Sing Holdings

[ichew]

Received a reply email. I think I will keep the content to myself for the time being

guess reply sucks
regretted being part of this company liao

[behappyalways]

wait for robin launch and then make a decision from there

[behappyalways]

Please do not forward or copy and paste......just a scenario for reference only


My brain is flowing with ideas.....just trying to note it down before it is gone..........

Scenario 1

Set up a company called Minority Power(MP) with 1.6billion shares. Paid up capital together plus loan of the company will be $200m

Financial numbers of ABC
NTA : 56 cents
NAV : Estimated 90 cents


Mount a takeover of ABC giving existing shareholders 2 choices of option.

Option 1 : Offer to take over the shares at $0.50 each.

That will value the company at around $200m (50 cents x 400m shares). Within a year MP should sell off the office units (valued at $40m instead of $28m cost) and received cash from trade receivables plus cash on hand minus current liabilities ($143.7m -$88.3m) = $55.4m. Taking 70% stake if the $55.4m is from The Laurels. That should bring around $40m cash

So If MA sell of the office units($40m), long term equity shares($3.4m) and together with $40m cash on hand, MA would have $83m cash.
If it does a capital reduction and pares down debt, the company should have total equity of $117m ($200m-$83m) left.

We now get down to long term debt and assets.
With $117m in MA it would now have 2 land parcels left namely Waterwoods and Robin worth $400m and long term debt of liabilities of $234m. Waterwoods total gross proceeds if all sold should be around $375m -$400m and for Robin if all sold should be around $300m ($2200psf x 137,000). Debts due to Robin land is around $50-60m while debts due to Waterwoods is around $150-160m. Basically the $117m in MA plus the $50-60m debt is equal to the land cost in Robin. So by the end of TOP of the project, MA's gains would be the profit of Waterwoods and Robin over the $117m (debt equity arrangement.....70% debt 30% equity? 80 % debt?) investment. During this time as progressive payments on Robin and Waterwoods are collected, the $117m investment could be pared down.


Option 2
As the significant shareholder owns around 35-40% of the company. It might be hard to wrench control of the company and minority shareholders might deem the offer too low.

Provide an option for minority to reap the benefit from the Waterwoods, Office Units and Robin to entice minority shareholders.

Offer of 40 cents per cash plus 1 for 1 share in MA.
At 40cents, MA initial shareholder would have to fork out $160m(40 cents x 400m shares) and concede 1/4 of the company shares to minority shareholders. The purpose of MA is to take over ABC company and strip off its assets. Hence cash would be distributed once assets are sold or collected.

In this case. If NAV of the company is 90 cents. Minority shareholders who opt for Option 2 will get initial 40 cents plus future cash of 22.5cents(1/4 of 90 cents). They stand to gain around 62.5 cents instead of the initial 50 cents. If NAV is only 75 cents minority shareholders will get 59 cents(40 cents plus future cash of 19 cents)(1/4 of 75 cents)

Option 2 seems to be the better option for MA original shareholder and minority shareholders of ABC. MA original shareholder needs to concede 1/4 of the company and share part of the profits from stripping ABC but the investment needed is also lower while the chances of successful takeover is higher too. For ABC minority shareholders, the risk for taking option 2 is not high yet attractive as they will receive 40 cents instead of 50 cents but with the extra 10 cents, they get to enjoy part of the profits from Waterwoods, office units and Robin.

[behappyalways]

2013 Full year report said that they sold 2 units of The Laurels....

Here's the data for one of them

Update: The Laurels 7 Feb 2014
Unit Area( SQ FT) - 1302
Price ($psf) - 2692
Total Price - $3,506,000

Data from Square Foot Singapore

[behappyalways]

157 units sold

Good morning Behaapyalways san and every1.

154 units Waterwoods sold. Left 219 units

http://www.executivecondominium.sg/WaterWoods.html

[Jordankbl]

157 units sold

Good morning Behaapyalways san and every1.

154 units Waterwoods sold. Left 219 units

http://www.executivecondominium.sg/WaterWoods.html

Good evening Behappyalways San and All.

162 units Waterwoods sold. Left 211

[behappyalways]

past few weeks sales are good.....but I am worried after August when the influx of EC comes online, they might have a problem......

[Jordankbl]

163 units Waterwoods sold. Left 210 units.

[Jordankbl]

Good afternoon every1

Update: The Laurels Feb 2014
Cumulative Units Sold to-date: 227
Median Price ($psf) in the Month: 0
Units sold in the month: 2
Cumulative Units Launched but Unsold: 2
Total Number of Units: 229


Update: Waterwoods EC Feb 2014
Cumulative Units Sold to-date: 153
Median Price ($psf) in the Month: 819
Units sold in the month: 11
Cumulative Units Launched but Unsold: 220
Total Number of Units: 373



https://www.ura.gov.sg/realEstateIIWeb/p...rch.action

[Jordankbl]

166 units Waterwoods sold. Left 207 units