Wheelock Properties

[yeokiwi]

SC CEO wants to singaporise SCGD. Ultimately he need to offer Wheelock an exit price in a relatively short time to skirt the penalty, which makes a lot of sense why Wheelock has been buying at market. That makes Wheelock's latest move extremely puzzling, unless they are expressing a view on the latest 7th property measure

Once SC global is delisted, SC can do whatever they want at the expense of Wheelock. It is not entirely rosy for Wheelock to remain in a delisted firm with a minority stake.

Besides, SGX may not allow the delisting or delay the delisting for a few years. So, Wheelock's stake will be stuck.

Either way, they are stuck between a rock and a hard place.

[Louhan]

I agree that Wheelock's latest decision to accept Simon's offer is puzzling. Anyone knows what's the free float of Wheelock? Is Wheelock going for privatization too?

SC CEO wants to singaporise SCGD. Ultimately he need to offer Wheelock an exit price in a relatively short time to skirt the penalty, which makes a lot of sense why Wheelock has been buying at market. That makes Wheelock's latest move extremely puzzling, unless they are expressing a view on the latest 7th property measure

[dzwm87]

Once SC global is delisted, SC can do whatever they want at the expense of Wheelock. It is not entirely rosy for Wheelock to remain in a delisted firm with a minority stake.

Besides, SGX may not allow the delisting or delay the delisting for a few years. So, Wheelock's stake will be stuck.

Either way, they are stuck between a rock and a hard place.

Not entirely. SCGD needs to be owned 100% locally (i.e. 100% singaporised) before they can be void of any ABSD penalties. To delist, free float has to be less than 10% and Wheelock's share is not counted as free float. So technically, there is no concern whether SGX may disallow or delay the delisting.

Logically (or at least to me), Wheelock would be in a favorable position to discuss for a better deal post-delisting. What's exactly puzzling is they have openly declare the offer to be low-ball, bought a couple more at above $1.80 and yet surprisingly tendered all last night. It's not a couple of S$100Ks which they lost because their unit cost was way above S$1.80 when they bough SCGD at a high back then.

It's either they chickened out suddenly or as specuvestor said "expressing a view on the latest measure". Something must have led to them changing their mind.

[yeokiwi]

Once SC global is delisted, SC can do whatever they want at the expense of Wheelock. It is not entirely rosy for Wheelock to remain in a delisted firm with a minority stake.

Besides, SGX may not allow the delisting or delay the delisting for a few years. So, Wheelock's stake will be stuck.

Either way, they are stuck between a rock and a hard place.

Not entirely. SCGD needs to be owned 100% locally (i.e. 100% singaporised) before they can be void of any ABSD penalties. To delist, free float has to be less than 10% and Wheelock's share is not counted as free float. So technically, there is no concern whether SGX may disallow or delay the delisting.

As long as SC + wheelock is greater than 90% => suspension by SGX. The next question is whether SGX allows them to delist.
If SGX dilly dally and takes its own sweet time, both SC and Wheelock are stuck.

Logically (or at least to me), Wheelock would be in a favorable position to discuss for a better deal post-delisting. What's exactly puzzling is they have openly declare the offer to be low-ball, bought a couple more at above $1.80 and yet surprisingly tendered all last night. It's not a couple of S$100Ks which they lost because their unit cost was way above S$1.80 when they bough SCGD at a high back then.

What if SC decides to pay the ABSD and punish Wheelock??
Wheelock is basically at SC's mercy.

General Magnetics' minority shareholders know the best of being in a delisted firm.

[freedom]

Logically (or at least to me), Wheelock would be in a favorable position to discuss for a better deal post-delisting. What's exactly puzzling is they have openly declare the offer to be low-ball, bought a couple more at above $1.80 and yet surprisingly tendered all last night. It's not a couple of S$100Ks which they lost because their unit cost was way above S$1.80 when they bough SCGD at a high back then.

What if SC decides to pay the ABSD and punish Wheelock??
Wheelock is basically at SC's mercy.

General Magnetics' minority shareholders know the best of being in a delisted firm.

how could SC punish Wheelock without hurting itself. Wheelock has a much bigger pocket than SC.

between SC and Wheelock, the scale is favorable to Wheelock.

[dzwm87]

As long as SC + wheelock is greater than 90% => suspension by SGX. The next question is whether SGX allows them to delist.
If SGX dilly dally and takes its own sweet time, both SC and Wheelock are stuck.

