(11-02-2014, 11:45 AM)desmondxyz Wrote: [ -> ] (11-02-2014, 11:38 AM)opmi Wrote: [ -> ]whoever is selling sure don't know the business of
K1. No divesting no div.
Do you think it's a good chance to buy on weakness?
I think there is no change to the long term value.
Which is hard to estimate coz lack of info. K1 under
Green showed that they can create value over long term.
well, after the poor poor 2Q 2014 results, lets look ahead to better news.
This CGA IPO has been delayed for ages, lets see if it gets the nod in 2Q 2014, or it will be pushed back further. K1 has a minor minor 1 plus % stake it CGA.. FYIP.
Trading halt! Any news? seems like no sign at all...
(21-02-2014, 10:59 AM)desmondxyz Wrote: [ -> ]Trading halt! Any news? seems like no sign at all...
Singapore, 21 February 2014 - k1 Ventures Limited (the “Company”) and its whollyowned
subsidiary, Focus Up Holdings Limited have entered into a definitive agreement
and plan of merger (the "Merger Agreement") for the sale of Long Haul Holding Corp.
(“Helm”) to Wells Fargo Bank (the “Purchaser”), for an aggregate cash consideration of
approximately US$152 million (S$192 million), excluding transaction costs and closing
adjustments, for the Company’s 80.1% effective interest in Helm (“Helm Disposal”). The
sale is part of the Company’s proactive management of its investments with the aim of
enhancing shareholder value. Following the sale, the Company and Focus Up Holdings
Limited will cease to have any interest in Helm.
Ref:
http://infopub.sgx.com/FileOpen/MR_k1.to...eID=275536
(21-02-2014, 11:32 AM)CityFarmer Wrote: [ -> ] (21-02-2014, 10:59 AM)desmondxyz Wrote: [ -> ]Trading halt! Any news? seems like no sign at all...
Singapore, 21 February 2014 - k1 Ventures Limited (the “Company”) and its whollyowned
subsidiary, Focus Up Holdings Limited have entered into a definitive agreement
and plan of merger (the "Merger Agreement") for the sale of Long Haul Holding Corp.
(“Helm”) to Wells Fargo Bank (the “Purchaser”), for an aggregate cash consideration of
approximately US$152 million (S$192 million), excluding transaction costs and closing
adjustments, for the Company’s 80.1% effective interest in Helm (“Helm Disposal”). The
sale is part of the Company’s proactive management of its investments with the aim of
enhancing shareholder value. Following the sale, the Company and Focus Up Holdings
Limited will cease to have any interest in Helm.
Ref: http://infopub.sgx.com/FileOpen/MR_k1.to...eID=275536
Don really understand...seems like not much gain from the deal....good thing is cash coming back to K1, and K1 not going to do investment anymore, so the cash should be flowing to shareholders' pockets?
Yes. Divestment money coming back to shareholders. Said in qtr annc and AGM.
K1VENTURES: ($0.197) Surprise sale of Helm affirms investment portfolio value, inspires special dividend hopes
K1 Ventures will sell its entire 80% stake in Long Haul Holding Corp ("Helm"), a US locomotive and railcar leasing company, to Wells Fargo Bank for aggregate cash consideration of ~US$152m ($192m).
While management does not expect the transaction to have material impact on the group's FYJun14 financials, post-sale, we estimate K1's book value per share to jump from $0.15 to $0.18.
The deal price comes at a ~20% premium to one broker's estimate of Helm's fair value at $159m, according to a report dated back in Aug last year.
Following the stake sale, K1 will see its cash per share balloon from 1¢ to 10¢ (55% of share price), which would likely inspire hopes of a generous special dividend payout at the fiscal year end.
Since 2004, K1 has returned an estimated $540m to shareholders in capital distribution and dividends, reflecting its positive investment track record.
Meanwhile the group continues to hold a portfolio of other quality assets that could offer meaningful capital upside, including:
- a 12.2% stake in Knowledge Universe Holdings, a global pre-school education services provider
- US$100m of convertible preferred shares of Guggenheim Capital (7% coupon), and
- a 1.6% stake in China Grand Auto, the largest auto dealership in China.
The market reaction to the sale is positive, with K1 shares advancing 9% since resuming from its trading halt.
At the current price of $0.197, K1 trades at 1.1x pro-forma P/B.
By Ben Oh
(21-02-2014, 11:05 PM)desmondxyz Wrote: [ -> ]K1VENTURES: ($0.197) Surprise sale of Helm affirms investment portfolio value, inspires special dividend hopes
K1 Ventures will sell its entire 80% stake in Long Haul Holding Corp ("Helm"), a US locomotive and railcar leasing company, to Wells Fargo Bank for aggregate cash consideration of ~US$152m ($192m).
While management does not expect the transaction to have material impact on the group's FYJun14 financials, post-sale, we estimate K1's book value per share to jump from $0.15 to $0.18.
The deal price comes at a ~20% premium to one broker's estimate of Helm's fair value at $159m, according to a report dated back in Aug last year.
Following the stake sale, K1 will see its cash per share balloon from 1¢ to 10¢ (55% of share price), which would likely inspire hopes of a generous special dividend payout at the fiscal year end.
Since 2004, K1 has returned an estimated $540m to shareholders in capital distribution and dividends, reflecting its positive investment track record.
Meanwhile the group continues to hold a portfolio of other quality assets that could offer meaningful capital upside, including:
- a 12.2% stake in Knowledge Universe Holdings, a global pre-school education services provider
- US$100m of convertible preferred shares of Guggenheim Capital (7% coupon), and
- a 1.6% stake in China Grand Auto, the largest auto dealership in China.
The market reaction to the sale is positive, with K1 shares advancing 9% since resuming from its trading halt.
At the current price of $0.197, K1 trades at 1.1x pro-forma P/B.
By Ben Oh
Hi. Just one observation. The price to book ratio is irrelevant here. K1 books its illiquid investments at cost (unlike a private equity fund which will change the value annually based on an estimated value referencing public comps as well as operating performance) and offsets any income from that asset against its value on the balance sheet. So, for example, I believe that Knowledge Universe is now accounted for at zero cost even though it is probably the most valuable asset that K1 owns. Hence book value grossly understates the value.