G. K. Goh Holdings

(16-08-2013, 11:14 AM)camelking Wrote: E&O still trading...

Maybe an offer from Goh Family to take the company private?
haha!

NAV as of latest quarter = $1.16 with last traded price $0.85...it's going to take quite a high bid to take it private i think.

(16-08-2013, 11:14 AM)camelking Wrote: E&O still trading...

Maybe an offer from Goh Family to take the company private?
haha!

E&O has already moved up the past few days from 1.90+ to 2.24 yesterday. Puzzled, there's still a pending appeal of Sime Darby offer a couple of years back....cannot rem the price but wasn't offered to the general minority.

(16-08-2013, 11:28 AM)hh488 Wrote:

(16-08-2013, 11:14 AM)camelking Wrote: E&O still trading...

Maybe an offer from Goh Family to take the company private?
haha!

E&O has already moved up the past few days from 1.90+ to 2.24 yesterday. Puzzled, there's still a pending appeal of Sime Darby offer a couple of years back....cannot rem the price but wasn't offered to the general minority.

There was a paper written to justify their purchase. Price has to go up or else they will look real stupid. Anyway, if we use relative valuation for their crown jewel against Raffles Hotel, the stock will look like a gem.

G. K. GOH HOLDINGS LIMITED TO INVEST S$188.3 MILLION INTO LEADING
AUSTRALIAN AGED CARE GROUP

http://infopub.sgx.com/FileOpen/GKGH_med...eID=252855 [Press Release]

http://infopub.sgx.com/FileOpen/GKGH_DPG...eID=252854 [SGX Announcement]

Any thoughts on this pretty big M&A ?

(Not Vested)

(16-08-2013, 06:50 PM)Nick Wrote: Any thoughts on this pretty big M&A ?
(Not Vested)

certainly a big transaction - gearing goes from 3% to 30% and the current cash+short term investments of ard 200mio will be deployed. Priced @ 9x EV/EBITDA. Amalgamated NAV 126mio of which 177mio is goodwill+intangibles for operating licenses granted by the Oz G.

But profile as a long term investment sounds nice with aging demographics and AMP is also involved so at least there's a local powerhouse in the same boat.

Bit surprised by the news though - Goh Yew Lin mentioned Japan when asked during the AGM on potential/interesting areas; certainly didn't give any hints of an Oz healthcare play to come.

(16-08-2013, 07:13 PM)AlphaQuant Wrote:

(16-08-2013, 06:50 PM)Nick Wrote: Any thoughts on this pretty big M&A ?
(Not Vested)

certainly a big transaction - gearing goes from 3% to 30% and the current cash+short term investments of ard 200mio will be deployed. Priced @ 9x EV/EBITDA. Amalgamated NAV 126mio of which 177mio is goodwill+intangibles for operating licenses granted by the Oz G.

But profile as a long term investment sounds nice with aging demographics and AMP is also involved so at least there's a local powerhouse in the same boat.

Bit surprised by the news though - Goh Yew Lin mentioned Japan when asked during the AGM on potential/interesting areas; certainly didn't give any hints of an Oz healthcare play to come.

Probably he is buying for himself......

It is pretty high price to pay.but the demographics, regulatory and clear legal framework appeals. It should be a long term investments kind of thing. Probably significant investments got to be poured in to really scale it up.

Who knows, after getting significant assets, they could do a REIT?

correct me if I am wrong, the business is generating loss instead of profit. Why would any good investors pay so much goodwill/intangible for a loss-making business?

It could well be another euNetworks.

(17-08-2013, 10:41 AM)freedom Wrote: correct me if I am wrong, the business is generating loss instead of profit. Why would any good investors pay so much goodwill/intangible for a loss-making business?

It could well be another euNetworks.

Quote:GKGH will fund this purchase with a combination of existing liquid assets and bank
debt. On a pro forma basis, GKGH’s gearing would be approximately 31% following
the transaction. The investment is expected to be earnings accretive, and to
generate dividend income for GKGH in future.

Based on pro forma DPG earnings for the financial year ended June 2013, and
excluding extraordinary items, the purchase price values DPG at an EV/EBITDA
ratio of 9.1 times, and a price-earnings ratio of 22.5 times.

Based on the unaudited pro forma amalgamated financial statements of DPG for the financial
year ended 30 June 2013, DPG recorded (i) revenue of approximately A$395.9 million
(approximately S$461.2 million) 2 , (ii) earnings before interest, taxes, depreciation and
amortisation and excluding extraordinary items (“EBITDA”) of approximately A$61.5 million
(approximately S$71.6 million) and (iii) net profit after tax (“NPAT”), excluding extraordinary
items, of approximately A$12.8 million (approximately S$14.9 million). As at 30 June 2013,
DPG’s amalgamated net asset value (“NAV”) amounted to approximately A$264.0 million
(approximately S$307.5 million)

.

(Not Vested)

(17-08-2013, 10:49 AM)Nick Wrote:

(17-08-2013, 10:41 AM)freedom Wrote: correct me if I am wrong, the business is generating loss instead of profit. Why would any good investors pay so much goodwill/intangible for a loss-making business?

It could well be another euNetworks.

Quote:GKGH will fund this purchase with a combination of existing liquid assets and bank
debt. On a pro forma basis, GKGH’s gearing would be approximately 31% following
the transaction. The investment is expected to be earnings accretive, and to
generate dividend income for GKGH in future.

Based on pro forma DPG earnings for the financial year ended June 2013, and
excluding extraordinary items, the purchase price values DPG at an EV/EBITDA
ratio of 9.1 times, and a price-earnings ratio of 22.5 times.

Based on the unaudited pro forma amalgamated financial statements of DPG for the financial
year ended 30 June 2013, DPG recorded (i) revenue of approximately A$395.9 million
(approximately S$461.2 million) 2 , (ii) earnings before interest, taxes, depreciation and
amortisation and excluding extraordinary items (“EBITDA”) of approximately A$61.5 million
(approximately S$71.6 million) and (iii) net profit after tax (“NPAT”), excluding extraordinary
items, of approximately A$12.8 million (approximately S$14.9 million). As at 30 June 2013,
DPG’s amalgamated net asset value (“NAV”) amounted to approximately A$264.0 million
(approximately S$307.5 million)

.

(Not Vested)

Pg13 & 14 gives the impact on EPS before and after Extraordinary Items. But, no further detail on what that is.