UIC has ZERO share in any of those listed companies and UOL shareholding increased from about 15% in 2009 to about 42.5% currently. That say something about being interested in UOB only.
I don't know what is % that the inner group of Gokongwei hold but for wee side(companies & "friends"), it should be nearer to 50%, likely to be around 48%. The end game is very near but why fight a costly bidding war?
Does Wee has control with 20% to 30% shareholding in these companies? Why not. But it doesn't stop other to build up their stake as there are still 70% to 80% "free" for someone who is gamed enough.
Another kind of game will be if Wee sees that company A, company B and company C are good, strong and cheap enough. He can start buying company A while at the same time make company A to buy company B and let company B to buy company C. End of the day, he paid for company A but owned 3 companies. What more Wee will benefit even more being the "head" as every company is being purchased cheaply.
another thing to think about is the price of the stock.
The raider has a number for the offer price in his head and a timeline by when he may acquire enough to make an offer. If you try to bid it too high it will change the average price and affect his offer price so he may push it down later to a level he is comfortable with. Remember he may be a loaded wealthy raider but for such a large takeover he also needs to calculate his resources down to the pennies.
The defender on the other hand may try to encourage the price to become higher thereby hurting the raider but it also cannot be too high as he may also be thinking of buyout his own company later too so high price may also hurt his efforts and strategy. That's why this a long patient game.
an offer now is not really beneficial to the Wee. I don't think it will happen any soon. leave it as it is, it won't hurt the Wee. In the meantime, they can slowly buy from open market.
- UIC purchased an aggregate of 200k shares of SingLand on the open market on Wed, at an average price of $9.08. UIC’s deemed interest in SingLand increased from 79.980% to 80.028%.
(01-01-2011, 05:04 PM)yeokiwi Wrote: Playground for Go Kong Wei and Wee Cho Yaw.
Both do not seem to be very interested to reward the minority shareholders.
Both do not want to give up their stake.
I think this tug of war will continue at least until one of them bites the dust?
But never mind lah, their UIC washing powder is quite good
Hey yeokiwi, I'm aware that both of them are interested in the shares. But during the financial crisis, the share price drop to $1. Any idea why both of them didn't enter the market and suck up all the shares?
Hi Thriftville,
During the crisis, UOB made an offer to buy 15 million shares at 1.2 a share.
They ended up with 3 million shares bought out from shareholders and 45% stake.
AT the same time, Telegraph Investments also kept buying shares.
I looked at it today as there was a note in The Edge that Wee Cho Yaw bought 100,000 shares last week.
Disclaimer :-
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures
UIC Q3 earnings rise 37% to S$59.7m
By
Kalpana Rashiwalakalpana@sph.com.sg@KalpanaBT
1 Nov5:50 AM
Singapore
UNITED Industrial Corporation (UIC) has posted a 37 per cent year-on-year increase in third- quarter net profit to S$59.69 million, on the back of a 17 per cent rise in revenue to S$178.38 million.
Another factor that boosted the bottomline was a near doubling in share of
I have been a holder of UIC for quite sometime now. I can see that WCY has been buying up UIC via UOL over the past years after his takeover attempt in 2009. Previously, GKW has also been buying but he seems to have stopped this year.
Any idea what plans these 2 might have for this company? Delisting via <10% free float seems the most likely option but I am just wondering what reasons they might have for waiting.
I have calculated and together WCY + GKW need roughly 4% of shares which translates into about $200m at current share price to hit the 90% mark collectively but I am unsure if they are friendly or hostile parties.
As the P/B of this counter is rather high at 80% as compared to other developer cum property investment companies (UOL 70%, CapLand 70%) would you rather sell this stock and rotate into say UOL which will benefit indirectly should a delisting happen?
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