TIH Limited (formerly: Transpac Industrial Holdings Limited)

[yeokiwi]

For transpac shareholders,

http://info.sgx.com/webcoranncatth.nsf/V...0004258F2/$file/TIH-Sep2010.pdf?openelement

On 21 June 2010, the Company announced that it had, together with Transpac Nominees Pte Ltd and Transpac Capital Pte Ltd (the Investment Manager of the Company), entered into a conditional Stock Purchase Agreement with Heinz China Investment Company in relation to the sale of the entire share capital of Foodstar Holdings Pte Ltd. The transaction has been completed on 2 November 2010 and a separate announcement on the matter will be made shortly.

Following the completion of the sale of Foodstar Holdings Pte Ltd, the Company intends to declare an interim dividend. The announcement will be made shortly.

[ngcheeki]

For the last quarter the exchange rate of US against Sing has dropped from 1.37 to 1.28, hence the sale proceed of US$165m
also drop from the S$226.9 million to 212.5 million . I'm wondering did the company cover herself for the changes in
exchange rate in this sale agreement?

By the way, the company also fully divested all its holding NNHL (Neo-Neo) and made a gain of $7.05m. So the top investment
now is their 7.95% Fortune Code Limited (FCL) which own OUE shares.

[yeokiwi]

I think the sale price should be hedged if the company is reporting its financial statements in S$.
Quite a no-brainer since the US$ is expected to be weakened.

Anyway, as usual, the market reacts positively to the coming interim dividend announcement

Besides that, I am very interested in the next year financial report after both Neo-Neo and Foodstar are being removed from the top ten list . If the next two are valued at cost but the actual valuation is much higher, then it is another huat huat investment again.

[yeokiwi]

41cts interim dividend declared.

http://info.sgx.com/webcoranncatth.nsf/V...1000B726E/$file/4Nov2010.pdf?openelement

The NAV is around $1.91 after the sale of foodstar.
http://info.sgx.com/webcoranncatth.nsf/V...1000AB72E/$file/4Nov2010completion.pdf?openelement

[Jon-san]

wow! that's a lot!.. wasn't expecting that...

[ngcheeki]

Based on the announcement, it seems like there is no hedging of US$ in the SPA (Stock Purchase Agreement) . If not,
the interim dividend should be 50 cents.

http://info.sgx.com/webcoranncatth.nsf/V...1000AB72E/$file/4Nov2010completion.pdf?openelement

Anyway, I'm keeping my fingers crossed on the earn-out payment if Foodstar future earnings meet the criteria in the agreement. See the following for more information on the earnout.

The purchase price consists of a cash payment at closing of $165 million
and an earn-out potentially payable in 2014 based on the performance of
the business.

http://www.heinz.com/our-company/press-r...0621005844

[ngcheeki]

TIH has announced a capital reduction exercise.

The company will be returning 57 cents per share to shareholder . This compensated for the no final dividend.

http://info.sgx.com/webcoranncatth.nsf/V...00019C878/$file/TIH23Feb2011.pdf?openelement

[LionFlyer]

How would this affect the current price? Take the market price minus the payout?

[touzi]

What is the rationale for a capital reduction over a dividend?

[ngcheeki]

Besides that, I am very interested in the next year financial report after both Neo-Neo and Foodstar are being removed from the top ten list . If the next two are valued at cost but the actual valuation is much higher, then it is another huat huat investment again.

In the AR2010, TIH only reviewed there top 5 list instead of their usual top 10. The following are their top 5 investments.

1. Fortune Code Limited
2. Hansen Limited
3. Transpac Capital 1996 investment trust
4. Sesame Seed Group Limited
5. Foshan Nanhai Zhongnan Aluminium Wheel Co. Ltd
Fair value of the above investment is around 100.612 millions.

Anyone attended Transpac Industrial Holding AGM? If yes, do you mind to share some of your notes?

By the way, TIH has reported their Q1 result on last Thursday. See the following link for more information.

http://info.sgx.com/webcoranncatth.nsf/V...000332DF8/$file/TIH-Mar2011.pdf?openelement

NAV: S$1.52
cash equivalent: S$144,264,000. This work out to be around 82.4 cents
Forward statement:
Steady growth is being witnessed in various emerging economies in Asia. However the continued inflationary pressure and increasing interest rates will hamper the profitability growth of some of the business operations.

Mergers and acquisition activities have increased and will provide opportunities for investment and divestment.

(not vested)