Nordic Group

[Polaris]

Multiheight + AE = Possible Spin Off ?

I think not likely. Multiheight +AE should become its core biz.

(Vested)

[turnngrow]

Separate listing may be best option to tap fund if there are more M&A opportunities to develop Multiheight + AE into a full fledge infrastructure developer. Retaining 70-80% should be sufficient for Nordic group as core biz.

[Nick]

Separate listing may be best option to tap fund if there are more M&A opportunities to develop Multiheight + AE into a full fledge infrastructure developer. Retaining 70-80% should be sufficient for Nordic group as core biz.

I don't see how this would be advantageous to the Company. If you are going to retain a substantial stake in the Spin-Off while your remaining business is very small, you are better off consolidating it. Plus it will introduce a holding company discount to its valuation and add more listing expenses to the cost structure. It would be a poor move IMO.

(Not Vested)

[shawn_sass]

I was at the EGM. One investor asked why Nordic did not use issuance of new Nordic share to buy AE. The answer from Chang was he feels that Nordic shares is undervalued and using cash would be cheaper. Also he doesn’t want to dilute existing shareholder’s stake in Nordic.

The investor probed further, did ex-owner of AE prefer cash or Nordic shares? Chang answered that because AE ex-owner is 65+ yrs old and having health issues, cash is what is most practical to him. One of the Independent Director, Juliana Lee, later quipped that the ex-owner probably didn’t realised that Nordic share is much more valuable. Her comment turns out to be very true. On 11 Mar, the day before the acquisition was announced, Nordic was trading at only $0.128/share. Now Nordic is trading at $0.19. The ex-owner of AE could have gotten 50% more if he has got Nordic shares instead.

Of course, there is this lingering thoughts that if the ex-owner were to maintain a stake in AE, whether through not selling entirely of AE, or through keeping some Nordic shares, he will be more motivated to want to see the new AE to continue to be successful.

In my view, Nordic already got a very good deal. You can’t have everything.

Great insight Polaris, thanks for the valuable sharing. I'm confident that management's interests are largely aligned with shareholders. Since they view Nordic's cash more valuable than equity, it means that the company has great potential.

Hopefully Nordic Group can synergize AE after the acquisition, and clinch more/better deals with the integration of both AE and Multiheight.

2Q15 should still be largely organic growth - looking forward to see the initiation of the half yearly dividend. Once AE is acquired, the real kicker for Nordic Group will come in 2H15.

-vested-

[Polaris]

Hi fellow valuebuddies,

Nextinsight is organising a factory visit to Nordic’s newly acquired Austin Energy.

Time & date: 2-4 pm, 15 June 2015 (Monday).
Venue: Austin Energy, 24, Benoi Place, Singapore 629940.

To register for the visit, please email your name and contact number to admin@nextinsight.net.

For details, please refer to - http://www.nextinsight.net/index.php/sto...re-invited

[mslee888]

Polaris...would you be attending?

Nextinsight is organising a factory visit to Nordic’s newly acquired Austin Energy.

Time & date: 2-4 pm, 15 June 2015 (Monday).
Venue: Austin Energy, 24, Benoi Place, Singapore 629940.

To register for the visit, please email your name and contact number to admin@nextinsight.net.

For details, please refer to - http://www.nextinsight.net/index.php/sto...re-invited

[shawn_sass]

Thanks for the heads up Polaris. It appears you are the true loyal follower and strong supporter of Nordic Group.
I would love to attend but am out of the country on that day.

Interesting information for AE would be a sense of their order book (to feel how sustainable the business is and what growth remains), and how "synergistic" is the business to Multiheight.
Will we see a good complement where the total added business of the two companies be better than the individual sum of each? My optimistic view is YES (if not why put the two companies in the same location/building and sell MH's ONE COMMONWEALTH location)

I like that the Managing Director has been with the company for a long time (~15yrs since start of GM position) and brings with him a bounty of experience. It essentially looks like business as usual from here on.

[shawn_sass]

Disclosure of Interest / Changes in Interest of Director/CEO:: Change in Interest in Director/Substantial Shareholder

Teo Ling Ling
Date of acquisition of or change of interest: 18 Jun 2015
No. Of shares: 850,000
Amount of consideration: $156,400
Avg Price/share: $0.184

The management has been consistent in their personal share buying and increasing the stake in Nordic Group.

This is a good sign to me.

(vested)

[Polaris]

NORDIC CLINCHES INSULATION CONTRACTS WORTH SGD 3.7 MILLION

Austin Energy (Asia) Pte Ltd (Austin), wholly owned subsidiary of Mainboard-listed Nordic Group Limited (Nordic Group), has been awarded three contracts with value totalling approximately S$3.7 million to provide labour and materials to perform insulation works for Ichthys Field Development Project and Ivar Aasen Project. Initial phases of the contracted works for Austin have commenced in Q2 2015 and these projects will continue up to Q1 2016. The above contracts are not expected to have material impact on the net tangible assets and earnings per share of Nordic Group Limited for the current financial year.

BY ORDER OF THE BOARD
CHANG YEH HONG
EXECUTIVE CHAIRMAN
25 JUNE 2015

[Bluechipfan]

NORDIC CLINCHES INSULATION CONTRACTS WORTH SGD 3.7 MILLION

Austin Energy (Asia) Pte Ltd (Austin), wholly owned subsidiary of Mainboard-listed Nordic Group Limited (Nordic Group), has been awarded three contracts with value totalling approximately S$3.7 million to provide labour and materials to perform insulation works for Ichthys Field Development Project and Ivar Aasen Project. Initial phases of the contracted works for Austin have commenced in Q2 2015 and these projects will continue up to Q1 2016. The above contracts are not expected to have material impact on the net tangible assets and earnings per share of Nordic Group Limited for the current financial year.

BY ORDER OF THE BOARD
CHANG YEH HONG
EXECUTIVE CHAIRMAN
25 JUNE 2015

I have been buying from 13 cents to 19 cents. Average price around 16 cents. Still queuing to buy at 18 cents but tempted to queue at higher price because I scare a breakout from current consolidation. I like the dividend policy, the visibility in the earnings and the fact that management put their money where their mouths are. They have been buying big chunk of shares using their personal fund and it bode well. I hope the price don't move so fast as I waiting for my bonus to come in to buy more. Hopefully I don't have to buy at much higher price.