Ellipsiz

[cif5000]

It does look like Lum has some further plans for the company. Sale of Kita stake will bring in 8.6m this will make net cash to Mcap around 65%+ at current prices.

Either he is streamlining or he is doing the usual sell off assets and build up cash reserve, then wait for share price go down and then do SBB and open market purchase and then privatise loh.

It sure does look like he is going down the privatisation route though.

Lum Chang do construction one rite? how come wanna buy up this kind of stock? is Ellipsiz sitting on some land parcel that they are interested in getting their hands on?  or is it just the cash pile they are interested in?

-n v yet-

I don't think Lum will try to privatize again. In the last low ball, he stated the intention to maintain the listing status. IFA said "not fair not reasonable". The offer lapsed and he ended up with more than 50% control and yet paid out very good dividends since.

If anything, I think he's looking to sell (i.e. he's only a financial investor). Melvin has a 3 year contract. M&A getting hot and the probe card industry continues to consolidate. Form Factor - Cascade is worth looking into. Also worth looking are the market valuations and recent IPO of peers.

I wonder what would be a good price for SV Probe. I may be wrong.

[CY09]

Imo, anything in the region of 20x P/fcf is good to sell ellipsiz. Currently it is about 10x P/ffcf

Vested

[GenS70]

My thesis too that Lum is financial investor taking advantage of their financial capital to consolidate Ellipsiz's fragmented shareholdings, and will look to do a trade sale unlocking value

Signs of Lum unlocking value:

1. Sale of Kita
2. High dividend payment

[cif5000]

http://infopub.sgx.com/FileOpen/ReplytoS...eID=455938

The Company continually explores and reviews strategic opportunities to enhance shareholder value. It has recently entered into a non-binding letter of intent (the “LOI”) with a third party to explore further such an opportunity concerning certain assets of the Group (the “Potential Transaction”). The LOI sets out in broad terms basis the salient terms and conditions of the Potential Transaction in order to facilitate the negotiation of the terms and conditions of a definitive agreement (the “Definitive Agreement”). Save for, inter alia, certain exclusivity and confidentiality obligations, the LOI does not create any legally binding obligation for any party to proceed with the Potential Transaction. Neither party to the LOI is bound to undertake the Potential Transaction until the terms are agreed upon and a Definitive Agreement and all other relevant agreements are executed. The Company will make such further announcement on the Potential Transaction as and when appropriate and in accordance with its obligations pursuant to the Listing Manual of the SGX-ST.

Stock closed at $0.685 yesterday. NAV per share was 76.21ct as of Mar 2017. NTA was significantly lower due to intangible assets. 

What would be a good transaction price, I wonder? Let's wait...

[travmufc]

http://infopub.sgx.com/FileOpen/ReplytoS...eID=455938

The Company continually explores and reviews strategic opportunities to enhance shareholder value. It has recently entered into a non-binding letter of intent (the “LOI”) with a third party to explore further such an opportunity concerning certain assets of the Group (the “Potential Transaction”). The LOI sets out in broad terms basis the salient terms and conditions of the Potential Transaction in order to facilitate the negotiation of the terms and conditions of a definitive agreement (the “Definitive Agreement”). Save for, inter alia, certain exclusivity and confidentiality obligations, the LOI does not create any legally binding obligation for any party to proceed with the Potential Transaction. Neither party to the LOI is bound to undertake the Potential Transaction until the terms are agreed upon and a Definitive Agreement and all other relevant agreements are executed. The Company will make such further announcement on the Potential Transaction as and when appropriate and in accordance with its obligations pursuant to the Listing Manual of the SGX-ST.

Stock closed at $0.685 yesterday. NAV per share was 76.21ct as of Mar 2017. NTA was significantly lower due to intangible assets. 

What would be a good transaction price, I wonder? Let's wait...

The announcement mentioned about certain assets of the Group. Could be just selling of non-core assets for now rather than a full M&A opportunity. Likely a sale of JEP stakes?

[sgpunter]

Wow, final dividend of $0.065 making for a total of $0.09 for the full year. At the last close of $0.665, that's a yield of 13.53%!

But the more intriguing announcement in my opinion is regarding the sale of their probe card business which is somewhat reminiscent of what happened to Neratel. Sale price is US$65m or S$88.3m and amounting to around $0.528 per share and after the sale, it is almost a certainty that another special dividend will be dished out upon completion of the sale.

The perennial question is how much Ellipsiz's Distribution business is worth and whether there are plans to acquire another business. And why are they selling a business that seems to be growing? Will go do more homework on this when I have the time but in the meantime, I would expect this double good news to cause Ellipsiz's share price to surge tomorrow.

[cif5000]

http://www.businesstimes.com.sg/companie...-for-s883m

"This US$65 million sale will boost the cash hoard to some S$135 million when the deal is completed. This will fuel Ellipsiz's growth and expansion into new businesses. It also opens up the opportunity to unlock more shareholder value in time to come."

Cash will be more than $0.80 per share after completion, expected to be end Oct. Maybe they should also sell their JEP stake 

[sgpunter]

Current Cash Per Share: $0.314
Cash Per Share Realized From Sale: $0.528
Number of Shares Held in JEP Holdings Ltd as of AR17: 175,364,808
Value Of Shares Held In JEP Holdings Ltd at last close of $0.027 = $4,734,850 = $0.028 per share
Hence, the above tangibles already comes up to $0.870.

In terms of valuing their Distribution and Services Solutions (DSS) business, I see that FY17 net profit came up to a mere $1.15m. Whilst the DSS business is a notoriously low margin business, coupled with the phase of growth experienced by the semicon industry, I believe the DSS will continue to be profitable and should see growth although I don't expect it be astronomical. Ascribing a PE Ratio of 10x, I value the DSS business (excluding whatever assets it comes with) at $0.07 which should be a more than conservative estimation.

This alone comes up to $0.94 and does not factor in whatever other remaining assets are held by the holding company.

Let's see how this develops.

[cif5000]

Current Cash Per Share: $0.314
Cash Per Share Realized From Sale: $0.528
Number of Shares Held in JEP Holdings Ltd as of AR17: 175,364,808
Value Of Shares Held In JEP Holdings Ltd at last close of $0.027 = $4,734,850 = $0.028 per share
Hence, the above tangibles already comes up to $0.870.

In terms of valuing their Distribution and Services Solutions (DSS) business, I see that FY17 net profit came up to a mere $1.15m. Whilst the DSS business is a notoriously low margin business, coupled with the phase of growth experienced by the semicon industry, I believe the DSS will continue to be profitable and should see growth although I don't expect it be astronomical. Ascribing a PE Ratio of 10x, I value the DSS business (excluding whatever assets it comes with) at $0.07 which should be a more than conservative estimation.

This alone comes up to $0.94 and does not factor in whatever other remaining assets are held by the holding company.

Let's see how this develops.

The net proceeds is slightly less at about $0.50 per share.

CEO bought 1.5m shares at $0.7525 per share. Kinda give an idea how much it's worth at least.
http://infopub.sgx.com/FileOpen/_Form%20...eID=468158

[kelvesy]

UOB released a quick report on the recent sale: https://research.uobkayhian.com/content_...631a67dd04