Wheelock Properties

[cyclone]

Wheelock Deal Spurs Singapore Property Stocks Buyout Speculation

By Livia Yap
July 19, 2018, 11:51 AM GMT+8 Updated on July 19, 2018, 1:58 PM GMT+8

There may be a silver lining for investors in Singapore property stocks after recent government curbs fueled a selloff in the sector.

A S$598 million ($438 million) take-private offer for Wheelock Properties (Singapore) Ltd., which sent the stock to its highest level in more than eight years, has stoked speculation of more buyouts in the industry.

Hong Kong-listed Wheelock & Co. proposed Thursday to buy the remaining shares of its Singapore unit for S$2.10 apiece, a 21 percent premium from its closing price on July 13.

Now, analysts say that parent companies of Wheelock’s peers including Wing Tai Holdings Ltd., Ho Bee Land Ltd., Bukit Sembawang Estates Ltd. and GuocoLand Ltd. may follow suit. And shares of both Wing Tai and Ho Bee Land rose by more than 2 percent Wednesday.

“The offer for Wheelock is likely to re-start market talk and expectation of more privatization or M&A,” said Carmen Lee, head of research at Oversea-Chinese Banking Corp. “The current market weakness for property stocks is an opportune time for the key shareholder to take the company private.”

More details in https://www.bloomberg.com/news/articles/...peculation

[tealeaves]

I bought Wheelock Properties (Singapore) in the early 2013 at 1.98 per share.
Received 6 times dividend of 0.06 per share. Total dividends received = 0.36 per share.

The offer is 2.1 per share.

Total return for the holding period of 5.5 years is 24.24%, not more than 5% per year.

Lousy result.

I bought mine initially at $1.95, and in 2014, took a leap of faith to average down when it was at $1.46. DCA eventually was $1.73. Even then, i am far from satisfied.

At $1.73, i get 6 cents dividends annually, is actually quite okay. But if they wanna delist, They got to give more than $2.10. Its a poor offer and not compelling. Let see how they gonna hit their 90%. I going to keep mine in my pocket. Shio shio in my pocket.. 

[AQ.]

Let me guess: Answer from IFA will be  "not fair but reasonable". ID will recommend to "accept offer or sell on open market".

[Scg8866t]

Wheelock parent specifically didnt say this is their final offer price and did not say that they will not revise upwards unlike ltc. So my guess is their will slowly and gradually see the reception and move the offer price up. If I am the parent(which i own the shares of too), I will also be conservative like them. Nobody does privatization without making a gain for themselves first.

Do note Wheelock prop hk was taken private at 1x book in 2010.

[tealeaves]

Wheelock parent specifically didnt say this is their final offer price and did not say that they will not revise upwards unlike ltc. So my guess is their will slowly and gradually see the reception and move the offer price up. If I am the parent(which i own the shares of too), I will also be conservative like them. Nobody does privatization without making a gain for themselves first.

Do note Wheelock prop hk was taken private at 1x book in 2010.

Can i ask whats ltc?

[Scg8866t]

Wheelock parent specifically didnt say this is their final offer price and did not say that they will not revise upwards unlike ltc. So my guess is their will slowly and gradually see the reception and move the offer price up. If I am the parent(which i own the shares of too), I will also be conservative like them. Nobody does privatization without making a gain for themselves first.

Do note Wheelock prop hk was taken private at 1x book in 2010.

Can i ask whats ltc?

Lion Teck Chiang, another counter that tried to privatise this year.

[tealeaves]

Wheelock parent specifically didnt say this is their final offer price and did not say that they will not revise upwards unlike ltc. So my guess is their will slowly and gradually see the reception and move the offer price up. If I am the parent(which i own the shares of too), I will also be conservative like them. Nobody does privatization without making a gain for themselves first.

Do note Wheelock prop hk was taken private at 1x book in 2010.

Can i ask whats ltc?

Lion Teck Chiang, another counter that tried to privatise this year.

Thanks for sharing! ;
Sending the vested this call from OCBC, note the word pun, haha "unwheeling" to accept!
https://research.sginvestors.io/2018/07/...07-19.html

[soros]

Cyclone,

Agree , a lousy result for waiting 5 years and the offer price is only 6% above your buy-in price.

These directors are not acting on your behalf but acting to take advantage of you..

[persia]

With the offer at $2.10, how much cash does the parent have to fork out to acquire the remaining 24% of shares they do not own?

Around $603 million?

Based on latest, Wheelock's cash holding is already $900 million and almost no debt. 
Seems like a super good deal for the acquirer??  

[opmi]

see whether minority shareholders can wait or not???

Wheelock HK can lapse the offer and wait for another year...another .....another......