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Stamford Land
Yesterday, 12:39 PM,
Post: #1461
RE: Stamford Land
With its cash level being built up to an unprecedented level upon completion and full settlement of the MPV project, SLC has increasingly become a very attractive takeover target indeed, both for insider and outsiders.

If OCK were to take SLC private:
Number of issued shares as at 31 March 2017 = 863,970,982
OCK owns 322,558,000 shares (37.33%)
Number of shares OCK does not own = 541,382,882 shares (62.67%)
Cost for OCK to take SLC private by acquiring 62.67% outstanding shares he does not own:
Cost @ SGD 1.00 per share => 541 m
Cost @ SGD 0.90 per share => 487 m
Cost @ SGD 0.80 per share => 433 m
Cost @ SGD 0.70 per share => 379 m
Cost @ SGD 0.60 per share => 325 m
Cost @ SGD 0,50 per share => 271 m
Assuming outstanding cash inflow from the MPV project (fully sold and 100% settled) to be around 380 m.
If OCK were to make an offer of around SGD 0.70 a share (or below), he practically doesn’t have to come up with any money, the cash inflow from MPV is enough to pay for the takeover - (only bridging loan is required)
__________________________________________________________________________________________________

For an outsider to make an offer, the cash inflow from MPV (~380m) would reduce the net cash needed to fund the acquisition - (only bridging loan is required)
Cost @ SGD 1.00 per share => 864 m  (net cash needed = 484 m)
Cost @ SGD 0.90 per share => 778 m  (net cash needed = 398 m)
Cost @ SGD 0.80 per share => 691 m  (net cash needed = 311 m)
Cost @ SGD 0.70 per share => 605 m  (net cash needed = 225 m)
Cost @ SGD 0.60 per share => 518 m  (net cash needed =138 m)
Cost @ SGD 0,50 per share => 432 m  (net cash needed = 52 m)
__________________________________________________________________________________________________
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.

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Yesterday, 01:07 PM,
Post: #1462
RE: Stamford Land
This company is just like Hong Fok ... its public listed but its run and operated solely for the interests' of the majority family shareholders, they couldn't care less about the minorities.

Many years ago I believe there was an outsider offer around $1 per share but it was rejected by the family saying there was more value for the shareholders keeping the company public ! And so it is ... for the family shareholders.

Why would an investor invest in such a company. Results may be good but as a minority, do you think you will see any rewards?

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Yesterday, 02:46 PM,
Post: #1463
RE: Stamford Land
(Yesterday, 12:39 PM)Boon Wrote: With its cash level being built up to an unprecedented level upon completion and full settlement of the MPV project, SLC has increasingly become a very attractive takeover target indeed, both for insider and outsiders.

If OCK were to take SLC private:
Number of issued shares as at 31 March 2017 = 863,970,982
OCK owns 322,558,000 shares (37.33%)
Number of shares OCK does not own = 541,382,882 shares (62.67%)
Cost for OCK to take SLC private by acquiring 62.67% outstanding shares he does not own:
Cost @ SGD 1.00 per share => 541 m
Cost @ SGD 0.90 per share => 487 m
Cost @ SGD 0.80 per share => 433 m
Cost @ SGD 0.70 per share => 379 m
Cost @ SGD 0.60 per share => 325 m
Cost @ SGD 0,50 per share => 271 m
Assuming outstanding cash inflow from the MPV project (fully sold and 100% settled) to be around 380 m.
If OCK were to make an offer of around SGD 0.70 a share (or below), he practically doesn’t have to come up with any money, the cash inflow from MPV is enough to pay for the takeover - (only bridging loan is required)
__________________________________________________________________________________________________

For an outsider to make an offer, the cash inflow from MPV (~380m) would reduce the net cash needed to fund the acquisition - (only bridging loan is required)
Cost @ SGD 1.00 per share => 864 m  (net cash needed = 484 m)
Cost @ SGD 0.90 per share => 778 m  (net cash needed = 398 m)
Cost @ SGD 0.80 per share => 691 m  (net cash needed = 311 m)
Cost @ SGD 0.70 per share => 605 m  (net cash needed = 225 m)
Cost @ SGD 0.60 per share => 518 m  (net cash needed =138 m)
Cost @ SGD 0,50 per share => 432 m  (net cash needed = 52 m)
__________________________________________________________________________________________________
 Thanks Boon, hope OCK or potential corporate raiders read this ! Smile
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.

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1 hour ago,
Post: #1464
RE: Stamford Land
(Yesterday, 09:28 AM)sgpunter Wrote: Indeed the dividend payout has been below expectation and shareholders who bought in anticipation of a juicy dividend have starting voting with their feet.

Look forward to another fiery AGM.  Big Grin

Seriously think Stamford Land needs to hire an Investor Relations officer as shareholder engagement is not up to mark. Announcements are made merely because they are mandatory and there are little if no updates on current/upcoming projects, outlook, why the need to impair Dynons etc.

Surely they can get one of the staff members to put up a set of slides accompanying the results. How much effort does that take??

Meanwhile, call me foolhardy but I will be holding on to my existing shareholdings for now and will be looking for opportunities to add more   Tongue

When management did their in-house valuation on Dynons plaza few years ago , its value went up consecutively for few years , Ow paid himself few years performance bonuses for it. Now value of it has been down for few consecutively years, Did he return the performance bonuses to the company ?

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