Hutchison Port Holdings Trust

[Nick]

Just tell them the story on how Richard Li with 25% holdings can effectively never be overthrown then perhaps they will wake up their idea. haha.

This is not a big issue IMO. Its not something new - both REITs and business trust listed here over the past decade have done the same thing with sponsors owning a stake just to keep themselves safe.

Unit-holders can always exercise the ultimate NO vote by selling their units in open market.

[monloi]

Hi All,

I'm new to forum. Anyhow I just want to know how can I invest in Hutchinson or Treasury China Trust? These are my two best pics to start investing in.

I'm actually aiming for long term investment around 3 years min or even longer it doesn't matter to me as long as the fund has great assets and diversifies it.

Thanks,
Mon

[Nick]

Hi All,

I'm new to forum. Anyhow I just want to know how can I invest in Hutchinson or Treasury China Trust? These are my two best pics to start investing in.

I'm actually aiming for long term investment around 3 years min or even longer it doesn't matter to me as long as the fund has great assets and diversifies it.

Thanks,
Mon

Hi Monloi,

You can purchase their shares from SGX market using your own brokerage account. They are listed like any other stock. However, Hutchinson has yet to IPO so naturally you cannot purchase its units yet.

I would advice you to spend time to research these business trust well. They are new with little track record.

Cheers

(Not Vested in TCT)

[Nick]

More details on the proposed listing including management fee details and 2 year financial projections.

http://info.sgx.com/webcoranncatth.nsf/V...8001EB165/$file/E_HWL.pdf?openelement

[nutty]

Another mega IPO backed back Temasek Holdings is to be listed soon.

Hutchison Port Sets IPO Yield at 5%-6%

HONG KONG—Hutchison Port Holdings Trust, a unit of Hutchison Whampoa Ltd., has set an indicative yield of 5%-6% for its near $6 billion initial public offering in Singapore in the next few weeks, a person familiar with the situation said Thursday.

The price range and number of shares of the offering haven't been finalized yet, the person said.

The yield is a valuation benchmark for a trust. Investors look for a stable yield from trusts, which normally distribute most of their cash flow as dividends.

Hutchison Port's indicative yield is higher than the Singapore government's inflation expectation of 3%-4% for this year, but just in line with yields forecasted by analysts for Singapore-listed real estate investment trusts for 2011. REITs are a type of trust, but specifically focused on real estate.

The 24 listed REITs in Singapore carried yields of 6.2% for the forecast year of 2011, compared with the seven Hong Kong-listed REITs' 4.9%, according to a UBS AG report dated January 24.

Global roadshows for Hutchison Port Holdings' offering will begin Feb. 28 and run until March 11, a person familiar with the situation said earlier. The company targets a listing in the third week of March, likely around March 18.

Hutchison Whampoa, owned by businessman Li Ka-shing, said Feb. 16 it received conditional approval from Singapore's stock exchange to list the unit, which will hold Hutchison Whampoa's key deep-water port assets located in Hong Kong, Shenzhen and Macau.

The listing of the port assets of Hutchison Whampoa, Mr. Li's listed flagship, would be the biggest-ever IPO in Singapore, topping the S$4 billion Singapore-dollar IPO of Singapore Telecommunications Ltd. in 1993.

DBS Bank Ltd., Deutsche Bank AG and Goldman Sachs (Singapore) Pte. are the joint bookrunners and joint issue managers for the global offering.

[LionFlyer]

reading through the numbers... quick glance shows the liabilities to be

Is this normal in a port operator?

found this in HWZ. take with a pinch of salt as I am not sure of its providence.

