Metro Holdings

[tonylim]

Do not think the 1 for 5 bonus shares are entitled to the coming 3 cents dividend which was just declared.

Metro FY Press Release:

In addition, to reward its loyal shareholders and increase trading liquidity, the Group
is proposing a 1 for 5 bonus issue. The actual number of bonus shares will depend
on the total number of issued shares as at books closure date (“BCD”). Accordingly,
the bonus shares will be issued to entitled shareholders pari passu (equably) in all
respects with the existing issued shares of the Group. Consequently, the total payout
ratio may increase should the date of issue of the bonus shares fall before the record
date for dividends as at BCD, whereby shareholders of bonus shares will be entitled
to a dividend payout. For illustrative purpose, based on 651,910,193 issued shares
(excluding treasury shares) and as at the date of this Announcement, assuming that
none of the outstanding warrants are converted into new shares, 130,382,038 bonus
shares will be issued.

http://info.sgx.com/webcoranncatth.nsf/V...penelement [Full Press Release]

Nick,
You are right on this. In fact this is the first time I come across new issued bonus shares entitled to dividend declared for the same as that of existing holdings.
Thanks for your clarification.

[yanziyang]

The announcement said that "The Divestment of Huamao by the Metro Group is expected to result in a net gain on disposal of a jointly controlled entity estimated at approximately S$87.4 million (before tax)."

Below is my calculation:
Metro City Beijing's valuation is RMB 1.66 billion as of March 29th, 2011 (according to FY2011 annual report), and sales price is Rmb2.52 billion.
The net profit is RMB 860 millions (2520 - 1660 = 860)
Metro has 50% interest in it, so net profit attribute to Metro Holding will be RMB 430 millions.
The net profit translate into Sing dollar will be S$87.4 million (before tax).

Metro Holding has current asset 532 millions according to FY2011 annual report. And the divest of Metro City Beijing will bring in S$132 million.

So total current asset will be 664 millions after the divest. In comparison, market cap of Metro Holding is 600.4 million only (as of 17/06/2011, before the announcement of divest was released to SGX).

Buffet's mentor Ben Graham ever said 'to invest in stocks in which the liquid assets on the balance sheet (net of current debt) were worth more than the total market cap of the company.

[tonylim]

From SGX Corp action. It shown 2 dividend payments , one each in August and December , 3 cents in July, 2 cents in December.
But Metro only declared final dividend of 3 cents ?

[kazukirai]

From SGX Corp action. It shown 2 dividend payments , one each in August and December , 3 cents in July, 2 cents in December.
But Metro only declared final dividend of 3 cents ?

I think it's because Metro's FY ends in June so the dividends paid in July would be for one FY while the dividends paid in December would be attributed to the following FY.

i.e. July 2010- 3 cent = FY2010 Final Dividend
December 2010- 2 cents = FY2011 Interim/Special Dividend

[tonylim]

From SGX Corp action. It shown 2 dividend payments , one each in August and December , 3 cents in July, 2 cents in December.
But Metro only declared final dividend of 3 cents ?

I think it's because Metro's FY ends in June so the dividends paid in July would be for one FY while the dividends paid in December would be attributed to the following FY.

i.e. July 2010- 3 cent = FY2010 Final Dividend
December 2010- 2 cents = FY2011 Interim/Special Dividend

But Metro did not declare the 2 cents interim dividend , so far only 3 cents final.

[kazukirai]

But Metro did not declare the 2 cents interim dividend , so far only 3 cents final.

I'm assuming you mean the one payable in December 2010.
If that's the case, they did.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_945FABF927AFA934482577D8003662AE/$file/2ndquarterresults.pdf?openelement See point 11.

[tonylim]

Very sorry for the confusion , my mistake on the dates shown were for years 2010 , which I though were for year 2011 and the related dividend ,2 plus 1 cents , just declared by Metro .
Pls disregard my post #33.
Once again , my apology for this mistake.

[dydx]

Today (29Jun11), Metro has gone 'XB' for the 1-for-5 bonus issue, and accordingly, Mr Market has made the appropriate adjustment to Metro's share price - last done at $0.77 - making it 'cheaper' now.

I now look forward to reviewing the FY11 AR and the $0.02/share Final + $0.01/share Special - i.e. total $0.03/share - dividends.

[yanziyang]

Based on yesterday's closing price, today's price after 'XB' shall be:
(0.92 - 0.02 - 0.01) X 5 / 6 = S$0.74

The price at 4:30PM today is S$0.78, so today the price has actually up by 5%.

But it is still greatly undervalued, given the proceeds from divesting of Metro City Beijing which will be in FY2012 H1 financial report.

[ngcheeki]

Based on yesterday's closing price, today's price after 'XB' shall be:
(0.92 - 0.02 - 0.01) X 5 / 6 = S$0.74

Just curious, why is there a need to minus 3 cents from the above
calculation? Is it for 3 cents dividends? But the share has not been
Ex-Dividend yet? If excluding the 3 cents, then the XB share price should be closed to 77 cents instead.