Li Ka-shing’s Watson plans HK-London IPO of up to S$7.6b

[CityFarmer]

SEHK still the exchange of the choice in Asia for listing...

Li Ka-shing’s Watson plans HK-London IPO of up to S$7.6b

HONG KONG — Billionaire Li Ka-shing’s retail flagship is planning a dual listing in Hong Kong and London by the end of June to raise as much as US$6 billion (S$7.6 billion), said people familiar with the situation yesterday according to the Wall Street Journal, in what could be one of the world’s top initial public offerings since late 2012.

AS Watson, which owns drugstore chains, such as Watsons in Asia, supermarkets in Hong Kong and electronics shops globally, could raise between US$5 billion and US$6 billion from its dual-city IPO, said one of the sources. It plans to submit listing application to the Hong Kong stock exchange as early as this week, said the source.

The firm is also considering a secondary listing in Singapore if the Hong Kong-London listing goes well, said the sources. If it raises US$6 billion, the IPO would be the biggest since Japan Airlines raised US$8.5 billion in Tokyo in 2012, said research firm Dealogic.

Mr Li, 85, Asia’s richest man, said last month that he planned to list his global retail business in Hong Kong and another venue. This follows a Hong Kong IPO in January of his Hong Kong electricity assets, which raised US$3.1 billion, A company spokeswoman yesterday declined comment on the potential listing plan.
http://www.todayonline.com/business/li-k...n-ipo-s76b

[cfa]

Thought he praised Singapore but why never consider Spore at all ?

[CityFarmer]

Temasek is doing quite a bit of portfolio re-balancing acts recently...

Temasek in talks to buy stake in Li Ka-shing’s Watson

Singapore state investor Temasek Holdings is in advanced talks to buy a stake in Li Ka-shing’s A.S. Watson Co, the Wall Street Journal reported.
...
http://www.theedgesingapore.com/the-dail...atson.html

[greengiraffe]

When Superman Li sells, better avoid if you can.

Interestingly, Australian supermarket Woolworths walked away last year after evaluating an opportunity to purchase Li's ParknShop:

http://www.theland.com.au/news/agricultu...75652.aspx

Li's sale is likely to be hardsell with his tough reputations of leaving very little on the table post IPOs - HPH is a classic example.

So anyone interested in the IPO will have to exercise extreme caution.

[BlueKelah]

Li knows that bad times are coming and will affect his shops. So smart thing to do is quickly float it with the past few years good reports and fundamentals, get some quick money in his pocket and wait for market to crash, then buy back everything for cheap...

[CityFarmer]

The PAT of Watson was around HK$7.8 billion. A 24.95% share was HK$1.9 billion. The price paid is HK$44 billion, so the PE is around 23. It should be a fair price within Asia consumer retail sector, IMO.

Temasek makes S$7.2b investment in AS Watson

SINGAPORE — Temasek Holdings has agreed to buy a 24.95 per cent stake in AS Watson in a deal worth around HK$44 billion (S$7.2 billion), giving the Singapore investor a large foothold in Asia’s consumer retail sector.

AS Watson is a large retailer with over 10,500 stores around the world.

Its flagship brand, Watsons, operates over 4,000 stores and more than 900 pharmacies in many countries including China, Hong Kong, Taiwan, Macau, Singapore, Thailand, Malaysia, the Philippines and Indonesia.

“With this investment, Temasek has increased its exposure to the consumer retail sector, with a balanced focus on a growing Asia and a recovering Europe,” Temasek said in a statement today (March 21).

Mr Chia Song Hwee, head of Temasek’s Investment Group, said: “The consumer retail sector is a good proxy to growing middle-income populations and transforming economies. This is very much part of our investment themes as we shape Temasek’s portfolio for the long term.”

Hutchison Whampoa, the parent of AS Watson, had been planning to list the firm via an IPO in Hong Kong and London.

That plan has been put on hold although Hutchison said it would plan to list its retail arm at a suitable time in future.

AS Watson’s audited net profit after taxation and extraordinary items for the financial year ended Dec 29, 2013 was around HK$7.8 billion, according to a filing on the Hong Kong Stock Exchange. CHANNEL NEWSASIA

http://www.todayonline.com/business/tema...ent-watson

[greengiraffe]

Temasek always have a different mandate that is unique probably for strategic reasons. As they have been a strategic investor in Watson's sister company HPH Trust since IPO, they will probably have a better feel of what is fair value in their investments no matter who they participate with.