End Place brokerage : 1% payable by all investors in the placement

Distribution Yield :
5.5% - 6.5% (FY2011) and 6.1% - 7.2% (FY2012) ;
based on the minimum and maximum offering prices

Cornerstone Investors :
Ally Holding Limited, Aranda Investments Pte. Ltd.,
Capital Research and Management Company,
Cathay Life Insurance Co. Ltd.,
Lone Pine Capital LLC (on behalf of investment funds),
Metropolitan Financial Services Ltd,
Paulson & Co. Inc. and Seacrest FIR Incorporated.
(Aggregate subscription amount equal to US$1.62 billion)

Gross Proceeds (Including Cornerstone) :
US$4,913,553,900 - US$5,831,470,800 (pre-Over-Allotment)
US$5,404,909,310 - US$6,414,617,880 (post-Over-Allotment)

Market Capitalisation : US$7,925,088,080 - US$9,405,599,040

Lock-up :
Sponsor and Trsutee-Manager - 6 months after the listing date
Cornerstone investors - No lock-up
Cornerstone Units = between 1,500,000,000 Units to 1,780,000,000 Units (depending on the final price).


The Business portfolio of HPH Trust comprises:
HPH Trust’s interest in the operators of the Portfolio Container Terminals which consists of:

(i) Hongkong International Terminals Limited, the owner and operator of Terminals 4, 6, 7 and two berths in Terminal 9 at Kwai Tsing, Hong Kong (“ HIT ”);
(ii) 50% interest in COSCO-HIT Terminals (Hong Kong) Limited, the owner and operator of Terminal 8 East at Kwai Tsing, Hong Kong (“ COSCO-HIT ”);
Together, HIT and COSCO-HIT had approximately 60% of the market share of Kwai Tsing Port, Hong Kong, by throughput in 2009 and operate 14 of the 24 deep-water berths in Kwai Tsing Port, Hong Kong;
(iii) 56% interest in Yantian International Container Terminals Limited, the operator of Yantian International Container Terminals Phases I and II;
(iv) 50% interest in Yantian International Container Terminals (Phase III) Limited, the operator of Yantian International Container Terminals Phase III and its expansion project, which is being developed; and
(v) 50% interest in Shenzhen Yantian West Port Terminals Limited, the operator of Shenzhen Yantian West Port Terminals Phase I and Shenzhen Yantian West Port Terminals Phase II, which is being developed.
Yantian (which comprises Yantian Phases I & II, Yantian Phase III, Yantian Phase III Expansion, West Port Phase I and West Port Phase II) is the leading privately owned and operated deep-water container port in East Shenzhen, and the overall market leader in Shenzhen with a market share of approximately 47% by throughput in 2009.

All of the River Ports Economic Benefits attributable to the businesses of:

(i) Jiangmen International Container Terminals;
(ii) Nanhai International Container Terminals; and Zhuhai International Container Terminals (Jiuzhou), whose operations complement that of the Portfolio Container Terminals.

The following providers of ancillary services:

(i) Asia Port Services Limited, which is mainly engaged in providing port ancillary services, including mid-stream services (which are vessel-handling services in the harbour involving the lifting and discharging of containers from barges alongside the vessel);
(ii) HPH Trust E.Commerce Limited, which provides logistics services; and
(iii) Shenzhen Hutchison Inland Container Depots Co., Limited, which operates the inland container depot and warehouse in Shenzhen

Total Units :
Between 3,619,290,000 Units and 3,899,510,000 Units offered under the Public Offer and the Placement (which includes the Preferential Offer to HWL shareholders and the Public Offering Without Listing in Japan), excluding the Cornerstone Units of between 1,500,000,000 Units to 1,780,000,000 Units (depending on the final price).

[freedom]

Paulson & Co also bought?

[Musicwhiz]

Mar 1, 2011
Hutchison may raise $7.4b in S'pore's biggest IPO
Listing price within range of 91 US cents to US$1.08
By Jonathan Kwok

INVESTORS itching to take part in what looks likely to be Singapore's largest-ever initial public offering (IPO) now have some numbers to work with.

Hutchison Whampoa's Chinese ports unit disclosed yesterday that it is aiming to raise an eye-popping US$5.83 billion (S$7.4 billion) in gross proceeds from the mega-listing.

Hutchison Port Holdings Trust (HPH Trust) - which boasts Hutchison Whampoa's booming ports in Hong Kong and southern China - has set an indicative IPO price range of 91 US cents to US$1.08 a unit.

