Hotel Properties

[investor2014]

450+ lots buy up of 4.06.

[investor2014]

450+ lots buy up of 4.06.

more than $1.8 million value

wonder who bought?

[investor2014]

Scoop of the Day: 68 Holdings, the consortium between Ong Beng Seng and
Wheelock Properties, has raised its offer price for HPL from SGD4.00 to
SGD4.05 after acquiring an additional 6.7m shares or 1.3% of HPL at the same
price. 68 Holdings currently owns 47.47% of HPL, and together with valid
acceptances of its offer amounting to 0.96%, controls 48.4% of HPL’s share
capital. It is currently just 1.6% shy of the 50% majority stake that it seeks for the
offer to turn unconditional. It also announced that there will be no further increase
in the offer price, in the absence of any competing bids. The offer by 68 Holdings
is undoubtedly a vote of confidence on the prospects of HPL by its major
shareholders, valuing HPL at over SGD2.1bn. HPL is asset-rich; it owns and
manages 28 hotels and resorts spread across 13 countries, operating under
brands such as Four Seasons, Como and Concorde. In Singapore, the group’s 3
hotels along Orchard Road include the 422-room Hilton Singapore, the 254-room
Four Season and Concorde Singapore. Along with adjoining assets such as
Forum the Shopping Mall and HPL House, we think the group’s properties and
hotels bounded by Cuscaden Road and Orchard Road are ripe for redevelopment
given their ageing profile compared to newer malls springing up
across Orchard Road. HPL’s diversified asset base will ensure a continuing
stream of recurring income when its Orchard Road assets are eventually put up
for re-development. In particular, its resort hotels in the Maldives and Bali are
doing brisk businesses from a rising stream of tourists from mainland China. We
expect 68 Holdings to begin unlocking value from its real estate after the
takeover offer, and our back-of-envelope calculation suggest a RNAV of
SGD6.00-8.00 on a re-development scenario. We recommend investors to get on
board with HPL’s major shareholders to ride the next wave of share price rerating.
(Goh Han Peng)

[greengiraffe]

Unconditional...

http://infopub.sgx.com/FileOpen/HPL%20-%...eID=299439

[InvestArk]

Sorry buddies,

I am Kinda new to such M&A offers esp when it come to the terminologies , a few questions :

1) What does it mean when the offer turns unconditional?
2) What will happen to the Shareholders who did not take up the offer after it becomes unconditional?
3) Will the offerer continue to purchase share despite meeting their condition (in this case a 50% holding for the concerted party).

Hope some buddies could shed some light on these.

Thank you very much!

[opmi]

Sorry buddies,

I am Kinda new to such M&A offers esp when it come to the terminologies , a few questions :

1) What does it mean when the offer turns unconditional?
2) What will happen to the Shareholders who did not take up the offer after it becomes unconditional?
3) Will the offerer continue to purchase share despite meeting their condition (in this case a 50% holding for the concerted party).

Hope some buddies could shed some light on these.

Thank you very much!

Answers to Qn.

1) When it turns unconditional, the Offeror will have to take your shares when you tender to them. Unlike conditional offer, they can return you if the condition is not met.

2) Nothing will happen. If the Offeror can get 90%, then can compulsory acquire your shares. Other than that, you can keep your shares. However, the shares may be delisted from SGX if the share don't meet the free float requirement.

3) Yes. The Offeror can buy the shares during the offer. After the offer, the Offeror cannot buy any shares higher than the Offer price for 6 months.


Sent from my iPhone using Tapatalk

[InvestArk]

Sorry buddies,

I am Kinda new to such M&A offers esp when it come to the terminologies , a few questions :

1) What does it mean when the offer turns unconditional?
2) What will happen to the Shareholders who did not take up the offer after it becomes unconditional?
3) Will the offerer continue to purchase share despite meeting their condition (in this case a 50% holding for the concerted party).

Hope some buddies could shed some light on these.

Thank you very much!

Answers to Qn.

1) When it turns unconditional, the Offeror will have to take your shares when you tender to them. Unlike conditional offer, they can return you if the condition is not met.

2) Nothing will happen. If the Offeror can get 90%, then can compulsory acquire your shares. Other than that, you can keep your shares. However, the shares may be delisted from SGX if the share don't meet the free float requirement.

3) Yes. The Offeror can buy the shares during the offer. After the offer, the Offeror cannot buy any shares higher than the Offer price for 6 months.


Sent from my iPhone using Tapatalk

Thank you for the explanation !

[investor2014]

68 Hldgs getting stocks from punters that were betting further upside that is not coming through after a revision of initial offer.

Can't beat OBS unless you have stamina for the long hual...

just as current example for refernece:

a current example would be olam. after the offer of 2.23 closed, the share price traded below 2.23 for a few days.

however, it has traded around 2.30 for the past 2 days, with decent volume of almost 20 million last fri.

while olam is in a different sector from CMA, we could potentially use this as a reference.

[investor2014]

PUBLISHED JUNE 03, 2014
LETTER TO THE EDITOR
Review rules on takeovers and privatisations
PRINT |EMAIL THIS ARTICLE
MICHAEL Dee has written two very good analyses on the recent takeover offer for CapitaMalls Asia (CMA) by Capitaland (CL): "CMA shareholders should stand their ground against 'fair offer'" in BT of April 22 and "Offer for CMA is still undervalued" in BT of May 29. All his points are very pertinent and can be equally applied to other recent takeover attempts, including that of LCD Global Investments (LCD) by RDL Investments (RDL).
It is the minorities who are greatly impacted by all these takeover attempts, and they have to protect their own interests. They have to let their voices be heard and not leave it to others to speak up for their rights. They should be wary of the advice of the "independent directors" who invariably follow the advice of the "independent financial advisors" (IFA), the independence of which may need to be questioned.
The Securities Investors Association (Singapore) (SIAS), being the watchdog for retail investors, should fight for a higher offer price for them. It should maintain a neutral stand and not advise retail investors to either accept or reject a takeover offer. Besides, SIAS does not hold a financial advisor licence, and is in no position to offer financial advice.
The same "conflict of interest" issue cited by Mr Dee in CL's takeover for CMA also resurfaces in RDL's takeover of LCD, as the two major shareholders of RDL are also majority shareholders of LCD. This is also manifested in other recent takeover attempts of other listed companies

[investor2014]

IFA report put the RNAV around $5.

since no other party come in to buy, so can't reach its $5 price in the short term.

LCD has almost reached the NAV stated in their IFA report of 27 cents- likely due to mr koh wee seng's buying interest