G. K. Goh Holdings

[AlphaQuant]

conditional offer @ 57.5c for Boardroom after married deal with Third Avenue for 10% of the shares.

Looks like a feeble offer price though - don't think the intention is to privatise Boardroom.

[greengiraffe]

http://www.businesstimes.com.sg/premium/...e-20140530

PUBLISHED MAY 30, 2014

E&O stocks up after MD buys back 10% stake from Sime
Terry Tham pays RM319m in cash or RM2.90 a share; counter rises 4%
BY PAULINE NG IN KUALA LUMPURPRINT |EMAIL THIS ARTICLE

SHARES in high-end developer Eastern & Oriental Bhd (E&O) rose slightly over 4 per cent to RM2.48 yesterday, after its managing director Terry Tham bought back about a tenth of the company from Sime Darby - its biggest shareholder - for RM319 million (S$124.4 million) in cash, or RM2.90 a share.
The transacted price could be viewed as a new base price for any future takeover offers of the developer, said RHB Investment Bank analyst Loong Kok Wen in a client report.
Sime's wholly owned subsidiary, Sime Darby Nominees Sdn Bhd, and Mr Tham's privately held Morning Crest Sdn Bhd entered into a conditional share sale agreement on Wednesday for a disposal which Sime said would "further align the interests of Mr Tham and key senior personnel with that of E&O".
Buying back the 110 million shares raises his stake to 15.07 per cent. It reduces Sime's to 22 per cent, which analyst Mr Loong sees as indicating that it is no longer inclined to take over E&O.

[Nick]

GK Goh has undergone tremendous transformation over the past year changing from a large equity investment fund to an 'operating' company with its 47.5% stake in DPG (unlisted Australian Nursing Home company) and 81% stake in SGX-listed Boardroom. It also continues to hold on to its listed investments like E&O Berhad and EUNetworks. Naturally, debt has increased significantly due to the recent investments. The key question would be the sustainability of DPG and Boardroom cash-flow (ie dividend income) to GKG to fund its 4-5 cents dividend and repay its debt at corporate levels. It will be interesting if DPG could distribute $12 - 15 million SGD dividend income annually to GKG.

(Not Vested)

[Nick]

Big Boss has added 150 lots over the past 2 days. Does he see value ?

(Not Vested)

[greengiraffe]

Guilt, grief and profits in the aged-care sector

THE AUSTRALIAN JUNE 06, 2014 12:00AM

Bridget Carter

Mergers and Acquisitions Editor
Sydney


AUSTRALIA’S aged-care sector may be riding a wave of popularity, but Opal Specialist Aged Care chief executive Gary Barnier knows running a business in the sector is not for the faint-hearted.

The 51-year-old industry veteran from Sydney was forced to face the media three years ago as the boss of Domain Principal (now renamed Opal), when nine people died after a fire at the group’s Quakers Hill nursing home in Sydney.

The fire was deliberately lit by a nurse in the home, who was convicted of murder, and the company was not found to be at fault.

“It’s a healthcare business, but it has enormous guilt and grief around it, so you get yourselves on the front page of a newspaper really easily,” he said.

“It is not a business you can just jump into and say hey, people are prepared to pay lots of money, the demographics are great and you can make a fortune.

“You have got to have management who know what they are doing.”

Opal is Australia’s second-largest aged-care provider and Mr Barnier is positioning the group for growth.

The company has not ruled out joining its private equity rivals Archer Capital and Quadrant Private Equity in plans for a sharemarket listing.

Aged-care operators are being tipped on to the public market after the success of the float of Japara Healthcare, which added 35 per cent to its $2 offer price on the first day on market this year and yesterday closed at $2.61.

Quadrant has plans to list its aged-care vehicle, Estia, by the end of the year, and recently struck a $100m-plus deal to buy Padman Healthcare.

Archer Capital purchased Lend Lease’s aged-care business for $270m in February last year, renaming it Ality, and it is being groomed for a listing, sources say.

Mr Barnier said Opal, which was largely owned by AMP Life and GK Goh Holdings of Singapore, was looking to expand through property development, and was currently embarking on 12 projects in major cities, as well as acquisitions.

