Hiap Hoe

[freedom]

if you were the sons, you would not like to delist the co. why? unless the sons are going to inject their own money into the company, otherwise, it only means, smaller business going forward after delist (the money for delist would come from the company itself).

would any young people enjoy managing a smaller business than a larger business? The natural thing for the sons to do is to grow the business via asking money from shareholders or takings more debt. a delist probably would not fit.

[KopiKat]

I doubt the sons have the $$$ to delist Hiap Hoe.
So, it is going to be a prolonged tussle.
I will expect some vultures to come in for a chance to get a good feast.

Lesson in life...
One woman is already too much.
Lastly, why leave so much $$$ for the sons???

Kind of remind me of Yeo Hiap Seng saga. Also 3-4 families involved, but the tussles only started after the old man had passed on. In the end, Ng Teng Fong came in to 'resolve' the problems for all the feuding families.

[freedom]

read the announcement from the company, it has nothing to do with privatization of Hiap Hoe. the suit is about winding up Hiap Hoe Holdings Pte Ltd and distribution in specie of probably the holdings of Hiap Hoe share to its shareholders.

[Vseeker]

Generally for minority shareholders, a Company controlled by several parties, each with only 20%-35% stakes
=} is much better than one that is control by a single entity with over 50% super majority control.

The latter can choose to ignore everyone else with impunity, the former tends to be more investors friendly and lead to better "discovery of fairvalues".
Whatever the outcome of dispute:
be it SS buying out FF stake (so need $$, maybe divest some assets first eg. hotel, invmnt ppties)
or resulted in a DIS of assets (includes listed entities)
the outcome is positive for minorities.

Even with the worse possible outcome (a minority shrhlder selfish viewpoint): that they kissed & pretend everything back to normal..
the publicity generated is +ve, and have created greater awareness and discussion of the deepvalues inside.
=> at least already seeing more houses' commentary on it !

A D.I.S will be one of the best Outcome,
coz the two Sons (combined 49.5% of HoldingCo) will end up with only around 35% stake in the listed entities, Oldman (30% of HoldingCo)will be left a 21% stake....

and since HH & SB are both very undervalued, it's likely to attract "vulturess" and can only generate greater excitements

obviously I am vested.... infact from two years back (see earlier postings)

BUT above saga aside,
the fact remains, that over the next 6-24 months, you will see several catalysts triggering... as their high-margins condos TOP, the huge hotel complex TOP and open for biz in Q1 2013... then Waterscape TOPs in late 2013/2014.
- infact, HH will simply have no problems delivering another - 10 Qtrs of profits, and reporting another 2 or 3 consecutive years of record earnings.

[ValueBeliever]

this 1 have pontential but now yield? Hotel is big indeed and probably they are just as effective as LKH in building fast? NOt so such - how chew yew hock is link in the past... not a good name to be associated with as many lost their pants in constructin during the late 90s.

I think the best way out for old man is to sell to son. but there will be no exceitment - unless they want to create 1. But who will come in to buy at this price.... its a little high for retail like me because the stock has a strong tendency to pull back! Their equity side sucks big time despite having so big a play in the hotel they are building. 2014 opening - 700 over rooms!!

[Musicwhiz]

The Straits Times
Mar 24, 2012
Buyer interest in Hiap Hoe's listed firms fizzles out

By Yunita Ong

THE buying surge around the shares of Hiap Hoe Limited and Superbowl Holdings evaporated yesterday as investors conceded that the family feud involving the major shareholder may not spark a takeover battle.

Share prices for both firms each soared 11 per cent on Wednesday on reports that Mr Teo Guan Seng, the founder of parent company Hiap Hoe Holdings, was seeking to dissolve the entity amid a family dispute.

But buying interest began to fizzle out yesterday and profit takers grabbed their cash once more details about the listed companies emerged.

Hiap Hoe Limited shares closed at 51 cents yesterday, down one cent from Wednesday, although Superbowl stock rose half a cent to end at 31.5 cents following a three-cent cent gain on Wednesday.

Remisiers told The Straits Times that Wednesday's market action had been based on speculation and confusion arising from media reports.

Mr Alvin Yong called it a 'non-event' and noted that part of the frenzy was fuelled by a misunderstanding that the listed companies were to be dissolved.

'Investors are now coming to an understanding that the court case concerns the fate of (investment vehicle) Hiap Hoe Holdings and not the listed companies,' he said.

Mr Desmond Leong agreed, saying it was a case of investors simply buying in quickly on rumour.

'With the United States markets weakening, people seem to be gunning for any kind of profit possible. People seemed to be waiting for anything to happen and then trying their luck to make a quick buck,' he added.

