Boustead Singapore

[yeokiwi]

Hi Yeokiwi,

No idea, but knowing FF Wong, who is very conservative, don't bet on too much leverage or much of a distribution.

Actually, I do not see why not. Essentially, even a conservative 20% gearing is going to release lots of cash and still have enough safety margin to weather any prolonged financial crisis. There will be slight decline of earning due to interest payment but it is unlikely to cause much change to the earning of Boustead since there will also be substantial savings from tax savings.


To some, money in the company is the same as money given to the shareholders.
To me, money to me is a lot of difference than money with the company.

[wee]

Hi Yeokiwi,

No idea, but knowing FF Wong, who is very conservative, don't bet on too much leverage or much of a distribution.

Actually, I do not see why not. Essentially, even a conservative 20% gearing is going to release lots of cash and still have enough safety margin to weather any prolonged financial crisis. There will be slight decline of earning due to interest payment but it is unlikely to cause much change to the earning of Boustead since there will also be substantial savings from tax savings.


To some, money in the company is the same as money given to the shareholders.
To me, money to me is a lot of difference than money with the company.

Actually I agree with u and I also hope ff Wong see things in similar light. But currently interest is tax deductible and we are already not seeing much gearing. Once the assets are in the REIT, the tax deduction not be there and there would be one less reason to load up on debt.

[Dividend Warrior]

To me, money to me is a lot of difference than money with the company.

I agree.

That's why I dividends.

[freedom]

Sure, that's why most of the time it is really bull crap that investors are owning a piece of business. Seldom investors treat their investment as a piece of business. The first moment that the value is realized, investors will flee, but not the owners. They can't sell as there are seldom buyers for them. And if they actively try to sell, the price will not be that great normally. Or the investors try to liquidate the company, but, seldom the real owners will do that. They are stuck with their business. Still, the trading value is what investors are after, not necessarily the underlying business value.

[Drizzt]

we can continue discussing this but it seems the size of it is not large enough to reit it.

[Gallen]

we can continue discussing this but it seems the size of it is not large enough to reit it.

Stapled REIT should mean no new fund raising as Boustead will have to sell new mother shares with the REIT if they are planning to do IPO.

Given their strong net cash position, no reason to do that.

So if they are merely distributing the stapled REIT units to existing shareholders, theoretically, they can do it anytime regardless of the size of the portfolio?

[Drizzt]

i think what i am refering to is more of an appeal to the public to take this up. but i guess what you are saying is move it to a tabled reit or business trust and enjoy the tax savings. perhaps so that will be like what alot of the Canadian oil companies did to enjoy the tax status some time ago.

[greengiraffe]

Good News:

http://boustead.listedcompany.com/newsro...EF11.1.pdf

[AlphaQuant]

Good News:

http://boustead.listedcompany.com/newsro...EF11.1.pdf

solid.

[greengiraffe]

Good news... yield accretive and NTA enhacing acquisitions:

i) http://infopub.sgx.com/Apps?A=COW_Corpor...7.2013.pdf

The purchase price of the Property is S$39,360,000 (the "Purchase Price"), which was arrived at on a willing-buyer and willing-seller basis and after taking into account the open market valuation of the Property. The open market valuation of the Property is S$44,600,000 based on a valuation dated 28 June 2013 commissioned by the Purchaser and conducted by Colliers International Consultancy & Valuation (Singapore) Pte Ltd (the "Valuer"). The valuation was based on the Income Capitalisation Approach and the Discounted Cash Flow Analysis.

ii) http://infopub.sgx.com/Apps?A=COW_Corpor...seback.pdf

Asset Value. Based on the latest announced unaudited consolidated financial statements of
the AGL Group for the nine months ended 31 March 2013, the book value and the net tangible
asset value of the Property was S$21.7 million.
AGS has commissioned a valuation of the Property by Knight Frank (Singapore) Pte. Ltd.
Knight Frank (Singapore) Pte. Ltd has ascribed an open market value of S$28.8 million as at
30 June 2012 to the Property (on a vacant possession basis and excluding all plant and
machinery and overhead cranes, but including the waterfront with an area of approximately
66,607 square feet).

4. LEASEBACK
Upon Completion, AGS shall lease the Property from the Purchaser under a lease agreement (the
“Lease Agreement”).
The principal terms of the Lease Agreement include, amongst others, the following:
(a). the duration of the lease will commence on the date of Completion and end on 14 May
2025 and AGS has the option to renew the lease for an additional further term of 5 years
subject to the terms of the Lease Agreement;
(b). the rent payable to the Purchaser will be the aggregate of (i) a base rent of approximately
S$3.0 million per annum; and (ii) a land premium rent being 6% of the upfront land
premium that JTC requires the Purchaser to pay for the Property, subject to increases in
the rent as specified under the Lease Agreement; and
©. AGC Australia Pty Ltd, another wholly-owned subsidiary of the Company, as well as the
Company, will guarantee the due and punctual performance by AGS of all the obligations
on the part of AGS to be observed and performed under the Lease Agreement and
indemnify the Purchaser on the terms set out in the corporate guarantees to be given by
AGC Australia Pty Ltd and the Company to the Purchaser on Completion.

This time looks like fast hand, fast leg and the intention to be more aggressive with the huge cash hoard...

HU8TPPY
Vested
GG