Starhub

[Drizzt]

the main problem is stricter rules will limit or derail their lucrative cashflow. that is a problem

[edragon]

The rules are set by the "master" who is a major shareholder.

[corydorus]

Drizzt,

this is really confusing. Neither am i accounting trained.

Normally I just look at Group not Company. How can company figure be larger than Group.
She explained due to merger but i do not fully understand how.


Cory

[piggo]

Drizzt,

this is really confusing. Neither am i accounting trained.

Normally I just look at Group not Company. How can company figure be larger than Group.
She explained due to merger but i do not fully understand how.


Cory

Company includes subsidiaries while group lists down the underlying statistics of the subsidiaries. Since 1.174b is the value of their investment in SCV subsidiary it should be considered as part of their assets. So for loans, the total assets including scv's investment was taken into consideration.

However in their website "Subsidiaries" SCV was listed as a "a media and infocomms company with a $600 million nationwide broadband network". With the infrastructure itself worth 600m, where did the other 600m come from? Maybe some old ARs can shed some light on this

[corydorus]

Hi Piggo, for the SCV subsidiary, why is the net asset not rollup to Group consolidated level ?

NET ASSET
Group 54M
Company 1207.8M

Cory

[Drizzt]

Hi Piggo, for the SCV subsidiary, why is the net asset not rollup to Group consolidated level ?

NET ASSET
Group 54M
Company 1207.8M

Cory

i pose this question to them, but Starhub don't seem to be thinking of consolidating. bear in mind that their group equity is really very very very very tiny now. one thing to note is that when they purchase scv they purchase with alot of goodwill

[Nick]

Perhaps the SCV subsidiary has negative NAV hence when they merged, the Group NAV shrunk dramatically. It must be noted that their loans are held under the Company as well.

[corydorus]

The more i read it the more i feel we should only look at the Group data.


Cory

[piggo]

why the net asset is not rolled up to the group level is just a matter of definition, don't see how it makes a difference... if you want overall picture, look @ the company, if you want more details, look @ the group.

imo it isn't appropriate to just look at the group data since they did make a significant investment into SCV that is of some value... however we could give an appropriate discount to the goodwill (i.e price above the value that they paid for SCV) and move from there.

note: this just based on the info gathered in this thread.

[Nick]

http://www.investmentmoats.com/money-man...explained/ - our fellow forumer (Drizzt) did enquire more about this with the Management here.