Uni-asia Group (formerly: Uni-asia Finance)

[Shiyi]

It begs the question. The borrowing cost in Japan would be far lower.
ParkwayLife Reit has been borrowing in Japan to fund its acquisition.

[luckystar]

It begs the question. The borrowing cost in Japan would be far lower.
ParkwayLife Reit has been borrowing in Japan to fund its acquisition.

Could it be to "improve trading liquidity of the shares", as mentioned in the press release? If so, perhaps down the road, we might see bonus shares issuance or stock splits.

[cmeng_chan]

https://nextinsight.net/story-archive-ma...-investors

UNI-ASIA GROUP: Raises $5.42 m net proceeds from about 40 investors Friday, 05 April 2019 12:05 The NextInsight Team

Uni-Asia Group, an alternative investment company and integrated service provider of vessels and properties, has raised approximately S$5.42 million in net proceeds through the placement of 5,420,720 ordinary shares on 4 April 2019.

Approximately 40 investors took up the placement shares, or an average of $146,000 each.



“We welcome new shareholders as we continue to grow the business of Uni-Asia Group. The share placement attracted a good mix of investors, which demonstrated the confidence that these investors have in Uni-Asia's long-term prospects. The funds raised will help us enhance our financial flexibility to take on attractive projects in future."

- Michio Tanamoto (photo), 
Executive Chairman & CEO,
Uni-Asia Group

The subscribers were institutional investors such as Judah Value Activist Fund, Hibiki Path Value Fund and Golden Hill Investments, as well as individuals, family offices, and corporate investors

[pianist]

Only 146k, how come we are not invited
Why Kim eng and sgx allows this small placement to by pass existing shareholders
And only 40 extra more shareholders, what diversification pool in shareholding mix are they achieving

[cmeng_chan]

Only 146k, how come we are not invited
Why Kim eng and sgx allows this small placement to by pass existing shareholders
And only 40 extra more shareholders, what diversification pool in shareholding mix are they achieving

I think still positive. Having wider pool of institutional holders will broaden it appeal and liquidity.

[MOV]

What is the purpose of raising cash when latest FY2018 balance sheet shows they have $43m in cash, $3.2m in collateral deposit and $22.4m in assets held for sale? Why do they need to dilute shareholders with this small placement?

Why is MAM segment showing further losses, worsening from -$1.377m (FY2017) to -$9.393m (FY2018)? Shouldn't management be more concerned about their shipping business than property development?

[TerryT]

Not sure is it for the USD$69m debts repayable within a year.

But to dilute existing holders by issuing shares at a discounted price to improve liquidity, don’t seem to be a good choice....

[cmeng_chan]

Based on the last annual report, the MAM (Maritime Asset Management) has 12 ships and only 3 are 100% owned by UniAsia, while the rest are mostly 18% or 50% owned. This unit provides the equity ownership of the 12 ships. Each of the 12 ships are setup as a subsidiary.

The Uni-Asia Shipping (UAS) is the holding company that owns these subsidaries.

Finally, there is the Maritime Services (MS) that provides the services, and Uni-Asia gets paid to run/maintain the ships.

So, these 3 portions (MAM, UAS and MS) make up the Shipping Business. I see this setup very similar to a REIT manager. REIT manager has partial share ownership, and earn recurring income from managing the assets, which is what this Shipping Business is doing. Majority of the ships are joint ownership, sort of like the REIT owns 50% of the property asset, and gets to earn income managing it. If I am not wrong, the ship's joint owners are also charterers of the same ship. So, there is an alignment of interest in the asset. Uni-Asia will ensure ship is well run and managed, while the charterer also has confidence that Uni-Asia on ship's maintenance and well-being since all parties have vested interest in the same ship asset.

If Uni-Asia has zero asset stake, charterer can always move the the next cheaper charter. Then the recurring income from MS will not be secured. I see this arrangement as making sure everyone has their skin in the game. Just like why the REIT sponsor like CaptailLand owns significant stake in CapMall Trust, and also collects fees managing the REIT assets.

MAM just had an impairment of USD3.9m for containerships. (Only 3 out of 12 ships are containships). This has no impact to operations or cashflow, and I see it more of an accounting number for the balance sheet. When UniAsia buys a ship at say USD10m, it will depreciates it over the "useful life" of the ship. The remaining value after accumulated depreciation will be the carrying value in their books. Accounting rules is conservative, as the rules require them to reflect the current value of these assets in their reporting. The ship value is usually based on transacted sale prices of similar assets. However, if the ship continues to be employed, the cash flow will not be impacted. In simple terms, its just like a full occupied mall with rental income has to be written down to zero value because the surrounding malls are sold at depressed prices (which is used to determine current mall asset valuation).

Just my opinion. Why does UniAsia need to raise funds? For property investments in Hong Kong or Japan, you don't pay 100% cash. Usually, there is a need to put down some equity, and banks will also assess your borrowing capacity based on your equity in your balance sheet. A weaker profile will also mean higher borrowing costs. So, the additional equity raise at a discount will offset costs in other areas.

Its good if the management made decisions that is beneficial to the shareholders. I usually view management share purchase as positive as that aligns with shareholder's interest. Its having their skin in the game too. I can see purchases by management, although liquidity is low.
http://uniasia.listedcompany.com/stock_insider.html

(Vested)

[Vseeker]

Hi All,  

Like to draw your attention to below mess... which I received from some UniAsia shrhldrs 
====
Please see the Uni-Asia AGM QnA responses to the questions in the statement requisitioned by substantial shareholders under SG Companies’ Act Section 183.
esp...  see Appendix-1 (on Pg 6 & 7 of PDF )
at below link to UniAsia AGM2022 QnAs
https://links.sgx.com/1.0.0/corporate-an...nswers.pdf
The Board now guided that they expects to declare a *higher payout ratio*, after paying out a low 22% payout ratio with an all time high FY21 profit.
If there is any current or future Uni-Asia shareholders interested to contact the Requisitioning shareholders, can email to  uniasia.share@gmail.com
Thank you!

  UniAsia AGM2022 QnAs - AGM Key Questions and Answers.pdf (Size: 78 KB / Downloads: 5)

[Vseeker]

Deadline to Pre-Register for the AGM is by 2.00pm 26 April
AGM will be held on Friday, 29 April 2022 at 2.00 p.m
More details goto https://links.sgx.com/1.0.0/corporate-an...%20AGM.pdf