Boustead Singapore

[shanrui_91]

Hi Shanrui,

Based on Boustead's indicative lower end of S$200m worth of ind prop portfolio, what is the net debt associated with the entire portfolio and the per share worth based on your understanding?

Thanks in advanced
GG

Not too sure about it. But when I asked him how much more cash will Boustead need to invest to reach the critical size, he said $60 million based on an additional $200 million portfolio and bank finance of 70/30.

[greengiraffe]

Hi Shanrui,

Based on Boustead's indicative lower end of S$200m worth of ind prop portfolio, what is the net debt associated with the entire portfolio and the per share worth based on your understanding?

Thanks in advanced
GG

Not too sure about it. But when I asked him how much more cash will Boustead need to invest to reach the critical size, he said $60 million based on an additional $200 million portfolio and bank finance of 70/30.

Hi Shanrui,

Thanks for your clarifications.

For the latest interim statement, total debt attributable to Singapore facilities amounted to S$38.017m. The amount excluded the loans related to Tongzhou which one of the buddies mentioned that was sold and proceeds reinvested into the Perennial led project in Beijing.

As both the Jabil and Bombardier facilities are in progress, the loans on these two projects have yet to surface.

Interestingly was the S$200 - 250m estimated market value related to the entire list of facilities compiled on the presentation notes (but excluded the 5500 sq m Continental Alloy and Services facility) given that both Jabil and Bombardier remains under construction.

GG

[Musicwhiz]

OMH has rebounded from a low of AUD 22c to current AUD 32c, while Hankore is trading at 4.2c, higher than Boustead''s investment at 4c.

So it seems FF Wong's insistence of looking at the long-term for the projects which Boustead has invested in is justified. Perhaps as investors in Boustead we too have been guilty of being too short-term focused and asking for results too soon.

[valuestalker]

OMH has rebounded from a low of AUD 22c to current AUD 32c, while Hankore is trading at 4.2c, higher than Boustead''s investment at 4c.

So it seems FF Wong's insistence of looking at the long-term for the projects which Boustead has invested in is justified. Perhaps as investors in Boustead we too have been guilty of being too short-term focused and asking for results too soon.

If I get him correctly, at Investor day, Mr Wong actually mentioned that OMH is not as per what he think it was (Read: "No Job" for Boustead in Sarawak project).
Hence the absent of right issue subscription on OMH??
If OMH is really that good an asset, when the price was below 0.2, not buying more?

Just my opinion.

Anyway, Hankore went up because other party is looking to acquire its water assets.
(But agree that credit should be given to Boustead for their assessment on Hankore assets)

[wee]

Something has happened since the AGM but I'm not sure how to interprete the change of mind to invest further in OMH since the AGM (where he was talking about possibly subscribing to excess rights). There seem to be less enthusiasm in OMH based on FF Wong's body language.

[greengiraffe]

Don't have to think too much - in corporate developments, it is likely to be due to change in operating conditions.

More importantly, one has to wonder how a successful conclusion to Boustead's retail investor day could have contributed to a rise in share price above the key psychological $1 level.

Without announcement of major contracts especially the absence of lucrative DBL contracts - what is really under-pinning the bullishness in Boustead's share price?

Something has happened since the AGM but I'm not sure how to interprete the change of mind to invest further in OMH since the AGM (where he was talking about possibly subscribing to excess rights). There seem to be less enthusiasm in OMH based on FF Wong's body language.

[wee]

.....

[Musicwhiz]

Oh well OMH has been halted this morning - perhaps new developments coming up?

Let's wait and see.

[Muck]

OM Holdings Secures $300 Million of Project Finance

"Australia-listed ferrosilicon alloy and manganese producer OM Holdings Ltd has secured commitments attached to around US$300 million of project finance, a person familiar with the matter told Deal Journal Australia. The debt will be split into U.S. dollars and Malaysian ringgit, and will fund the first phase of construction and production at a smelting project in Malaysia’s Sarawak state... ..."

http://blogs.wsj.com/dealjournalaustrali...t-finance/

[greengiraffe]

OMH ASX announcement:

http://www.asx.com.au/asxpdf/20121221/pd...qlwvyx.pdf