K1 Ventures

[odie]

Cap reduction of 1.5 cts
Share Consol of 1 for every 5 shares
Date tba

[desmondxyz]

K1 ventures value:

Outstanding shares: 2,165,618,003

1) Proceed received from KUH for US childcare business:
US 65.1 mils (SGD 91.1 mils) ~ 4 cts

2) Proceeds from the sale of the international education platform
~ 3 cts

3) Cash:
SGD 47 mils ~ 2 cts

4) Guggenheim Investment at cost:
US 100 mils (SGD 140 mils) ~ 6.5 cts

5) Others (K12 shares, NZC Guggenheim Fund, Gulf Coast Royalty Trust):
~ 1 ct

6) 10.2% of KUH (Cash, and the real estate properties, which are leased to KinderCare.):
~ 5 - 10 cts (wild guess)


Total: 21.5 - 26.5 cts/share

[d.o.g.]

K1 ventures value:

Outstanding shares: 2,165,618,003

1) Proceed received from KUH for US childcare business:
  US 65.1 mils (SGD 91.1 mils) ~ 4 cts

2) Note Receivable:
   SGD 68 mils ~ 3 cts

3) Cash:
   SGD 47 mils ~ 2 cts

4) Guggenheim Investment at cost:
   US 100 mils (SGD 140 mils) ~ 6.5 cts

5) Others (K12 shares, NZC Guggenheim Fund, Gulf Coast Royalty Trust):
   ~ 1 ct

6) 10.2% KUH (Proceeds from the sale of the international education platform + remaining assets owned by the KUH group of  
   companies are principally comprised of cash, and the real estate properties, which are leased to KinderCare.):
   ~ 5 - 10 cts (wild guess)
   

Total: 21.5 - 26.5 cts/share

The Notes Receivable are held by the holding company but vanish in the consolidated accounts. This means that this is money lent from the holding company to the subsidiaries, thus they are eliminated in the group accounts. In other words the Notes Receivable form part of the equity of the subsidiaries. They were probably structured as loans for tax purposes, and should not be considered to be separate assets.

Likewise, only cash at the holding company is truly available for distribution, some of the money in the consolidated accounts will probably be "lost" when the subsidiaries are sold.

[desmondxyz]

K1 ventures value:

Outstanding shares: 2,165,618,003

1) Proceed received from KUH for US childcare business:
  US 65.1 mils (SGD 91.1 mils) ~ 4 cts

2) Note Receivable:
   SGD 68 mils ~ 3 cts

3) Cash:
   SGD 47 mils ~ 2 cts

4) Guggenheim Investment at cost:
   US 100 mils (SGD 140 mils) ~ 6.5 cts

5) Others (K12 shares, NZC Guggenheim Fund, Gulf Coast Royalty Trust):
   ~ 1 ct

6) 10.2% KUH (Proceeds from the sale of the international education platform + remaining assets owned by the KUH group of  
   companies are principally comprised of cash, and the real estate properties, which are leased to KinderCare.):
   ~ 5 - 10 cts (wild guess)
   

Total: 21.5 - 26.5 cts/share

The Notes Receivable are held by the holding company but vanish in the consolidated accounts. This means that this is money lent from the holding company to the subsidiaries, thus they are eliminated in the group accounts. In other words the Notes Receivable form part of the equity of the subsidiaries. They were probably structured as loans for tax purposes, and should not be considered to be separate assets.

Likewise, only cash at the holding company is truly available for distribution, some of the money in the consolidated accounts will probably be "lost" when the subsidiaries are sold.

Help me to understand this:
This note receivable of 68 mils was recorded when k1 liquidated one of its subsidiary last year. And it was stated as unsecured loan to a subsidiary, bears interest at 2.25% per annum and matures in June 2017.

What will happen to this 68mils after it matured in 2017?

[d.o.g.]

The note receivable was created in FY15 Q1. The results announcement states that it was assigned from the subsidiary K-1 Holdings Equity Inc, which had undergone voluntary liquidation.

So it appears that K-1 Holdings Equity Inc had made the loan in the past, and when it was liquidated its assets were transferred upwards to the holding company.

The only material non-cash assets remaining are KUH and Guggenheim, so it's likely the loan was used for these investments. The loan disappears upon consolidation because the entity getting the loan bought either shares in KUH or preferred units/warrants in Guggenheim, so there is no loan to external parties, only an internal loan from its shareholder the holding company.

FWIW the Guggenheim investment matures in June 2017...

As usual, YMMV.

[desmondxyz]

The note receivable was created in FY15 Q1. The results announcement states that it was assigned from the subsidiary K-1 Holdings Equity Inc, which had undergone voluntary liquidation.

So it appears that K-1 Holdings Equity Inc had made the loan in the past, and when it was liquidated its assets were transferred upwards to the holding company.

The only material non-cash assets remaining are KUH and Guggenheim, so it's likely the loan was used for these investments. The loan disappears upon consolidation because the entity getting the loan bought either shares in KUH or preferred units/warrants in Guggenheim, so there is no loan to external parties, only an internal loan from its shareholder the holding company.

FWIW the Guggenheim investment matures in June 2017...

As usual, YMMV.

Thanks Bro d.o.g. for the explanation.

[tealeaves]

Good Q1 results from K1, with $87m profits compared with $3m from the same period a yr ago.
Bodes well that the USD is also very slowly heading north.
Loyal shareholders will appreciate this coy over the years

K1 Ventures' Q1 profit, revenue leap
URL: http://www.businesstimes.com.sg/companie...venue-leap

[odie]

is it still worth to buy this now or after share consolidation?
the price seems to have jumped quite a bit

[brattzz]

Interim Dividends, 21cts!! after 5 into 1 consolidations!

Huat har!

[CY09]

Suspicion is that Keppel Corp is milking them to ensure they have cash buffer within Keppel Group Level. M1 has transferred its cash reserves upwards, now K1's turn