Elite KSB Holdings

[CityFarmer]

After disposal of KSB China, the company is a pure cash company, with all asset in cash or cash equivalents.

NAV before special dividend of 6.6 cents, is approx 21 cents. With the current market price of 31.5 cents, there is a premium of 10.5 cents over NAV i.e. approx $15 million.

I am not so sure RTO via the company worth $15 million...

[cheeseburger]

Hi guys,

So where is this heading? seems like the company is ready to close shop.

Now selling KSB china??

[cheeseburger]

BTW, guys,

do you know y KSB shot up to 0.6 cents last nov and suddenly drop till 0.2 plus?? Or did i got the prices wrong?

[Vseeker]

BTW, guys,

do you know y KSB shot up to 0.6 cents last nov and suddenly drop till 0.2 plus?? Or did i got the prices wrong?

coz already paidout total of $0.385 since Nov2012

Company Name Type Expiry Date Record Date Date Paid/Payable Particulars
ELITE KSB HOLDINGS LIMITED DIVIDEND 8 Feb 2013 14 Feb 2013 5 Mar 2013 SGD 0.015 ONE-TIER TAX
ELITE KSB HOLDINGS LIMITED DIVIDEND 16 Nov 2012 20 Nov 2012 30 Nov 2012 SGD 0.355 ONE-TIER TAX
ELITE KSB HOLDINGS LIMITED DIVIDEND 2 Nov 2012 6 Nov 2012 19 Nov 2012 SGD 0.015 ONE-TIER TAX

[andrefre]

Hi CityFarmer!

I've been looking at your posts on Elite KSB and would appreciate some advice.

On 18/6/2013, the company announced a Proposed Capital Reduction and Cash Distribution of $0.066 per share subject to the EGM.

On 26/6/213, the company announced an "Interim Dividend number 11" of $0.055 per share.

Q1) Are these 2 the same things? Is it a typo?

Q2) If not, is the $0.066 still outstanding and not paid yet?

Q3) If the same, why is the amount different?

Q4) Proposed capital reduction is supposed to be subject to EGM. Is the EGM over already?

Thanks for your advice!

Cheers,
Ian

After disposal of KSB China, the company is a pure cash company, with all asset in cash or cash equivalents.

NAV before special dividend of 6.6 cents, is approx 21 cents. With the current market price of 31.5 cents, there is a premium of 10.5 cents over NAV i.e. approx $15 million.

I am not so sure RTO via the company worth $15 million...

[CityFarmer]

Hi andrefre,

EliteKSB has been taken out from my watch-list, due to few new investment projects involved. So I didn't follow it since last post.

Here are my views.

The Proposed Disposal is both a major transaction and IPT, so shareholders approval in EGM is necessary. I don't see the EGM notice been sent, so it should be pending.

The dividend notice is a typo IMO, but i didn't see any correction?

I believe no dividend is distributed today i.e. the pay day as announced , since pre-conditions are not met. Please correct me if otherwise.

(not vested)

Hi CityFarmer!

I've been looking at your posts on Elite KSB and would appreciate some advice.

On 18/6/2013, the company announced a Proposed Capital Reduction and Cash Distribution of $0.066 per share subject to the EGM.

On 26/6/213, the company announced an "Interim Dividend number 11" of $0.055 per share.

Q1) Are these 2 the same things? Is it a typo?

Q2) If not, is the $0.066 still outstanding and not paid yet?

Q3) If the same, why is the amount different?

Q4) Proposed capital reduction is supposed to be subject to EGM. Is the EGM over already?

I feel like the filings have been all over the place and not very clear at all. Not very happy with the way SGX and Elite KSB are handling this whole issue

Thanks for your advice!

Cheers,
Ian

[andrefre]

Hi CityFarmer,

Thanks for the quick reply!

If you don't mind sharing, would love to hear your other investment ideas : )

I think there was an actual dividend distributed today. On 1/7, closing price was 0.335, on 2/7 ex-dividend it was 0.285.

Record date was 5/7, so ex-dividend date is 1/7 which is correct.

I don't think anyone can make a typo, and not get sued for this. My guess is that there was an actual dividend paid. But I'm really not sure why it was so sudden, and not have to be approved at AGM/EGM.

Cheers,
Ian

[CityFarmer]

Hi CityFarmer,

Thanks for the quick reply!

If you don't mind sharing, would love to hear your other investment ideas : )

I think there was an actual dividend distributed today. On 1/7, closing price was 0.335, on 2/7 ex-dividend it was 0.285.

Record date was 5/7, so ex-dividend date is 1/7 which is correct.

I don't think anyone can make a typo, and not get sued for this. My guess is that there was an actual dividend paid. But I'm really not sure why it was so sudden, and not have to be approved at AGM/EGM.

Cheers,
Ian

The record date/time before EGM approval is possible. In fact, it is a common practice for most if not all companies' final dividend announcement. The pay date should be after EGM (or AGM) approval. The announced pay date is conditional.

[cif5000]

It's a good practice to read and reread the announcements before shooting.

There is a proposed capital reduction and an interim dividend. They are independent of each other.

Dividend has to be paid out from profits. Final dividend requires the approval during the AGM while interim dividend does not require a General Meeting. Board approval will suffice. The declaration of dividend is usually done together with the quarterly result announcements for convenience but this is NOT a requirement. Dividend can be declared at anytime of the year as in this case.

After all the retained profits are depleted, paying out more cash can still be done via capital reduction. Capital reduction is a lot more complicated than paying out dividend. e.g. application to High Court. Please refer to the Conditions of the announcement.

[andrefre]

Hi CIF,

Thank you for your clarification. I apologize for my inappropriate comments.

I have read and re-read the dividend announcements many times. I was tripped up because I was not aware that a dividend announcement could be made independent of a quarterly report. Additionally the interim dividend for the HY had already been paid earlier in the year.

Thank you again for your insights.