Frasers Property (formerly: Frasers Cpt (FCL))

[greengiraffe]

Thai billionaire trumps Steinert
Tony Boyd
1331 words
5 Jun 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
Chanticleer
The $2.6 billion cash ¬takeover proposal for Australand by Singapore-based Frasers Centrepoint marks the end game of one of the strangest and most drawn-out changes in control ever seen in the local property market. Frasers, which is controlled by ¬Thailand's richest man, Charoen Siriv¬adhanabhakdi, has plumped down a huge price for Australand a year after Singapore-based CapitaLand put its 60 per cent stake up for sale.
It is easier to understand why Sirivadhanabhakdi is late to the Australand takeover game, but much harder to figure out why Mark Steinert at Stockland will end up being the loser. Mind you, Steinert will walk away from the deal with $80 million in profit and about $14.5 million in upcoming distributions. That should soothe his wounded pride, but it still doesn't explain why he missed a fantastic growth opportunity.
One explanation for Steinert's misstep in the Australand battle is that he was lumbered with so much baggage from the past when he took control of Stockland in ¬January last year.
Under previous management, Stockland had taken stakes in rival property groups and then done nothing. It appeared to miss out on doing the necessary strategic planning before splashing out shareholders' funds. That less-than-stellar history helps to explain why Steinert has repeatedly told investors in Stockland that he would be "disciplined" when undertaking corporate expansion.
It took him some time to get the Stockland house in order after getting his feet under the CEO's desk. That could explain why he was not an early buyer of the CapitaLand shareholding in Australand.
The Singaporeans were sellers because they took the view that Australian property offered less attractive growth prospects compared to opportunities in Asia. It regarded Australand as a sub-optimal real estate play with little opportunity to achieve the sort of growth in China and Singapore.
The board of CapitaLand, which includes former ANZ Banking Group chairman John Morschel, started a process in January last year to get out of Australand. News of that move saw the stock price spike from about $3 to $3.50.
Nevertheless, it was possible that an early and enthusiastic buyer of the CapitaLand stake in Australand could have secured the holding for a price that included a relatively small premium for control.
But CapitaLand struggled to find a buyer and it was not until late in 2013 that 20 per cent of the company was moved into the hands of Citi. That was later sold to Stockland as a cornestone investor, underpinning the sale of the remaining 40 per cent across the market.
What is strange is that Stockland did not take the opportunity presented by the CapitaLand sale to secure control of the company. Steinert sat on his 20 per cent stake for several months before bidding with a cash and scrip offer.
He presented compelling arguments in favour of buying Australand. It was complementary to his existing portfolio of assets and provided a medium- to long-term growth path.
The story resonated well with Stockland's investors, but they were careful to ensure there would not be a repeat of previous overambitious expansion strategies in the real estate investment trust sector.
Steinert's mantra about discipline in bidding was shown when he decided to bid against himself to gain a board recommendation. He offered a minimal increase in his cash component and a slight tweak to the share swap ratio.
Having failed to gain a recommendation and being outbid comprehensively by Frasers Centrepoint, Steinert will be pressured by his shareholders to accept the offer and walk away with his capital gain.
This has not been a losing exercise for him, but he has missed a good growth opportunity. Then again, he may pick up some assets from Frasers Centrepoint, given that it is taking a pretty big bite. Frasers Centrepoint has a market cap of about $4.8 billion, just on double the size of the takeover offer for Australand of $2.6 billion.
The financial power of Sirivadhanabhakdi was shown last year when he took control of Fraser & Neave with a bid that including $US10.7 billion in equity.
Frasers Centrepoint's excuse for not pouncing on Australand earlier in the piece is a pretty strong one. The company did not exist until January. It was spun out of Fraser & Neave as a demerger.
That in itself explains why the property arm of Sirivadhanabhakdi is only now stepping up its expansion in Australia.
The takeover of Australand will be in keeping with the Asia-Pacific expansion strategy for a group that is no stranger to Australia. It has already invested about $1 billion in the residential market and last month it purchased the Wentworth Sofitel Hotel for $202 million.
Frasers Centrepoint is in a much better strategic position than Stockland should Steinert decide not to walk away.
A cash offer is certain and does not change with the vagaries of the market, as can occur with a cash and scrip offer. Also, in several weeks' time Stockland will go ex-dividend, which will suppress the value of Steinert's offer.
The entry of Sirivadhanabhakdi into the Australian property market in a big way is a ringing endorsement for the residential property market, which is likely to be well-supported by record low interest rates until at least the end of the year, despite the strong first-quarter GDP growth.
tony.boyd@afr.com.au Twitter @TonyBoydAFR
Tony Boyd

Fairfax Media Management Pty Limited

Document AFNR000020140604ea650002a

[greengiraffe]

Thai beer baron bids for Australian developer

Samantha Hutchinson
521 words
5 Jun 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.