Some remisiers believe the prices for both companies may persist at current levels.

Mr Leong pointed to share buybacks by Hiap Hoe that could push up prices while Mr Charles Chua said speculation, as the upcoming court case initiated by Mr Teo unfolds, may prop up values.

Mr Chua recommends Hiap Hoe and Superbowl shares for short-term traders only while Mr Leong suggests buyers who entered the market on Wednesday cash in on the short-term profit.

Mr Yong added: 'Investors keen on buying (Hiap Hoe and Superbowl) shares should not be betting on the recent events, but on more long-term factors like the potential of Hiap Hoe Holdings' hospitality segment (which it recently ventured into).'

[ngcheeki]

From Bussiness Time
Hiap Hoe saga drawing takeover interest
By MICHELLE TAN

OPPORTUNISTS or smart investors? Either way, stock market punters have been feeding off a court battle between Teo Guan Seng, the 81-year-old founder of Hiap Hoe Ltd, and his multiple families.

Over the course of a week, the usually quiet property counter's volume picked up from 102,000 shares to a significantly higher 1.67 million at last Friday's close. The share price also appreciated by around 10 per cent week-on-week, rising from 46.5 cents to 51 cents.

Potential value

More significantly, the ongoing drama is drawing attention to the company's potential value - in terms of its earnings from future projects and earnings visibility - and the possibility that it could attract an opportunistic takeover bid.

For instance, Hiap Hoe's construction arm, WestBuild Construction Pte Ltd, has a remaining order book of more than $200 million from related parties as at end-December last year.

In addition, the property developer's earnings over the next two years are expected to be underpinned by progressive profit recognition from its substantially pre-sold projects, Waterscape at Cavenagh and Skyline 360°, providing good future earnings visibility.

Said DMG & Partners Research analyst Goh Han Peng: 'We estimate the group has some $400 million of progress billings to be recognised over the next two years from its pre-sold projects, primarily from Waterscape, Skyline 360° and the Beverly. This should generate a net surplus of $110 million, or 23 cents a share, which will boost its book value by 50 per cent.'

Apart from residential properties, the construction of Hiap Hoe's joint venture commercial project with Superbowl at Balestier Road has been progressing ahead of schedule, with one of the two hotels, and the retail mall expected to begin operations by the first quarter of next year, contributing a new source of recurring income to the group.

As if all those factors are not compelling enough to make it a prime takeover target, the company's stock is also trading at a significant discount to its RNAV (revalued net asset value) of $1.22 per share.

Rising speculation

Some broking firms, which have declined to be named, have disclosed that their brokers have been accumulating Hiap Hoe stocks over the past week as speculation over a potential takeover continues to mount, as escalating disputes are said to have reached a stage where Mr Teo is on the tip of winding up Hiap Hoe Holdings - which in turn owns around 70 per cent each of Hiap Hoe Ltd and SuperBowl Holdings - for good.

In that event, the shareholdings of the listed Hiap Hoe entity may become highly fragmented, possibly making it a prime target for a hostile takeover.

One classic example from the past was the takeover of Yeo Hiap Seng (YHS) by Far East Organisation (Far East) after shareholdings in the former became scattered after a family feud.

However, unlike Hiap Hoe, YHS had a valuable land bank around the Bukit Timah area that attracted Far East with its redevelopment potential. Whereas in the case of Hiap Hoe, an acquirer swooping in on the grounds of a land bank grab is far less likely due to the firm's earlier monetisation of most of its land bank via pre-sales.

While the absence of a land bank may make Hiap Hoe a less attractive target for a hostile takeover, the stock remains attractive from a valuation perspective.

As the legal battle continues around the competing interests of Mr Teo's children and the women from his various relationships as well as the status of the family business in Hiap Hoe Holdings, there could be some watching with more than just a cursory interest.

[yeokiwi]

Shorties kanna cornered.

[ngcheeki]

A lot of the undervalue property counters are moving e.g. Hiap Hoe, Heeton and Hong Fok but there is one counter that's still stuck at 35 cents . Hope...it will be benefit from the rotation play soon.

[Jacmar]

A lot of the undervalue property counters are moving e.g. Hiap Hoe, Heeton and Hong Fok but there is one counter that's still stuck at 35 cents . Hope...it will be benefit from the rotation play soon.

You want to know why the 35cents stock never move. It's because the kateks are shorting it. they just borrowed some of my stocks through sgx to short. I hope the stock don't move so that i can enjoy my 4% fees!If it moves it will be fast and furious as the kateks need to cover just like what happened to HH