Opal has 56 nursing homes with 5000 staff and 4500 residents, making it the country’s second-largest player behind Bupa.

Mr Barnier said that Australia’s ageing population would have a part to play in fuelling supply. He said people would have to spend some of the $7 trillion tied up in real estate to pay for care in nursing homes. “They are just going to have to let that (property) go and use some of that for their own healthcare, including aged care,” he said.

Nationally, there was a need for 74,000 additional beds over a decade, a 40 per cent supply increase that would cost at least $50bn.

Mr Barnier said customers were 85 years old on average. Trends suggested they would remain in a nursing home for longer than previously, and by 2050, there would be five times the number of people that age.

Recent government reform has made investment in the sector more viable.

With 40 per cent of residents funded by the government, the remainder typically pay an accommodation bond of $250,000 under the reforms, attracting private equity to the sector.

Previously, accommodation bonds could only be charged to low-care residents.

Mr Barnier said changes in the federal budget would be positive for the sector, and there was now more of a user-pays model, where different prices could be charged depending on the level of care provided by the organisation.

But while the industry was seen as defensive, the budget announcements demonstrated it could also be vulnerable to regulatory change.

Japara’s shares fell 5 per cent when the government cancelled the rebate of the payroll tax supplement for the private health sector, although the industry believed it would likely be passed on to consumers over time.

Barclays managing director Steve Boggiano, who has recently acted for private equity firms in the space, said the aged-care sector was under­going consolidation in a similar way to the hospitality industry over a decade ago.

“The aged-care industry remains highly fragmented and is set to consolidate, creating four or five national dominant groups,” he said.

A key focus for Opal’s nursing home care was the increasing number of senior citizens suffering from dementia, a condition affecting about half of all residents, Mr Barnier said.

[cyclone]

No wonder today's volume surged up.
Controlling shareholder paid $126,490.00 for 139,000 ordinary shares, which equivalent to about 0.91 sgd per share.

[cyclone]

Tender for Land Parcel at Venus Drive

G. K. Goh Holdings Limited  wishes to announce that its wholly-owned subsidiary, Canistel Pte Ltd ("Canistel"), has today submitted a tender bid of approximately S$24.3 million ("Tender") for a land parcel located at Venus Drive ("Land Parcel").

The Tender has emerged as the top bid received by HDB for the Land Parcel. The Tender is currently under evaluation and HDB reserves the right to reject the highest or any tender without giving any reason or compensation whatsoever. 

Subject to the award of the above, Canistel intends to undertake a nursing home development with a differentiated product that widens the range of aged care choices available in Singapore ("Project").

The Project, which has a maximum gross floor area of 5,600 square metres on the Land Parcel, will be financed from a combination of internal resources and bank borrowings. The transaction is not expected to have any material financial impact on G. K. Goh's consolidated net tangible assets per share or earnings per share for the financial year ending 31 December 2016.

[weijian]

GK Goh has been in involved in the healthcare industry for a couple of years now. They took a couple of years to investigate the Aus healthcare market, got in pretty deep ~3-4years ago (through OPAL/Habitat) and then got "burnt" last year. Last year, as the main funder for the subsidized aged health care sector at 95%, the Aus Gov drew back some funding for the sector and made regulatory changes that will nudge aged Australians towards home care", compared to "nursing home care".

According to some that i had talked with, there seems to be some efforts by the SG Gov to do something similar - aged homecare - since it is logical to allow HDB flats to continue to be occupied while there may never be enough land prioritized for nursing homes in land-scarce SG for the "1 in 4 folks over 65yrs old in 2030".

GK Goh, as read from its various PRs, seems ready to build an array of aged healthcare assets around an ecosystem in time to come via Allium Healthcare. Allium Healthcare seems to be going down the path to cater to the affluent, to try to differentiate itself. Will this attempt closer to home, be better this time?

