ARA Asset Management

[Bytesizedinvestments]

How much did Straits Trading paid?

It paid S$1.7326 per share.

wah so high..maybe this could be motivation for wanting to do a buyout so that old lady can exit n happy?

STC is part of the rollover shareholders.

Before the scheme, STC holds 20.1%. After the scheme, they will hold 20.95%. 

So STC is not cashing out.

They have just released their 3Q financial statement too. Revenue increased 34% YOY, Adjusted Net profits increased 12%.

We wonder if the quarterly financial statement were released before they start to do the trading halt, what kind of price would it be offering, considering that they quoted a 26.2% premium above last traded. 
________
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http://www.bytesizedinvestments.com/

[hongonn]

Did a quick calculation. Based on the last 3 quarter result, at $1.78 it is offered at PE 19x. If based on the last quarter result, the offer is only at PE 14x.

I definitely think this is at the low side. But knowing Singapore market probably they will get their way out with low ball offer. Minority shareholders just happily grab whatever 10% more than market price and exit. Ignoring the underlying value and long term income generation.

I think Super group was offered at PE 30x? Even in this over saturated indifference instant coffee market. And the offer is made by foreign ang moh company. 

Maybe Asian company knowing Asia investor behaviour too well, so don't expect too much good price from them.

[lonewolf]

How much did Straits Trading paid?

It paid S$1.7326 per share.

That is incorrect. They initially paid $1.7326 for 169,900,000 shares in the initial acquisition.

In Dec 2015, they subscribed for their rights entitlement of 30,582,000 rights shares at $1 per right shares.

So STC total investment in ARA is $324,950,740 for 200,482,000 shares.

So their average price is $1.6208.

On paper, based on the offer price, they are sitting on paper profit of $31,907,220

[SOURCE] 

http://straitstrading.listedcompany.com/...4CBA.3.pdf

http://infopub.sgx.com/FileOpen/Announce...eID=377681

[Contrarian]

> They have just released their 3Q financial statement too. Revenue increased 34% YOY, Adjusted Net profits increased 12%.
> We wonder if the quarterly financial statement were released before they start to do the trading halt, what kind of price would it be
> offering, considering that they quoted a 26.2% premium above last traded.

Another way of determining value is % of AUM. ARA's AUM is now about $35bn AUM. Using 6% AUM, ARA market cap is worth $2.1bn.
Remember there is also $400+M of financial assets in its balanced sheet.

I hope the big fund managers Templeton, Matthews China and all the other funds will push for a higher offer. All of them has at least 25-30% and if all teams up, it will be hard to delist the company.


Lim said his company’s shares are undervalued compared to its earnings, peers and historical prices. The ratio of the company’s market capitalization to its assets under management, a standard measure used by the industry, stands at about 3.8 percent, Lim said. That compares with about 10 percent for peers in the region, he said, implying that there is plenty of room for growth.

‘Too Cheap’
The ratio of market capitalization to assets under management at Sydney-based Charter Hall Group is 7.3 percent, while the metric for Tokyo-listed Kenedix Inc. stands at 14.5 percent, according to Bloomberg calculations.
“Compared to our peers, we are too cheap,” Lim said. “My business is getting better and better, stronger and stronger, the recurring income gets more and more. It’s actually undervalued.”

[opmi]

Offer said no intention to raise price. The 1.78 one ffer price is the final price.

Those holding ARA not happy with offer price, well starts your campaign
to vote down the SOA lor. If not, sell your shares and move on.

OPMI is a bunch of passive and defeatist shareholders. Usually just sit there until
too late.

Institutional investors even worse. Cannot hold non-listed shares. Just hit no free float.
All kuai kuai sell the shares.

Well, since it is SOA, 1 shareholder 1 vote. 1 proxy 1 vote. IF all VB just buy 1 shares each and
send in proxy. Enough to vote down. Don't think Victor Li will try PCCW pattern. Haha

[Muser]

* Another good business wanting to disappear from public

* $1.78 is too low, even if the company continues to generate just the average of last 5 years free cash flows, not considering growth.

* The business has significant long-term (5-10yrs) free cash flow generating potential, with excellent fundamentals and management.

* Any price below $2.5 perhaps indicates minority shareholders are getting short-changed

[Bluechipfan]

* Another good business wanting to disappear from public

* $1.78 is too low, even if the company continues to generate just the average of last 5 years free cash flows, not considering growth.

* The business has significant long-term (5-10yrs) free cash flow generating potential, with excellent fundamentals and management.

* Any price below $2.5 perhaps indicates minority shareholders are getting short-changed

Agree. I was vested slightly above $2 about 3 yrs back. It slowly drift lower and lower and I let go just below $2. Lost a bit. If I kept it till now wil also lose money! Such low liquidity in SGX to support price of good stock and forcing the owners to privatise or bought over by private equity. What's can SGX do?

[hongonn]

I was thinking if they know Trump would have won the election today, they might have set the offer price at $1.58.

If the offer can go any lower, why not.

[EnSabahNur]

http://fifthperson.com/why-we-will-be-re...per-share/

What do buddies who are vested think of the offer?

I think it's a low ball price to take it private at 1.78

Sent from my SM-N9005 using Tapatalk

[opmi]

actually minority investors overrun the SOA by voting AGAINST this offer.

Unlike SMRT, ARA have relatively lesser employees and no union. And CK wont do a PCCW tactic.

Just get all the VBs to buy odd lot here and vote AGAINST by sending in their proxy. Dont even need to attend meeting.

Write a letter to Indepedent Directors and post it here and everywhere.