Thai billionaire and beer baron Charoen Sirivadhanabhakdi is no stranger to a good old fashioned takeover.

The sixth child of a street vendor and a household name throughout Thailand, Sirivadhanabhakdi has a net worth of more than $12 billion.

The billionaire, who has been knighted four times in his home country, catapulted into the ranks of the region's top tycoons when he took control of Singapore based company Fraser&Neave in 2013 in a deal worth $11.2 billion.

Sirivadhanabhakdi gained 90 per cent of the company and its vast port­folio spanning soft drinks, dairy and publishing interests, in addition to an established property portfolio developing and managed interests.

And now he has his eyes on Australia, in the form of a $2.6 billion play for large-scale residential developer Australand, under F&N's old property arm, now renamed Frasers Centrepoint.

Its been an eventful year for Frasers Centrepoint. Mr Sirivadhanabhakdi broke ground at F&N hiving off the real-estate assets from the rest of the business in a bid to establish a separate pure-play property group known as Frasers Centrepoint. It debuted on the Singapore Exchange in January.

It now has a market capitalisation of $4.8 billion and total assets of $9.8 billion, with a residential pipeline across China, Singapore and Australia of almost 10,000 homes, and controlling interests in two Singapore-listed REITs.

In Australia, Frasers Centrepoint is best known under its subsidiary ­Frasers Property Australia, with flagship projects including Perth's $450 million Queens Riverside development and Sydney's Central Park, a $600 million joint-venture with ­Sekisui House in Broadway.

Some observers are unsure how the group will approach Australand's land bank – some of which is on the outskirts of cities – and its mix of housing stock which is typically pitched as good quality housing at an affordable price.

Frasers have carved a niche locally developing executive-style housing and luxury serviced apartments close to the city centre, often with big-name architects including Jean Nouvel and Koichi Takada.

Chief executive Guy Pahor – a former architect and co-founder of Citta Property Group – has made no bones of the fact the group has a razor-sharp focus.

In December the group offloaded a prime site the Parramatta river to Chinese group Fuxing Huiyu Real Estate Co for $58 million.

"Our core focus going forward is going to be on the inner-city area. We've got to do what we do best," Mr Pahor told The Australian Financial Review.

But its portfolio is growing. The group this month snared the upscale landmark Sofitel Wentworth hotel from LaSalle Investment Management for $202.7 million.

Sirivadhanabhakdi rose to prominence building Thailand's biggest ­beverage company, ThaiBev and an impressive portfolio of land, including shopping centres and Marriott and InterContinental hotels and New York's Plaza Athenee Hotel has come later.

Key points Sirivadhanabhakdi took control of Fraser&Neave in 2013 for more than $12bn. Frasers Centrepoint is best known under its subsidiary ­Frasers Property Australia.


Fairfax Media Management Pty Limited

Document AFNR000020140604ea6500014

[greengiraffe]

Stockland not likely to top $2.6b Australand offer

Matthew Cranston
585 words
5 Jun 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.

Stockland stands to make an $85 million profit from its holding in Australand after a $2.6 billion counter-bid from Singapore-listed suitor Frasers Centrepoint.

Shares in Stockland shot up by as much as 3 per cent during trading on Wednesday following Frasers's all-cash offer valuing Australand at $4.48.

Stockland which bought the majority of the stake less than three months ago "to explore strategic opportunities" is not expected to make a third offer.

Fund managers are betting that Stockland's scrip offer will not be enough to win over investors attracted to Frasers's all-cash proposal.

"When push comes to shove investors go for the cash, not tax relief," one major Australand investor said on Wednesday, referring to the tax advantage of an all-scrip offer.

Credit Suisse analyst John Richmond told clients there were also risks to a counter Stockland offer.

