Casa Holdings

[pianist]

recent news - Casa Holdings selling all shares in Fiamma Holdings for $24.34m. The four buyers are managing directors of different Malaysian companies. Casa Holdings Limited, a Singapore-listed electronic home appliance trading company, is disposing of all of its shares in Fiamma Holdings Berhad for about $24.34m (RM84.62m).Over 74.88 million shares are being sold, representing approximately 14.12% of the issued and paid-up share capital of Fiamma Holdings, a Malaysian home appliance company.

any view on this?

[ghchua]

Hi pianist,

This is not the first time that Casa is selling its stake in Fiamma Holdings, which they have sold down their stake throughout the recent years. But this is now a complete exit from the associate.

I guess its time to realize this associate, since they are in similar business as Casa and its in Malaysia. There might be a conflict of interest if Casa decide to expand their business into Malaysia as well. There are also other issues cited, like Fiamma Holdings's change in financial year and no dividends received from them for the past two financial years.

Part of the proceeds from this disposal will be paid as dividends to shareholders. I think the relevant question should be - How much will be paid out? I guess we shall know the answer soon.

[pianist]

Ok noted, it's sold close to nav around 5% off , rather than benchmarked to market value...can i suppose that usual market practice

[ghchua]

Ok noted, it's sold close to nav around 5% off , rather than benchmarked to market value...can i suppose that usual market practice

Not really. There is no standard market practice. Ultimately, it is a willing buyer and willing seller transaction.

Take the NAV numbers as only a guideline. Afterall, some of the assets are not revalued and we don't have the RNAV numbers.