Hotel Properties

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#31
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 !.
Reply
#32
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.
Reply
#33
(15-04-2014, 10:09 AM)opmi Wrote:
(15-04-2014, 10:02 AM)greengiraffe Wrote: 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
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Reply
#34
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!
(15-04-2014, 11:47 AM)specuvestor Wrote:
(15-04-2014, 10:09 AM)opmi Wrote:
(15-04-2014, 10:02 AM)greengiraffe Wrote: 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
Reply
#35
(15-04-2014, 10:25 AM)Vseeker Wrote: 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.
Reply
#36
"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!!! Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
#37
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?
Reply
#38
(15-04-2014, 12:31 PM)cif5000 Wrote:
(15-04-2014, 10:25 AM)Vseeker Wrote: 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%.
Reply
#39
Hi Buddies,

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

newly vested
GG
Reply
#40
Should be around 1.80 , bought from Guoco group.
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
Reply


Forum Jump:


Users browsing this thread: 4 Guest(s)