Eastern Holdings

Now FULLERTON SGD INCOME FUND also divested....
==> BUT they also said "The Company intends to use the proceeds for future investment purposes".


DISPOSAL OF THE FULLERTON SGD INCOME FUND

1. INTRODUCTION
The board of directors (the “Board”) of the Company wishes to announce that the Company has on 10 June 2013 disposed of the Investment (the “Disposal”).
The redemption proceeds of S$10,085,896.20 shall be paid to the Company on 14 June 2013.

3. THE REDEMPTION PRICE AND PROCEEDS
The Investment was disposed of on 10 June 2013, based on the redemption net asset value as at 11 June 2013.
As at 10 June 2013, the book value of the Investment is S$10,178,555.90, thus the deficit of the proceeds over the book value is approximately S$92,659.70.
However, the cost of the investment was an amount of S$10 million, thus the excess of the proceeds over the redemption proceeds is approximately S$85,896.20.

4. RATIONALE FOR THE DISPOSAL AND USE OF PROCEEDS
The Company decided to dispose of the Investment as it is of the view that, based on markettrends, there could be a possible downside risk to the Investment.
The Company intends to use the proceeds for future investment purposes.

5. CHAPTER 10 OF THE LISTING MANUAL
Rule 1006© The consideration compared with the Company’s market capitalisation based on the total number of issued ordinary shares in the capital of the Company
(the “Shares”) excluding treasury shares.

The disposal amount of the Investment is approximately S$[10,085,896.20]
The market capitalisation as at 13 June 2013: Total number of shares: 300,000,000 shares x S$0.22 = S$66,000,000

As the percentage figure pursuant to Rule 1006© is 15.28%, the Disposal will be considered a discloseable transaction for the purposes of Chapter 10 of the Listing Manual.

6. FINANCIAL EFFECTS OF THE INVESTMENT
==> the financial impact of DISPOSAL is consider as ==> (2) Not applicable as the inception date for FSIF was 13 June 2012.

By Order of the Board
Tan Kay Soon Kenneth
Group Executive Director
14 June 2013

poor investment planning decision to get into UTs in the first place...
can do dollar cost averaging...not one lump sum...wa lao...even insurance agents know that....
I feel that it is a not well thought through decision...

RATIONALE FOR THE DISPOSAL
The Company decided to dispose of the Investment as it is of the view that, based on market
trends, there could be a possible downside risk to the Investment. [The Company intends to
use the proceeds for future investment purposes.] - new line

ST may be going away for some time.....still got time for 'future investment purposes' meh?..

(14-06-2013, 05:59 PM)Vseeker Wrote: Now FULLERTON SGD INCOME FUND also divested....
==> BUT they also said "The Company intends to use the proceeds for future investment purposes".

That's interesting. So how come the Schroder divestment didn't mention 'future investment purposes'... now suddenly add this line.

"see what they DO, not what they say"

(14-06-2013, 07:05 PM)opmi Wrote: "see what they DO, not what they say"

Yea, that means they are going into pure net cash of around $50 mil

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And probaby another 20+ mil cash going to come soon next month from Bryton/Grove

I think what Eastern Holdings can and should do with the growing cash pile is quite obvious!

(14-06-2013, 10:13 PM)dydx Wrote: I think what Eastern Holdings can and should do with the growing cash pile is quite obvious!

How abt RTO...is it plausible?

I guess clean RTO shell should be worth $10-$20m....

(15-06-2013, 12:46 AM)opmi Wrote: I guess clean RTO shell should be worth $10-$20m....

Didn't know could be worth so much. Could be a way out for ST to totally divest off if can't get loan for buyout? Basically getting someone else to come up with the $$ to buy $$+shell

no la. for RTO route, MBT buy the remaining assets from EHL, then will do special div to pay out all cash and the new buyers will sell (RTO) the listed shell.

all need minority approval. should cannot be too bad. Gen Mag try to do RTO before suddenly kicked out by SGX.