King Wan Corporation

[DP28]

Only 1/6 sold so far. Is it considered slow?

I expect some price movement on:
1. KTIS debut on 28 April (next Monday)
2. KW releasing an update on this investment (anywhere between now till end May)
3. KW Q4 reporting at the end of May.

Link to SET. KTIS should under the Food & Beverage sector.
http://marketdata.set.or.th/mkt/sectorqu...ector=FOOD

Well if everything goes well, it should be fair to expect some rewards in next Q1.

(vested)

IMO, property sales at the moment should be very slow. Given they are still moving some units. It should be good progress.. Nonetheless, its a JV with other construction builders.. Impact should be diluted.

Keeping my finger cross on your pt 1 but I really doubt it will move much. They should be doing some announcement to their KTIS listing within days.. and in the long term they may give special dividend in Q2.

[desmondxyz]

http://infopub.sgx.com/FileOpen/KingWanC...eID=293446

24 mils profit from the completion of SPA. Is this the profit gain from the divestment or profit sharing over the period waiting for KTIS ipo?

[GPD]

http://infopub.sgx.com/FileOpen/KingWanC...eID=293446

24 mils profit from the completion of SPA. Is this the profit gain from the divestment or profit sharing over the period waiting for KTIS ipo?

Finally, they announced it.

Should be profit gain from the divestment although I don't understand what you mean by "profit sharing over the period waiting for KTIS ipo". It sounded like they are going to recognise it in their Q2 results.

(vested)

[GFG]

http://infopub.sgx.com/FileOpen/KingWanC...eID=293446

24 mils profit from the completion of SPA. Is this the profit gain from the divestment or profit sharing over the period waiting for KTIS ipo?

Finally, they announced it.

Should be profit gain from the divestment although I don't understand what you mean by "profit sharing over the period waiting for KTIS ipo". It sounded like they are going to recognise it in their Q2 results.

(vested)

Ya, they recognize the profit gain based on the quoted price of 10 baht per share
Should be recognizing the profit gain

[desmondxyz]

http://infopub.sgx.com/FileOpen/KingWanC...eID=293446

24 mils profit from the completion of SPA. Is this the profit gain from the divestment or profit sharing over the period waiting for KTIS ipo?

Finally, they announced it.

Should be profit gain from the divestment although I don't understand what you mean by "profit sharing over the period waiting for KTIS ipo". It sounded like they are going to recognise it in their Q2 results.

(vested)

Kingwan used to receive 'dividend' or 'profit sharing' from these Thai subsidaries every year. But since they enter this SPA, they never receive such dividend again. Since the ktis ipo has been delayed for so long, the SPA is not really completed. So I wondering should kingwan receive such dividend incurred within this waiting period?

[GPD]

Okay I see your point. KWC didn't said anything about this in their announcement. Maybe someone can clarify with their IR on this.

[DP28]

http://infopub.sgx.com/FileOpen/KingWanC...eID=293446

24 mils profit from the completion of SPA. Is this the profit gain from the divestment or profit sharing over the period waiting for KTIS ipo?

SGX Mainboard-Listed King Wan Acquires 20% Of Environmentally Friendly Thai Pulp Company EPPCO In Share Swap For S$9.8 Million

◦Strategic stake will allow King Wan to develop a new business in addition to its core mechanical & engineering services and diversify Group's revenue stream
◦EPPCO will gain 23.64% stake in King Wan which will issue 76.88 million new shares to be priced at 12.8 cents a share


Singapore, 20 October 2004 - Singapore Exchange Mainboard-listed King Wan Corporation Limited ("King Wan") announced today that it would acquire a strategic 20% stake worth S$9.84 million in Environment Pulp and Paper Company Limited ("EPPCO"), a company incorporated in Thailand, through a share swap deal.

EPPCO, which will commence operations in November 2004, is principally engaged in the production and sale of chemically bleached pulp derived from sugar cane bagasse, a by-product derived from the process in which cane sugar is extracted from sugar cane using the Elemental Chlorine-free ("ECF") environmentally friendly production process. The plant has the capacity to produce 75,000 metric tons of dry bagasse pulp and 25,000 tones of wet bagasse pulp annually.

Under the terms of the transaction pending shareholders and regulatory approval, King Wan will issue 76.88 million new shares of 10.0 Singapore cents par value each to a shareholder of EPPCO as aggregate consideration (based on S$4.10 for each Sale Share). This will constitute 23.64% of the enlarged share capital of King Wan, which will be increased from 248 million shares currently to 325 million shares after the share swap exercise.

In turn, King Wan will receive 2.4 million shares of Baht 100 each in EPPCO, representing a 20% stake worth Baht 240 million (S$9.8 million). Assuming the deal is completed by November 2004, King Wan will be able to equity-account for the results of EPPCO in the Group's consolidated accounts from the financial year ending 31 March 2005.

Following the transaction, EPPCO will become an associated company of King Wan thus helping it to develop a new pulp-related business in addition to its current core business of mechanical and electrical ("M&E") engineering services.

EPPCO's new plant is strategically located in the Nongpho district of Nakhonsawan province (approximately 200 kilometres from Bangkok), which is the sugar heartland of Thailand. The primary customer base will be the domestic market as well as export to countries such as Japan and Taiwan. The company has also been granted promotion privileges from Thailand's Board of Investment ("BOI") where it will enjoy tax exemption benefits for 8 years from the date of first income and reduced income tax rate for the next 2 years. It will also have the privilege to remit foreign exchange out of Thailand.

Commenting on the acquisition, King Wan's Managing Director, Ms Chua Eng Eng said: "The share swap will allow King Wan to take a strategic stake in a new resource-based industry with vast potential. Demand for pulp is growing in tandem with the increasing global demand for paper and paper products. However, many companies have started to demand for environmentally friendly products from their suppliers and countries such as Japan and Taiwan are placing similar emphasis, which will augur well for EPPCO. Pulp derived from bagasse also possesses desirable qualities that will give paper products qualities such as texture, colour and opacity, hence the demand and market price for this commodity have been steadily increasing in the last few years."

"EPPCO has the unique advantage of having access to Thailand's readily available and relatively cheap raw materials and will thus be able to leverage on Thailand's growing paper industry. Coupled with generous tax incentives over the next ten years, we are confident in EPPCO's sustainable bright prospects. EPPCO, in turn, will be able to access capital markets more easily by being part of King Wan which is listed on the Mainboard of the Singapore Exchange," added Ms Chua.

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[dahuai84]

hmmm.... For those who are still vested.

   

[DP28]

hmmm.... For those who are still vested.

Still vested for KW. In any case, they who expected KTIS to soar should read their books. They price it at 30x P/E.. Hence the 10 baht is a little too much.

Despite the drop, I believe its still a cash cow for KW shareholder with special dividend.

[GPD]

hmmm.... For those who are still vested.

Still vested for KW. In any case, they who expected KTIS to soar should read their books. They price it at 30x P/E.. Hence the 10 baht is a little too much.

Despite the drop, I believe its still a cash cow for KW shareholder with special dividend.

Can share where you got that info? I have been wanting to get financial info of KTIS to gauge if the offer price is reasonable. Now it seems no.