Broadway Industrial Group Ltd

[crabcrab]

Broadway Industrial Group Ltd ($0.188) - Let start the discussion.... 

[crabcrab]

Broadway Industrial Group announces plans to sell businesses after SGX query

PRECISION components and form plastics producer Broadway Industrial Group is planning to sell its foam plastics and flow control device businesses for S$150 million.

The group has on Monday entered into a conditional sale and purchase agreement with Broadway Holdings III Ltd, an investment vehicle wholly owned by US private equity firm Platinum Equity.

The group's foam plastics solutions segment is a leading supplier of protective packaging, insulation and component products to various sectors including consumer, IT, cold chain, automotive and lifestyle markets.

Its flow control device segment supplies high-precision mechanical parts and assemblies to the semiconductor wafer fabrication industry and other industrial markets.

The disposed businesses have a book value of S$110.1 million as at June 30, said the firm.

Broadway Industrial Group said it intends to use the proceeds from the sale to repay banking facilities and for working capital as well as dividends.

The group's board said it believes the sale to be an "attractive opportunity" for the firm to monetise its investment in the businesses in light of current market conditions, and that it will unlock value for shareholders.

The announcement came after the Singapore Exchange queried the firm on unusual volume movements in its shares earlier on Monday. The counter surged 23 per cent to 16.6 Singapore cents amid heavy trading in the morning, before the firm called for a trading halt at noon.

Source: http://www.businesstimes.com.sg/companie...-sgx-query

http://infopub.sgx.com/FileOpen/BIGL%20Chapter%2010%20Announcement%2022Aug2016%201818.ashx?App=Announcement&FileID=418333

[crabcrab]

Broadway Industrial Group Ltd ($0.188) - With the sale of the business as $150,000,000, Broadway Industrial Group may have potentially realised a cash horde of around $0.32 per share when the sale of business is completed (based on simple calculation of $150,000,000 divided by 470,469,461 shares). At $0.188 traded per share currently, the currently pricing may be a steal... Good luck. (Caveat emptor)    

Based on the DISTRIBUTION OF SHAREHOLDINGS


Total No. of shareholders 2,242 
Total No. of shares issued 470,469,461

Source http://www.bw-grp.com/files/uploads/86.pdf

[corydorus]

Do we have information on net net, after borrowing/debts, the impact of the earning after, and cash release to shareholder as dividends ?

[desmondxyz]

The debt is about 0.22/share, so net cash proceed from the disposal less debt is 0.1/share only.. This is pretty much reflected in current share price compared to pre-announcement share price...

[crabcrab]

Broadway ($0.205) - Suddenly price surge up today. But IMHO, fair valuation at current market condition maybe around $0.26... Good luck!

[chew]

Broadway ($0.205) - Suddenly price surge up today. But IMHO, fair valuation at current market condition maybe around $0.26... Good luck!

Hi crabcrab, interested in how you arrived at your fair valuation? could you share? I can't get a handle on how the balance sheet (with excluded businesses) looks like after completion? Delta lloyd, substantial shareholder, also paring holdings. Thanks

[SLC81]

8.5 Cents Specialial dividend. 37% of the last traded price 23 cents

http://infopub.sgx.com/FileOpen/BIGL%20-...eID=441688

[cif5000]

8.5 Cents Specialial dividend.  37% of the last traded price 23 cents

http://infopub.sgx.com/FileOpen/BIGL%20-...eID=441688

It says Interim Dividend?!?!? 

Maybe another mistake like the Q3 results.

[HitandRun]

8.5 Cents Specialial dividend.  37% of the last traded price 23 cents

http://infopub.sgx.com/FileOpen/BIGL%20-...eID=441688

It says Interim Dividend?!?!? 

Maybe another mistake like the Q3 results.

Bro

The main difference between interim and final dividend is that interim dividend does not need shareholders to approve.... Some companies used this "trick" all the time....