(11-05-2012, 02:22 AM)sgpunter Wrote: [ -> ]Hi WolfT, I can certainly see where you are coming from. Yes, you get good kopi money and the only reason is because you are coming from the perspective of holding shares BEFORE the offer was made.
Let's consider it from the perspective of someone who has no shares now and is thinking of following your theory to try to arbitrage and earn kopi money.
Buy 115 lots at $1.30 = $150k (rounded to whole number after transaction costs included)
Sell 17.25 lots at $1.39 = $24k (rounded to whole number)
Remaining 97.75 lots now costs the buyer $126k which means the buyer average purchase price = $1.289
Factoring in the transaction costs of odd lot trading, there is not much kopi money to be made.
Everything mentioned is fine. Just take note of the assumptions, i.e. we are assuming that the partial offer is approved AND after selling to cheng, the share price remains at 1.39.
Anyway what is most important is do you think wingtai is still cheap at 1.39? if you think so, go ahead and accumulate the shares now
Another short report from L&T
WING TAI S$1.305-WING.SI
- We had yesterday mistakenly mentioned a partial
offer for UIC many years ago.
- It should have been UOL, where UOB had in early
2004 offered a major block of UOL shares to its
shareholders at $1.58 a share, vs UOL’s market
price then of $1.92. Temasek Holdings then
launched a general offer for UOL at $2.06 a share,
then revised to $2.26. Temasek eventually backed off
after UOL undertook several initiatives to enhance
shareholder value, eg selling its stake in UOB, and
making a generous distribution to its shareholders.
- Cheng Wai Keung’s partial bid for Wing Tai
raises the following questions:
a. why only 15% of shares not already owned by him
and his brothers, which will cost $94.6 mln vs $631
mln if the offer was for all of the remaining shares
not already owned by the family?
b. was there fear of an imminent bid, given the steep
discount the stock has been trading at relative to
asset backing: $1.175 before the announcement
and $2.51 respectively?
c. can one rule out a hostile party counter-offering a
higher price for the entire company, which the
Chengs would find difficult to reject?
- CWK’s move may have given Wing Tai some speculative
appeal.
(11-05-2012, 09:00 AM)money Wrote: [ -> ] (11-05-2012, 02:22 AM)sgpunter Wrote: [ -> ]Hi WolfT, I can certainly see where you are coming from. Yes, you get good kopi money and the only reason is because you are coming from the perspective of holding shares BEFORE the offer was made.
Let's consider it from the perspective of someone who has no shares now and is thinking of following your theory to try to arbitrage and earn kopi money.
Buy 115 lots at $1.30 = $150k (rounded to whole number after transaction costs included)
Sell 17.25 lots at $1.39 = $24k (rounded to whole number)
Remaining 97.75 lots now costs the buyer $126k which means the buyer average purchase price = $1.289
Factoring in the transaction costs of odd lot trading, there is not much kopi money to be made.
Everything mentioned is fine. Just take note of the assumptions, i.e. we are assuming that the partial offer is approved AND after selling to cheng, the share price remains at 1.39.
Anyway what is most important is do you think wingtai is still cheap at 1.39? if you think so, go ahead and accumulate the shares now
What makes you think we all arent?
(11-05-2012, 04:42 PM)propertyinvestor Wrote: [ -> ] (11-05-2012, 09:00 AM)money Wrote: [ -> ] (11-05-2012, 02:22 AM)sgpunter Wrote: [ -> ]Hi WolfT, I can certainly see where you are coming from. Yes, you get good kopi money and the only reason is because you are coming from the perspective of holding shares BEFORE the offer was made.
Let's consider it from the perspective of someone who has no shares now and is thinking of following your theory to try to arbitrage and earn kopi money.
Buy 115 lots at $1.30 = $150k (rounded to whole number after transaction costs included)
Sell 17.25 lots at $1.39 = $24k (rounded to whole number)
Remaining 97.75 lots now costs the buyer $126k which means the buyer average purchase price = $1.289
Factoring in the transaction costs of odd lot trading, there is not much kopi money to be made.
Everything mentioned is fine. Just take note of the assumptions, i.e. we are assuming that the partial offer is approved AND after selling to cheng, the share price remains at 1.39.
