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APT has been trying to ramp up its Telco service, but as the fourth/fifth entrant (the other being Taiwan Star) in such a high fixed cost business, it has a considerable way to go before it can make a profit. Losses have been increasing every month in fact.
On Taiwan Exchange, you can search for the monthly operating profits. FYI, this disclosure is not required by regulators, i.e. voluntary. APT's ticker is 3682. The ROC year is 104 for year 2015.
http://mops.twse.com.tw/mops/web/t138sb02_q1
Obviously, Foxconn/APT wants to get more product offerings to bundle their service to attract consumers. The question here is ---> With such a long way to ramp before profits can be even made (if ever), how aggressive will APT be in pricing and capex? I won't be surprised if APT decides to make APTT take on more debt to expand its network aggressively. APTT is a business trust and therefore there is no minimum required distribution payout. Basically, I'm saying that I think APT's vested interest is not necessarily aligned with APTT unitholders. APT has Foxconn's backing and a lot of cash to burn, so expect this to last a long time.
Another risk is the entry of Netflix/internet TV. How long cable TV can maintain its pricing is anybody's guess.
I am not familiar with APTT, so if my comments are not accurate I welcome your corrections.
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Lu, Fang-Ming business.
Lu, Fang-Ming
Lu, Fang-Ming
--->Dynami Vision Ltd. (Taiwan)
--> Brave Guts Ltd. (BVI)
--->Gear Rise Ltd. (BVI)
--->Dynami Vision Pte. Ltd. (Singapore)
Note: Each shareholding percentage is 100%
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Asia Pacific Telecom chairman to obtain 100% stake in Macquarie APTT Management
Irene Chen, Taipei; Adam Hwang, DIGITIMES [Tuesday 26 January 2016]
Lu Fang-ming, chairman for mobile telecom carrier Asia Pacific Telecom and vice president for Foxconn Electronics, has announced that Dynami Vision, a new company he wholly owns, will acquire a 100% stake in Singapore-based Macquarie APTT Management, a contract managing company of Singapore-listed APTT (Asian Pay Television Trust).
APTT holds a 100% stake in Taiwan-based MSO (multi-system operator of cable TV) Taiwan Broadband Communications (TBC).
As Macquarie APTT Management manages APTT, which wholly owns of TBC, the acquisition will maintain existing operation of TBC, Lu said.
Although the acquisition will not change the structure of stake in TBC, Lu did not reveal details of Macquarie APTT Management's contract management of APTT, especially whether the management involves APTT's decisions on TBC's operation, assets sales, appointment of executives as well as disposal of TBC stock shares. While Lu is the sole owner of Dynami Vision at present, the company could introduce other shareholders through expanding paid-in capital in the future, industry sources said.
As Foxconn is a major shareholder of Asia Pacific Telecom, the acquisition is interpreted as Lu's paving the way for Foxconn to extend to cable TV business, which will be closely related to operation of Asia Pacific Telecom to realize Foxconn's promotion of digital convergence, the sources said.
http://www.digitimes.com/news/a20160126PD200.html
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Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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the golden question is will Lu Fang-Ming delist APTT after acquisition and how much ?
being Taiwanese richest & shrewd biz man, i don't see why Terry Gou would keep paying dividends to sinkie just like how Li Ka-shing treating Hutchison Port Holdings Trust.
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27-01-2016, 11:17 AM
(This post was last modified: 27-01-2016, 11:25 AM by CY09.
Edit Reason: edits
)
He is going to own 3% of APTT only. Thats like only 25 Mil in value.
So my answer to the golden question is he is unlikely to delist APTT after acquisition. Even if he is to delist, it is only likely after APTT has fallen by a significant value from what he has purchased. He is probably more interested in the APTT management who is extracting a nice mgmt/performance fee for managing an average business trust owned by sinkies.
*The fund manager gets about $7 Mil in fees annually
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You have already answered the question. Being Taiwan's richest and shrewd businessman, instead of paying a 30-40bn TWD to buy out APTT, he bought out the management company instead at about 10bn TWD. Thereafter, cut dividends and use APTT OPMI funds to aggressively expand network in order to ramp up scale of APT telco service.
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27-01-2016, 01:02 PM
(This post was last modified: 27-01-2016, 01:02 PM by pattanispirit.)
that's is a very good deal !
with current yield about 14% and 7 mil (7/25 = 28%) management fee, his yield would be 42% ! ! !
correct me if i'm wrong, investment of 25 mil will come back in less than 2 and half years ! ! !
if the 25 mil is on loan, the yield is even higher ! ! !
as usual, i always suspect macquarie has some form of kick back when they sell their asset undervalue to others as seen how they divest MIIF assets in last few years.
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(27-01-2016, 11:26 AM)grubb Wrote: You have already answered the question. Being Taiwan's richest and shrewd businessman, instead of paying a 30-40bn TWD to buy out APTT, he bought out the management company instead at about 10bn TWD. Thereafter, cut dividends and use APTT OPMI funds to aggressively expand network in order to ramp up scale of APT telco service.
If unit-holders of a business trust is not happy with a TM (Trustee-Manager) that controls only 3% of the total units, just vote him out ! ha-ha!
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Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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(27-01-2016, 09:48 AM)Ray168 Wrote: Lu, Fang-Ming business.
Lu, Fang-Ming
Lu, Fang-Ming
--->Dynami Vision Ltd. (Taiwan)
--> Brave Guts Ltd. (BVI)
--->Gear Rise Ltd. (BVI)
--->Dynami Vision Pte. Ltd. (Singapore)
Note: Each shareholding percentage is 100%
Lu buy 500K share 27012016
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(28-01-2016, 10:12 AM)Ray168 Wrote: (27-01-2016, 09:48 AM)Ray168 Wrote: Lu, Fang-Ming business.
Lu, Fang-Ming
Lu, Fang-Ming
--->Dynami Vision Ltd. (Taiwan)
--> Brave Guts Ltd. (BVI)
--->Gear Rise Ltd. (BVI)
--->Dynami Vision Pte. Ltd. (Singapore)
Note: Each shareholding percentage is 100%
Lu buy 500K share 27012016
Lu bought the entire 500k shares in the Trustee-Manager Company which represent 100% ownership - not 500k of units in APTT.
_____________________________________________________________________________________________________________________________________
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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