Lee Kim Tah Holdings

i dunno, i was at this year AGM nice chatting, can't believe is going to be the last..

fully vested, nil sold to date

"As at the Announcement Date, the Offeror and parties acting or deemed to be acting in concert with the Offeror hold in aggregate 436,777,430LKTHL Shares representing 86.41per cent. of all the issued LKTHL Shares."


They are only 3.59% away from hitting 90%. Chances are high that ignorant or contented investors will give in. I will wait till they announce that they have crossed 90%. The India project is worth a lot potentially. Guess they want to keep the profit for themselves.

So the enlarged Lee Family - comprising close to 20 separate individuals/relatives - holding a combined 86.41%, has finally resolved to attempt to privatise LKT by way of a GO at $1.08/share using their main private holding company, Lee Kim Tah investments Pte Ltd…..
http://infopub.sgx.com/FileOpen/LKTHL_Ho...eID=315907

Basically, the masterminds from among the members of the Lee Family and their professional advisors hope and believe that they can secure at least another 3.59% (or 18,145,398 shares) from among the over 1,000 minority shareholders to cross the psychologically important 90% mark, which will threaten and usually lead to the remaining minority shareholders throwing in the towels as well.

Why does the Lee Family want to privatise LKT now? In my mind, there are 2 main reasons or motivations:
(1) Together with the shareholders of the now privatised Guthrie GTS, they intend to sell the entire Jurong Point ("JP"). [Note: LKT's 50% interest in JP was carried at an assessed valuation of $786.45m as at 31Dec13.] Conceivably, the entire JP could well fetch in excess of $1650.0m (5% premium over its assessed value) in an auction, as the prime retail mall continues to derive solid recurrent rental and related income amounting to in excess of $120.0m a year.
(2) They plan to realise the enhanced market value of LKT's 75% interest in the huge (421,318 sqm) plot of freehold development land (BV as at 31Dec13: $7.99m) in SIPCOT Information Technology Park, Siruseri, Tamilnadu, India, either through an out-right sale for cash or development. Conceivably, the realisable CMV of the land plot could be way in excess of $100.0m (LKT's 75% portion alone).

Just from the above 2 property assets alone, the total additional realisable value could add as much as $0.25/share to each LKT share. So the revalued NAV for each LKT share could well be in excess of $1.30/share. Let's see if the coming IFA report would show and confirm this likely valuation.

So most of the minority LKT shareholders should be smart enough to understand that the Lee Family is not doing them a special favour; clearly, the Lee Family is spending the extra (including in professional fees) to get a big extra gain for themselves. If we believe that the Lee Family is absolutely serious to privatise LKT, the announced $1.08/share GO price could well be just their first salvo. We should also take the cue from India International Insurance Pte Ltd, which holds a 3.84% interest in LKT and, if backed by other minority shareholders, is a position to negotiate with the Lee Family for a higher GO price.

Yo Buddy,

Thanks for your analysis... I hear you and doesn't appear that you will be selling...

Give Edwin a call and see what he has got to say... Real business may not be as easy as what you perceived.

Doesn't matter to me anymore as my bulk was out years ago at less than half of current levels.

I like management and their sincerity. Do note that strategic holders like Sing Re are out around 70+.

Whatever it is, you have done well.

Salute
GG

(25-09-2014, 09:28 PM)dydx Wrote: So the enlarged Lee Family - comprising close to 20 separate individuals/relatives - holding a combined 86.41%, has finally resolved to attempt to privatise LKT by way of a GO at $1.08/share using their main private holding company, Lee Kim Tah investments Pte Ltd…..
http://infopub.sgx.com/FileOpen/LKTHL_Ho...eID=315907

Basically, the masterminds from among the members of the Lee Family and their professional advisors hope and believe that they can secure at least another 3.59% (or 18,145,398 shares) from among the over 1,000 minority shareholders to cross the psychologically important 90% mark, which will threaten and usually lead to the remaining minority shareholders throwing in the towels as well.

