Fraser & Neave (F & N)

[KopiKat]

The brewery represents only a small part of F&N’s business

BusinessTimes gave a better perspective:

F&N does not typically specify how much it makes from Myanmar Brewery. But in a report during its recent takeover by Thai tycoon Charoen Sirivadhanabhakdi, F&N independent financial adviser JP Morgan placed net income for the year ended September 2012 at $52 million for the brewery, based on management guidance.

Given that F&N owns 55 per cent of Myanmar Brewery, this would have contributed about $29 million, or 72 per cent, of F&N's $40 million in net profit from beverages in fiscal 2012.

From their Presentations (pg14/15), MBL contributes to 11% of Total Revenue (LTM ended 30 Jun 13). Possible for such high % for Net Profits? Perhaps it's really very lucrative in a closed market where they have dominant market share and that's why their partner wants it all...

[KopiKat]

Current market, possible for FCL PB =1? I think Capitaland is ~0.8 now?

Citydev's PB is 1.2 now...

The model is dynamic, and the numbers plug-in are also dynamic, will be updated regularly.

There are other factors considered e.g. impending REIT, inventory etc, instead of PB alone. PB=1 is for easy of presentation...

Thanks! I was lazy and only looked at Capitaland briefly as there're many similarities : Residential Property development, Serviced Apts (via Ascott brand), Office (CCT), Retail (CMT).
For CDL, they're 47% in Hotels by Revenue (18% by PBT) from 1H13 Presentations. maybe when TCC injects their Hotels in, it'll become more similar...

Ok lah... lazy, take 1.2 + 0.8 and average to give 1.0

In TheEdge this week, the article quoted a CIMB analyst who gave the following estimate,

F&N = $1.90
FCL = $1.82 x 2 (35% discount to RNAV OF $2.79 as Properties Stocks trading @ 30% discount to RNAV now)
Total = $5.54

For reference, the stated NAV is F&N = $1.69 ; FCL = $2.04 for Total = $5.77

Note : At $1.82 (CIMB estimate), this is a 10.8% discount to NAV of $2.04

[CityFarmer]

Well, another aggressive bid. The location is near to North Point, which is also controlled by Frasers Centrepoint. May be the new development will serve an extension to existing north point, for a bigger mall for Yishun residents...

--------
Units linked to Frasers Centrepoint Ltd have emerged as the top bidder for a mixed-use commercial and residential plot at Yishun Central, putting in a bid that far surpassed consultants' expectations. North Gem Development and FC North Gem Trustee (Trustee-Manager of North Gem Trust) bidded $1.4 billion for the site with a gross floor area of 1.33 million square feet, which works out to about $1,077 per square foot per plot ratio - based on a plot ratio of 3.
--------
http://www.theedgesingapore.com/the-dail...d-aps.html

[toiletsiao]

Well, another aggressive bid. The location is near to North Point, which is also controlled by Frasers Centrepoint. May be the new development will serve an extension to existing north point, for a bigger mall for Yishun residents...

--------
Units linked to Frasers Centrepoint Ltd have emerged as the top bidder for a mixed-use commercial and residential plot at Yishun Central, putting in a bid that far surpassed consultants' expectations. North Gem Development and FC North Gem Trustee (Trustee-Manager of North Gem Trust) bidded $1.4 billion for the site with a gross floor area of 1.33 million square feet, which works out to about $1,077 per square foot per plot ratio - based on a plot ratio of 3.
--------
http://www.theedgesingapore.com/the-dail...d-aps.html

It should look something like jurong point with Centris condominium on top of it...

Northpoint's valuation is already 533mil (20yr old property NLA 235k) ... This Yishun plot has an approxmate gross floor area of 1.33mil sqf.. its a massive plot...The mall component(Assuming its using 40% - 533k sqf of the space for mall) with an NLA of 450k ... it could be worth almost 1 billion with a fresh 99yr LH... havent even throw in the condominum sales profits...(900units planned)

Theres another GLS site @ woodlands central coming up in december...not sure if FNN will bid aggressively for that too as withinin same vincinity as causeway point..in total they have commited about 2.4billion (Cecil Street 900mil) in land bids this 2 months

[specuvestor]

REITS will eventually pay the price, but wonder why so aggressive before spinoff...

[CityFarmer]

REITS will eventually pay the price, but wonder why so aggressive before spinoff...

Yes, REITS will foot the bill eventually.

FCL needs to build-up pipeline assets for its REITs, mixed-use commercial and residential plots are not abundant...

(vested)

[CityFarmer]

The delay of QE tapering might serve as tailwind to the impending FCL IPO.

Looking forward for the IPO.

[KopiKat]

The delay of QE tapering might serve as tailwind to the impending FCL IPO.

Looking forward for the IPO.

Depends on next FOMC Meeting?

Extract from their previous PR,

A circular outlining the details of the above transaction will be despatched to F&N shareholders by about the end of October, after which an EGM is expected to be convened in November. The Books Closure Date and the listing of FCL shares are expected to follow thereafter.

Next FOMC meeting,

October 29-30
December 17-18*

[CityFarmer]

The delay of QE tapering might serve as tailwind to the impending FCL IPO.

Looking forward for the IPO.

Depends on next FOMC Meeting?

Extract from their previous PR,

A circular outlining the details of the above transaction will be despatched to F&N shareholders by about the end of October, after which an EGM is expected to be convened in November. The Books Closure Date and the listing of FCL shares are expected to follow thereafter.

Next FOMC meeting,

October 29-30
December 17-18*

I understood the point, but I assume Ben (US) will delay it till end of his term. Anyway, it is timing of market, might not be too reliable..

[CityFarmer]

Towkay plans to pare down his stake. Will he do it via market deal, or a married deal?

----------------
SINGAPORE--Thailand billionaire Charoen Sirivadhanabhakdi plans to pare his majority stake in Fraser & Neave Ltd. (F99.SG) to keep the Singapore-based conglomerate listed and allow it to spin off property assets, people with knowledge of the matter said on Wednesday.

Mr. Charoen intends to reduce his stake in Fraser & Neave to about 87%-88% from 90.3% currently. He won control of the 130-year-old real-estate-to-soft-drink company after outbidding a wealthy Indonesian family in January in one of Asia's largest takeovers this year.

The proposed share sale will allow Fraser & Neave to meet the Singapore Exchange's minimum public-float rules and proceed with plans to spin off its property arm--Frasers Centrepoint Ltd.--by the end of this year, the people said. Representatives of Mr. Charoen have sought out potential buyers, they added.

by Dow Jones Newswires