Hotel Properties

[Vseeker]

Mandatory Conditional Offer for HPL at $3.50 cash pshr (Conditional on achieving > 50% Acceptance level)

The OFFEROR (68 Holdings Pte.Ltd.) is a consortium formed by Cuscaden(60%) + Wheelock's Nassim Devts (40%)
and Cuscaden is an investment holding company control by OBS (90%) and David Ban (10%)

so far OFFEROR only secured 41.91%, and none of OBS's "in-law vehicles" are in ?? at least not yet.... Why why why not ???

Note that Wheelock is effectively NOT selling out its 20% stake at $3.50,
RATHER via it's 40% interests in OFFEROR,
Wheelock is effectively gunning to double-up its eff. stake in HPL up to max 40% (if OFFEROR able to secure 100% acceptance level, which seems highly unlikely)
At worse, it is status quo for Wheelock coz even at minimum 50% acceptance level, Wheelock's eff. stake in HPL will still be (40% * OFFEROR's 50%) = 20%
ADD-ON CORRECTION to above sentence in italics :
if Offer closed or lapsed, with OFFEROR stake in HPL still remaining at current 41.91% level only,
then "At Worse" Wheelock's eff stake in HPL will get diluted down to (40% * OFFEROR's 41.91%) = only 16.674%

So essentially, look like all the major "INSIDERs" are NOT accepting the $3.50 offer !!!
not Wheelock, not OBS (both simply swing their existing shares into OFFEROR vehicle and hoping to get more !!
and neither are any of the OBS's "in-laws vehicles" accepting the Offer.

NB: OBS's "in-laws" vehicles are: Coldharbour Limited (74.569m shrs), Jermaine Limited (2.2m shrs) and Holmshaw Services Limited (34.1209m shrs)

Bottomline: all the major players are holding onto their shares !!
$3.50 is clearly NOT attractive enough for them !! yet OFFEROR hoping enough 3rd-party minorities will take up their offer to secure > 50% minimum Acceptance level !.

[revelationofpyramids]

Good point on the major shareholders effectively not selling. In fact they are buying. I think they will not be able to get many shares from the market. I think HPL assets value is above $5 easily, maybe even $6. So only an offer of $4.50 will make me want to sell my share to them.

[specuvestor]

I will bet my $ with HPL and OBS given his excellent but long term process of unlocking values as seen in NSL.

I think it has to do more with the initial low ball NSL Offer by Ang Kong Hua.

ya unlocking value for THEMSELVES... NSL minorities have to thank Oei

[Louhan]

Yes, the offer price of $3.50 is much lower than the asset value per share of more than $5! I won't accept the offer!

I will bet my $ with HPL and OBS given his excellent but long term process of unlocking values as seen in NSL.

I think it has to do more with the initial low ball NSL Offer by Ang Kong Hua.

ya unlocking value for THEMSELVES... NSL minorities have to thank Oei

[cif5000]

At worse, it is status quo for Wheelock coz even at minimum 50% acceptance level, Wheelock's eff. stake in HPL will still be (40% * OFFEROR's 50%) = 20%

40% x 41.91% = 16.76%
vs. 20.16% original.

[brattzz]

"Yes, the offer price of $3.50 is much lower than the asset value per share of more than $5! I won't accept the offer!" - Louhan

If the offer price is at such a steep discount, it only makes sense to buy buy buy!!!

[freedom]

Don't forget Peter Fu's more than 20% stake through Coldhabour Limited and Born Free Investments Limited. Why was he neither in the consortium nor selling his stake to his brother-in-law?

[Vseeker]

At worse, it is status quo for Wheelock coz even at minimum 50% acceptance level, Wheelock's eff. stake in HPL will still be (40% * OFFEROR's 50%) = 20%

40% x 41.91% = 16.76%
vs. 20.16% original.

Thks cif5000 for pointing out this possibiliy, if Offer closed or lapsed, with OFFEROR stake in HPL remaining at only 41.91% level,
yes, it appear that Wheelock eff. stake in HPL could get reduce to only 16.674%.

[greengiraffe]

Hi Buddies,

Any idea what is Wheelock's historical purchase price of HPL stake?

newly vested
GG

[cfa]

Should be around 1.80 , bought from Guoco group.