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08-01-2015, 08:31 PM
Hi d.o.g,
Thanks for the article.
It reaffirmed that Raffles Edu was a share play during its darling days. OUC's problems started way back in 04 and was acquired in 08. Thereafter, there were attempts to get accredited investors in to "support" the acquisitions. However M'sian SWF was astute to have a put option when exit plans failed to materialise on time.
This is indeed a good lesson for many investors evaluating growth and darling stocks...
Odd Lots Vested
GG
Thanks for the article.
It reaffirmed that Raffles Edu was a share play during its darling days. OUC's problems started way back in 04 and was acquired in 08. Thereafter, there were attempts to get accredited investors in to "support" the acquisitions. However M'sian SWF was astute to have a put option when exit plans failed to materialise on time.
This is indeed a good lesson for many investors evaluating growth and darling stocks...
Odd Lots Vested
GG
(08-01-2015, 07:29 PM)d.o.g. Wrote: An interesting read for those who are still following this company and its spin-off:
http://www.espacestemps.net/en/articles/...esrsquo-en
It seems the Chinese government is no longer keen to support such university cities. This would also tie in with the precipitous decline in government subsidies received by Oriental University City Holdings.
At the peak of the hype 10% of OUC was sold to Khazanah for RMB 300m. But when the IPO did not happen by 31 Aug 2013 Khazanah put it back to REC for RMB 400m.
OUC was supposed to be a RMB 2bn project when it was acquired in 2008. Now, 7 years later, it shows total assets of RMB 845m and equity of RMB 769m. Even with the full placement proceeds of HKD 78m after listing expenses, the company will be less than half the original projected size.
As usual, YMMV.