Why does the Lee Family want to privatise LKT now? In my mind, there are 2 main reasons or motivations:
(1) Together with the shareholders of the now privatised Guthrie GTS, they intend to sell the entire Jurong Point ("JP"). [Note: LKT's 50% interest in JP was carried at an assessed valuation of $786.45m as at 31Dec13.] Conceivably, the entire JP could well fetch in excess of $1650.0m (5% premium over its assessed value) in an auction, as the prime retail mall continues to derive solid recurrent rental and related income amounting to in excess of $120.0m a year.
(2) They plan to realise the enhanced market value of LKT's 75% interest in the huge (421,318 sqm) plot of freehold development land (BV as at 31Dec13: $7.99m) in SIPCOT Information Technology Park, Siruseri, Tamilnadu, India, either through an out-right sale for cash or development. Conceivably, the realisable CMV of the land plot could be way in excess of $100.0m (LKT's 75% portion alone).

Just from the above 2 property assets alone, the total additional realisable value could add as much as $0.25/share to each LKT share. So the revalued NAV for each LKT share could well be in excess of $1.30/share. Let's see if the coming IFA report would show and confirm this likely valuation.

So most of the minority LKT shareholders should be smart enough to understand that the Lee Family is not doing them a special favour; clearly, the Lee Family is spending the extra (including in professional fees) to get a big extra gain for themselves. If we believe that the Lee Family is absolutely serious to privatise LKT, the announced $1.08/share GO price could well be just their first salvo. We should also take the cue from India International Insurance Pte Ltd, which holds a 3.84% interest in LKT and, if backed by other minority shareholders, is a position to negotiate with the Lee Family for a higher GO price.

Huat har!

I also think that India Int.Insurance @ 3.84%, will not sell at $1.08 (which is a huat price anyway!) unless, they can do a JV/exchange of interest at the SIPCOT.
Else, this GO announcement will be triggered by India Int.Insurance sale of their shares to LKT...

HOLD and wait for revised GO price!

At less than 4% free float, offeror will just collect from market and those who tendered. Don't think will raise prices. 4% easy to collect. Hit 90% then threaten suspension. Then collect more. Then CA for game over.

(26-09-2014, 05:32 AM)opmi Wrote: At less than 4% free float, offeror will just collect from market and those who tendered. Don't think will raise prices. 4% easy to collect. Hit 90% then threaten suspension. Then collect more. Then CA for game over.

Well, just based on the fact that only 351 lots were transacted from $0.97 to $1.015 in the last 4 market days (from 19Sep14 to 24Sep14) prior to the halt, I suppose it would be gross wishful thinking if the Lee Family actually believes that they can now collect at least another 18,145,398 shares (3.59%) from the open-market at or below $1.08/share, and through formal acceptances of their GO at $1.08/share. I suppose this could only happen if the IFA gives a well-justified opinion that the GO at $1.08/share is fair and reasonable vs. the RNAV/share, and the IDs support the opinion with an affirmative combined opinion and recommendation that minority shareholders should accept the GO at $1.08/share.

The simple truth is: if the minority shareholders don't feel that they are getting a fair deal from the Lee Family, they don't have to sell their shares at all, and LKT will remain listed, and all shareholders together will benefit greatly and equally when LKT eventually sells its 50% interest in Jurong Point, and sells its 75% interest in the huge plot of freehold development land in India or develop it into something wonderful.

http://www.businesstimes.com.sg/premium/...g-20140926

PUBLISHED SEPTEMBER 26, 2014
Lee Kim Tah founding family seeks delisting
Offer of S$1.08 a share works out to a 6.4% premium to last traded price
BYLYNETTE KHOO
lynkhoo@sph.com.sg @LynetteKhooBT

