Wheelock Properties

Re: Wheelock Properties

Postby winston » Thu Jul 19, 2018 7:44 pm

Sold today

I’M UN”WHEEL”ING TO ACCEPT

Cash offer of S$2.10
Look beyond the obvious
Reject the Offer

Our FV of S$2.34 is still 11.4% above the offer price

Our fair value estimate of S$2.34 is 11.4% above the offer price, and 7.3% above S$2.18, the closing price of today’s morning session.

In addition, due to the low liquidity of the stock, we find it possible that the unconditional offer may not easily pass the 90% threshold upon which acceptance of the offer by minority shareholders is compulsory.

In our appendix, we present a sensitivity table for the additional amounts that offeror must pay should it increase the offer price.

Given the substantial gap between our fair value estimate and the offer price, we encourage investors to REJECT THE OFFER. We previously had a Buy rating on WPS.

Source: OCBC
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Re: Wheelock Properties

Postby winston » Fri Jul 20, 2018 8:58 am

Not vested anymore. Why didn't these "experts" ask you to buy when it dropped 6% on the new property curbs?

Lim & Tan recommends Wheelock shareholders hold out for better offer; shares up 26%

By PC Lee

SINGAPORE (July 19): Lim & Tan Securities says minority shareholders of Wheelock Properties should deserve a higher offer somewhere closer to its last reported NAV of $2.68/share.

While Lim & Tan does not dispute Wheelock parent’s $2.10 offer price is attractive compared to its historical trading prices, the property group has a large cash holdings and large base of recurring income streams, as well as its long track record of attractive dividend payments.

Controlling shareholder of Wheelock Properties launches $2.10 per share offer

“We thus recommend to “hold” tight to your Wheelock shares,” says Lim & Tan in a report after the offer was announced.

In addition, offeror Star Attraction, who owns 76.21% of Wheelock, did not say this is their final offer price and that they are unwilling to increase their offer price.

The research house also expects Wheelock’s net cash position to hit over $1.0 billion by the end of this year from $0.92 billion currently.

Wheelock’s remaining development in Singapore, namely Scotts Sq Residences, is only left with 10% of the total 338 units and is currently earning recurring earnings as it is leased out.

As for the other local projects, they have been completely sold out, allowing Wheelock to sidestep the latest new cooling measures.

In China, Wheelock’s Hangzhou project is 98% sold for phase 2 and the final phase, which is also expected to see good demand, is ready for launch.

Investment properties Scotts Sq Retail and Wheelock Place, both near to fully leased, generate yearly rental income of about to $40-50 million annually and are valued at $1.1 billion in total.

At the offer price of $2.10/share, price to book is only 0.78 times and yield is 2.85%.

In 2010, Star Attraction had privatised its HK subsidiary at 1 times book.

Finally, Lim & Tan notes that with Wheelock’s net cash position of $0.92 billion, even if Star Attraction were to offer book value of $2.68/share, they would only have to pay about $0.77 billion, leaving them with $150 million in net cash left over in the company, $1.1 billion worth of investment assets that generates strong free cash flows, 23% stake in Hotel Properties, free development assets in China and also 30 over units of Scotts Sq Residences.

Source: The Edge

https://www.theedgesingapore.com/lim-ta ... e-91832885
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Re: Wheelock Properties

Postby behappyalways » Sat Aug 25, 2018 3:31 pm

Wheelock's $2.10 offer 'fair and reasonable but not compelling', says IFA
https://www.theedgesingapore.com/wheelo ... g-says-ifa
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Re: Wheelock Properties

Postby winston » Mon Sep 24, 2018 9:19 am

not vested

Wheelock Properties (S) Ltd: Offeror announces final offer price (S$2.10/share) and final closing date (5:30PM on 2 Oct 2018)

Regarding the voluntary unconditional general offer from Wheelock & Co, the Offeror has announced both a final offer price as well as a final closing date.

First, the Offeror does not intend to revise the Offer Price of S$2.10. Therefore, in accordance with Rule 20.2 of the Code, the Offeror will not be allowed to subsequently amend the terms of the Offer, including the Offer Price, in any way.

Second, the Offeror has extended the closing date of the offer from 5.30 p.m. on 28 Sept 2018 to 5.30 p.m. on 2 Oct 2018. This is the final closing date – the Offeror does not intend to extend the offer beyond 5.30 p.m. on 2 Oct 2018.

We previously noted the substantial gap between our fair value estimate of S$2.34 and the offer price and encouraged investors to Reject the Offer.

Source: OCBC
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Re: Wheelock Properties

Postby winston » Tue Sep 25, 2018 9:49 am

not vested

Wheelock Properties (S) Ltd: Wake Me Up before You Go-G.O.

Regarding the voluntary unconditional general offer (GO) from Wheelock Co (20 HK), the Offeror has announced both a final offer price (S$2.10/share) as well as a final closing date (5:30PM on 2 Oct 2018).

In this report, we discuss the options available to shareholders in great depth.

We continue to see the S$2.10 offer price as low relative to our fair value. At the same time, we also recognize that the GO presents a unique opportunity for some shareholders to realize a profit in a very short period of time.

As such, we have a two-tiered recommendation.

For shareholders who are in-the-money, we recommend accepting the offer (Option 1) to switch to other more attractive opportunities like CAPL and UOL.

For shareholders who collected WPS after the current GO announcement (at more than S$2.10), we recommend waiting out for a second and better general offer (Option 2), though there are also risks associated with this.

Source: OCBC
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Re: Wheelock Properties

Postby winston » Tue Oct 02, 2018 9:27 am

not vested

Wheelock Properties (S) Ltd: Offeror’s stake reaches 88%

The Offeror announced yesterday that it owns (along with related parties) 88.17% of total issued shares of Wheelock Properties (Singapore), mainly boosted by a 10.10% stake from acceptances.

The General Offer (GO) closes today at 5:30pm and we maintain our two-tiered recommendation for now.

For shareholders who are in-the-money, we recommend accepting the offer (Option 1) to switch to other more attractive opportunities like CAPL and UOL.

For shareholders who collected WPS after the current GO announcement (at more than S$2.10), we recommend waiting out for a second and better general offer (Option 2), though there are also risks associated with this.

In the case that the Offeror’s stake crosses 90%, prompting a delisting, we will watch out for an announcement from the Offeror on how remaining shareholders can sell their stake at S$2.10/share.

Recall that in the case of a delisting, shareholders who still have not accepted the General Offer will have a right to require the Offeror to purchase from them at the offer price.

Source: OCBC
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Re: Wheelock Properties

Postby behappyalways » Sat Oct 06, 2018 3:36 pm

Parent company garners 90.1% stake in Wheelock Properties at close of offer; starts delisting process
https://www.theedgesingapore.com/parent ... ng-process
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