Wheelock Properties

[Stocker]

Wheelock just released its 3Q result.
NAV: group=2.56 , company=1.61.
If we buy into this share , which NAV should we use as a gauge ?
Group or company ?

[ngcheeki]

Wheelock properties is active today probably due to the following report from UOB Kay Hian.

Property – Singapore
Privatisation Plays Back In Vogue
The recent announcements regarding potential privatisation of Guoco Group
(Hong Kong) and ongoing bidding war for F&N have spurred interest again in
privatisation candidates in Singapore. The steep trading discounts to their
NAVs and low borrowing costs may prompt more companies to look into
privatisation options. Possible privatisation candidates include Wheelock,
GuocoLand, GuocoLeisure, SC Global, Hiap Hoe, Sim Lian and Ho Bee.
What’s New
• The recent trading suspension of Guoco Group (Hong Kong) on a
possible privatisation and the ongoing tussle to acquire Fraser & Neave
(F&N) has spurred interest in identifying the next privatisation plays in
the property sector.
Action
• We view Wheelock Properties (Wheelock), GuocoLand, GuocoLeisure,
SC Global, Hiap Hoe, Sim Lian and Ho Bee as the most probable
candidates in the property sector for privatisation. The deep trading
discounts, low borrowing costs and the government policy overhang in
the residential sector may prompt more companies to consider the
privatisation route at current juncture.
Essential
• Recent privatisation plays. Stocks that have been privatised over the
last three years in the Singapore property sector are: a) Allgreen (May
11), which was privatised by Kuok Group at 39% premium to its last
traded price, b) MCL Land (Aug 10), which was announced by Hong
Kong Land at an offer price that was at a 25% premium to its last trading
price, and c) SoilBuild (Sep 10) which announced plans for voluntary
delisting at a 13.5% premium over the last traded price.
• Methodology for identifying privatisation candidates. The table on
Privatisation Likelihood (next page) highlights our view on the
privatisation chances of various property stocks in Singapore and also
includes their premium/discount to the long-term P/B levels, public float
and major shareholder stakes. In identifying the candidates that have a
high likelihood of privatisation, the key factors we look for include a low
public float, high major shareholder stakes of above 50% and deep
discounts of above 30% to their RNAVs/long-term P/Bs.
• Potential candidates for privatisation. Among the stocks under our
coverage, we view Wheelock, Ho Bee and GuocoLand as candidates
that are highly likely to be privatised. Wheelock, which is 76%-owned by
its unlisted parent Wheelock & Co, is trading at S$1.85, or a 30%
discount to its book value. Wheelock & Co was privatised in Apr 10 at a
huge 144% premium over its last trading price. Ho Bee is about 70%
family-owned, and is currently trading at S$1.67, or a 30% discount to its
books. It is also a potential privatisation play with recent share buybacks
signalling deep value, even though management has denied any
privatisation considerations. The recent privatisation talks of Guoco
Group have also sparked interest in GuocoLand which is 65%-owned by
the Guoco Group. However, we believe the likelihood is low considering
that it is trading at a 17% discount to its RNAV. Other likely candidates
include GuocoLeisure, SC Global, Hiap Hoe and Sim Lian.

http://research.uobkayhian.com/content_d...1e6a425b3f

[money]

Wheelock just released its 3Q result.
NAV: group=2.56 , company=1.61.
If we buy into this share , which NAV should we use as a gauge ?
Group or company ?

we usually use group as
group = 'parent' company + subsidiaries

[camelking]

Wheelock holds around 15% of SC global...
As long as Wheelock refuses to sell, Mr Cheong can't delist the company.

Interesting

Vested

[Stocker]

Wheelock just released its 3Q result.
NAV: group=2.56 , company=1.61.
If we buy into this share , which NAV should we use as a gauge ?
Group or company ?

we usually use group as
group = 'parent' company + subsidiaries

Hi money,
Sincere thanks for your kind explanation.
However if we take NAV of group as a gauge, (as it also comprise of minority interest) , will it cause inaccuracy in NAV itself ? Once again many thanks in advance.

[money]

Wheelock just released its 3Q result.
NAV: group=2.56 , company=1.61.
If we buy into this share , which NAV should we use as a gauge ?
Group or company ?

we usually use group as
group = 'parent' company + subsidiaries

Hi money,
Sincere thanks for your kind explanation.
However if we take NAV of group as a gauge, (as it also comprise of minority interest) , will it cause inaccuracy in NAV itself ? Once again many thanks in advance.

i guess you can minus off minority interest on your own, since minority interest is also found in the balance sheet, but if i didnt remember wrongly, minority interest is always accounted for when NAV is presented

---

Wheelock holds around 15% of SC global...
As long as Wheelock refuses to sell, Mr Cheong can't delist the company.

Interesting

Vested

i think wheelock would sell

[Stocker]

http://info.sgx.com/webcoranncatth.nsf/V...B00393DE6/$file/Press_Release_5_Dec_2012.pdf?openelement

---

Believe Wheelock paid more than S$2.00 for its stake.

[money]

http://info.sgx.com/webcoranncatth.nsf/V...B00393DE6/$file/Press_Release_5_Dec_2012.pdf?openelement

---

Believe Wheelock paid more than S$2.00 for its stake.

hi stocker, anyway, i was looking at the financial statement of wheelock a moment ago, i dont think they have any significant minority interest so the NAV of 2.56 seems pretty much accurate

[guru]

Any chance of counter-offer by Wheelock?
Not in their interest to be bought out at a loss. I thought they always wanted more exposure to the SG luxury market.

Unless some side deal has been stuck by Wheelock and SC how to split the SC assets after delisting.

*Vested in SC*

[Stocker]

http://info.sgx.com/webcoranncatth.nsf/V...B00393DE6/$file/Press_Release_5_Dec_2012.pdf?openelement

---

Believe Wheelock paid more than S$2.00 for its stake.

hi stocker, anyway, i was looking at the financial statement of wheelock a moment ago, i dont think they have any significant minority interest so the NAV of 2.56 seems pretty much accurate

Hi money,

Many thanks.

Kind Regards/stocker