Viz Branz

[CityFarmer]

The management has decided to put on hold its proposed bonus issue as announced on 25 May 2012

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Will it cause a dive of the market price tomorrow?

I guess the answer would lie with whether the buyers/investors who have been supporting the share price at the current $0.70 +/- level comprise those who are betting mainly on a potential GO. As technically the postponed 1-for-1 bonus issue does not really create additional real shareholders' value, rationally speaking it should not be the main motivation driving buyers/investors for this counter.

Rationally, the current price should be supported by two (2) factors

- potential GO with the on-going negotiation of major shareholder with a external party
- 1-for-1 bonus issue

But i am not sure which will carry more weight to Mr Market.

Base on the Mr. Market response this morning, dydx is right, Mr Market seem is ignoring it

[VestedInterest]

OCBC downgraded this stock to a hold today (or was it yesterday?), which I think may be a bit premature. The price is good for a puff or two more if one were to use the cigarette butt analogy. If the sale doesn't go through, then there is a strong likelihood that the bonus issue will be reinstated. So either way, it is a win win situation. Or am I missing something here with my simplistic thinking?

[ValueBeliever]

I think Super is already close to a billion Market Cap and we should not under rate Viz as it is still a brand that sells well in China and beyond. I think if a Chinese Co. is interested in a deal, it will be worth a lot more than our local analyst writes about. Dont sell it cheap as the father and son are pitting against each other to find the best deals.

Hope they can cash out the dividend before the sale to sweeten the deal for the buyer! Actually, the split of the father and son was the best thing that happen, it will attract parties to counter the offer if at any moment Super also throws in... that will push Viz even higher!! Market talk is that Super is always for Sale - only if the price is right. 1st to sell will be Popiak King!

[dydx]

Between Super and Viz Branz, to a potential trade buyer from PRC or Taiwan - possibly driven by a motivation to expand outside their home territory - Viz Branz would be an easier buy, simply because it is cheaper both in terms of the amount of money involved and its relatively lower valuation based on say PER or a multiple on recurrent FCF. Being smaller in size, Viz Branz may well offer to the right buyer better and faster growth possibilities.

I guess at the right price from the right buyer, the father and son may just close ranks and enable a smooth GO, as the father is at an opportune age to retire and, at the end of the day, both of them may just come back to the traditional belief that "blood is thicker than water".

[dydx]

I was a little pleasantly surprised by this report (dated 25Sep12) from DMG & Partners.....
http://www.remisiers.org/cms_images/rese..._Branz.pdf

[vicom76]

It's been quite a while without updates on the possible sale or bonus issues n FY dividends..

[l0nEr]

It's been quite a while without updates on the possible sale or bonus issues n FY dividends..

Is it because of the "preliminary interest with a prospective buyer" that they cannot pay out the dividend? It has been almost 2 months since the announcement was made, wonder if it will even go through.

[CityFarmer]

It's been quite a while without updates on the possible sale or bonus issues n FY dividends..

Is it because of the "preliminary interest with a prospective buyer" that they cannot pay out the dividend? It has been almost 2 months since the announcement was made, wonder if it will even go through.

Normally, the chances of deal is diminishing with time passing-by.

[vicom76]

I remembered Thomson Medical also announced FY dividends n 1 for 10 bonus issue to go ahead.

After that, then the mandatory cash offer came.

Of cos, shareholders would have cashed out their profits by xd.

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Funny that Maybank after upgrading Viz Branz, today it upgraded Super and mentioned about YHS may let go of it's stake in Super.

[l0nEr]

It's been quite a while without updates on the possible sale or bonus issues n FY dividends..

Is it because of the "preliminary interest with a prospective buyer" that they cannot pay out the dividend? It has been almost 2 months since the announcement was made, wonder if it will even go through.

Normally, the chances of deal is diminishing with time passing-by.

Yep.. but seems like the stock hasnt fallen much since the initial announcement. Either the market continues to maintain hope, or its the fundamentals that is supporting the stock now.