PCI

[smallcaps]

Chuan Hup has agreed to sell its CHO shares to Falcon for S$0.55 per share, which means S$95.7mil in cash:

http://infopub.sgx.com/FileOpen/Proposed...eID=334301

RATIONALE FOR THE PROPOSED DISPOSAL AND USE OF NET PROCEEDS
5.1 As publicly disclosed in its annual report of the Company for the financial year ended 2014
(“Annual Report 2014”), the Company has repositioned itself as an investment holding
company with a diversified portfolio of investments in industries in relation to electronics
manufacturing services, offshore support services to the oil and gas industry, property
development and property investment. The Company believes that the proposed disposal by
the Company of the Company’s CHO Shares to the Offeror pursuant to the Offer (the
“Proposed Disposal”) is an opportunity for the Company to realise the value of its remaining
stake in CHO at a significant premium to its investment costs, during challenging economic
conditions for the oil and gas industry as whole. The Company does not see the Proposed
Disposal as a material change in the nature of the Company’s business. As an investment
holding company, the Proposed Disposal is in line with the investment objectives of the
Company which are set out in its Annual Report 2014 to seek investment opportunities that
will enhance returns in the short-term and contribute to the sustainable long-term growth in
shareholder value of the Company.

[BlueKelah]

Chuan Hup has agreed to sell its CHO shares to Falcon for S$0.55 per share, which means S$95.7mil in cash:

http://infopub.sgx.com/FileOpen/Proposed...eID=334301

RATIONALE FOR THE PROPOSED DISPOSAL AND USE OF NET PROCEEDS
5.1 As publicly disclosed in its annual report of the Company for the financial year ended 2014
(“Annual Report 2014”), the Company has repositioned itself as an investment holding
company with a diversified portfolio of investments in industries in relation to electronics
manufacturing services, offshore support services to the oil and gas industry, property
development and property investment. The Company believes that the proposed disposal by
the Company of the Company’s CHO Shares to the Offeror pursuant to the Offer (the
“Proposed Disposal”) is an opportunity for the Company to realise the value of its remaining
stake in CHO at a significant premium to its investment costs, during challenging economic
conditions for the oil and gas industry as whole. The Company does not see the Proposed
Disposal as a material change in the nature of the Company’s business. As an investment
holding company, the Proposed Disposal is in line with the investment objectives of the
Company which are set out in its Annual Report 2014 to seek investment opportunities that
will enhance returns in the short-term and contribute to the sustainable long-term growth in
shareholder value of the Company.

If they use that cash to launch another GO for PCI that would be veli SWEE

[smallcaps]

Or maybe CH will restart purchasing of PCI shares.

Last time CH did that was in 2012 August:

http://infopub.sgx.com/Apps?A=COW_CorpAn...Nobq1OUeQ4

[BlueKelah]

Or maybe CH will restart purchasing of PCI shares.

Last time CH did that was in 2012 August:

http://infopub.sgx.com/Apps?A=COW_CorpAn...Nobq1OUeQ4

Dun think it will work unless there is other willing party. Open market the volume is so little, any purchase will shoot the price up.

Probably just show hand and try to privatise again? PCI is quite a cash cow for CHH IMHO and privatisation, even if they offered 50cents again which this time round would be a premium to NAV, would be quite a profitable venture for them.

[smallcaps]

Or maybe CH will restart purchasing of PCI shares.

Last time CH did that was in 2012 August:

http://infopub.sgx.com/Apps?A=COW_CorpAn...Nobq1OUeQ4

Dun think it will work unless there is other willing party. Open market the volume is so little, any purchase will shoot the price up.

Probably just show hand and try to privatise again? PCI is quite a cash cow for CHH IMHO and privatisation, even if they offered 50cents again which this time round would be a premium to NAV, would be quite a profitable venture for them.

Somebody need to 'sacrifice' their shares lor.

Following is the price history and daily volume back in 2012, where it was low volume also, but CH was able to purchase chunks every now and then:

https://sg.finance.yahoo.com/q/hp?s=P19....f=2012&g=d

CH purchases in 2012:

17 Aug - 900 lots @ 45 cents
15 Aug - 325 lots @ 45 cents
29 Jun - 1,111 lots @ 48 cents
28 Jun - 203 lots @ 48 cents
26 Jun - 615 lots @ 48.5 cents

[sgpunter]

Why would Chuan Hup want to use the cash to take over PCI's business which is not exactly flourishing? As a shareholder of Chuan Hup, I will strongly object and much rather they leave PCI as it is and just collect the yearly dividends.

If Chuan Hup thought that PCI was that undervalued, they would have continued their purchases in 2013 and 2014. Doesn't make sense to stop buying shares for 2 years and then launch a takeover and right so soon after a major corporate activity. A takeover of PCI certainly doesn't seem plausible at all in the near future.

As a long term shareholder of Chuan Hup, I much rather they dish out a special dividend from the sale of CHO and keep the remaining cash hoard for potential opportunities especially from the oil and gas sector when assets could potentially be obtained on the cheap from companies that can't survive the oil price drop.

[BlueKelah]

They could have spent the last 2 years collecting on the side or waiting for interest to die off.

Often wonder what is the reason for recent massive payout?? Definitely not to give to CHH minority. Could have just left the cash in pci since already plan to sell ch offshore and will be swimming in cash.

PCI also had recent change to BOD IIRC, something brewing, wait and see.

V
-- via Xperia Z1 with tapatalk

[smallcaps]

They could have spent the last 2 years collecting on the side or waiting for interest to die off.

Often wonder what is the reason for recent massive payout?? Definitely not to give to CHH minority. Could have just left the cash in pci since already plan to sell ch offshore and will be swimming in cash.

PCI also had recent change to BOD IIRC, something brewing, wait and see.

V
-- via Xperia Z1 with tapatalk

Maybe because of the CHO offer. To be perceived as ready to counter offer...
CHO was a loose end last two years and now it no longer is.

[smallcaps]

PCI selling Jalan Ahmad Ibrahim property back to JTC for S$24 mil (12 cents)
Expected gain around 8.7 sg cents
That would bring its book value to 57 sg cents.

http://infopub.sgx.com/FileOpen/PCI.Prop...eID=335072

[CY09]

Cash flow wise, don't expect any special dividends. The property they purchased to replace Ahmad Ibrahim is 22.5M. Considering relocation expenses, it will be a net-net in cashflow. PCI has been paying almost its full cash generation as dividend. Not exactly eye catching