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29-01-2016, 03:45 PM
Mr. Market is responding to the speculation? I am willing to buy OSIM to swap for the TWG shares, at a right price.
(not vested)
Osim should be taken private and TWG spun off, says Maybank Kim Eng
SINGAPORE (Jan 29): Massage chair maker Osim International ( Valuation: 1.80, Fundamental: 2.80) should be taken private, suggests Maybank Kim Eng following the company’s Q4 numbers.
This suggestion is based on the premise that Osim is now trading at less than six times enterprise value to Ebitda, versus 12 times that of its peers -- and therefore in a “takeout sweet spot”, states analyst Gregory Yap in his Jan 29 note.
He estimates that it will cost $431 million to buy out the minority shareholders and redeem the convertible bonds. This estimate is based on an assumption that the privatization is done at 8.5 times EV/Ebitda, or $1.20 per share, or 15x FY16 P/E, its 10-year historical mean.
Ron Sim, the company’s founder, now owns 68.6%. He should be able to hustle up the financing by pointing to the company’s $400 million in cash, and cash flow from the massage chair business.
In addition to this recommended privatisation, Osim might want to spin off its tea business TWG. Maybank Kim Eng believes that minority shareholders can be convinced to bite by accepting shares in TWG instead of all cash.
...
http://www.theedgemarkets.com/sg/article...nk-kim-eng
(not vested)
Osim should be taken private and TWG spun off, says Maybank Kim Eng
SINGAPORE (Jan 29): Massage chair maker Osim International ( Valuation: 1.80, Fundamental: 2.80) should be taken private, suggests Maybank Kim Eng following the company’s Q4 numbers.
This suggestion is based on the premise that Osim is now trading at less than six times enterprise value to Ebitda, versus 12 times that of its peers -- and therefore in a “takeout sweet spot”, states analyst Gregory Yap in his Jan 29 note.
He estimates that it will cost $431 million to buy out the minority shareholders and redeem the convertible bonds. This estimate is based on an assumption that the privatization is done at 8.5 times EV/Ebitda, or $1.20 per share, or 15x FY16 P/E, its 10-year historical mean.
Ron Sim, the company’s founder, now owns 68.6%. He should be able to hustle up the financing by pointing to the company’s $400 million in cash, and cash flow from the massage chair business.
In addition to this recommended privatisation, Osim might want to spin off its tea business TWG. Maybank Kim Eng believes that minority shareholders can be convinced to bite by accepting shares in TWG instead of all cash.
...
http://www.theedgemarkets.com/sg/article...nk-kim-eng
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