Boustead Singapore

[CityFarmer]

Boustead share down ~15%...

Anyone know why?



not vested

You don't know? It is due to XE, the entitlement from spin-off of BP

(not vested)

[Ray168]

Thanks CF for your clarification.

Boustead share down ~15%...

Anyone know why?



not vested

You don't know? It is due to XE, the entitlement from spin-off of BP

(not vested)

[sykn]

If you read CIMB's analysis of how BSL's original value is split between the new BSL and BP shares, a 26 cent drop for BSL is considered normal. I'm expecting at most a 30 cents drop, but it has not happened yet.

[piggo]

There is an introduction document. I have attached it.

Thanks MW! Appreciated, strange it's not on their "media centre"

Boustead share down ~15%...

Anyone know why?



not vested

They've just distributed a sizable chunk of the company to existing shareholders. Naturally the value of the parent co. went down... by how much? That's what the "prospectus" is for.

[greengiraffe]

UOB KH recommended:

Boustead Singapore (BOCS SP) UNDER REVIEW

Price/Target: S$1.49/S$1.60 Market Cap: S$775.1m

15% share price decline due to ex-entitlement

Analyst: Brandon Ng Tel: +65 65906615

What’s New

Share price of Boustead Singapore (Boustead) has dropped 15% post the ex-entitlement date.

To recap, the company will spin off its real estate arm, Boustead Projects (BP) and list it on the SGX via an introduction process.

Shareholders will receive 3 BP shares for every 10 Boustead shares.

Our View

Using a similar valuation methodology, post the transaction, Boustead Singapore’s fair value now stands at S$1.60.

Investors should also note that each Boustead Project share has a book value of S$0.51/share and a fair value of S$1.26 using the valuation from the introductory circular. Shareholders can decide to sell or hold, depending on the value it will be trading at upon listing.

Expected date and time for commencement of trading of the BP Shares on the SGX-ST: Thursday, 30 April 2015 at 9.00 a.m.

CIMB recommended:

More flexibility offered
Boustead Singapore (BSL) has received shareholder approval for the
proposed demerger of the group’s industrial real estate business. With
a separate listing status and dedicated management team, Boustead
Projects (BP), the spun-off entity, would embrace faster growth.
BSL will retain 51% stake in BP and
the remaining 49% will be distributed
to BSL’s shareholders via dividend in
specie on the basis of three BP shares
for every 10 BSL shares. BP is
expected to commence trading on the
SGX on 30 Apr 15. We keep our
FY15-17 EPS estimates and Hold call.
Our FY3/16 SOP-based target price
will be adjusted lower to S$1.57 from
S$1.91 after the demerger to reflect
BSL’s lower stake in BP.
Rationale for spin-off
1) A separate listing status for BP
would assist the investing public to
better understand and appraise both
BP and BSL’s underlying businesses;
2) With two dedicated management
teams, BSL and BP will be able to
focus on their respective core
businesses and pursue prospective
strategies and operations more
effectively; 3) In times of need, BP will
be able to access capital markets
directly and independently, releasing
BSL from potential finance burden; 4)
The demerger creates flexibility that
allows shareholders to decide
separately their holdings of BSL and
BP in accordance with their individual
investment objectives.
Fast-tracking REIT listing
We expect BP’s preparatory work for a
prospective REIT listing to be fast
tracked post demerger. BP currently
owns an industrial leasehold portfolio
of 14 completed properties with a total
GFA of 187k sqm and value of
S$404m. This is in addition to two
recently-secured developments with a
total gross development value of
S$150m-200m via its partnership
with Abu Dhabi Investment Council
(ADIC). Given its initial investment
target of >S$600m, the partnership
clearly has great appetite to take up
more. We believe that the leasehold
portfolio of BP and its partner has a
good chance to meet the
S$800m-900m critical value for a
REIT listing within the next 2-3 years.
Awaiting catalysts
We are hopeful of two major catalysts
ahead: 1) an accelerated progress
towards a potential REIT listing, and
2) oil prices eventually bottoming out.
The group’s energy division may risk a
depleted order book in the coming
FY3/16 due to sluggish global oil
investment. Despite that, we expect
BSL to weather the uncertain times,
thanks to its low overheads and capex,
and see a meaningful order book
rebound once oil prices hit the bottom
and oil majors resume investment.

Vested
GG

[Kelvin]

No news from standard chartered yet

Sent from my S4 via Tapatalk

[racht]

Boustead share at 52week low.
Share likely worth so much higher than the current price.
Vested!

[greengiraffe]

what are u talking about... u conveniently forgotten your free 3-for-10 Boustead Project shares to be listed soon...

Vested
GG

Boustead share at 52week low.
Share likely worth so much higher than the current price.
Vested!

[Happymeowmeow]

hi guys

for boustead project

i saw that it has started trading today

does anyone knows whats the NAV per share ?

I'm interested to buy if its selling at NAV or less

[greengiraffe]

This is not a convenient place to source for info.

You should be digging harder for info.

It has been discussed somewhere.

Vested
GG

hi guys

for boustead project

i saw that it has started trading today

does anyone knows whats the NAV per share ?

I'm interested to buy if its selling at NAV or less