Overseas Union Enterprise

[LenaHuat]

It's a mountain of debts. I don't like a biz that spends too much time wheeling and dealing.

[LenaHuat]

Dropped 25% !

Anybody falling this counter ? Why the big drop ? Stock-split ? But there was no Ex-Bonus comment.

Well, it rose 33% in March (based on the earlier March posts).

[ichew]

It's a mountain of debts. I don't like a biz that spends too much time wheeling and dealing.

hi Lena
just note that the debts belong to the controlling shdrs - Lippo
nothing to do with OUE
from shareinvestor.com, OUE's 1Q10 d/e = 0.268

[LenaHuat]

Hi ichew
Yes, I'm aware that it's the Lippo group. Will the bros operate in the likes of OHL?

[ichew]

hi Lena-sis
OHL = Oei Hong Leong?
i'm not sure but their intention is to use OUE as Lippo's ppty arm

[LenaHuat]

Hi ichew
I think U are much younger than me and so might not know abt this. I will always remember the Brit guy named Walker who seized control of the Haw Par group and did alot of damage. He was an asset stripper who was not going to build up any biz in the likes of the Liens, the Wees and the Lees.

I haven't forgotten the way the old guards of Robinsons were treated and the store was flipped over in a short 2 yrs or so. I'm apprehensive abt the modus operandi of these newly-coined Singaporean bizmen.

[ichew]

Hi Lena sis

sounds like this Gekko bad guy in the movie Wall Street

yup, i believe i am much younger too but i am always keen to learn abt these historic events
just re-read abt Lippo+Robinson case on different sites
thanks for highlighting

hmm now i wonder if this is the reason why foodjunction's ceo & cfo were "booted" out
tat lippo always wants their guys in charge

more wary of all these indo guys ...
another group r the widjajas ... i am still wondering abt their Asia Food and Ppty

btw wat does OHL stands for?

[winston]

Another placement !

Singapore's OUE share priced at S$2.80 in a placement

SINGAPORE, Oct 7 (Reuters) - Singapore developer and hotel operator Overseas Union Enterprise priced its shares at $2.80 ($2.14) apiece in a S$337.4 million placement, the company said on Thursday, an 8.2 percent discount to a previous day's close.

Golden Concord, a unit of Indonesia's Lippo Group, is selling 120.5 million shares in Overseas Union, according to a term sheet seen by Reuters on Wednesday.

OUE shares were last traded at S$3.05 on Wednesday, up 2 percent from the previous session.

The bookrunners for the OUE share sale are CIMB, Credit Suisse, Bank of America Merrill Lynch, Morgan Stanley and Standard Charterered.


Source: Reuters

[winston]

Not vested. From CIMB:-

Cheapest domestic landlord at 33% discount to RNAV; maintain Outperform.

We believe the sale of recent office properties at low initial yields in Singapore has positive implications for OUE’s asset values. The undervaluation of its recent acquisition of DBS Towers appears particularly stark.

With the asset free of encumbrances, we believe OUE can and will attempt to enlarge its asset base. Our target price has been raised from S$3.37 to S$3.71, still at a 15% discount to RNAV (S$4.36) on lower cap-rate assumptions.

No change to our earnings estimates. A larger free float and higher trading volume should appeal more to larger institutional funds. Catalysts could come from a further office recovery and accretive acquisitions.

http://www.remisiers.org/cms_images/OUE-1410101.pdf

[winston]

Not vested

Overseas Union Enterprise (OUE SP, $3.17, NOT RATED)

OUE recently ramped up its office portfolio with the acquisition of DBS Towers 1 and 2 for
$870.5m. It now has a commercial property portfolio worth $3.5b with a GFA of about 3.2m sq ft.

The stock’s liquidity has improved significantly following a 5‐for‐1 stock split in June and the Lippo Group has also pared down its stake in OUE from 88.6% to 67.1% in a bid to improve the stock’s free float.

http://www.remisiers.org/cms_images/res ... re_OUE.pdf