Taking Guoco Holding private could be paving a way for the privatisation of other subsidiaries , otherwise what is good deal to shareholders of Guoco Holding will be bad deal for shareholders of Subs , and it required mandates from both sets of shareholders .
It can be tedious and time consuming if both are listed companies in two different countries.
http://www.guoco.com/eng/ir/stock.asp
Interestingly, Mr Mkt took Quek's privatisation efforts very positively. 53.HK traded from a low of HK$89.00 to close near day high around HK$92.00.
Note that Quek and related parties already hold close to 75% in 53.HK and there is really no chance that there will be a counter offer so Mr Mkt probably is betting that Quek may raise his offer to ensure that he gets his price.
Will Quek submit to Mr Mkt's indications?
(12-12-2012, 06:14 PM)Stocker Wrote: [ -> ]Taking Guoco Holding private could be paving a way for the privatisation of other subsidiaries , otherwise what is good deal to shareholders of Guoco Holding will be bad deal for shareholders of Subs , and it required mandates from both sets of shareholders .
It can be tedious and time consuming if both are listed companies in two different countries.
(12-12-2012, 07:22 PM)greengiraffe Wrote: [ -> ]http://www.guoco.com/eng/ir/stock.asp
Interestingly, Mr Mkt took Quek's privatisation efforts very positively. 53.HK traded from a low of HK$89.00 to close near day high around HK$92.00.
Note that Quek and related parties already hold close to 75% in 53.HK and there is really no chance that there will be a counter offer so Mr Mkt probably is betting that Quek may raise his offer to ensure that he gets his price.
Will Quek submit to Mr Mkt's indications?
(12-12-2012, 06:14 PM)Stocker Wrote: [ -> ]Taking Guoco Holding private could be paving a way for the privatisation of other subsidiaries , otherwise what is good deal to shareholders of Guoco Holding will be bad deal for shareholders of Subs , and it required mandates from both sets of shareholders .
It can be tedious and time consuming if both are listed companies in two different countries.
hitting 92HKD probably because of short covering.
Hi Propertyinvestor,
Do you think the recent slow accumulation is an upward sign ?
GuocoLeisure's recent performance is due to the following factors:
(i) Ending of unwinding by Marathon due to retirement of Hosking;
(ii) latest attempt by Quek to privatise Guoco Group - leading market to re-evaluate the parts of Guoco Group that has more hidden values.
Expectation of continued share price out-performance at Guoco Leisure should be managed given that Guoco Group is the majority owner and unlikely to change the strategic business focus of Leisure.
As privatisation effort is unlikely to be successful at HK$88.00, expectations of asset unlocking - which is totally non-existent at Leisure remains unrealistic at the moment.
Even assuming that Quek manages to privatise Guoco Group, it will take time to re-evaluate which listed subsidiaries he may want to unlock assets.
UK residential property is red hot - not unlike that of Singapore and HK as UK is benefiting from safe haven fund flows from troubled Eurozone neighbours.
Some of Leisure's hotels certainly have potential of being redeveloped but in the many years that Quek has majority control, I have never come across any mention of redevelopment into residential or commercial properties.
I am not implying that it may not happen but unless we have any clue on what is going on in Quek's mind, such potential is difficult to quantify in numbers. Note that apart from being a banker, Quek is also an experienced property developer in Singapore, Malaysia and China.
Enjoy the steady rise in Leisure and hope for bonuses.
(17-12-2012, 09:25 PM)greengiraffe Wrote: [ -> ]GuocoLeisure's recent performance is due to the following factors:
(i) Ending of unwinding by Marathon due to retirement of Hosking;
(ii) latest attempt by Quek to privatise Guoco Group - leading market to re-evaluate the parts of Guoco Group that has more hidden values.
Expectation of continued share price out-performance at Guoco Leisure should be managed given that Guoco Group is the majority owner and unlikely to change the strategic business focus of Leisure.
As privatisation effort is unlikely to be successful at HK$88.00, expectations of asset unlocking - which is totally non-existent at Leisure remains unrealistic at the moment.
Even assuming that Quek manages to privatise Guoco Group, it will take time to re-evaluate which listed subsidiaries he may want to unlock assets.
UK residential property is red hot - not unlike that of Singapore and HK as UK is benefiting from safe haven fund flows from troubled Eurozone neighbours.
Some of Leisure's hotels certainly have potential of being redeveloped but in the many years that Quek has majority control, I have never come across any mention of redevelopment into residential or commercial properties.
I am not implying that it may not happen but unless we have any clue on what is going on in Quek's mind, such potential is difficult to quantify in numbers. Note that apart from being a banker, Quek is also an experienced property developer in Singapore, Malaysia and China.
Enjoy the steady rise in Leisure and hope for bonuses.
gg,
Good analysis, very well said !
(22-12-2012, 02:51 PM)cfa Wrote: [ -> ] (17-12-2012, 09:25 PM)greengiraffe Wrote: [ -> ]GuocoLeisure's recent performance is due to the following factors:
(i) Ending of unwinding by Marathon due to retirement of Hosking;
(ii) latest attempt by Quek to privatise Guoco Group - leading market to re-evaluate the parts of Guoco Group that has more hidden values.
Expectation of continued share price out-performance at Guoco Leisure should be managed given that Guoco Group is the majority owner and unlikely to change the strategic business focus of Leisure.
As privatisation effort is unlikely to be successful at HK$88.00, expectations of asset unlocking - which is totally non-existent at Leisure remains unrealistic at the moment.
Even assuming that Quek manages to privatise Guoco Group, it will take time to re-evaluate which listed subsidiaries he may want to unlock assets.
UK residential property is red hot - not unlike that of Singapore and HK as UK is benefiting from safe haven fund flows from troubled Eurozone neighbours.
Some of Leisure's hotels certainly have potential of being redeveloped but in the many years that Quek has majority control, I have never come across any mention of redevelopment into residential or commercial properties.
I am not implying that it may not happen but unless we have any clue on what is going on in Quek's mind, such potential is difficult to quantify in numbers. Note that apart from being a banker, Quek is also an experienced property developer in Singapore, Malaysia and China.
Enjoy the steady rise in Leisure and hope for bonuses.
gg,
Good analysis, very well said !
cfa,
Thanks for that. Buying value stocks is easy. The hard part is the value realising process since management of most value companies are seasoned businessmen.
These astute businessmen do not focus on share price movements to boost their egos. Rather, they are focus on factors beyond short term wealth factors like how to ensure another 3 more generations of their family members can be taken care of.
When it comes to shareholder activism - these management are bullet proof. How many times have you seen Wee Cho Yaw being cornered by shareholders' questions - its the opposite as they will turn around and ask you if you can do it better with your questions or suggestions.
Anyway, as long as you buy value stock at the right price, your holding costs are likely to be covered by dividends. Capital gains resulting from low price purchased will help calm nerves during holding period. Any value being unlocked over time will be bonus.
Relatively high vol today...interest returning.
High trading volume today.
(15-01-2013, 05:24 PM)cfa Wrote: [ -> ]High trading volume today.
Traders will work in groups to distribute shares to value retailers. trade with care...