Straco Corporation

(28-08-2014, 02:31 PM)opmi Wrote: Then osim got no problem taking out too?

I don't know about Osim. But as a shareholder of CM Pacific (which operates solely in China), I get paid dividend that exceeds 50% of the profits semi annually. If there were problems taking out money from China, I don't see how CM Pacific could have paid my dividends. Similarly, Straco has paid dividends to shareholders for years (payout ratio exceeded 50% in the last 2 years) despite operating in China entirely.

Finally

http://infopub.sgx.com/FileOpen/Straco-P...eID=312682

Purchase price of $140m

(28-08-2014, 03:17 PM)learner88 Wrote: Finally

http://infopub.sgx.com/FileOpen/Straco-P...eID=312682

Purchase price of $140m

Vulture raid. $100 million discount from the $240 million cost to build it. 90% stake can be easily covered by the cash hoard. Though, it is likely, a more optimal capital structure involving some debt will be utilized.

(Vested)

(28-08-2014, 02:57 PM)Nick Wrote:

(28-08-2014, 02:31 PM)opmi Wrote: Then osim got no problem taking out too?

I don't know about Osim. But as a shareholder of CM Pacific (which operates solely in China), I get paid dividend that exceeds 50% of the profits semi annually. If there were problems taking out money from China, I don't see how CM Pacific could have paid my dividends. Similarly, Straco has paid dividends to shareholders for years (payout ratio exceeded 50% in the last 2 years) despite operating in China entirely.

I agree. One more China-base company, YZJ has paid dividend regularly over the last few years.

It might not as straight-forward as in Singapore, but definitely not difficult.

Singapore Flyer bought by Straco Leisure for S$140 million

Quote:The Singapore Flyer is a "defining attraction" and represents an "exciting opportunity" for Straco Leisure to expand in the region and contribute to the local tourism industry.

Mr Lionel Yeo, Chief Executive, Singapore Tourism Board (STB) said, “The Singapore Flyer is a key attraction in the local tourism scene. We are therefore pleased that Straco Corp, a Singaporean company with strong track record in managing overseas attractions, has chosen the Singapore Flyer as their first attraction in Singapore to establish a presence back home.”

STB will work with Straco Leisure on their plans for the Flyer.

Full article - http://www.channelnewsasia.com/news/busi...33998.html

Getting money out is based on China's State Admin of Foreign Exchange SAFE, which according to some company is based on tenor and nature of the funds, be it equity, debt or repayment etc. And of course whether you paid tax

At least that's what the S-chips said or their excuses. And also the consideration for issuing dim sum bonds. That's why I am waiting for capital control to relax on RMB internationalisation and see what else they can come up with

My 2 cents

(28-08-2014, 03:32 PM)CityFarmer Wrote:

(28-08-2014, 02:57 PM)Nick Wrote:

(28-08-2014, 02:31 PM)opmi Wrote: Then osim got no problem taking out too?

I don't know about Osim. But as a shareholder of CM Pacific (which operates solely in China), I get paid dividend that exceeds 50% of the profits semi annually. If there were problems taking out money from China, I don't see how CM Pacific could have paid my dividends. Similarly, Straco has paid dividends to shareholders for years (payout ratio exceeded 50% in the last 2 years) despite operating in China entirely.

I agree. One more China-base company, YZJ has paid dividend regularly over the last few years.

It might not as straight-forward as in Singapore, but definitely not difficult.

(28-08-2014, 03:52 PM)specuvestor Wrote: Getting money out is based on China's State Admin of Foreign Exchange SAFE, which according to some company is based on tenor and nature of the funds, be it equity, debt or repayment etc. And of course whether you paid tax

At least that's what the S-chips said or their excuses. And also the consideration for issuing dim sum bonds. That's why I am waiting for capital control to relax on RMB internationalisation and see what else they can come up with

My 2 cents

(28-08-2014, 03:32 PM)CityFarmer Wrote:

(28-08-2014, 02:57 PM)Nick Wrote:

(28-08-2014, 02:31 PM)opmi Wrote: Then osim got no problem taking out too?

I don't know about Osim. But as a shareholder of CM Pacific (which operates solely in China), I get paid dividend that exceeds 50% of the profits semi annually. If there were problems taking out money from China, I don't see how CM Pacific could have paid my dividends. Similarly, Straco has paid dividends to shareholders for years (payout ratio exceeded 50% in the last 2 years) despite operating in China entirely.

I agree. One more China-base company, YZJ has paid dividend regularly over the last few years.

It might not as straight-forward as in Singapore, but definitely not difficult.

Just curious - would extrapolating the Company's withholding tax paid to the PRC authorities give us a good idea on how much cash is being taken out of China ? Thanks.

^^ I'm not familiar with China with-holding tax rules and likely not as simplistic as Singapore's previous S44 rules

(28-08-2014, 04:01 PM)Nick Wrote: Just curious - would extrapolating the Company's withholding tax paid to the PRC authorities give us a good idea on how much cash is being taken out of China ? Thanks.

I do curious too, but it should not be a straight-forward extrapolation. It depends on withholding tax rate, on various subsidiaries and group level. The tax rate varies depend on quite a number of factors, IIRC.

YZJ paid around quarter of a billion in RMB, annually in withholding tax.

Base on last chat with the CFO, she have carried out "conservative financial engineering" to save quite a bit of money on offshore payment, by arbitrage on interest rate. In short, the company earned by offshore payment to its shareholders.

(28-08-2014, 03:24 PM)Nick Wrote:

(28-08-2014, 03:17 PM)learner88 Wrote: Finally

http://infopub.sgx.com/FileOpen/Straco-P...eID=312682

Purchase price of $140m

Vulture raid. $100 million discount from the $240 million cost to build it. 90% stake can be easily covered by the cash hoard. Though, it is likely, a more optimal capital structure involving some debt will be utilized.

(Vested)

It should be a depressed asset sale, for an asset of with building cost of $240 mil, just about 6-7 years ago (start operation in 2008?)

(not vested)