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(10-08-2012, 08:34 PM)CityFarmer Wrote: New update of the EliteKSB disposal.
http://info.sgx.com/webcorannc.nsf/Annou...endocument
The property at 2 Senoko Way is confirmed as part of the disposal, with revised price from $9.3 Mils to $10.8 Mil
The revised net sale proceeds is approx $71.8 Mils. Approx $1.5 Mils more than original expected.
The management intends to distribute to Shareholders by way of a one-off special dividend at least 55% of the net proceeds of the Disposal excluding the Balance Purchase Price
It work out to be at least $34 Mils, or least 25 cts per share. IMO, the final dividend should be higher than that. 
(28-08-2012, 06:40 PM)CityFarmer Wrote: Elite KSB announced their full year report, pending for the final settlement of the disposal.
http://info.sgx.com/webcorannc.nsf/Annou...endocument
Few points to note are
- The book value of the China investment increases from $6.8 Mils to $10.5 Mils
- The earning of the China investment increase from $2.5 Mils to $2.9 Mils, an increase of 16%
Pending with the special dividend after the disposal, the company had declared 1.5 cts final dividend
I am expecting at least 25 cts special dividend from the disposal, so total 26.5 cts including the final dividend.
Spot On. Salute!!!
Not a call to Buy or Sell
Mr Bump: All I Can Smell Is My FEAR
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Just came back from the Elite AGM and EGM. The disposal resolutions were approved. I also have the impression that the special dividend after the divestment will be greater than 25 cents.
Vested.
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Their future will greatly depend on Chew Ghim Bok's ability to pull off an RTO at a value creating valuation for the company's shareholders. What was interesting (at least to me) was that he opined that having cash in the company and not just the listing status was a positive as the cash can be valued at a premium when negotiating with the RTO acquirering company as other RTO shells may not bring any cash to the table at all.
I also got the impression that the associates are doing okay but that their continued good contribution (double digit dividend on cost) is not under Elite's control and influence.
Overall came away feeling quite positive and picked up a bit more at 52 cents just now.
Vested.
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(29-10-2012, 01:54 PM)nsengkia Wrote: Their future will greatly depend on Chew Ghim Bok's ability to pull off an RTO at a value creating valuation for the company's shareholders. What was interesting (at least to me) was that he opined that having cash in the company and not just the listing status was a positive as the cash can be valued at a premium when negotiating with the RTO acquirering company as other RTO shells may not bring any cash to the table at all.
I also got the impression that the associates are doing okay but that their continued good contribution (double digit dividend on cost) is not under Elite's control and influence.
Overall came away feeling quite positive and picked up a bit more at 52 cents just now.
Vested.
You are really fast in action. Good for you.
I agree with you the special dividend should be very likely more than 25 cents.
With more clarity and additional information, time to redo the valuation of the company. Previous valuation of mine is approx 60 cents, i do feel that it maybe more...
IMO, to acquire more @ $0.52 make sense...
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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The RTO is required to maintain Elite's SGX listing status going forward as its remaining assets are only its investments in its associates on a non-controlling basis i.e. Elite becomes a cash shell company. The only employees left after the divestment are the finance guy and Chew Ghim Bok himself.
Double digit dividend on cost because dividend given by its associates are around $2 million on their $10 million investment book value.
On why Shandong, I speculate (but did not ask) that it because the investment was made based on knowing the associates' controlling shareholder rather than on a particular location.
On an aside, he also mentioned that the associate was number 5 in the China Feedmill business which is very competitive and fragmented (2000+ competitors).
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Done deal today or postpone again?
Not a call to Buy or Sell
Mr Bump: All I Can Smell Is My FEAR
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(31-10-2012, 05:11 PM)kbl Wrote: Done deal today or postpone again?
Major hurdles are cleared, should be done deal. Will be confirmed by announcement, probably tomorrow...
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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