"If Stockland were to make a counter offer, the risk is that its share price would fall given fears of a bidding war, resulting in a lower value of Stockland's scrip bid," Mr Richmond said.

Citi analysts have estimated the takeover offer could rise to as much as $4.58 per security.

Stockland, which purchased a 19.9 per cent stake in Australand in March, said on Wednesday it would "consider its options and provide an update in due course".

Stockland is being advised by Citigroup, Merrill Lynch and UBS, while Australand is being advised by Fort Street Advisors, Macquarie Capital and King & Wood Mallesons.

Frasers has appointed Deutsche Bank and Standard Chartered Bank as its advisers.

Frasers is backed by Thailand's third-richest man, Charoen Sirivadhanabhakdi, through his company TCC Assets. Frasers has an existing Australian pipeline of five projects, including its landmark $2 billion Central Park project in Sydney.

Frasers Centrepoint chief executive Lim Ee Seng said the company's proposal would "catapult" Frasers into being one of Australia's leading real estate companies with a portfolio of scale and quality.

"Australia is a core market for Frasers," he said. "The group chose to enter the Australian market over a decade ago due to favourable fundamentals including its transparent regulatory environment, strong corporate governance, as well as its deep and mature property market."

Frasers' offer for Australand represents a 21 per cent premium to Australand's estimated net tangible assets per security at June 30.

Australand shareholders value the offer per security at $4.61 as Australand's distribution for the second half of fiscal 2014 is included.

Australand chairman Paul Isherwood said the board concluded that the conditional Frasers proposal would deliver a "compelling value outcome" for Australand shareholders and was superior to the final and conditional proposal that had been received from Stockland.

"Accordingly, the board has determined to progress the proposal with Frasers to determine whether an offer that is capable of acceptance can be presented to Australand security holders," Mr Isherwood said.

Australand added some heat to the takeover activity last week by lifting its own earnings guidance.

That guidance was now expected to increase by 20-25 per cent – and anticipated a $76 million upgrade of its investment portfolio, which would increase net assets per security by 3¢ to $3.68 per security.

Shares in Stockland and Australand rose 1.8 per cent and 5.6 per cent respectively.

Frasers Centrepoint was down 4.1 per cent in late trading to $S1.84 ($1.57).


Fairfax Media Management Pty Limited

Document AFNR000020140604ea6500013

[greengiraffe]

The article was issued prior to FCL's surprised bids but would remain relevant to FCL's rationale for the show-hand bid at the eleventh hour...

Synergies for Australand

Taking stock Larry Schlesinger
295 words
4 Jun 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.

Australand security holders are being urged to accept Stockland's higher, all-scrip bid, which equates to $4.35 per security on a net asset value (NAV) basis.
As both companies embark on due-diligence of each other's operations, Australand may be jostling for a better offer after lifting full-year earnings guidance by 4 per cent and anticipating a $76 million lift in its investment portfolio following independent valuations.
Australand securities have risen to a new post-GFC high of $4.31. But analysts believe what's been put on the table by Stockland is a final, full price offer and won't be sweetened further.
"If the deal were to fall over," wrote Credit Suisse analyst John Richmond in a new note, "we believe Australand would trade back towards our $4.03 stand-alone NAV".
Morningstar analyst Tony Sherlock said his firm continued to view Australand as overvalued on a standalone basis with the stock trading about 10 per cent above Morningstar's valuation.
Stepping back from the financials, property market fundamentals indicate that both Australand and Stockland security holders would benefit from ownership of a bigger listed entity, strongly weighted to the residential and industrial markets.
As Stockland boss Mark Steinert highlighted in an address last week, Australian developers are not building nearly enough homes to meet population growth, despite new home sales rising. Interest rates are low and housing affordability is improving.
Sweetening the deal further would be the creation of the second-biggest logistics warehouse and business park portfolio in Australia (after Goodman Group) once Australand's $1.2 billion worth of assets are tipped in. Demand is high for modern, automated facilities from retailers and third-party logistics providers.

Fairfax Media Management Pty Limited

Document AFNR000020140603ea6400008

[greengiraffe]

Hi All Buddies,

FCL's bid for Australand appears to be quite a big deal in today's AFR. I have posted 4 relevant articles on what the views on FCL here and 2 other threads under Australian Property.

Take time to read as I personally do not think local analysts have a good feel apart from parroting what company management presents.

