ITC Corp (0372)

[opmi]

Seems like something is brewing for ITC :

http://www.aastocks.com/EN/ltp/LTP_RT_Qu...95244.html

so what is your take on the ITCC-ITCP-Rosedale-Hanny transactions?

[soros]

Seems like something is brewing for ITC :

http://www.aastocks.com/EN/ltp/LTP_RT_Qu...95244.html

so what is your take on the ITCC-ITCP-Rosedale-Hanny transactions?

I know that Hanny ( 275) was distributed by ITC( 372) about 3 years ago and most likely control of Rosedale will be sold soon after some of its assets have been picked out and transferred to the others.

[opmi]

Seems like something is brewing for ITC :

http://www.aastocks.com/EN/ltp/LTP_RT_Qu...95244.html

so what is your take on the ITCC-ITCP-Rosedale-Hanny transactions?

I know that Hanny ( 275) was distributed by ITC( 372) about 3 years ago and most likely control of Rosedale will be sold soon after some of its assets have been picked out and transferred to the others.

So this is a catalyst for the unlocking value of ITC Corp?

[soros]

Rosedale shares closed at $0.67 today and Market Cap = HK$440 Mil approx. NAV = $2.59 and only paid 10 cents dividend in last 5 years.

So I think better for ITC to sell its shares in Rosedale.

[opmi]

Rosedale shares closed at $0.67 today and Market Cap = HK$440 Mil approx. NAV = $2.59 and only paid 10 cents dividend in last 5 years.

So I think better for ITC to sell its shares in Rosedale.

What is the NAV represented by? Cash or Hotels or Goodwill?

Rosedale controlled by ITC Corp, in turn controlled by HK Shell King (壳王)

Why only pay 10 cents for past 5 years? Not making money?? Or got money dont want to share?

[soros]

You ask what is the NAV represented by ? cash or hotels or goodwill ?

The Hong Kong accounting standards requires the annual profits to include changes to the fair value to the assets. The company seems to have 23 % gearing so I would expect most of the asset value in NAV figure to comprise cash, hotels and borrowings .

The share price of Rosedale Hotel ( 01189.HK ) closed at $0.65 on friday ( 27 Mar ) and this gives a market capitalisation of $427 Mil . But figures from balance sheet at 31Dec 2013 gives cash on hand at $733 Mil and total debt at $466 Mil.

The company results for year to 2010/12 recorded profit of $468 Mil profit and 10cts div paid. The results for 2009/12, 2011/12 and 2012/12 reported losses and no div. The result last year was a profit at $382 Mil but no div paid.

What conclusions can you draw from above situation ?

[opmi]

Rosedale no more debts after the disposals.
A net net with a change of control catalyst.

Again no one knows what is on Shell King's mind.

[soros]

I was wondering if Rosedale is the better share to hold if ITC is planning to sell its holding of Rosedale shares to Hanny .
ITC must be looking to sell at NAV level ???

[opmi]

I was wondering if Rosedale is the better share to hold if ITC is planning to sell its holding of Rosedale shares to Hanny .
ITC must be looking to sell at NAV level ???

After the disposal proceeds come in, Rosedale NAV is represented mainly by cash and hotels stakes (also for disposal) and PRC hotels.

For ITC Prop-Rosesale - It is IPT transaction and major disposal transaction that need EGM approval. Maybe they will sweeten the deal with big special dividend to motivate Rosedale shareholders to vote for it.

For ITC Corp sale of Rosedale to Hanny, it may be a major disposal transaction that need EGM approval and an IFA may be required to provide fairness opinion.

It is against shareholders' best interests if it is sold at big disc below NAV, that is represented mainly by cash. Unless it is really a "whatever-u-want-me-to-be" IFA, hard to justify a big discount to a cash shell.

By making an joint annc of 4 parties, it seems that ITC Corp wants to dispose of Rosedale after picking out the good stuff (cash+ hotel minority stakes). It is best for Rosedale and ITC Corp shareholders if everything is done at a fair price.

My guess only. STILL you never know what Shell King is up to. The bet is on the corp governance of the ITC Group.

[soros]

Its happening.

http://www.hkexnews.hk/listedco/listcone...414093.PDF