:

(25-03-2013, 02:26 PM)opmi Wrote: If Eastern is valued at $100m mkt cap (33 cts per share), it only costs $18m cash to buy out all minority shareholders.
There is >$18m cash in the company.

I guess another consideration is whether the GO price would be enough to entice at least 8% (24 mil) shares to accept so that it crosses the 90% mark.

To cross 90% for delisting or Compulsory Acquisition (CA)?

For MBT (Tay's takeover vehicle) to invoke right of CA, MBT has to acquire 90% of the outstanding shares (EXCLUDING those shares already owned). That means MBT has to acquire up to 98.2% of all outstanding shares to do CA.

So MBT's easier route to privatise Eastern will be via delisting EGM with an Exit Offer.

(25-03-2013, 05:40 PM)opmi Wrote:

(25-03-2013, 05:27 PM)smallcaps Wrote:

(25-03-2013, 02:26 PM)opmi Wrote: If Eastern is valued at $100m mkt cap (33 cts per share), it only costs $18m cash to buy out all minority shareholders.
There is >$18m cash in the company.

I guess another consideration is whether the GO price would be enough to entice at least 8% (24 mil) shares to accept so that it crosses the 90% mark.

To cross 90% for delisting or Compulsory Acquisition (CA)?

For MBT (Tay's takeover vehicle) to invoke right of CA, MBT has to acquire 90% of the outstanding shares (EXCLUDING those shares already owned). That means MBT has to acquire up to 98.2% of all outstanding shares to do CA.

So MBT's easier route to privatise Eastern will be via delisting EGM with an Exit Offer.

Yes, I presume most of us would prefer not to hold onto unlisted shares.

(25-03-2013, 06:39 PM)smallcaps Wrote:

(25-03-2013, 05:40 PM)opmi Wrote:

(25-03-2013, 05:27 PM)smallcaps Wrote:

(25-03-2013, 02:26 PM)opmi Wrote: If Eastern is valued at $100m mkt cap (33 cts per share), it only costs $18m cash to buy out all minority shareholders.
There is >$18m cash in the company.

I guess another consideration is whether the GO price would be enough to entice at least 8% (24 mil) shares to accept so that it crosses the 90% mark.

To cross 90% for delisting or Compulsory Acquisition (CA)?

For MBT (Tay's takeover vehicle) to invoke right of CA, MBT has to acquire 90% of the outstanding shares (EXCLUDING those shares already owned). That means MBT has to acquire up to 98.2% of all outstanding shares to do CA.

So MBT's easier route to privatise Eastern will be via delisting EGM with an Exit Offer.

Yes, I presume most of us would prefer not to hold onto unlisted shares.

Not sure of the rules... but is it possible for minority shareholders holding > 8% of shares to take the initiative to do a married deal with ST and hence force a delisting?

If more than >8% minority undertake to vote FOR 2 delisting resolutions, the delisting is a done deal.

(25-03-2013, 09:31 PM)opmi Wrote: If more than >8% minority undertake to vote FOR 2 delisting resolutions, the delisting is a done deal.

Thanks, I have also been pondering what's management's intention with all the cash EHL will get from the properties sales. It seems that they are trying to sell everything they got, machiam like showhand. Wonder if they are trying to raise enough cash to do something big...