Capland's divestment of Australand is the classic example. I have been puzzled and negative on their moves right from the start especially since I have been tracking Australian property news closely.

Anyway, its pointless and dangerous driving looking into the rear mirror. Towkay Charoen's latest move led by FCL will be very interesting to watch. While the magnitude of which may not match that of his tilt for F&N/APB in 2012, it is certainly strategic from the perspective of the future of FCL given that it is still a relatively new kid on the SGX property block and its market cap is just behind HKL, GLP, Capland and City.

Vested
GG

[greengiraffe]

Reuters

PUBLISHED JUNE 06, 2014
Australand bet cements risk for Thai tycoon

[HONG KONG] A Thai tycoon's US$2.4 billion bet on Australian property has revived concerns that he is overextending himself.
Charoen Sirivadhanabhakdi took control of conglomerate Fraser & Neave last year in a US$11 billion deal. Now he is seeking to increase his exposure down under with an offer to buy Australand.
By diversifying away from Singapore, he risks piling more debt on an empire still digesting its last big acquisition.
Cooling measures in Frasers Centrepoint's core Singapore market have caused property prices to stagnate.
Conditions are unlikely to change ahead of key elections in the city state in 2016. Australia's buoyant property market, where residential prices have risen by 10.9 per cent in the past 12 months according to Knight Frank, looks attractive.
Besides, Frasers Centrepoint already earns 17 per cent of its operating profit down under.
Mr Charoen's rich bid for diversification is likely to deter rivals. Frasers Centrepoint is offering the equivalent to A$4.60 per unit for the Australian group, including dividend distributions for the first half of the year. That trumps an offer from rival developer Stockland which is mostly in shares.
Mr Charoen's bid is also 5 per cent above the takeover value of Australand estimated by analysts at Credit Suisse.
Yet the bid will add to unease about Mr Charoen's borrowings which have been bubbling since he won the battle for Fraser & Neave last year.
The tycoon subsequently split the drinks-to-property conglomerate in two. Frasers Centrepoint's net debt is already around 5.4 times its Ebitda for 2014, according to forecasts on Eikon.
That could rise to more than eight times if it finances the Australand acquisition entirely by borrowing.
Standard & Poor's cut the credit rating of one of Fraser Centrepoint's parent companies, Thai Beverage, to junk in December citing concerns about the debt profile of its related entities.
Deleveraging would require more financial engineering.
Mr Charoen could try to sell Australand's industrial and commercial property assets, which account for one-fifth of the total, or inject them into one of Frasers Centrepoint's existing real estate trusts.
An equity issue would raise cash and increase the company's measly 12 per cent free float.
Mr Charoen has plenty of levers to pull. But the Thai tycoon appears happy to keep investors guessing how he might square the circle.

[greengiraffe]

Curving out assets is quite common in Australian hostile M&A deals. Being in the driver seat, FCL may well be able to execute a deal that exceeds market's superficial expectations of pricey deal...

Stockland may pick off Australand assets

GREG BROWN THE AUSTRALIAN JUNE 06, 2014 12:00AM

STOCKLAND could make a play for some of Australand’s industrial properties and apartment development projects in a bid to avoid a hostile bidding war with the Singapore-listed Frasers Centrepoint, which made a $2.6 billion cash bid for the Australian developer on Tuesday.

Stockland had sweetened its own scrip-and-cash bid for Australand last month but is now tipped to move to draw rival bidder Frasers into talks about carving up the target’s portfolio.

If successful, Stockland could still grow its portfolio, rather than face a bidding war in which the value of scrip is falling.

Stockland shares yesterday dropped by 4c to $3.97, while Australand shares closed 3c higher at $4.58, ahead even of Frasers’ $4.48 per share offer, implying further bidding is possible.

If Stockland walked away it could reap a profit of about $74 million from selling its 19.9 per cent stake in Australand. Analysts have also not ruled out the option of Stockland making a strategic counter-bid to make a further gain from its stake.

Stockland was tight-lipped on its plans yesterday, while Australand managing director Bob Johnston said the group’s board intended to recommend the proposal from Frasers in the absence of a superior proposal. “And subject to an independent expert opinion concluding the proposal is fair and reasonable to Australand securityholders,” Mr Johnston added.

