Wednesday, June 24, 2020

QAF #64 - QAF Group Financial and Business Highlights FY2019

Wednesday, June 17, 2020

MRCB-Quill Reit #31 - Quarterly rpt on consolidated results for the financial period ended 31 Mar 2020

Tuesday, June 16, 2020

YTL Power International #45 - Quarterly rpt on consolidated results for the financial period ended 31 Mar 2020

[ Fly me to the moon ] By A girl six years old | Bossanova guitar playing INS @miumiuguitargirl

Sunday, June 14, 2020

PREHL #176 - The unitholders of Perennial China Retail Trust (PCRT) had been taken for a ride

The IPO (Initial Public Offering) of Perennial China Retail Trust (PCRT) was carried out in 2011; the IPO price was S$0.70.

PCRT paid a total dividend of S$0.1286 from the year 2012 to year 2014,

0.0475 + 0.0386 + 0.0425 = 0.1286

So, after deducting the total dividend received, the cost of investment of a PCRT unitholder would be S$0.5714 per unit,

0.70 - 0.1286 = 0.5714

In 2014, Perennial Real Estate Holdings Limited (PREHL) made an offer to buy all the PCRT units it did not already own at S$0.70, and the consideration of the offer was the issue of PREHL shares at the price of S$1.3353 per share,

At S$0.95 a share, the Consortium is effectively trying to buy (back) the PCRT units at S$0.498,

0.95 / 1.3353 * 0.70 = 0.498

Hence, for the investing public who held the PCRT units since its IPO in the year 2011, each unitholder would have suffered a LOSS of S$0.0734 per unit,

0.5714 - 0.498 = 0.0734

Where is the TOTAL RETURN, i.e., Capital Appreciation plus Dividend Income, that Mr Pua Seck Guan is so proud of ?!?

Wednesday, June 03, 2020

Monday, May 25, 2020

PREHL #173 - Will Perennial Real Estate Holdings Limited be privatized? And, if yes, at what price?

So, is this an indication that PREHL will be privatized?

Guessing from the privatization of OSIM by one of PRHEL's sponsors and Vice Chairman, Mr Ron Sim, and the recent privatization of Breadtalk by Mr George Quek--one of the trusted business partners of PREHL's CEO Mr Pua Seck Guan, I am saying that PREHL is HIGHLY LIKELY to be privatized.

The REDEMPTION OF S$280 MILLION 4.55 PER CENT. BONDS DUE 2020 (THE “BONDS”) is further proof that PREHL is highly likely to be privatized. By borrowing S$250 million from the banks to redeemp the bond issue, it is telling me that PREHL finds it cheaper to borrow from the banks instead of raising funds from the market and hence the need for PREHL to remain a listed entity.

So, at what price will PREHL be privatized?

There is no doubt in my mind that borrowing money from the banks will get cheaper given that Central Banks around the world are continuing to print money. And, it is also reasonable to assume that PREHL will be able to secure higher valuations if it were to list in Hong Kong or China.

And, if a privatization exercise were to be carried out for PREHL, I strongly belive that the substantial shearholders concerned will want to ensure that the privatization is a success. I therefore belive that the Offer Price for PREHL has to be higher than S$1.109--the highest price paid by Mr Ron Sim when he purchased the PREHL shares from the market.

My preferred Offer Price for PREHL? S$1.3353, of course (link to PCRT Offer Document). :D