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Eastern Holdings
11-06-2012, 12:21 PM.
Post: #21
RE: Eastern Holdings
(11-06-2012, 09:10 AM)ngcheeki Wrote: Trading Halt this morning. Major asset disposal or acquisition?

http://info.sgx.com/webcorannc.nsf/Annou...endocument

A GO been announced.

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Offer Price is S$0.18 which is not too far from its last market price.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡

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11-06-2012, 12:30 PM.
Post: #22
RE: Eastern Holdings
(11-06-2012, 12:21 PM)CityFarmer Wrote:
(11-06-2012, 09:10 AM)ngcheeki Wrote: Trading Halt this morning. Major asset disposal or acquisition?

http://info.sgx.com/webcorannc.nsf/Annou...endocument

A GO been announced.

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Offer Price is S$0.18 which is not too far from its last market price.

I have been waiting to get out. I will happily take 18 cents which is 30% higher than the last done. May or may not be good if you compare to NAV. Notice they did not use the word discount but "implied price to net asset value (“NAV”) ratio of 0.75 times based on the latest
unaudited consolidated NAV per Share of S$0.24". And this is after the recent write-off.

But there are a few issues I personally have with the company:

1. Sold off publishing arm and did not distribute the proceeds
2. Investigation of Stephen Tay (ongoing i think)
3. Going into property development and doing a bad job

Taking a 10-20% loss but I'm happy.

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11-06-2012, 01:24 PM.
Post: #23
RE: Eastern Holdings
valuenewb Wrote:May or may not be good if you compare to NAV.

"May not be good" is a gross understatement.

The 24c NAV value is based on cost + depr for the properties. For example, the 4 storey factory @ Lower Delta is booked at $2.9m, but has a market value of $16.5m (AR2011, pg. 58).

The RNAV is > 36c based on just market value adjustment to the investment property portfolio. Stephen is offering < 50% of that. Should shareholders be happy?

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11-06-2012, 01:32 PM.
Post: #24
RE: Eastern Holdings
(11-06-2012, 01:24 PM)bluechipstamp Wrote:
valuenewb Wrote:May or may not be good if you compare to NAV.

"May not be good" is a gross understatement.

The 24c NAV value is based on cost + depr for the properties. For example, the 4 storey factory @ Lower Delta is booked at $2.9m, but has a market value of $16.5m (AR2011, pg. 58).

The RNAV is > 36c based on just market value adjustment to the investment property portfolio. Stephen is offering < 50% of that. Should shareholders be happy?

Hi bluechipstamp
Sorry if I annoyed you with my statement.

Ok, I guess it's most definitely NOT GOOD compared to RNAV.
But as outside passive minority investors, we can't do much. I am sure ST can shop around for an IFA to say that this is a reasonable offer.

I looked at the document very quickly. Seems like it is an unconditional offer since they hold more than 50%. Only chance if there are others like you who would hold on to their shares and block the privatisation.

I haven't checked but I don't think there are many institutional investors in EH. I haven't decided what to do. Since it's not a big stake, I might just get out. My mistake was made years ago when I bought it.

What's the best thing I think I can do now? I will probably get out at 18c if there are buyers at 18c.

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11-06-2012, 05:04 PM. (This post was last modified: 11-06-2012, 08:28 PM by CityFarmer.)
Post: #25
RE: Eastern Holdings
(11-06-2012, 01:32 PM)valuenewb Wrote:
(11-06-2012, 01:24 PM)bluechipstamp Wrote:
valuenewb Wrote:May or may not be good if you compare to NAV.

"May not be good" is a gross understatement.

The 24c NAV value is based on cost + depr for the properties. For example, the 4 storey factory @ Lower Delta is booked at $2.9m, but has a market value of $16.5m (AR2011, pg. 58).

The RNAV is > 36c based on just market value adjustment to the investment property portfolio. Stephen is offering < 50% of that. Should shareholders be happy?

Hi bluechipstamp
Sorry if I annoyed you with my statement.

Ok, I guess it's most definitely NOT GOOD compared to RNAV.
But as outside passive minority investors, we can't do much. I am sure ST can shop around for an IFA to say that this is a reasonable offer.

I looked at the document very quickly. Seems like it is an unconditional offer since they hold more than 50%. Only chance if there are others like you who would hold on to their shares and block the privatisation.

I haven't checked but I don't think there are many institutional investors in EH. I haven't decided what to do. Since it's not a big stake, I might just get out. My mistake was made years ago when I bought it.

What's the best thing I think I can do now? I will probably get out at 18c if there are buyers at 18c.

It seem that it is unlikely to have a competitive offer. But if the offer price is < 50% of the RNAV, then you can chose to reject it. As long as the offer does not cross the 90% line, it will remain listed.

Is there a hurry to decide? IMO, there is no hurry Big Grin. You can wait for the dispatching of offer doc, IFA and IDA reports, disclosure announcement and probably till x day before the closing date Tongue

just my 2 cts
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡

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12-06-2012, 11:15 PM.
Post: #26
RE: Eastern Holdings
I think controlling shareholder Stephen Tay's GO price at $0.18/share for the minority shareholders is way to low! Quite clearly, Tay is trying his luck! I will be surprised if (1) most of the minority shareholders will give in to him; (2) any reputed institution appointed as IFA would give a straight-forward supportive opinion; and (3) the IDs would just give an unequivocal support to the GO.

We have to bear in mind that EH's main assets are real estates and the group is now in a net cash position, and its latest (as at 31Mar12) NAV/share - recorded at and based on historical cost - is already $0.2382! The revised NAV/share based on CMV of the existing property holdings could well be close to $0.40.

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13-06-2012, 11:04 AM.
Post: #27
RE: Eastern Holdings
Anybody with a few million to spare?

Looks like there's some hope... Trades have been done at 0.183... which means there are people who feel that the price is too low and are willing to take a bet that the privatisation exercise at 0.18 will fail and that ST will be forced to raise the price....

Looking at the AR, institutional investors are absent. Top shareholder outside the family, (in no 6th place), is a Thian Yim Pheng with just 0.93%.

So, if anybody can afford to buy 30 million shares at 18 cents, ie S$5.4 million, you can block ST and force him to raise the price. Otherwise, you lose commission and fees and tender back to him at 18 cents.

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13-06-2012, 11:27 AM. (This post was last modified: 13-06-2012, 11:27 AM by freedom.)
Post: #28
RE: Eastern Holdings
so what if someone spent $5.4 million to block the offer? the 5.4 million will be stuck for almost no return. The owner/major shareholders can decide no dividend for the next few years.

the management can try again a year later and continue to try forever.

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13-06-2012, 11:46 AM.
Post: #29
RE: Eastern Holdings
daft sinkies die pain pain! Rolleyes

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13-06-2012, 04:02 PM.
Post: #30
RE: Eastern Holdings
(13-06-2012, 11:04 AM)valuenewb Wrote: So, if anybody can afford to buy 30 million shares at 18 cents, ie S$5.4 million, you can block ST and force him to raise the price. Otherwise, you lose commission and fees and tender back to him at 18 cents.



(13-06-2012, 11:27 AM)freedom Wrote: so what if someone spent $5.4 million to block the offer? the 5.4 million will be stuck for almost no return. The owner/major shareholders can decide no dividend for the next few years.

the management can try again a year later and continue to try forever.

freedom,
I am not suggesting anybody to park 5.4 million into a shareholder unfriendly company AND leave it there. I say two can play the game (with ST). If he wants to get the company all for himself, he has to pay for it.

I guess you are vested and me too. Definitely not happy with this but what can we do?

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