I rather have a self made billionaire owning a big chunk of shares rather than to have professionals listening to "Invisible Hands" being guided into some locations for strategic reasons. Remember not too long ago there were some lame excuses given for 1.5% returns achieved for being positioned for strategic reasons...
If you only see the on the surface type of conclusion post the ALZ deal and fail to anticipate beyond the value extraction process that follows a potential successful conclusion to the ALZ deal, I think you should simply go with the obvious.
Capitaland for one has sold ALZ for a song not too long ago and hence destroying shareholders' wealth. I didn't forget that.
Your money, your choice.
Vested
GG
(06-08-2014, 07:55 PM)Madmoney Wrote: [ -> ]With 21 more hours to go before the close. What would you do if you are a shareholder of FCT ?
Do you think that at $1.715, the mkt have factored in that the deal will go through and FCT will end up with a mountain of debts or
that the market think that it is fair value for a company that have pulled all the rabbits out of hat ?
Personally, I feel that in term of valuation, it is not any superior or undervalued as compared to capitaland, kep land. In fact, with so much shares and near absolute control under a single shareholder, whose personal motivation cannot be easily understood, a deeper discount might be necessary.
Either way, Towkay Charoen should be saluted for his ability to go all out for deals or draw a strict line to cut the drag... a man of his stature is certainly worth investing in than a bunch of "yes men" professionals...
Glasses poised for Charoen Sirivadhanabhakdi in Australand bid
THE AUSTRALIAN AUGUST 07, 2014 12:00AM
Sarah Danckert
Property Reporter
Melbourne
THE majority shareholder in Frasers Centrepoint, the Thai beer and whiskey baron Charoen Sirivadhanabhakdi, hopes to raise a glass today to celebrate his company’s successful $2.6 billion takeover of Australand, but some believe he’ll need more than just — as the Thai’s say — chok dee (good luck) to pull off this feat.
Instead, the 70-year old famed for his rags-to-riches tale in Thailand could end up saying laa gain — goodbye, literally “leaving first” — to the takeover tilt.
According to sources, Frasers should have extended its $4.48-a-share cash offer that lapses today. The offer was contingent on it receiving acceptances from more than 50.1 per cent of shareholders.
Yesterday, Australand’s share price touched a low of $4.36 as acceptances trickled in.
Frasers holds a total of 28.65 per cent of Australand, putting its shareholding above that of rival suitor Stockland, which has 19.9 per cent of the target company.
Analysts in Singapore say a failure to seal the deal could ultimately be a good thing for the company, which has a considerable presence in Australia through Frasers Property.
“In our view, should FCL fail to win the bid it may actually be a positive as the deal has been seen as slightly on the high side in the first place,” CLSA analyst Yew Kiang Wong said.
“So not winning this also could mean not overpaying for it.”
Ms Wong said if Frasers did not complete its bid it would likely continue to invest in the retail and office sectors.
Mr Charoen, who has a personal fortune estimated in June at $11.3bn, is widely regarded as a wheeler and dealer in his native country, having taken over Singapore beverage company Fraser & Neave, which granted him a majority stake in Frasers Centrepoint through his ThaiBev, which also owns the popular Sangsom and Mekhong whiskey brands.
While Mr Charoen risks a loss of face if his hardball tactics with Australand do not result in a victory, the media-shy mogul is already busy cooking up other deals.
This week, reports emerged that another company controlled by Mr Charoen was looking to buy the Cash & Carry’s Vietnam business for $US500m ($536.5m).
The slow rate of acceptances has led to speculation that Stockland could wait for the Frasers offer to lapse to make another bid.
However, according to sources, Stockland could face some push back from Pacific Alliance Group, which has built up a 6.5 per cent stake in Australand and has been mooted as a potential suitor for the company.
Why the last ditch effort?
What's tokway's game plan?
If FCT gets say, 40-49%, what's their strategy after spending the money?
Vested and monitoring
46% now, guess they'll succeed after all!
I think most likely done deal....I wonder once they declare unconditional, will Stockland 'surrender' their stake?
Frasers holds a total of 28.65 per cent of Australand, putting its shareholding above that of rival suitor Stockland, which has 19.9 per cent of the target company.
==> FCL would still own 28.65% if the takeover offer did not cross 50% and failed. Right or wrong?
