Haw Par Corporation

[D123]

@ $6.20, it is currently trading at 35% discount to net tangible assets of $9.52 based on the last published quarterly results.

Is there unrealized value to this stock?

[d.o.g.]

Is there unrealized value to this stock?

Most of the value stems from the 4% stake in UOB. Full value will never be realized since Wee Cho Yaw needs it to keep control of UOB. Using multiple pyramid structures allows Wee Cho Yaw to minimize the capital locked up while still keeping control of his empire.

Try building a web of the Wee empire and the respective shareholdings. It's quite enlightening, and you can quickly see what the key companies are.

[freedom]

wonder when he dies, can the wee empire continue to exist and control UOB?

[LionFlyer]

Is there unrealized value to this stock?

Most of the value stems from the 4% stake in UOB. Full value will never be realized since Wee Cho Yaw needs it to keep control of UOB. Using multiple pyramid structures allows Wee Cho Yaw to minimize the capital locked up while still keeping control of his empire.

Try building a web of the Wee empire and the respective shareholdings. It's quite enlightening, and you can quickly see what the key companies are.

Here
[Image: weechoyaw3.gif]

As for what happens after his death, well, anyone who can build an empire like that is no fool. Money you can't take to the grave, but he can certainly make sure where it goes after he is gone.

[d.o.g.]

Here...

That chart is way out of date. The UOB-Haw Par crossholdings no longer exist, and OUE is no longer part of the UOB empire. The % shareholdings held by the Wees in UOB, UOL and Haw Par have also changed.

Best to build your own chart if you really want to understand the story. Which reminds me - I have to update my own chart too now that UOB has sold its UIC stake to UOL.

[wee]

If a company is used by mr wee (not referring to myself!) to control his empire, what is the merit of such an investment, even if it is trading at way below book value? We are looking for investment returns, and yet the manager is looking for using your capital to serve his own purpose? I am not trying to be critical of other's views here- personally I have been struggling with this question for a long time.

[mikh]

If a company is used by mr wee (not referring to myself!) to control his empire, what is the merit of such an investment, even if it is trading at way below book value? We are looking for investment returns, and yet the manager is looking for using your capital to serve his own purpose? I am not trying to be critical of other's views here- personally I have been struggling with this question for a long time.

The majority shareholder's key focus is about the company's control of his empire's shares; less so about profitability unless the investment is more profitable in itself. He would also have less incentive for share dilution or concern about share price changes, valuation etc. By the same token, the shares are "worth" more to that shareholder because of the value of being able to control his empire. Worth more than to others who owns lesser shares and cannot exercise the same control.

Appointed top executives will also prioritise focus accordingly on the "right" corporate direction set by key owners.

Just like all other majority shareholding situations, your money is being used as leverage. In this case, am not sure he cares too much about minority money as its probably a pittance compared to what he has or needs; except perhaps just for ethical social concerns etc

[Poowawa]

wonder when he dies, can the wee empire continue to exist and control UOB?

Of course they can. His son Wee Ee Cheong is already the current CEO.

You can rest assured the Wees and the Queks will ensure their empires will never fall into the hands of outsiders.

[Nick]

http://www.nextinsight.net/index.php?opt...2&Itemid=1 - Analysis from NextInsight

[littlemissangry]

http://www.nextinsight.net/index.php?opt...2&Itemid=1 - Analysis from NextInsight

Wonder where he got the share numbers of UOB UOL UIC and whether its accurate.