USP Group (formerly: Unionmet)

[TUBInvesting]

Hi new to valuebuddies here... so here is my first post in valuebuddies....

This is what I assume is happening on USP Group Ltd (can admin help change the name?):

Diversifying Into Property – Although I do not know how the significant drop in Oil price will affect their oil blending business, but I believe their recent acquisition of 2 companies shows that the company is diversifying into property rental business for a more consistent  recurring cashflow.

Catalyst – USP has recently acquired 2 other companies – Koon Cheng Development Pte Ltd and Supratechnic Pte Ltd. Basically these 2 companies will increased the Net Asset Value of the firm as both companies have a relatively high number of properties in Singapore and Overseas.

>Based on the latest corporate update, the acquisition of Koon Cheng Development will result in a NAV of $0.06.

>Based on the acquisition of Supratechnic Pte Ltd will add net assets of $15 Million. USP Group Limited will need to pay $9.69 Million in Cash plus go through a share lending program. Taking in consideration the new number of shares will be 787,753,814 and ignoring the share lending program (assuming it doesn't change the number of shares of USP Group Limited), the additional net asset value is [($15 Million - $9.69 Million)/787,753,814]=$0.0067.

However there are many issues as well - such as losses last 4 to 5 years, whether my calculation is correct and increasing debt it takes on for these acquisition.

(Vested recently)

http://tubinvesting.blogspot.sg/

[opmi]

What about the misadventure with Huan Hsin?

[TUBInvesting]

Yup... I read about it as well on the updates. It's a mis-adverture and a done deal. At least the company is doing a follow up and updating it regularly. To me, I feel that this bad news is already accounted for. Unless there is further write down, which I feel the margin of safety is already accounted for.

Hope this explains.

(vested)

[cyclone]

USP’s dissenting shareholders can convene meeting if ignored by board: SGX

By: PC Lee
17/03/17, 12:57 pm

SINGAPORE (March 17): The Singapore Exchange says USP’s dissenting shareholders may themselves convene a shareholders’ meeting within three months from the requisitioning date if USP’s board of directors ignore their request to hold an extraordinary general meeting (EGM), as provided under the Companies’ Act.

This was in response to a query by The Edge Singapore on what would happen if USP ignored requests for an EGM or allowed the deadline of two months to lapse without holding one.

(See also: USP seeking advice on EGM requisition letter, advised to obtain ‘documentary evidence’ of shareholders’ stake)

In an email reply, the SGX spokesperson says the regulator also monitors closely disclosures by listed companies when shareholders have requested for an EGM.

More details in http://www.theedgemarkets.com.sg/article...-board-sgx