OUE (formerly: Overseas Union Enterprise)

[Shiyi]

Book value at $650 million and sold at $430 million, that is a whopping discount of 34%.
Either it is a fire sale or the valuation is out of whack, or both.

And it's difficult to see how the disposal benefits the shareholders.

[weijian]

Book value at $650 million and sold at $430 million, that is a whopping discount of 34%.
Either it is a fire sale or the valuation is out of whack, or both.

And it's difficult to see how the disposal benefits the shareholders.

OUE values its investment properties based on fair value accounting, ie. they will hire "independent" external valuers to determine this book value.

But of course, book value as per independent valuer and market value as per buyer are 2 different tings.

This is also probably why we seldom see any listed companies that uses fair value accounting, having their prices trade close to their book value (with the exception of some miracle REITs but it is mainly driven by the market loving the "predictable income" that is largely distributed as dividends). Most of these fair value accounting companies are always at a discount to NAV. This probably provide some clues whether for this situation, on whether it is a fire sale or the valuation is out of whack, or both.

[opmi]

Valuation are opinions. Can pick and choose for whatever purpose you want it to be.
Eg. Get a loan, valuation as high as possible. Pay taxes, as low as possible.

Just shop around. Just like IFA shopping.

[¯|_(ツ)_/¯]

OUE 1H result
Rev $311m (vs 432m)
GP $121m (vs 154m)
Loss $186m (vs 84m)

https://links.sgx.com/FileOpen/OUE_Finan...eID=626253

Wear mask and keep your social distance, everyone

[¯|_(ツ)_/¯]

OUE Commercial Reit - Mandarin Orchard 

HOTEL STATEMENT 
The Ministry of Health (MOH) is investigating 13 cases of COVID-19 infection amongst individuals who had served Stay-Home Notice (SHN) at Mandarin Orchard Singapore (333 Orchard Road) between 22 October and 11 November 2020. As a precautionary measure, the Hotel will stop accepting new guests with immediate effect. Those currently serving SHN with us will be moved to another SHN dedicated facility, and we are making arrangements to check out all other in-house guests progressively. Restaurant and event spaces within the Hotel will also be closed until further notice. 

The safety and well-being of our guests and employees remain the utmost priority to all of us at Mandarin Orchard Singapore. We are working closely and cooperating fully with the relevant authorities in their investigations, and will continue to implement stringent infection control measures across our operations, in consultation with MOH and the National Environment Agency. COVID-19 swab tests for all full-time and part-time Hotel employees will also be carried out.

Stay home and stay safe, everyone.

[Shrivathsa]

Interesting, another offer from a company to minority shareholders to exit investments, this time it is OUE, a good analysis from Dr Wealth on whether it makes sense to exit, https://www.drwealth.com/oue-stock-jumpe...ders-sell/

The original SGX link announcement is here, https://links.sgx.com/FileOpen/OUE_Annou...eID=803948

Per se, while it does not really look like a fair or reasonable offer, in some ways, if one has been stuck with OUE for a long time, I can understand the temptation to call it quits as minority shareholder,

[weijian]

in some ways, if one has been stuck with OUE for a long time, I can understand the temptation to call it quits as minority shareholder,

hi Shrivathsa,

Since OUE is listed, all an OPMI needs to do - is to sell their shares on the open market whenever it is open from 9am-5pm on weekdays (Except public holidays). So why would one "be stuck with OUE for a long time"?

Of course, that is unless you are some closed end fund whom is owned by the same ultimate owner of OUE..