Credit Suisse analyst John Richmond said that while a Stockland counteroffer may be tempting given strategic benefits, operating synergies, earnings accretion and the potential for a higher cash component to be introduced, the risks were too high.

He said a counter-bid was unlikely due to the risk of the Stockland share price falling in a bidding war and lowering the scrip bid value. He also noted the potential for asset value dilution at higher prices and noted that Frasers would be hard to outbid because it has access to a lower cost of debt.

He said Stockland could negotiate the carve-out of certain assets with Frasers as it is clearly focused on Australand’s industrial and apartment portfolio.

Moelis analyst Simon Scott said that some Australand investors may prefer a scrip option because it was more tax-effective. He said that a property split would be an option.

“The Frasers bid is not yet at a big enough premium for Stockland to throw in the towel,” Mr Scott said “We would not like to see Stockland raise its bid materially, albeit they should drive a hard bargain if they choose to sell their stake.”

[greengiraffe]

The Property Report: Frasers Centrepoint Considers REIT IPO

By P.R. Venkat
514 words
4 Jun 2014
The Wall Street Journal Asia
AWSJ
English
Copyright © 2014 Dow Jones & Company, Inc. All Rights Reserved.
SINGAPORE -- Frasers Centrepoint Ltd., a Singapore-based real-estate firm controlled by Thai billionaire Charoen Sirivadhanabhakdi, has started gauging interest for an initial public offering of some of its residences and hotel interests.

At up to 500 million Singapore dollars (US$397.8 million), it could be the biggest float in the city-state this year. Frasers Centrepoint, which is listed on the Singapore Exchange, won shareholder approval last month to carve out its local and overseas serviced apartments and hotels.

The listing will be in the form of a real-estate investment trust, or REIT, that will initially hold six residences and six hotel properties in Singapore, Australia, the U.K., Japan and Malaysia. People familiar with the Frasers Centrepoint deal said the hospitality REIT is seeking to offer a 6.5% to 7% yield for 2014.

Frasers Centrepoint declined to comment.

People with knowledge of the deal said that Mr. Charoen's company may aim for a mid-July listing.

If successful, the deal would be the first REIT listing in Singapore since January, when property developer OUE Commercial REIT raised nearly US$300 million in an IPO of its shopping-mall and office properties. The move also comes as the U.S. Federal Reserve winds down its monetary-stimulus program, which has reduced the allure of trust listings.

Trust listings in Singapore in recent months have slowed on expectations of rising global interest rates. Trust-heavy Singapore had seen a boom in such IPOs as historically low interest rates drove foreign investors to look for higher returns from trust listings.

Last month, South Korea's Lotte Shopping Co. said it had postponed a Singapore REIT IPO of some of its shopping-mall assets, a deal that could have raised as much as US$1 billion. The company cited volatile market conditions for the delay, and people familiar with the deal said investors were seeking a higher yield than what Lotte Shopping was willing to pay. Singapore Exchange, the listing home to nearly 50 trusts with a combined market capitalization of about US$65 billion, dominated Asia's market for trust listings last year. REITs now offer yields close to 7%, higher than the 6% to 6.5% from previous years.

Still, there are about US$2 billion of REIT IPOs in the Singapore pipeline. Singapore conglomerate Keppel Corp. is looking to list its data centers in a roughly US$500 million flotation.

Indian conglomerate Larsen & Toubro Ltd. is aiming to list some of its India toll-road assets through a trust listing in the city-state that could raise as much as US$800 million, people with knowledge of these deals said.

According to Dealogic data, companies have raised US$707 million in Singapore this year, down from US$1.8 billion in the same period last year. In 2013, Singapore attracted a total of US$5.2 billion in IPOs, of which 90% came in the form of trusts.

http://www.djreprints.com/link/DJRFactiv...0603000055


Dow Jones & Company, Inc.

Document AWSJ000020140603ea640001d

[greengiraffe]

A local taxi driver was quoted in the Forbes article saying: "If you drink Heineken, you look so high class. It's expensive, but it tastes good. Normally I drink Singha. Chang is for the labourer. It means you have no money."

But the beer baron does, and he is about to spend it in Australia.

The $13b beer baron eyeing up Australand

Su-Lin Tan
721 words
7 Jun 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
Thai bidder A self-made man is about to grab a vast portfolio of assets.

Most Australians visiting Thailand have a sip of the local brew, Chang, eye-catching with its green elephant-adorned label.