Anyway what is most important is do you think wingtai is still cheap at 1.39? if you think so, go ahead and accumulate the shares now
What makes you think we all arent?
i am. i am vested in wingtai. Give it another 2 years i think we will all get big special dividend that will make me smile in my sleep
By logic would you buy something if it is more expensive then it should?
What's more the insider of insiders is the one buying it. Well sometimes things don't work by logic alone.
"Caveat Emptor"
Vested=5 lots.
(09-05-2012, 07:26 AM)propertyinvestor Wrote: [ -> ]OMG, WING TAI HK TO ASK WINSOR PROPERTIES TO DO A DISTRIBUTION OF ASSETS BY WAY OF DIVIDEND IN SPECIE AND A CASH OFFER WILL BE MADE TO BUY OUT THE ASSETS THAT ARE NOT OWNED BY THEM.
Winsor Properties will still remain as a listed shell. I wonder if this shell can be used for a reverse takeover of Wing Tai Singapore to shift listing from SGX to HK...
Here is the news from HKSE on Winsor properties.
(1) DISPOSAL OF 73.91% INTEREST IN WINSOR BY WING TAI CONSTITUTING A MAJOR TRANSACTION FOR WING TAI
Note: The buyer is china Vanke and the price tag is HK$1.1 billion. See the related announcement.
(2) GROUP REORGANISATION OF WINSOR, CONNECTED TRANSACTIONS FOR WINSOR AND WING TAI AND SPECIAL DEALS
(3) DISTRIBUTION IN SPECIE OF PRIVATECO SHARES AND PAYMENT OF SPECIAL CASH DIVIDEND
(4) POSSIBLE UNCONDITIONAL MANDATORY CASH OFFER FOR THE SHARES IN WINSOR BY CITIC ON BEHALF OF THE OFFEROR
(5) POSSIBLE UNCONDITIONAL VOLUNTARY CASH OFFER FOR PRIVATECO SHARES BY SCB ON BEHALF OF WING TAI AND MAJOR AND CONNECTED TRANSACTIONS FOR WING TAI AND
(6) RESUMPTION OF TRADING OF THE SHARES IN WINSOR AND WING TAI
http://www.hkexnews.hk/listedco/listcone...514501.pdf
A shorter version
http://www.wingtaiproperties.com/PressRe...20514e.pdf
China Vanke to buy Hong Kong's Winsor Properties
http://www.cnbc.com/id/47412011
This whole deal is getting more and more fishy. Somehow the 15% offer is looking more and more like a bad deal. Nevertheless, Cheng's offer is providing support for Wing Tai's share price in a market downturn which I'm certainly not complaining about..
It could be that the Chengs are afraid that someone could force the management to realize shareholder value if they only hold 30-40% of shareholding. But if they are holding more than 50%, they could virtually not care any less.
Ikan bilis is not B/S. Just hold and wait. Vested 5 lots only.
Vanke to pay HK$1.08b for 74% of Winsor
[SHANGHAI] China Vanke Co, the country's biggest publicly traded developer, will pay HK$1.08 billion (S$174.6 million) for 74 per cent of Hong Kong-traded Winsor Properties Holdings Ltd to expand overseas.
Winsor, controlled by Wing Tai Properties Ltd, will hold a 657,000 sq ft commercial building in Hong Kong's New Territories as its sole asset after restructuring, Vanke and Winsor said in a joint filing to the Hong Kong Stock Exchange. Winsor's restructuring awaits regulatory approval.
The main purpose of the purchase is "a trial for global expansion, a long-term direction of growth" for Vanke, Tan Huajie, the developer's board secretary, said in an emailed statement on Monday.
Vanke is expanding abroad as home prices and sales volumes drop in China on government curbs on the property market. Transaction value fell 16 per cent in April from the previous month, according to official Chinese statistics, and average prices fell to a 14-month low, according to SouFun Holdings Ltd.
Winsor surged 27 per cent at the close in Hong Kong yesterday, the highest since its debut in 1996. The stock traded for the first time since April 13, while Vanke fell 0.1 per cent in Shenzhen trading. Wing Tai rose 6.4 per cent to HK$3.47, the highest since July 2008.
The purchase is an attempt to raise capital offshore, said Du Jinsong, a Hong Kong-based property analyst at Credit Suisse Group AG, in a note to clients.
Ownership of the Winsor stake allows Vanke to get money from investors on Hong Kong's stock exchange, which it can use at home, Mr Du said by phone. - Bloomberg