G. K. Goh Holdings

[freedom]

correct me if I am wrong, the business is generating loss instead of profit. Why would any good investors pay so much goodwill/intangible for a loss-making business?

It could well be another euNetworks.

GKGH will fund this purchase with a combination of existing liquid assets and bank
debt. On a pro forma basis, GKGH’s gearing would be approximately 31% following
the transaction. The investment is expected to be earnings accretive, and to
generate dividend income for GKGH in future.

Based on pro forma DPG earnings for the financial year ended June 2013, and
excluding extraordinary items, the purchase price values DPG at an EV/EBITDA
ratio of 9.1 times, and a price-earnings ratio of 22.5 times.

Based on the unaudited pro forma amalgamated financial statements of DPG for the financial
year ended 30 June 2013, DPG recorded (i) revenue of approximately A$395.9 million
(approximately S$461.2 million) 2 , (ii) earnings before interest, taxes, depreciation and
amortisation and excluding extraordinary items (“EBITDA”) of approximately A$61.5 million
(approximately S$71.6 million) and (iii) net profit after tax (“NPAT”), excluding extraordinary
items, of approximately A$12.8 million (approximately S$14.9 million). As at 30 June 2013,
DPG’s amalgamated net asset value (“NAV”) amounted to approximately A$264.0 million
(approximately S$307.5 million)

.

(Not Vested)

either "in future" or "extraordinary items".

sounds financial engineering to me.

since it is a large acquisition, there should be a circular to explain more about it.

my simple impression was the impact on earning, it looks like it was making loss.

[AlphaQuant]

it will be very useful if GK can post the financial statements of DPG so the full pix can be seen i.e. how much debt/tangible assets etc are on the books.

[camelking]

correct me if I am wrong, the business is generating loss instead of profit. Why would any good investors pay so much goodwill/intangible for a loss-making business?

It could well be another euNetworks.

GKGH will fund this purchase with a combination of existing liquid assets and bank
debt. On a pro forma basis, GKGH’s gearing would be approximately 31% following
the transaction. The investment is expected to be earnings accretive, and to
generate dividend income for GKGH in future.

Based on pro forma DPG earnings for the financial year ended June 2013, and
excluding extraordinary items, the purchase price values DPG at an EV/EBITDA
ratio of 9.1 times, and a price-earnings ratio of 22.5 times.

Based on the unaudited pro forma amalgamated financial statements of DPG for the financial
year ended 30 June 2013, DPG recorded (i) revenue of approximately A$395.9 million
(approximately S$461.2 million) 2 , (ii) earnings before interest, taxes, depreciation and
amortisation and excluding extraordinary items (“EBITDA”) of approximately A$61.5 million
(approximately S$71.6 million) and (iii) net profit after tax (“NPAT”), excluding extraordinary
items, of approximately A$12.8 million (approximately S$14.9 million). As at 30 June 2013,
DPG’s amalgamated net asset value (“NAV”) amounted to approximately A$264.0 million
(approximately S$307.5 million)

.

(Not Vested)

either "in future" or "extraordinary items".

sounds financial engineering to me.

since it is a large acquisition, there should be a circular to explain more about it.

my simple impression was the impact on earning, it looks like it was making loss.

not forming any opinion on the acquisition yet.

But the use of "in future" is a common term for any investment forecast...when you make investment, it is about future, no?

For the usage of extraordinary items, it is common term used in Australia....

A bit of blind faith...but the Elder Goh is pretty shrewd....

Vested

[freedom]

either "in future" or "extraordinary items".

sounds financial engineering to me.

since it is a large acquisition, there should be a circular to explain more about it.

my simple impression was the impact on earning, it looks like it was making loss.

not forming any opinion on the acquisition yet.

But the use of "in future" is a common term for any investment forecast...when you make investment, it is about future, no?

For the usage of extraordinary items, it is common term used in Australia....

A bit of blind faith...but the Elder Goh is pretty shrewd....

Vested

Though every investment is based on future, current acquisition based on past performance is more prudent than betting on uncertain future.

As for track record, I wonder who made the decision of investing into eunetworks, formally known as global voice. And more good money was thrown following the bad money.

[sgpunter]

On a first glance, my guess is that G K Goh should drop upon resumption of trading. It remains to be seen whether this turns out to be good investment and at PE Ratio of 22.5, certainly not cheap.

I do remember MIIF having invested in a similar asset in Canada which was eventually divested. While we may be comparing apples to oranges, perhaps some comparisons or inference of sorts can be made from there.