In a coup for Singapore, HPH said last month that it was choosing to list here as the Singapore Exchange has developed a regulatory framework for business trusts - unlike its counterpart in Hong Kong.

Small-time investors here and in Japan will get a bite of the cherry along with institutional investors worldwide, and qualifying shareholders of the Hong Kong-listed parent Hutchison Whampoa.

HPH Trust will sell 3.62 billion units, which could be lifted to 3.9 billion units if an over-allotment option is exercised, according to the prospectus lodged with the Monetary Authority of Singapore yesterday. This means that it could raise between US$3.29 billion and US$4.21 billion, depending on the final IPO price.

Separately, cornerstone investors have already agreed to invest a total of US$1.62 billion. This means the entire exercise could raise between US$4.91 billion and US$5.83 billion in gross proceeds, putting HPH Trust on course to beating SingTel's IPO of around $4 billion in 1993 to become the largest-ever listing here.

In the past year, the largest IPO was Global Logistic Properties, raising gross proceeds of $3.9 billion.

After the offering, the market capitalisation of HPH Trust will be between US$7.93 billion and US$9.41 billion, based on the final IPO price, said the prospectus.

Hutchison Whampoa, headed by Asia's richest man Li Ka Shing, will continue to hold over 30 per cent of HPH Trust, though the exact percentage will depend on whether the over-allotment option is exercised.

'HPH Trust is the first publicly traded container port business trust,' said the prospectus. It added that HPH Trust will give unitholders the exposure to the world's largest trading hub by throughput, the Pearl River Delta, and two of the world's busiest container port cities, Hong Kong and Shenzhen.

Cornerstone investors attracted by HPH Trust include United States investment adviser Capital Research and Management Company and US hedge fund Paulson & Co.

Aranda Investments, controlled by Temasek Holdings, is also a cornerstone investor; it has committed US$100 million.

DBS Bank, Deutsche Bank and Goldman Sachs are joint bookrunners for the offering.

The proceeds will be used to pay for the acquisition of the ports, and to pay some upfront debt transaction costs.

The prospectus said the distribution per unit is expected to be 4.81 US cents for the period of mid-March till the end of this year. This will give the trust a seasonally adjusted yield of between 5.5 per cent and 6.5 per cent, depending on the IPO price. Next year, distribution per unit is expected to be 6.59 US cents - a yield of 6.1 per cent to 7.2 per cent.

'The quality of (HPH Trust's) assets is in place, and the demand should be there, especially from institutional investors,' said Sias Research vice-president Roger Tan. 'There's money in the market, looking at how funds are flowing from the East to the West... Hutchison is going after the global investors and they can attract quite some attention because they will be one of the biggest IPOs in Singapore.'

Mr Tan said that even in this 'challenging time' of market weakness, HPH Trust may turn out to be the outstanding performer due to the quality of its assets.

Mr Ding Hock Chai, Kim Eng's co-head of corporate finance, said that with the expectations of interest rates going up and more tightening measures, there should still be decent demand for major deals like HPH Trust if they are pitched correctly. 'I don't think the Middle East situation will derail the equities market as we still see deals running at reasonable speed.'

A key reason HPH Trust is listing here is the lack of rules or a regulatory regime in Hong Kong for listing units of business trusts. Hutchison said last month that if regulations change, it will consider an additional listing of HPH Trust units in Hong Kong.

Singapore port giant PSA International has a 20 per cent stake in Hutchison's portfolio of ports, which it bought for US$4.4 billion in 2006. PSA itself has long talked of a public listing here, but has no immediate plans to launch an IPO.

Hutchison Whampoa advanced 1.89 per cent in Hong Kong to HK$91.70 yesterday.

jonkwok@sph.com.sg

[freedom]

PSA may list when Singapore is no longer one of the top 5 busiest ports. now already no. 2.

[Nick]

It must be noted that every single business trust that listed here is still trading below its IPO price. If we factor in dividend income, only PST is in the green. What does this tell you about buying biz trust during IPO hehe ???

Please correct me if I am incorrect.

(Not vested in any biz trust)