My guess is IF SCGD meets all the requirement for delisting then there should be no issue with it. This is not the case of China Sky where they failed to meet SGX's compliants. It will take a while but it won't take so long that might end up screwing SCGD. Plus Simon has all the incentives to push for it.

What if SC decides to pay the ABSD and punish Wheelock??
Wheelock is basically at SC's mercy.

General Magnetics' minority shareholders know the best of being in a delisted firm.

True, you're right in saying that Wheelock doesn't have all the bargaining power. Its stake in SCGD has a time bomb effect in the sense the longer Wheelock drags, the higher chance they would suffer the effect of the penalties. (Note: It is SCGD who is paying the penalties, not Simon directly.) However, with that in mind, it isn't logical for Simon to decide to pay the ABSD. In that case, he won't proceed with the tender offer since he would be liable for more damage.

My guess is Wheelock didn't expect the new measures to hit, hence that changes the ball game.

[CityFarmer]

My guess is Wheelock didn't expect the new measures to hit, hence that changes the ball game.

A new measure to curb the property in near term, should be part of their consideration as property developer. My guess the intensity is the one not expected.

[ngcheeki]

I agree that Wheelock's latest decision to accept Simon's offer is puzzling. Anyone knows what's the free float of Wheelock? Is Wheelock going for privatization too?

Based on the AR 2011 page 112, shareholding statistic, the free float of wheelock properties is 24%.

http://info.sgx.com/listprosp.nsf/07aed3...7000b55ea/$FILE/WHEELOCK_AR_FINAL.pdf

[yeokiwi]

My guess is IF SCGD meets all the requirement for delisting then there should be no issue with it. This is not the case of China Sky where they failed to meet SGX's compliants. It will take a while but it won't take so long that might end up screwing SCGD. Plus Simon has all the incentives to push for it.

I am not sure. Pertama met all requirements for delisting by SGX ( < 10% free float) but it is still in suspension even though the 1 year mandatory no-offer period is over for a few months.
I did not see SGX putting up any query or pushing Pertama to delist. Any clue?
If Wheelock persists, SC global will end up just like Pertama. ( < 10% free float but cannot delist via companies act)

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Logically (or at least to me), Wheelock would be in a favorable position to discuss for a better deal post-delisting. What's exactly puzzling is they have openly declare the offer to be low-ball, bought a couple more at above $1.80 and yet surprisingly tendered all last night. It's not a couple of S$100Ks which they lost because their unit cost was way above S$1.80 when they bough SCGD at a high back then.

What if SC decides to pay the ABSD and punish Wheelock??
Wheelock is basically at SC's mercy.

General Magnetics' minority shareholders know the best of being in a delisted firm.

how could SC punish Wheelock without hurting itself. Wheelock has a much bigger pocket than SC.

between SC and Wheelock, the scale is favorable to Wheelock.

Gen Mag shareholders also have big pocket but they cannot force Gen mag to liquidate neither can they force Gen mag to buy their shares at fair value.

Once SC Global is delisted, SC will call the shot on how the company is run. He can take his own sweet time to slowly extract values from SC Global without giving much(or none) to Wheelock.

I am not sure what can a minority shareholder do in a unlisted company. Any expert here??

[2V.]

I believe unwinding SC Global shares is part of a bigger plan of Wheelock. You may keen to know that Wheelock Hong Kong already privatise last year...This is probably only the beginning

Once SC global is delisted, SC can do whatever they want at the expense of Wheelock. It is not entirely rosy for Wheelock to remain in a delisted firm with a minority stake.

Besides, SGX may not allow the delisting or delay the delisting for a few years. So, Wheelock's stake will be stuck.

Either way, they are stuck between a rock and a hard place.

Not entirely. SCGD needs to be owned 100% locally (i.e. 100% singaporised) before they can be void of any ABSD penalties. To delist, free float has to be less than 10% and Wheelock's share is not counted as free float. So technically, there is no concern whether SGX may disallow or delay the delisting.

Logically (or at least to me), Wheelock would be in a favorable position to discuss for a better deal post-delisting. What's exactly puzzling is they have openly declare the offer to be low-ball, bought a couple more at above $1.80 and yet surprisingly tendered all last night. It's not a couple of S$100Ks which they lost because their unit cost was way above S$1.80 when they bough SCGD at a high back then.

It's either they chickened out suddenly or as specuvestor said "expressing a view on the latest measure". Something must have led to them changing their mind.