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PR Newswire
05-01-2011, 11:29 AM
KE's share price has been on a tear for the past few months, rising from $1.78 to a high of $2.74 this morning, a meteoric 54% rise in just 3 months!
There are probably 2 more significant pieces of information which mattered during this period, with the 2nd reason being more likely:
1) Opening of its first retail investor centre in Nex to target heartlanders, explained to be aimed at increasing the client base by 20% over the next 3 years. More retail investor centres might be coming up in other heartland malls. A new branding campaign featuring the fortune cat is also aimed towards the same target audience.
2) KE also announced upon being queried by SGX on 17 Dec that "From time to time, the Company is approached by and/or engages various parties in discussions to pursue business opportunities or concerning the strategic direction of the Company, with a view to maximizing value for all shareholders. The Board of Directors of the Company wishes to announce that the Company has received approaches from potential interested parties in relation to a possible acquisition of shares in the capital of the Company. However, this may or may not lead to a general offer being made for the Company. There is no assurance that any definitive or binding agreement will result from these discussions."
Previously, Mitsubishi UFJ offered $166.2 million to more than triple its stake in Kim Eng Holdings Ltd., offering $2.70/share, and has been increasing its stake ever since. It is likely that they will have to offer an amount higher than $2.70 for any subsequent offer. Assuming Q4's results to match Q3's, it would mean offering based on a historical PE of 20 times based on the high of $2.74 alone!
There are probably 2 more significant pieces of information which mattered during this period, with the 2nd reason being more likely:
1) Opening of its first retail investor centre in Nex to target heartlanders, explained to be aimed at increasing the client base by 20% over the next 3 years. More retail investor centres might be coming up in other heartland malls. A new branding campaign featuring the fortune cat is also aimed towards the same target audience.
2) KE also announced upon being queried by SGX on 17 Dec that "From time to time, the Company is approached by and/or engages various parties in discussions to pursue business opportunities or concerning the strategic direction of the Company, with a view to maximizing value for all shareholders. The Board of Directors of the Company wishes to announce that the Company has received approaches from potential interested parties in relation to a possible acquisition of shares in the capital of the Company. However, this may or may not lead to a general offer being made for the Company. There is no assurance that any definitive or binding agreement will result from these discussions."
Previously, Mitsubishi UFJ offered $166.2 million to more than triple its stake in Kim Eng Holdings Ltd., offering $2.70/share, and has been increasing its stake ever since. It is likely that they will have to offer an amount higher than $2.70 for any subsequent offer. Assuming Q4's results to match Q3's, it would mean offering based on a historical PE of 20 times based on the high of $2.74 alone!
