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(27-01-2016, 03:28 PM)Boon Wrote: (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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Hi Grubb,
According to the disclosure, Lu paid USD 45 million for 100% stake (500,000 shares) in TM (Trustee-Manager) Company. This works out to be around TWD 1.5 billion only.
Do we know how much is he paying for the 3% stake in the units of APTT?
A TM of a business trust could be removed by unit-holders with a special resolution passed by a 75% majority of the votes – meaning Lu’s position as TM is not “safe” until he has acquired up to 25% of total issued units in APTT.
And to do that, most probably he would have to buy them from the open market, as the biggest SSH in APTT, according to AR2014, is a group of Temasek related subsidiaries which collectively has a stake of around 8%.
My point is, a 100% stake in the TM company + a 3% stake in units of APPT, is not enough to “do as he likes”.
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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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Lu bought 100% of Macquarie APTT Management Pte. Ltd at US$45 mil (or S$64.4 mil).
Macquarie APTT Management Pte. Ltd own 3% of APTT shares valued at S$25 mil.
Macquarie earned S$39.4 mil out of this deal.
Macquarie may not have come out much cash for their shares as they are allocated from management fee, divestment of MIIF to APTT, etc ?
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(28-01-2016, 11:49 AM)pattanispirit Wrote: Lu bought 100% of Macquarie APTT Management Pte. Ltd at US$45 mil (or S$64.4 mil).
Macquarie APTT Management Pte. Ltd own 3% of APTT shares valued at S$25 mil.
Macquarie earned S$39.4 mil out of this deal.
Macquarie may not have come out much cash for their shares as they are allocated from management fee, divestment of MIIF to APTT, etc ?
It is a bundled deal. We do not know the transaction price of the 3% units in APTT until it is disclosed – it could be at market price, or at a discount/premium to market price.
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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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Sold off at 0.635....I just bought it yesterday 0.58
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APTT declared 2.25 cts dividend.
Dividend Guidance for next financial year is 6.5 - 7.0 cts. Down from current financial year of 8.25 cts.
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Op cashflow before WC changes = $196 mil
Maintenance Capex = approx $50 mil
Income Tax and interest expense = $77 mil
Leftover cash = $69 mil ( approx 4.8 cents per share)
Debt has been increasing and it seems banks are lending to APTT and not expecting repayment of principals
Dividends of 6.5-7.0 cents per share is not sustainable.
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Revenue drop compared to previous quarter.
Revenue
2015 Q4 - 85.6 mil
2016 Q1 - 77.8 mil
Total liability reduced
2015 Q4 - 1.376 bil
2016 Q1 - 1.353 bil
Note:
- Borrowing from financial institution reduced in SGD term
- but.. in TWD, it seems increased from NT28.4 bil (2015 Q4) to NT28.8 bil (2016 Q1)
Cash & Cash Equivalent
2015 Q4 - 60.9 mil
2016 Q1 - 52.5 mil
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APTT shares today touched a new all time low of $0.405. With a dividend payout of $0.01625*4 = $0.065 per annum we are looking at a payback period of 6.23 years to recoup the entire investment through dividends alone. Of course this is assuming they are able to keep paying the 6.5 cents of dividend without any further reductions in the next 6.23 years.
Their profitability this year has been slightly lower than previous years, but the sharp drop in the share price is puzzling. Wondering if anybody out there has an explanation for this extreme pessimism on APTT. Temasek holds 7.93% of the units and the reported transactions were at a price of $0.80 per unit in 2014.
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