Today the beer has more connection with Australia than ever before.

The owner of the company who makes Chang, Charoen Sirivadhanabhakdi, is about to become Australia's richest property billionaire.

On Wednesday, Charoen's Singapore-based property company, Frasers Centrepoint Limited (FCL), made a surprise $2.6 billion bid for the diversified Australand Property Group.

Frasers's all-cash $4.48 per security offer knocked the previous scrip bid, of $4.35 from local property heavyweight Stockland, out of the park.

Frasers already has a substantial development operation in Australia with a pipeline of 2300 apartments including Central Park in Sydney and Queens Riverside in Perth, as well as managing stakes in properties such as Perth's Central Park and Canberra's Chisholm Centre for Singapore listed real estate investment trusts.

Charoen has long owned the Park Hyatt in Canberra and what is now the Intercontinental in Adelaide.

To that portfolio he is about to add Australand's $2.4 billion worth of office towers and logistics facilities, $1.8 billion of commercial development and $7.5 billion housing pipeline.

Charoen only gained control of Frasers last year, paying $S13.8 billion ($11.8 billion) in an aggressive takeover battle for the 130-year-old Singapore conglomerate, Fraser & Neave (F&N). In doing so, Charoen displaced Lee Hsien Yang, the son of Singapore's founding father, Lee Kuan Yew. as F&N's Chairman.

F&N produced much of Singapore and Malaysia's canned beverages but the real prize was the property operation, Frasers Centrepoint.

It has housing projects in Singapore, China and Australia; manages malls and commercial property, and operates and has interests in more than 8000 serviced apartments from Glasgow to Sydney.

Earlier this year the $4.5 billion Frasers Centrepoint was spun out of the group and listed separately in Singapore with Charoen's interests holding 88 per cent.

Valued at $US12.2 billion ($13.15 billion) by the latest Forbes Billionaires List, the "liquor tycoon" was not always wealthy.

In a classic rags to riches story, this self-made billionaire is the sixth of 11 children of a Chinese immigrant mussel-pancake street vendor in Bangkok.

At the age of nine, he was already a talented entrepreneur. Later, he started supplying a government-owned whisky distillery, and managed to get a stake in the then state owned liquor production market through his business, TCC Group. In Bangkok, TCC Group owns the tech-mall Pantip Plaza in Bangkok. It also owns hotels in the US, Australia and Asia, as well as retail, commercial and residential buildings in Thailand and Singapore. Charoen's empire also spills into insurance and agribusiness.

Now 70, he is married to Khunying Wanna and has five children, most of them in the family business.

Khunying Wanna plays an influential role as vice-chairman of F&N.

One son, Panote Sirivadhanabhakdi, is also a director of F&N, and has ­interests in Australia companies, ­Tropical Almond Development, Grand Willow Development and Golden Shower Development.

His other son, Thapana Sirivadhanabhakdi is Thai Beverage's president and chief executive officer.

In 1987 the Thai Royal office gave Charoen his surname, Sirivadhanabhakdi, which means "goodness, prosperity, loyalty".

Charoen also briefly dabbled in football sponsorship , trying to buy Liverpool in 2004, but ended up doing a sponsorship deal with Merseyside rivals Everton.

Not happy with just being a "capitalist crony" as some may call him in Thailand, he has holds numerous honorary degrees from Thai universities.

Charoen has a collection of royal decorations including the Knight Grand Cordon (Special Class) of the Most Exalted Order of the White Elephant.

His last interview to the foreign press was to Forbes in 2005.

A local taxi driver was quoted in the Forbes article saying: "If you drink Heineken, you look so high class. It's expensive, but it tastes good. Normally I drink Singha. Chang is for the labourer. It means you have no money."

But the beer baron does, and he is about to spend it in Australia.


Fairfax Media Management Pty Limited

Document AFNR000020140606ea670001g

[CityFarmer]

We, who practicing value investing, are following closely a guideline of buying a dollar for 50 cents.

Will the guideline be any differently, if the dollar was sold for 30 cents recently? Well, it shouldn't make any difference, except reminding you to make sure the dollar worth really a dollar.

I am practicing the same for FCL's Australand acquisition. Instead of paying attention on why it was sold cheaper previously, I am trying to figure out why Australand worth the dollars paid.

(vested in FCL)