If the reason to delist is indeed related to their crown jewel Jurong Point (which is a 50:50 co-held by Lee Kim Tah), Lee Kim Tah shareholders should have every reason to hold on even more tightly to their shares (then Guthrie shareholders) since Guthrie has a bigger number of shares than Lee Kim Tah. Since compulsory acquisition of shares will set in if our Indonesian tycoon gets 90%, I do not see any reason why any minority shareholders should get wet in their pants and surrender their valuable Guthrie holdings at a meagre and miserly offer. Well, unless you like the auspicious sounding offer price given.
Anyone with standard chartered bank experience, whether they will mail the offer form to you? Or do you have to make special request?
Hot line is closed now, will confirm on Monday..
(vested and not selling!)
just attended the sgx sector connect seminar on thu...the speaker Wilson from capitamalltrust told the crowd, with their greennxxx project at jurong east, not to visit the nearby mall starting with a letter "J".
really small heart guy
Just to clarify: No reply means offer not accepted right?
This leaves 3 possible outcome:
1) Accept at offer price at $0.88
2) Reject and more than 10% of public shares left outstanding: Guthrie continue to trade, possibly at a higher valuation.
3) Reject and less than 10% of public shares left outstanding: compulsory acquisition of shares by Guthrie at offer price.
This seems like a no-brainer decision to reject the offer if you value the company at a price much higher than the offer price, since the worst possible outcome is your shares getting sold at offer price anyway.
That said, see how the price direction goes on Monday. If the traded price is way higher than the offer price, than the offer probably will not fall through.
(22-06-2013, 12:05 PM)Wildreamz Wrote: [ -> ]Just to clarify: No reply means offer not accepted right?
This leaves 3 possible outcome:
1) Accept at offer price at $0.88
2) Reject and more than 10% of public shares left outstanding: Guthrie continue to trade, possibly at a higher valuation.
3) Reject and less than 10% of public shares left outstanding: compulsory acquisition of shares by Guthrie at offer price.
This seems like a no-brainer decision to reject the offer if you value the company at a price much higher than the offer price, since the worst possible outcome is your shares getting sold at offer price anyway.
That said, see how the price direction goes on Monday. If the traded price is way higher than the offer price, than the offer probably will not fall through.
According to today BT in their last attempt in 2007 with a GO they raised the offer price and still not so many takers. Let's see if they raise the offer price this time. I expect the price on mon to be higher than 88 but how much ????
Minority shareholders are usually a defeatist lot.
Most will just throw in towels and move on.
U can hold but when the acceptance hits 80%, they
will threaten delisting and more will sell. Hits 90%, they
take away your shares.
So better start bitching to other shareholders via the press fast.
Why do substantial holders delist companies - cause they see value that they can unlock via the process.
Trying to act smart in such situation may actually lead to destruction of value over a prolonged period of time. Case in the point is Guoco Leisure - we have financially super strong fund managers that have long time horizon that saw the value of stake destroyed over the years - Marathon and 3rd Avenue rejected Leng Chan's bid at $1.25 in 2005 only to cut losses many years later.
So far Indonesians have been kind and this is a second and much improved bid since 2007. Think harder as rejecting this offer may only see another offer coming through say 6 years down the road - according to my roadmap - 2018 - 2020 could be the sharp bear phase of the next mkt cycle...
Vested
Odd lots
GG
unfortunately it is human nature to be greedy and wants more.
Maybe when all the other guthrie holders are greedy, one should be fearful?
haha
Just wish to point out some statistics on JP1 and JP extension (JPE) stated in Guthrie's FY12 Annual report:
JP1: $808,150,000; 35,718 sq m of lettable area (translates to $22,626 per sq m)
JPE: $690,000; 29,215 sq m of lettable area (translates to $23,618 per sq m)
In comparison, retail space at Alexadra Square of Chip Eng Seng is sold at $36,300 per sq m and Paya Lebar Square of Low Keng Huat is valued at $43,421 per sq m.
Even if JP1 and JPE are valued at a conservative value of $35,000 per square metre, the valuation gains attributed to Guthrie's 50% share of JP1 and JPE would have been $220,990,000 and $166,263,000, which translate to 20.5 cents and 15.4 cents, respectively, or 35.9 cents in total. Adding this to its BV of $1.01, the RNAV would be at least $1.37, not to mention about other smaller properties. This represents at least 36% discount to the offer price of $0.88.
(23-06-2013, 10:37 AM)shn Wrote: [ -> ]Just wish to point out some statistics on JP1 and JP extension (JPE) stated in Guthrie's FY12 Annual report:
JP1: $808,150,000; 35,718 sq m of lettable area (translates to $22,626 per sq m)
JPE: $690,000; 29,215 sq m of lettable area (translates to $23,618 per sq m)
In comparison, retail space at Alexadra Square of Chip Eng Seng is sold at $36,300 per sq m and Paya Lebar Square of Low Keng Huat is valued at $43,421 per sq m.
Even if JP1 and JPE are valued at a conservative value of $35,000 per square metre, the valuation gains attributed to Guthrie's 50% share of JP1 and JPE would have been $220,990,000 and $166,263,000, which translate to 20.5 cents and 15.4 cents, respectively, or 35.9 cents in total. Adding this to its BV of $1.01, the RNAV would be at least $1.37, not to mention about other smaller properties. This represents at least 36% discount to the offer price of $0.88.
can compare like this? why not compare with Ion Orchard?
Where is Alexandra Square? Where is Paya Lebar Square? Where is Jurong Point?