The "Value" is in Triyards being able to raise money on its own, moving forward; instead of relying on Ezra (which is already super heavily geared).
*For the full article, please visit the website.
The Straits Times
www.straitstimes.com
Published on Sep 04, 2012
Ezra unit plans to list in mid-October
Listing to follow distribution of 33% of Triyards stock to Ezra investors
By Jonathan Kwok
THE fabrication and engineering arm of Ezra Holdings aims to list around the middle of next month after a distribution of some of its stock to shareholders of the parent.
About 33 per cent of Triyards Holdings will be distributed to Ezra shareholders as a dividend in specie.
The listing will be by way of introduction, after investors get one Triyards Holdings share for every 10 Ezra shares they hold.
Ezra will retain about 67 per cent of the company at the listing.
Investors who do not hold Ezra stock can buy Triyards shares only from the open market after the listing.
Ezra released the introductory document for Triyards on Saturday. The document said that after the spin-off of Triyards, the company and the rest of Ezra "will be analysed and valued on their own respective merits, risks and strategies".
The separation will provide "financial independence" and make it easier for the companies to access capital to fund growth.
Ezra will "continue to participate in the growth of the engineering and fabrication business" with its holding of about 67 per cent of Triyards after the restructuring and distribution, said the document.
Triyards has two shipyards in Vietnam and a crane fabrication yard in the American city of Houston. It builds vessels, offshore platforms and equipment like cranes for the offshore energy sector.
It recorded net profit of US$8.5 million (S$10.6 million) for the 12 months to Aug 31 last year, down from US$27.4 million in the 2010 financial year. Revenue rose last year, but so did the cost of sales and administrative expenses.
Earnings per share for the 2011 financial year was 2.87 US cents, down from 9.29 US cents for the 2010 financial year.
Net profit for the six months to Feb 29 was US$14.5 million, reversing a loss of US$1.1 million for the same period a year earlier.
Triyards shares will be traded in board lots of 1,000. But it will ask the Singapore Exchange to set up a temporary counter for trading in board lots of 100, to last for one month from the listing date.
This is for Ezra shareholders who get odd lots allocated to them.
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