[kbl]

either "in future" or "extraordinary items".

sounds financial engineering to me.

since it is a large acquisition, there should be a circular to explain more about it.

my simple impression was the impact on earning, it looks like it was making loss.

not forming any opinion on the acquisition yet.

But the use of "in future" is a common term for any investment forecast...when you make investment, it is about future, no?

For the usage of extraordinary items, it is common term used in Australia....

A bit of blind faith...but the Elder Goh is pretty shrewd....

Vested

Though every investment is based on future, current acquisition based on past performance is more prudent than betting on uncertain future.

As for track record, I wonder who made the decision of investing into eunetworks, formally known as global voice. And more good money was thrown following the bad money.

Another bad investment by GK Goh is SunMoon.

[greengiraffe]

More deals tipped as Singapore tycoon Goh Geok Khim snaps up Domain stake

BY:BEN WILMOT From: The Australian August 19, 2013 12:00AM
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ASIAN tycoon Goh Geok Khim and AMP Capital are on the hunt for more acquisitions after his Singapore-listed investment company snapped up a near-half stake in top-three Australian residential aged-care services player Domain Principal Group.

Domain is the third-largest private provider, with 55 facilities that have more than 4500 beds across NSW, Queensland, Victoria and Western Australia, and it wants to expand its $600 million portfolio as the highly fragmented industry consolidates.

More deals are tipped, with Macquarie Group recently appointing investment bank Greenhill to offer its 44 per cent stake in No 2 aged-care operator Regis Group. Regis has about 4700 beds. The largest private player is British-controlled Bupa, which acquired Innovative Care last December to lift its empire to about 5600 beds.

The top five providers have a combined market share of just 15 per cent of Australia's 182,000odd beds, and are likely to dominate in coming years.

AMP Capital head of aged care Sally Evans would not comment on specific plans for the recapitalised group but said that, as an investment manager, "we look at all opportunities that are available".

Church and charity groups provide about two-thirds of aged-care beds but many smaller operations have come under pressure, while bigger players benefit from their scale. Structural inefficiencies in the fragmented area were "probably not sustainable as we think about growth of the industry", Ms Evans said.

About $25 billion in capital is required to replace obsolete properties and increase bed numbers by 40 per cent over the next decade as the population ages. Much of the funding could come from offshore, as sophisticated global investors are comfortable with the industry and Ms Evans said they were "certainly interested" in investing in Australia.

But there are no substantial listed players presently investing in the sector. "The industry probably needs to mature a little more before we will see that as an option," Ms Evans said.

Singapore-listed GK Goh Holdings' deal to take a 47.62 per cent equity stake in Domain was reported by The Australian online. The Asian group's interest is being bought for $136.7m from two trusts run by AMP Capital.

After the deal, the Singaporean company and AMP Life will have equal holdings, with Domain's management holding the balance. GK Goh Holdings and AMP Life will each put up a further $25m to back Domain's growth.

Domain earned about $61.5m on revenues of $395.9m in the 2012-13 financial year and GK Goh Holdings said its purchase valued the group on an enterprise value/earnings before interest, taxes, depreciation and amortisation ratio of 9.1 times, indicating its bullish growth plans.

Domain's business has had occupancy rates of more than 90 per cent and local executives said the purchase ratio was even higher.

Goh Geok Khim, the executive chairman of GK Goh Holdings, said: "Demand for aged-care services will continue to rise for the next few decades in Australia." Domain "fitted well" into the group's portfolio of long-term investments, he added.

The company's managing director, Goh Yew Lin, said Domain was one of the best names in Australian aged care, with a strong management team and an excellent portfolio.

"With the support of committed long-term shareholders, (Domain) will have the resources and flexibility to grow its operations while maintaining high standards of care," he said.

He said the Singaporean group saw "significant potential" for Domain's earnings to rise over the next decade, through higher demand, operational improvements, and consolidation opportunities.

[camelking]

another share buy back by Senior Goh 130 lot at close to 87cents..

Like the support given by majority shareholder.

Vested

[Cschua]

Anybody knows why the share price drops 8.7% today? Can't find any related news.

[Bibi]

Anybody knows why the share price drops 8.7% today? Can't find any related news.

This is no big deal. Its just a miserable 6 lots done that causes the drop. Probably some technical pp trying to push the chart below its 90day moving average to encourage more sellers or shortist.