Isetan Singapore

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Isetan 139mil market cap with prized assets all valued at cost less depre and debtless.

We can deliberately ignore their freehold warehouse, Havelock office building and 100mil worth of cash and bonds.

Just focus on their Wisma atria stake which left with 43 years and valued at 290mil(double its market cap)

Since its an investment prop now mainly used for rental and with such a short lease left, can we anticipate a potential sale to Starhill Global? Since it would be beneficial for both sides. Starhill can easily use debt to finance the acquistion and inturn increase their DPU.

If Isetan mgt wants to be a tad bit pragmatic, they should sell their wisma stake to starhill, payout a special div to shareholders and double the share price. That would also instantly solve the problem of rapid depreciation each passing year.

Alternatively, they can also privatize at an acceptable price before selling. They have 100mil of cash and bonds and all their freehold assets are unencumbered, they have the means to easily take themselves private. Since this counter is extremely iliquid and I see zero reason for listing as they dont need to raise funds through equity. Own view.

A 15% low vol surge to 3.80. This extremely neglected stock, just need mgtment to execute simplistic actions to unlock huge value to shareholders. Own view.

Stock has almost surged 60% from the time of my first post and still going strong. Isetan is the definition of “asset pray”. Ie unlock tremendous value from sale of their assets valued at historical cost. Something brewing?