Boustead Singapore

[LionFlyer]

It's Dr FF Wong BTW. He was conferred an honorary doctorate recently.

[EnSabahNur]

More details on the demerger

http://infopub.sgx.com/FileOpen/Boustead...eID=329222

[opmi]

OT

EnSabahNur -http://en.wikipedia.org/wiki/Apocalypse_(comics)

[CityFarmer]

It seems fair and rational to demerge...

Best of both worlds as Boustead plans to keep real-estate division a subsidiary

SINGAPORE (Dec 24): The spin-off plans for Boustead Singapore ( Financial Dashboard)’s real-estate division are out and it seems the conglomerate wants to keep Boustead Projects as a subsidiary while enabling it to build an investor following of its own.

Last night, Boustead announced more details of the demerger. Boustead will spin off its real-estate solutions business via a distribution in specie to the shareholders of the company of up to 49% of the issued share capital of Boustead Projects. The shares of Boustead Projects will then be listed on the Mainboard of the Singapore Exchange by way of an introduction.

Following the completion of the proposed distribution in specie, Boustead will have a direct interest of at least 51% of the total issued share capital of Boustead Projects.

As Boustead Projects will be a subsidiary and its financials will be consolidated with that of Boustead, this will help shield the parent company from the cycles of individual industries such as energy while enabling the real-estate division to raise capital and expand on its own.
...
http://www.theedgemarkets.com/sg/article...subsidiary

[ksir]

It seems fair and rational to demerge...

Best of both worlds as Boustead plans to keep real-estate division a subsidiary

SINGAPORE (Dec 24): The spin-off plans for Boustead Singapore ( Financial Dashboard)’s real-estate division are out and it seems the conglomerate wants to keep Boustead Projects as a subsidiary while enabling it to build an investor following of its own.

Last night, Boustead announced more details of the demerger. Boustead will spin off its real-estate solutions business via a distribution in specie to the shareholders of the company of up to 49% of the issued share capital of Boustead Projects. The shares of Boustead Projects will then be listed on the Mainboard of the Singapore Exchange by way of an introduction.

Following the completion of the proposed distribution in specie, Boustead will have a direct interest of at least 51% of the total issued share capital of Boustead Projects.

As Boustead Projects will be a subsidiary and its financials will be consolidated with that of Boustead, this will help shield the parent company from the cycles of individual industries such as energy while enabling the real-estate division to raise capital and expand on its own.
...
http://www.theedgemarkets.com/sg/article...subsidiary

One of the rationale to demerge is to take out the conglomerate discount "suffered" by Boustead holdings. Since when Boustead strategy is dictated by the market?
I see this as an experiment of parent letting their child to stand on his own.
Yet it may well turns out to be another capitamalls asia.
The best out of this? We can get more info & disclosure from BP.

Vested and watching the change of strategy with curious eyes

[greengiraffe]

On surface, it appears that the spinoff is nothing more than creation of paper, unlocking and assigning a market value for BP.

However, given FF Wong's track record since former chocolate maker Sunshine Allied to Ben & Co renamed Bruneian backed QAF (that was sold to Salim just before the AFC) and the pains that FF and his mates gone through since assuming control of Bousteadco in 1996, it is highly unlikely that he will merely stop at paper shuffling without value creation.

What remains unknown is the amount of cash that is being retained by the current parent Boustead and the plans for such cash hoard. BP, being a key contributor to Boustead's earnings and cashflow is likely to be a high yielding counter since it is required to stream up as much cash to Boustead given that it only own at least 51%.

While BP is required to fly on its own, its SWF linked JV has yet to takeoff since the former announcement. Any development on this Dubai backed JV will be interesting as the space is no doubt crowded and competitive.

As for Parent Holding Co, it is not without problems given the challenge faced by O&G and also the weakness in A$ that will affect translated earnings of ESRI.

Very interesting times and developments to monitor ahead for Boustead and BP. Its no longer about $ but a mission by FF and his successors to continue the 18 year old legacy that started in 1996.

Vested
Reduced Core
GG

[Kelvin]

Wondering if I need to add lots in case shares are not given by per lot basis.

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[opmi]

What left after the BP is demerger? May be 'u can be a stock genius' play.


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[CityFarmer]

What left after the BP is demerger? May be 'u can be a stock genius' play.


Sent from my iPhone using Tapatalki

I am on the same page as you...

It takes much more time to "value" the company, than other biz for me, but it might worth the effort...

[CityFarmer]

I chose to post the article here. Mr. Wong and Mr. Li are thinking alike, using similar solution to solve the issue of holding company discount...

Tycoon Li Ka-shing to revamp empire to address valuation discount

HONG KONG - Asia's richest man, Li Ka-shing, is restructuring his business empire to create two listed companies, one focusing on property and the other on telecoms, retail and energy, in a bid to boost their value and attract more investors.

The 86-year-old Hong Kong tycoon built his sprawling empire over more than half a century from a plastic flower business, but has been frustrated that his group's listed companies trade at a discount to the book values of their net assets, a common feature of conglomerates.

"This transaction is a watershed event in our group's history. It is transformational from the point of view of shareholder value," Li said in a statement on Friday.

Li's two largest listed companies are Cheung Kong (Holdings) and Hutchison Whampoa , which both run a wide range of businesses. As on Jan. 7, Cheung Kong, which owns just under half of Hutchison Whampoa, traded at a 23 percent discount, or about HK$87 billion ($11.22 billion), to its book value at the end of June 2014, the statement said.

"The issue of holding company discount has puzzled us for a long time, until we thought of a way to resolve it during the second half of last year," Victor Li, executive deputy chairman of Cheung Kong and Hutchison told a news conference when asked why they chose to do the restructuring now.
...
http://www.todayonline.com/business/tyco...n-discount