In a way since many of us do not have much say in the direction of Temasek and may not directly benefit from their ability, the most we can do is to actively monitor as a lay man investor with limit knowledge on sovereign wealth investments.

The PAT of Watson was around HK$7.8 billion. A 24.95% share was HK$1.9 billion. The price paid is HK$44 billion, so the PE is around 23. It should be a fair price within Asia consumer retail sector, IMO.

Temasek makes S$7.2b investment in AS Watson

SINGAPORE — Temasek Holdings has agreed to buy a 24.95 per cent stake in AS Watson in a deal worth around HK$44 billion (S$7.2 billion), giving the Singapore investor a large foothold in Asia’s consumer retail sector.

AS Watson is a large retailer with over 10,500 stores around the world.

Its flagship brand, Watsons, operates over 4,000 stores and more than 900 pharmacies in many countries including China, Hong Kong, Taiwan, Macau, Singapore, Thailand, Malaysia, the Philippines and Indonesia.

“With this investment, Temasek has increased its exposure to the consumer retail sector, with a balanced focus on a growing Asia and a recovering Europe,” Temasek said in a statement today (March 21).

Mr Chia Song Hwee, head of Temasek’s Investment Group, said: “The consumer retail sector is a good proxy to growing middle-income populations and transforming economies. This is very much part of our investment themes as we shape Temasek’s portfolio for the long term.”

Hutchison Whampoa, the parent of AS Watson, had been planning to list the firm via an IPO in Hong Kong and London.

That plan has been put on hold although Hutchison said it would plan to list its retail arm at a suitable time in future.

AS Watson’s audited net profit after taxation and extraordinary items for the financial year ended Dec 29, 2013 was around HK$7.8 billion, according to a filing on the Hong Kong Stock Exchange. CHANNEL NEWSASIA

http://www.todayonline.com/business/tema...ent-watson

[brattzz]

when you buy into LKS's empire, you become part of his strategic partners since you will be financing his new ventures, let see what LKS plans to do with the $ raised!

[greengiraffe]

Li: "If the price is right, we will consider selling."

'Good ties' key to AS Watson deal

Li Ka Shing relates how Hutchison Whampoa inked deal with Temasek

Published on Mar 22, 2014

Hutchison Whampoa will use part of the proceeds to pay a special dividend of HK$7 per share to its shareholders. -- PHOTO: REUTERS

By Li Xueying, Hong Kong Correspondent

THE admiration was mutual, the courtship was short and a deal was quickly made.

Asia's richest man, Mr Li Ka Shing, yesterday sketched how his Hutchison Whampoa conglomerate - which owns the AS Watson health and beauty retailer - came to shake hands with Singapore's Temasek Holdings, which made its largest-ever single acquisition.

"We are very pleased with each other," the tycoon said in a press briefing to announce the sale.

The "good relationship" was key to the sale, which went through speedily at US$5.7 billion (S$7.3 billion) for 25 per cent of the entity.

Asked about the price - which is a shade lower than market valuations - Mr Li said: "If we do not know the partner that well, it's pointless to get a price that is 5 or 10 per cent higher."

Hutchison Whampoa will use part of the proceeds to pay a special dividend of HK$7 per share to its shareholders. While Hong Kong represents only 6 per cent of Watson's business, the money will return to shareholders here, said Mr Li. He himself will get HK$7 billion.

This, he said, should put paid to questions that he is pulling his assets out of the city. Shareholders "should be very happy".

Mr Li, 85, was in a jovial mood throughout the 35-minute press conference. He neatly sidestepped a question on whether there were other potential buyers, asking "For what?", and drawing laughter from the room.

Hutchison Whampoa brought the deal to the table first, he said, adding that it's "possible" Temasek, which will be given two spots on Watson's board, will increase its holdings.

He also said that he will not rule out selling or listing other parts of his conglomerate in the coming year, saying that company assets cannot be viewed as "antiques". "If the price is right, we will consider selling."

The magnate, who has been accused of having a stranglehold on various parts of the Hong Kong economy and of yanking his investments out of the city in recent months, said wryly that his decision this time should please everyone.

"You (the media) always scold us, saying that we invest in everything in Hong Kong, and that there is a 'Li Dynasty'.

"So today a smaller Hong Kong presence is the right decision.

"We brought back to Hong Kong money earned from over 90 per cent of the Watson business overseas. I have worked very hard on this, and hope everyone is satisfied."

xueying@sph.com.sg

[CityFarmer]

Li: "If the price is right, we will consider selling."

One of the guideline for value investment, is "never fall in love with any of your investment", the same applies for top-class businessman.