IPC Corporation

[Tiggerbee]

Trading halted pending release of announcement.

[ngcheeki]

Trading halted pending release of announcement.

Cash offer from Oei Hong Leong at 17 cents.

http://infopub.sgx.com/FileOpen/Offer%20...eID=341293

[Tiggerbee]

Unlikely that the shareholders will accept the 17c offer in view of the potential bumper dividend payout, should the Japan hotels be sold at 150M.

[Boon]

Number of shares issued = 852,920,638 (pre-consolidation of 10 shares into 1)
NAV= SGD 0.2441 (as at 31-Dec-2014)
Offer Price = SGD 0.17 = 0.70 NAV

Potential gains from sales of hotels in Japan has yet to be factored in
Carrying Value of 9 hotels in Japan = SGD 118.081 million (as at 31-Dec-2014)
2 of the hotels in Sapporo has been agreed to be sold for SGD 29.61 million
7 of the remaining hotels is under negotiation to be sold for about SGD 150 million
Potential pre-tax gains of 150 + 29.61 – 118.081 = SGD 61.53 million or SGD 0.072 per share (pre-tax).

Another lowball offer?
Fair or unfair?
Reasonable or unreasonable?
Perhaps, an offer made on April's Fool day should not be taken too seriously........just kidding....... ha-ha !

(not vested)

[ccakg]

Unlikely that the shareholders will accept the 17c offer in view of the potential bumper dividend payout, should the Japan hotels be sold at 150M.

is it a joke when the sale proceeds of the 7 hotels work out to about 18cts a share for him to make an offer at 17 cts plus the .006 cts dividend to come. or is it just a formality since he has shot past the triggering point. I think he is not serious or he is just testing the market. The Ngiams on the other side will just wait and see. nice to watch how things develop

[cif5000]

Potential gains from sales of hotels in Japan has yet to be factored in
Carrying Value of 9 hotels in Japan = SGD 118.081 million (as at 31-Dec-2014)
2 of the hotels in Sapporo has been agreed to be sold for SGD 29.61 million
7 of the remaining hotels is under negotiation to be sold for about SGD 150 million
Potential pre-tax gains of 150 + 29.61 – 118.081 = SGD 61.53 million or SGD 0.072 per share (pre-tax).

FY14 Result

I think the sale of 2 Sapporo hotels had been recognized.
-- P/L Note 2
-- BS Note (i)
-- Cashflow from investing activities - Proceeds from disposal of investment properties

Investment properties comprise of acquired business hotels that are held for long-term rental yields and/or for capital appreciation.

[ghchua]

I think OHL bought from open market and then his stake in IPC Corp exceeded 30%, thereby triggering the offer. I don't think it is his intention to make this low ball offer, but he has to do it under the rules.

[Boon]

Potential gains from sales of hotels in Japan has yet to be factored in
Carrying Value of 9 hotels in Japan = SGD 118.081 million (as at 31-Dec-2014)
2 of the hotels in Sapporo has been agreed to be sold for SGD 29.61 million
7 of the remaining hotels is under negotiation to be sold for about SGD 150 million
Potential pre-tax gains of 150 + 29.61 – 118.081 = SGD 61.53 million or SGD 0.072 per share (pre-tax).

FY14 Result

I think the sale of 2 Sapporo hotels had been recognized.
-- P/L Note 2
-- BS Note (i)
-- Cashflow from investing activities - Proceeds from disposal of investment properties

Investment properties comprise of acquired business hotels that are held for long-term rental yields and/or for capital appreciation.

Thanks cif5000, you are absolutely right ! Gains from the sales of the two Sapporo hotels had been recognized in FY2014. In addition, fair value gains on the remaining 7 hotels also had been recognized in FY2014

- Carrying Value of remaining 7 hotels in Japan = SGD 118.081 million (as at 31-Dec-2014)
- 7 of the remaining hotels is under negotiation to be sold for about SGD 150 million
- Potential pre-tax gains of 150 – 118.081 = SGD 31.9 million or SGD 0.037 per share (pre-tax).

The offer price is still low based on P/NAV, IMO.

Wondering what is the RNAV of IPC's other assets, beside the 7 hotels in Japan?

(not vested)

[Boon]

I think OHL bought from open market and then his stake in IPC Corp exceeded 30%, thereby triggering the offer. I don't think it is his intention to make this low ball offer, but he has to do it under the rules.

ghchua was right - not a "serious" offer by OHL - he had to do it in compliance with the rules.

http://infopub.sgx.com/FileOpen/Close%20...eID=350426

(not vested)

[Tiggerbee]

Unless there's another interested party that emerge, like in the LCD Global saga, punters' interest in IPC will slowly wane over time.