THE family behind homegrown developer and construction firm Lee Kim Tah Holdings is taking the company private by offering S$1.08 per share in cash, valuing it at S$546 million.
Through investment vehicle Lee Kim Tah Investments, the founding Lee family already owns 71.34 per cent of the company, whose key asset is a half-stake in Jurong Point.
The privatisation offer for the usually thinly traded stock was not surprising to market watchers, given how the Lee family had been shoring up its stake in the last few years.
Representing the offeror, OCBC Bank said that the Lee family intends to delist the company from the Singapore Exchange and exercise its rights of compulsory acquisition.
Lee Kim Tah has not carried out any equity fund-raising in the last 10 years, OCBC pointed out. "The offeror is of the view that since the company is unlikely to require access to such equity fundraising in the foreseeable future, it is therefore not necessary for the company to maintain its listing on SGX."
Irrevocable undertakings by parties acting in concert with the offeror to accept the offer represent about 11.24 per cent interest in Lee Kim Tah.
The offer price of S$1.08 per share works out to a 6.4 per cent premium to the last traded price on Sept 24, and a 12.34 per cent premium to the three-month volume weighted average price of shares traded prior to the announcement date.
A spike in trading activity since mid-August drove the stock to an all-time high of S$1.015 or 8.96 times of earnings per share on Wednesday, before a trading halt was imposed after market close.
OSK-DMG analyst Goh Han Peng said that he had arrived at a fair value estimate of S$1.40 for the stock based on sum-of-the-parts valuation of the company's investment portfolio.
"Some assets are modestly undervalued," he said, adding that the controlling shareholder probably "saw some value and wanted to capture the value as a private entity".
Founded by its late chairman, Lee Kim Tah, the company was the first few construction firms to be listed on the Singapore Exchange when it went public in 1984.
Lee Kim Tah had its roots in supplying materials and labour to the British army that was then stationed in Singapore in the 1920s before becoming a major construction player. It further diversified into investment and property development in the 1970s.
Its overseas assets now include several investment properties in Australia's Sydney and Gold Coast, a 48 per cent stake in Marco Polo Xiamen Hotel in China, and a 75 per cent stake in an integrated township in Chennai, India. It has also undertaken development projects in the UK.
Lee Kim Tah was pivotal to the birth of the Real Estate Developers' Association of Singapore, when it led a small group of developers in 1958 to start what was then known as the Singapore Land and Housing Developers' Association.
Property firms closely held by founding family members have been touted as privatisation candidates. A spate of delistings last year also included one of Singapore's oldest companies, Guthrie GTS, which owns the other 50 per cent of Jurong Point.
Companies related to veteran banker Wee Cho Yaw have also come into focus, with UOL Group's takeover offer for Pan Pacific Hotels Group in May last year, and United Industrial Corporation's offer for Singapore Land in February.

(26-09-2014, 06:47 AM)dydx Wrote:

(26-09-2014, 05:32 AM)opmi Wrote: At less than 4% free float, offeror will just collect from market and those who tendered. Don't think will raise prices. 4% easy to collect. Hit 90% then threaten suspension. Then collect more. Then CA for game over.

Well, just based on the fact that only 351 lots were transacted from $0.97 to $1.015 in the last 4 market days (from 19Sep14 to 24Sep14) prior to the halt, I suppose it would be gross wishful thinking if the Lee Family actually believes that they can now collect at least another 18,145,398 shares (3.59%) from the open-market at or below $1.08/share, and through formal acceptances of their GO at $1.08/share. I suppose this could only happen if the IFA gives a well-justified opinion that the GO at $1.08/share is fair and reasonable vs. the RNAV/share, and the IDs support the opinion with an affirmative combined opinion and recommendation that minority shareholders should accept the GO at $1.08/share.

The simple truth is: if the minority shareholders don't feel that they are getting a fair deal from the Lee Family, they don't have to sell their shares at all, and LKT will remain listed, and all shareholders together will benefit greatly and equally when LKT eventually sells its 50% interest in Jurong Point, and sells its 75% interest in the huge plot of freehold development land in India or develop it into something wonderful.

Been waiting for more than 1 decade on the wonderful Indian Township that is bigger than Toa Payoh... have you ever find out why it has taken so long even after all these years of court battles?

Seriously, real business in a lot harder than equity investments... when was the last time you have spoken to Edwin?

Dydx, My rule of thumb is there will be always be 5% who tender their shares no matter what the offer. So my guess it will hit 90% to no free float suspension.


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