G. K. GOH HOLDINGS LIMITED CELEBRATES SUCCESSFUL GROUNDBREAKING FOR VENUS DRIVE NURSING HOME

Singapore, 10 July 2017 – Allium Healthcare, a wholly-owned member of the GK Goh Holdings Group (“GK Goh”), today celebrated the groundbreaking for a new 4-storey nursing home at Venus Drive. Mr Chong Kee Hiong, Member of Parliament for Bishan-Toa Payoh GRC officiated at the ceremony, which was attended by members of the medical, aged care, finance and local communities. When ready in the first quarter of 2019, Allium’s 129-bed residential facility will be the first nursing home in Singapore which will consist entirely of single and double ensuite rooms.

http://infopub.sgx.com/FileOpen/GKGH_Pre...eID=460787


GK Goh denies they are looking at options for OPAL earlier this month: http://infopub.sgx.com/FileOpen/170707%2...eID=460537

[weijian]

Interesting to note that GK Goh has started a share-buyback (and cancellation) of its shares, starting last week. The last time it did so, was in 2012, when it made substantial profits in FY11 from selling some dorm, E&O shares and shophouse assets. From its 3Q17 results, it will have a cash infusion of ~124mil from its divestment of CRT and also EUN. Most probably shareholders should expect a special dividend come end FY17?

Sharebuyback
http://infopub.sgx.com/Apps?A=COW_CorpAn...8918a62d98
http://infopub.sgx.com/Apps?A=COW_CorpAn...d95e8a186f

3QFY17: http://infopub.sgx.com/FileOpen/GKGH_Q3_...eID=477881

[weijian]

A stake in GK Goh is probably like investing with private equity and hedge fund at the same time. Most of its "marquee" investments have been monetized in the last few years with the Gohs enjoying big bonuses and OPMIs partaking the pie via special dividends as well.

We are now left with mainly healthcare assets and Boardroom. Besides Boardroom, the rest of its healthcare investments are on the wrong side of the bet for now.

Financial statements and related announcement Six months ended 30 June 2020

Boardroom Ltd (“Boardroom”) continued to benefit from the business restructuring that had been progressively rolled out in recent years, particularly in relation to the use of technology and the development of business lines such as payroll and employee share plans. All offices have adapted well to the new work-from-home arrangements. Operationally, Boardroom’s Australian businesses did especially well, while in Singapore, increased revenues in accounting services and payroll helped to offset weaker revenues in corporate secretarial and share registry work. Malaysia was comparatively weak, reflecting weak capital markets activity. Overall, Boardroom’s revenues grew by 3%, while EBITDA amounted to S$12.3 million (1H19: S$9.4 million). Net profits were S$4.2 million (1H19: S$2.8 million).

Allium Healthcare (“Allium”) took in the first residents for the Allium Care Suites nursing home in November 2019. However, we have only opened a third of the 129-bed capacity to date. In common with other nursing homes in Singapore, Allium was unable to allow visitors for most of the second quarter, and marketing has only resumed since June. While necessary, the restrictions on visitors have deterred admissions and will likely remain to some degree while Covid-19 remains a threat. Occupancy at present is approximately 63%, or 27 beds out of 43 available. We expect to open additional capacity in a month’s time. Allium’s first half loss amounted to S$3.3 million. Of this, S$2.0 million related to depreciation and amortisation which started to accrue for Allium Care Suites from November 2019.

Opal Aged Care Group (“Opal”) was challenged by back-to-back crises since the start of the year. A number of its homes were threatened by January’s terrible bush fires, but thankfully there was neither loss of property nor lives. One month later, the coronavirus pandemic erupted, and some residents and staff in one of Opal’s New South Wales homes were infected, with three deaths. The second wave of Covid-19 infections poses renewed risks, particularly in Victoria where Opal has 15 care homes. One of these, Opal South Valley, in Geelong is currently managing an outbreak with 18 out of its 78 residents having tested positive, along with six team members. Year-on-year earnings comparisons are complicated by the different levels of additional government support in the first half of each year. Excluding the impact of such support in both 2019 (a one-time payment to all operators pending the finalisation of the Royal Commission report) and 2020 (for Covid19 relief), Opal’s normalised earnings before tax were roughly flat, with revenues up around 5%. Occupancy levels were stable despite the challenging conditions. No new homes were opened in the first half, leaving capacity over 7,300 beds (3% up on the total in June 2019). The Royal Commission’s final report has been delayed by the Covid-19 crisis, and is now expected only in February 2021

https://links.sgx.com/FileOpen/GKGH_1H_2...eID=626559