San Teh

[cyclone]

2 more legal proceedings : legal proceedings in Shanghai
http://infopub.sgx.com/Apps?A=COW_CorpAn...112016.pdf

[cyclone]

Notice of 3 Consecutive Years' Losses

Rule 1311(1) of the Listing Manual states that the Exchange will place an issuer on a watch-list if it records: pre-tax losses for the three (3) most recently completed consecutive financial years (based on audited full year consolidated accounts); and an average daily market capitalisation of less than S$40 million over the last 6 months.

Latest 6-month average daily market capitalisation : S$75,713,482.

[cyclone]

Notice of 3 Consecutive Years' Lossses

San Teh gives notice that:
(i) it has recorded pre-tax losses for the three (3) most recently completed consecutive financial years (based on audited full year consolidated accounts); and
(ii) its latest 6-month average daily market capitalisation as at 19/03/2019 is S$59,472,654

More details in https://links.sgx.com/1.0.0/corporate-an...uddies.com

[cyclone]

Profit Guidance for the Second Quarter Ended 30 June 2019

The Directors of San Teh Ltd  would like to inform that following a preliminary assessment of the Group’s unaudited consolidated financial results, the Group expects to report a loss for 2Q2019 due mainly to:
(1) Exchange loss arising from the weakening of the Renminbi and US dollar against the Singapore dollar; and
(2) Operating loss reported by the hotel and property operation.

Further details of the Group’s results will be made available when the Company announces its unaudited consolidated financial results for 2Q2019 on 14 August 2019.

[cyclone]

Request for Trading Halt : Pending release of an announcement.

[cyclone]

Voluntary Conditional Cash Offer

For each Offer Share: S$0.28 in cash

The Offer Price is final and the Offeror does not intend to revise the Offer Price save that the Offeror reserves the right to revise the terms of the Offer in accordance with the Code if a competitive situation arises;

The Offer Price is :
* 81.82% Premium over Last traded price per Share on 3 September 2019, being the Last Trading Day of S$0.154
* 72.84% Premium over VWAP for the 12-month period prior to and including the Last Trading Day of S$0.162
but
* 44% Discount from net asset per share as at 30 June 2019 of S$0.5

More details in https://links.sgx.com/FileOpen/STL%20VGO...eID=577530

[AQ.]

Personally I hope this offer does not go through.

NAV 50c, but RNAV is much higher:

a. Investment properties in Shanghai Anting, Nantong mall, unit in LHK building has reval of 125mio vs carrying of 56mio i.e. 20c of reval gains
b. Nantong hotel has been reclassified to PPE but valuation should be higher as well
c. there's prob also hidden values in the land on which their PVC factories sit, together with the Dali plots of land
d. the huge plot of land that the Suzhou resort/hotel sits on

All in, RNAV should top 80c conservatively

Kaos currently own 67% with Poh Choo Bin 5+%, and the 2 IDs (Gui Kim Young and Chuang WenFu) combined 2.1%
To privatise @ 28c, the Kaos need 0.33*342*0.28 = $31mio, but there's 23mio of cash + 12mio of financial assets on the balancesheet i.e. no personal cash needed to buyout the OPMIs.

While the past 5 yrs have been disastrous with lawsuits, and next 2-3yrs looks flat with gestation periods in the Suzhou+Nantong hotels, the buyout offer is just too low agst real assets.

[pianist]

Personally I hope this offer does not go through.

NAV 50c, but RNAV is much higher:

a. Investment properties in Shanghai Anting, Nantong mall, unit in LHK building has reval of 125mio vs carrying of 56mio i.e. 20c of reval gains
b. Nantong hotel has been reclassified to PPE but valuation should be higher as well
c. there's prob also hidden values in the land on which their PVC factories sit, together with the Dali plots of land
d. the huge plot of land that the Suzhou resort/hotel sits on

All in, RNAV should top 80c conservatively

Kaos currently own 67% with Poh Choo Bin 5+%, and the 2 IDs (Gui Kim Young and Chuang WenFu) combined 2.1%
To privatise @ 28c, the Kaos need 0.33*342*0.28 = $31mio, but there's 23mio of cash + 12mio of financial assets on the balancesheet i.e. no personal cash needed to buyout the OPMIs.

While the past 5 yrs have been disastrous with lawsuits, and next 2-3yrs looks flat with gestation periods in the Suzhou+Nantong hotels, the buyout offer is just too low agst real assets.

based on yr analysis, I suppose u r holding onto the shares?
i'm contemplating whether to accept

[AQ.]

Personally I hope this offer does not go through.

based on yr analysis, I suppose u r holding onto the shares?
i'm contemplating whether to accept

no i am not accepting.

[pianist]

The last fy net losses ballooned mainly due to Dali exposures write down, and fx translational losses, like what u said, seems like a turn around going forward although mgt refuses to pay out dividends