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Breadtalk
02-09-2019, 06:23 PM. (This post was last modified: 02-09-2019, 06:24 PM by karlmarx.)
Post: #201
RE: Breadtalk
(02-09-2019, 10:08 AM)kbl Wrote: Is Not Gardenia sir. Is Sunshine sir.

https://www.auricgroup.com/

Not Vested

Oh dear. Thanks for the correction.

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02-09-2019, 10:43 PM.
Post: #202
RE: Breadtalk
Gardenia is owned by QAF (Salim family), while Sunshine is owned by Auric (Riady family).

From the trend, my best guess is the Riady might liquidate it. Auric Pacific is a very small part of the Riady business empire. To me, it looks like managing Auric is more like a training ground / test for Andy Adhiwana, son in law of Stephen Riady. I think over time, more important segment of the Riady business empire will be handed over the Andy Adhiwana.

I am more curious about the fate of the remaining 2% minority shareholders in Auric Pacific. Will they get a respectable payout after waiting for 2-3 years?

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03-09-2019, 04:43 PM.
Post: #203
RE: Breadtalk
(02-09-2019, 10:43 PM)holymage Wrote: Gardenia is owned by QAF (Salim family), while Sunshine is owned by Auric (Riady family).

From the trend, my best guess is the Riady might liquidate it. Auric Pacific is a very small part of the Riady business empire. To me, it looks like managing Auric is more like a training ground / test for Andy Adhiwana, son in law of Stephen Riady. I think over time, more important segment of the Riady business empire will be handed over the Andy Adhiwana.

I am more curious about the fate of the remaining 2% minority shareholders in Auric Pacific. Will they get a respectable payout after waiting for 2-3 years?

I expect they would. Few years back when they did a taking private on the basis that Silver Creek, Andy and Stephen Riady are not acting in concert, the price they paid has been more than recovered by the sale of the distribution arm and now the Food Junction sale is a bonus. They reaped in big time with the taking private of the company. Seeking 23.28% of the firm for 48.27m implies $207m equity valuation. They have subsequently sold the distribution arm for around SGD220m and now Food Junction for $80m. And Sunshine bread is still in AP's portfolio. I would say the Raidy's got a very good deal. Up till now I still don't understand how they could considered to be acting not in concert and hence does not require them to buy remaining stocks.

"Unlike other general offers, this one does not entitle Silver Creek to compulsorily buy any remaining stock from shareholders who do not accept the offer.

Shareholders who have not accepted the offer as at the close of the offer will not have any right to request the offeror to buy their shares."


https://www.straitstimes.com/business/co...hares-fair

https://www.businesstimes.com.sg/compani...a-for-160m

The minority holders would basically earn 45% above the takeout price while still holding sunshine bread, that is assuming that the cash does flow back to them in the end. All that in 2 years.
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10-09-2019, 07:56 PM.
Post: #204
RE: Breadtalk
Why It Makes Zero Sense For BreadTalk To Buy Food Junction At $80 Million
Author: Irving Soh | Date: September 10, 2019

BreadTalk Group (SGX: CTN), recently announced its acquisition of food court operator Food Junction Management (FJM) for S$80 million through subsidiary Topwin Investment Holding on 2nd September 2019.......

We were appalled when we saw that the net asset value of FJM is around S$12.3 million and the half-yearly profits come up to only around S$3,183 (annualized would be S$6,366).

Taking the price tag of S$80 million, BreadTalk is essentially paying a sky-high valuation of 6.5x book value and a whopping 12,566 times earnings! Yes, you didn’t read the latter wrongly – S$80 million divided by an annualized S$6,366 profits would give you a twelve thousand five hundred and sixty-sixt times Price to Earnings........

Read more : https://www.drwealth.com/why-it-makes-ze...80-million

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10-09-2019, 08:22 PM.
Post: #205
RE: Breadtalk
Did I see wrongly or was it a typo error? Annual profit of just S$6k? A fresh first class honours engineering grad mthly salary is already S$5k plus. Perhaps there was a huge writedown resulting in the S$6k profit.

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10-09-2019, 09:35 PM. (This post was last modified: 10-09-2019, 09:38 PM by dreamybear.)
Post: #206
RE: Breadtalk
(10-09-2019, 08:22 PM)Bibi Wrote: Did I see wrongly or was it a typo error? Annual profit of just S$6k? A fresh first class honours engineering grad mthly salary is already S$5k plus. Perhaps there was a huge writedown resulting in the S$6k profit.

I also did a double take; but apparently not, just came across another article which provides more insight ....

-------------------------------------------------------------------------------------------

Is BreadTalk's S$80m offer for Food Junction worth the dough?
Tue, Sep 10, 2019 - 5:50 AM

.......Last week, in a teleconference briefing with analysts, following several reports that called BreadTalk's S$80 million offer for Food Junction exorbitant given the latter's paltry earnings, management clarified that Food Junction's weak net profit for the first half of 2019 of just S$3,183 was due to several factors that would no longer persist once the acquisition is completed.

This is because BreadTalk would not be taking over Food Junction's head office, so this would eliminate the high cost amounting to S$3 million of the latter's centrally-located headquarters. Food Junction had also been told to shut down several unprofitable direct-operated stalls before the acquisition announcement. Hence, the impairment costs of these stall closures that contributed to its weaker H1 FY19 results are not likely to continue.

In addition, BreadTalk's management said that Food Junction had opened a premium food court - Five Spice - at Jewel Changi Airport in April this year. Five Spice incurred start-up costs but had only two months of revenue to show for H1 2019.

Doing the math, management also compared Food Junction's FY18 enterprise value-to-Ebitda ratio prior to the adoption of the SFRS 16 accounting standard to other listed peers, and deemed the acquisition price at 7.6 times to be in line with competitors such as Kimly and Koufu. Kimly's EV/Ebitda ratio, for instance, was 10.3...........

Read more : https://www.businesstimes.com.sg/compani...-the-dough

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