Elite KSB Holdings

[Nick]

Can anyone tell me how minorities are going to benefit from the sale - is there any concrete proposal to distribute gains to shareholders?

Or will or the gains be channelled into new core business of property development in China?

If so won't it be better to invest in a company with good track in China properties given that there are many that trades at steep discount as well.

Another great local business snatched from the grasp of public investors. At 10.5 times earnings, it can be argued to be a fair deal for both transacting parties.

Following the buyouts of Adampak, Meiban Group and now Elite KSB (and probably Neratel), I think investors can take heart that scouring the small-cap, undervalued universe can still be a profitable venture.

Question is... which one's next?

Don't think there was any mention about going to China property investment. The current property in Singapore can provide steady rental income but they did try to sell it recently though the authorities rejected the deal. Probably may focus on their animal feed business there and distribute the bulk of the cash as a special dividend. No point speculating on the future till we see some corporate developments.

[cif5000]

Additional point highlighted.

Focus ONLY on China properties market?

"The Disposal gives shareholders an opportunity to realise their investment in the Company in cash while continuing to have exposure to the Company's investments in China, the investment property and potential investment opportunities to be identified by the management team."

The 2 are separate.

1. The investments in China are the 4 associate companies carried at $6.8m.
Share of profit for FY11: $2.5m

2. The investment property is 2 Senoko Way. Earlier on, a buyer offered $12m for the property but the deal was rejected by the authorities for the intended use. It is now priced at $9.3m.

[CityFarmer]

Focus ONLY on China properties market?

"The Disposal gives shareholders an opportunity to realise their investment in the Company in cash while continuing to have exposure to the Company's investments in China, the investment property and potential investment opportunities to be identified by the management team."

The 2 are separate.

1. The investments in China are the 4 associate companies carried at $6.8m.
Share of profit for FY11: $2.5m

2. The investment property is 2 Senoko Way. Earlier on, a buyer offered $12m for the property but the deal was rejected by the authorities for the intended use. It is now priced at $9.3m.

Thanks for the highlight.

After went into detail, does it serve as a potential Asset-play?

I checked the disposal announcement with termination clauses. Base on my understanding, the following will terminate the sales

- Receive any gazette notification under the Land Acquisition Act (Chapter 152) of Singapore on properties included in the sales
- Shareholder agreeement on GM

Do i miss out anything?

[CityFarmer]

RESPONSE TO QUERIES BY SGX-ST IN RELATION TO THE DISPOSAL OF THE ENTIRE ISSUED AND PAID-UP CAPITAL OF KSB DISTRIBUTION PTE LTD, JORDON INTERNATIONAL FOOD PROCESSING PTE LTD, SOONLY FOOD PROCESSING INDUSTRIES PTE LTD AND SAFA GOURMET FOOD PTE. LTD.

http://info.sgx.com/webcoranncatth.nsf/V...7003A6191/$file/EliteKSB_Announcement-SGX-ST_Queries.pdf?openelement

[pianist]

RESPONSE TO QUERIES BY SGX-ST IN RELATION TO THE DISPOSAL OF THE ENTIRE ISSUED AND PAID-UP CAPITAL OF KSB DISTRIBUTION PTE LTD, JORDON INTERNATIONAL FOOD PROCESSING PTE LTD, SOONLY FOOD PROCESSING INDUSTRIES PTE LTD AND SAFA GOURMET FOOD PTE. LTD.

http://info.sgx.com/webcoranncatth.nsf/V...7003A6191/$file/EliteKSB_Announcement-SGX-ST_Queries.pdf?openelement

seems like a sensible decision considering the plenty of suitors over the past several years and the age of the 2 chew founders. post-disposal passive income seems to hover around 3million..that not bad i think

[CityFarmer]

RESPONSE TO QUERIES BY SGX-ST IN RELATION TO THE DISPOSAL OF THE ENTIRE ISSUED AND PAID-UP CAPITAL OF KSB DISTRIBUTION PTE LTD, JORDON INTERNATIONAL FOOD PROCESSING PTE LTD, SOONLY FOOD PROCESSING INDUSTRIES PTE LTD AND SAFA GOURMET FOOD PTE. LTD.

http://info.sgx.com/webcoranncatth.nsf/V...7003A6191/$file/EliteKSB_Announcement-SGX-ST_Queries.pdf?openelement

seems like a sensible decision considering the plenty of suitors over the past several years and the age of the 2 chew founders. post-disposal passive income seems to hover around 3million..that not bad i think

Another important reason for the disposal is the meat processing biz is reaching a saturation point for EliteKSB, little room for horizontal growth. Need to go vertical in supply chain for growth. The EliteKSB does not feel comfortable with the biological risks involved.

Agreed. A very sensible decision indeed.

[cif5000]

After went into detail, does it serve as a potential Asset-play?

I am actually quite tired of hearing the New Toyo quartet in the other thread. This one drums a more soothing tempo.

[CityFarmer]

After went into detail, does it serve as a potential Asset-play?

I am actually quite tired of hearing the New Toyo quartet in the other thread. This one drums a more soothing tempo.

I know little on New Toyo, and pay little attention to it too. But your posting make me curious on what is happening there

[CityFarmer]

Insider buying for Elite KSB, after the disposal announcement recently

Peter Tan, a director, bought 55 lots @ $0.44

http://info.sgx.com/webcorannc.nsf/Annou...endocument

[CityFarmer]

End of June is the close of the year for Elite KSB. We will soon to get the FY2012 final result, typically in Jul/Aug time-line.

The share price is marginally moving up in the last few days, stay above the insider buying price @ $0.455

Let's see how the capital distribution and dividend will be paid?

(vested)