Select Group Limited

[opmi]

Not many people interested in this stock. Just did some calc. For knowledge only.

SELECT shareholder structure in relation to 52.5 cents offer

As at 4 April 2016,

Offeror (Tan & Dymon PE) - 42.65%

Ezra Lionel’s Mother -  23.53%

Go Mei Lin & family (Irrevocable UT) - 18.65%

% to go b4 90% Suspension due to free float - 5.1700%
(When this happen, Offeror will suspend the trading, people will sell/tender to Offeror)

% to go b4 Offer goes Unconditional 50% - 7.35%
(But Offer will confirm go UNCONDITIONAL when Go & family completes the irr Undertaking)

**Offeror will not have compulsory acq rights unless Lionel mom sell
In that scenario, Offeror will face a Keppel  Corp - Keppel Land situation. 

*** Lionel's Mom just need another 1.5% to block any special resolution by the Company.

PWC Corp Finance appointed as IFA. I am waiting to see how they justified their IFA recommendation where the comparables are NEO and Breadtalk.

[butcher]

Select Group auditor is RSM which is not Big 4. Must remain skeptical ya

[CityFarmer]

Select Group auditor is RSM which is not Big 4.  Must remain skeptical ya

The one-liner post is childish. Please refrain from similar action.

Regards
Modearator

[butcher]

Hmm??? Isn't it a double standard my dear moderator? And also personal attack for being childish?
I guess either my post will be deleted or I will be banned. haha

[CityFarmer]

Hmm??? Isn't it a double standard my dear moderator? And also personal attack for being childish?  
I guess either my post will be deleted or I will be banned. haha

I did differentiate posting, and moderating. I am CF for posting, and moderator for moderating. I always be caution on words in moderating, but in this case, "childish" is required to bring out the point. I regret it has brought negative feeling.

The ultimate point to moderate, is to access the value-add to our VB. Once I confirm a member is persistently value-destructing to our VB value and norm, I will act quickly without hesitation. Provocative and mocking posts are undesirable here.

Having opposing views from CF's, is absolute no problem here. I will quit from VB, once it became generally unanimous in views. IIRC, portuser and CF have never agreed on any single topics or stocks, but I do read all his posts, if time permit.

In this case, a basic warning will be issued. Further action might be carried out, upon monitoring. The posts will not be deleted, and will keep for future reference.

Regards
Moderator

[merxantia]

Select's earnings per share has grown steadily along with its portfolio of brands over the last 2 years. To get a quick off the cuff valuation of what should be deemed fair value, I have taken the average of their last 2 years earnings which is approx 4.6cts. Given its peers like Neo Garden which currently trades at about 12.5x (which is still fairly reasonable), the computed value is approximately 57-58cts. I would say given the illiquid nature of the counter, it is an attractive offer but can be better.

[opmi]

Update as at 8 April 2016

SELECT shareholder structure in relation to 52.5 cents offer

Offer Closing Date extended to 20 May 2016.

Offeror (Tan & Dymon PE) - 42.65% + 18.65% = 61.30%

Ezra Lionel’s Mother -  23.53%

Go Mei Lin & family (Irrevocable UT) - 0% (Tendered shares to Offeror)

% to go b4 90% Suspension due to free float - 5.1700%
(When this happen, Offeror will suspend the trading, people will sell/tender to Offeror)

Offer is now UNCONDITIONAL since Go & family completed the Irrevocable Undertaking by tendering their shares)

**Offeror will NOT have Compulsory Acquisition rights unless Lionel's mom sell
In that scenario, Offeror will face a Keppel  Corp - Keppel Land situation.

*** Lionel's Mom just need another 1.5% to block any special resolution by the Company.

**** Offeror did not manage to acquire any shares from the open market past few days.

[fatpudge]

What? Ezra also owns shares in Select?

[merxantia]

Select has traded slightly above its offer price at 53cts for a couple of days now. Makes the verdict in the upcoming IFA report even more interesting.

[opmi]

See Chairmain's Statement on Pg 6 for future corporate developments.

http://infopub.sgx.com/FileOpen/Select%2...eID=398998