Frasers Property (formerly: Frasers Cpt (FCL))

"There is no compulsion he need to do the swap . He may just need to reduce his holdings"

Please read carefully.

If the share swap ever happens, it is more likely to be 1-to-1 swap. Both parties can wait long enough for that to happen. In the end, ThaiBev will own almost 90% of F&N and subsequently privatizes F & N. ThaiBev will absorb the whole F&N and TCC can own FCL.

It is the intention from the beginning that ThaiBev wants F & N only.

As for the injection of assets into hospitality trust, whether TCC is taking advantage of FCL is undetermined. If the hospitality trust pays the acquisition of InterCon SG by debt and issuing units of the trust, it does not look damaging to the interest of FCL minority shareholders.

(08-02-2014, 10:19 AM)felixleong Wrote: I also think they are more likely to sell a stake to increase the public float instead of placement
for placement, new shares are created and the $$ raised goes to the company, so they have to take an extra step to get the $$ out of FCL into their pockets
for selling of stakes, the no new shares are created and the $$ is passed directly to the thais (so I think this route is more likely to be taken)

The thais are known to be savvy, don't think they will wanna cash out at such low levels. My feel is $1.60-2.00 (but hey dun listen to me, I'm wrong half the time lol ^_^)

Care to explain why for placement , new shares are created ?

(08-02-2014, 10:57 AM)cfa Wrote:

(08-02-2014, 10:19 AM)felixleong Wrote: I also think they are more likely to sell a stake to increase the public float instead of placement
for placement, new shares are created and the $$ raised goes to the company, so they have to take an extra step to get the $$ out of FCL into their pockets
for selling of stakes, the no new shares are created and the $$ is passed directly to the thais (so I think this route is more likely to be taken)

The thais are known to be savvy, don't think they will wanna cash out at such low levels. My feel is $1.60-2.00 (but hey dun listen to me, I'm wrong half the time lol ^_^)

Care to explain why for placement , new shares are created ?

Depends on the structure of the placement.
Example for a rights issue, new shares are created and existing shareholders can participate by putting in $$

for placement its the same except that existing shareholders do not participate, $$ is raised from new shareholders and new shares are given to them

There are other forms of placements such as existing major shareholder selling their stake to another person/company, just the passing of shares and no new shares created.

(08-02-2014, 11:02 AM)felixleong Wrote:

(08-02-2014, 10:57 AM)cfa Wrote:

(08-02-2014, 10:19 AM)felixleong Wrote: I also think they are more likely to sell a stake to increase the public float instead of placement
for placement, new shares are created and the $$ raised goes to the company, so they have to take an extra step to get the $$ out of FCL into their pockets
for selling of stakes, the no new shares are created and the $$ is passed directly to the thais (so I think this route is more likely to be taken)

The thais are known to be savvy, don't think they will wanna cash out at such low levels. My feel is $1.60-2.00 (but hey dun listen to me, I'm wrong half the time lol ^_^)

Care to explain why for placement , new shares are created ?

Depends on the structure of the placement.
Example for a rights issue, new shares are created and existing shareholders can participate by putting in $$

for placement its the same except that existing shareholders do not participate, $$ is raised from new shareholders and new shares are given to them

There are other forms of placements such as existing major shareholder selling their stake to another person/company, just the pass of shares and no new shares created.

Thought we were discussing increase of free floats through paring down of holding from major shareholder, Why the right issue ?

(08-02-2014, 11:08 AM)cfa Wrote:

(08-02-2014, 11:02 AM)felixleong Wrote:

(08-02-2014, 10:57 AM)cfa Wrote:

(08-02-2014, 10:19 AM)felixleong Wrote: I also think they are more likely to sell a stake to increase the public float instead of placement
for placement, new shares are created and the $$ raised goes to the company, so they have to take an extra step to get the $$ out of FCL into their pockets
for selling of stakes, the no new shares are created and the $$ is passed directly to the thais (so I think this route is more likely to be taken)

The thais are known to be savvy, don't think they will wanna cash out at such low levels. My feel is $1.60-2.00 (but hey dun listen to me, I'm wrong half the time lol ^_^)

Care to explain why for placement , new shares are created ?

Depends on the structure of the placement.
Example for a rights issue, new shares are created and existing shareholders can participate by putting in $$

for placement its the same except that existing shareholders do not participate, $$ is raised from new shareholders and new shares are given to them

There are other forms of placements such as existing major shareholder selling their stake to another person/company, just the pass of shares and no new shares created.

Thought we were discussing increase of free floats through paring down of holding from major shareholder, Why the right issue ?

I was just giving examples, but like what I said before I think the Thais will likely sell their stakes to institutional investors, thus changing the public float from 15% to maybe something like 30%? However given the current poor market sentiment its not likely for the time now, they might wanna look at a range of $1.60-$2.00 to consider selling down their stakes in FCL and bring the cash home to pay off debts, cheers ^^

at this price level, and the fact there is alignment of interest between non- vs controlling shareholders, while one cannot be sure of the upside, I will think the downside is very limited. Just buy and hold and let the convexity work in your favor over time.

(08-02-2014, 11:19 AM)AlphaQuant Wrote: at this price level, and the fact there is alignment of interest between non- vs controlling shareholders, while one cannot be sure of the upside, I will think the downside is very limited. Just buy and hold and let the convexity work in your favor over time.

Very well said, I strongly agree.

(08-02-2014, 11:19 AM)AlphaQuant Wrote: at this price level, and the fact there is alignment of interest between non- vs controlling shareholders, while one cannot be sure of the upside, I will think the downside is very limited. Just buy and hold and let the convexity work in your favor over time.

Agree at this level , downside should be limited considering trading for this counter began at around 1.61, and many rushed in at around 1.50 or above.

(08-02-2014, 11:08 AM)cfa Wrote:

(08-02-2014, 11:02 AM)felixleong Wrote:

(08-02-2014, 10:57 AM)cfa Wrote:

(08-02-2014, 10:19 AM)felixleong Wrote: I also think they are more likely to sell a stake to increase the public float instead of placement
for placement, new shares are created and the $$ raised goes to the company, so they have to take an extra step to get the $$ out of FCL into their pockets
for selling of stakes, the no new shares are created and the $$ is passed directly to the thais (so I think this route is more likely to be taken)

The thais are known to be savvy, don't think they will wanna cash out at such low levels. My feel is $1.60-2.00 (but hey dun listen to me, I'm wrong half the time lol ^_^)

Care to explain why for placement , new shares are created ?

Depends on the structure of the placement.
Example for a rights issue, new shares are created and existing shareholders can participate by putting in $$

for placement its the same except that existing shareholders do not participate, $$ is raised from new shareholders and new shares are given to them

There are other forms of placements such as existing major shareholder selling their stake to another person/company, just the pass of shares and no new shares created.

Thought we were discussing increase of free floats through paring down of holding from major shareholder, Why the right issue ?

For e.g. FCL.

If TCC were to inject assets into FCL, FCL may opt to call for a rights issue to raise cash to pay for the assets.

TCC may opt not to participate in the rights issue and hence pare down its holdings in FCL while receiving cash from the injection of assets.