ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

(31-07-2013, 09:07 PM)CityFarmer Wrote: [ -> ]

(31-07-2013, 07:46 PM)Temperament Wrote: [ -> ]F&N after break up can worth more meh?
Not vested until now.

Uncle Temperament,

Stock market is one the place with illogical math of

1 + 1 > 2 (for merger with synergistic result)

and

2 < 1 + 1 (for quality spin-offs)



(vested)

Exactly; after spin off APB, property, etc... what's left how can it be more valuable? Of course if you bought before all the spin-offs, then you "Fatt TAT" lol.

Spin offs and divestment sometimes can be more valuable because the assets are undervalued, but the MAIN reason is that these actions tend to increase the ROIC of the entities.

(01-08-2013, 04:53 PM)specuvestor Wrote: [ -> ]Spin offs and divestment sometimes can be more valuable because the assets are undervalued, but the MAIN reason is that these actions tend to increase the ROIC of the entities.

Exactly the Thai Tycoon believes so to the tune of borrowing $Billions to buy over F&N. i had B/S a few times. But i missed this time. Actually the Thai Tycoon had try more than 1 time; yet i were caught "sleeping" with my eyes wide opened.

I usually don't believe in the notion of breakup value analysis, unless you control the board or there are evident catalysts. But in this case, the LBO nature of the buy-out means they need cash from FNN and restructuring of the group which will inevitably unlock FNN value.

G.O. Reference Price = $9.55

Less :
1. FY12 (Sep) Final Div = 12ct
2. FY13 (Mar) Interim Div = 3.5ct
3. Capital Payout = $3.28

Net G.O. Reference Price = $6.115
Latest Market Price = $5.57 (-8.97%)

<Not Vested - Watching...>

A closer look into the latest 3Q result

http://infopub.sgx.com/Apps?A=COW_Corpor...ghckpLDlv8

Nine months revenue and gross profit increased by 11.9% and 11.5% respectively. Together with other incomes, the profit (before impairment, fair value adjustment, taxation and exceptional items) increased by 31.2%.

However, attributable profit only increased by 0.3%, after S$54.6 million of impairment charged, a loss in exceptional item (with GO expenses of S$73.0 million) and much higher taxation (more than 100% increment)

The full synergy in the F&B segment still yet to be seen, IMO

(03-08-2013, 09:46 AM)KopiKat Wrote: [ -> ]G.O. Reference Price = $9.55

Less :
1. FY12 (Sep) Final Div = 12ct
2. FY13 (Mar) Interim Div = 3.5ct
3. Capital Payout = $3.28

Net G.O. Reference Price = $6.115
Latest Market Price = $5.57 (-8.97%)

<Not Vested - Watching...>

CIMB issues a report today on F&N. target price is $6.53, based on SOP. Quite a gap based on today's price.

https://cimbequityresearch.cimb.com/EFAO...CB6&A=CIMB

Two related news report on F&N...

F&N unit makes top bid in state land sale

The property arm of Singapore’s Fraser and Neave put in the top bid of $924 million for a commercial site at a government land sale, the highest amount offered for state land since May 2011, the Business Times newspaper reported on Friday.

The bid by F&N unit Frasers Centrepoint works out to $1,112.44 per square foot based on the maximum amount of built-up space permitted, which means the breakeven cost for the development is likely to be around $2,000 per square foot.

http://www.theedgesingapore.com/the-dail...-sale.html

Tanjong Pagar commercial site receives S$924m top bid

SINGAPORE — A commercial site at Cecil Street/Telok Ayer Street attracted four bids at the close of tender yesterday, with the top bid of S$924 million coming from Fraser & Neave unit FC Commercial Trustee, data from the Urban Redevelopment Authority showed.

The 99-year leasehold site, originally made available through the Reserve List of the Government Land Sales programme last December, was put up for tender in June after the URA announced that it had accepted a successful application for it to be put up for sale.

The site sits on 81,840 sq ft of land and has a maximum permissible gross floor area of 830,564 sq ft. The top bid from FC Commercial Trustee, as trustee of Aquamarine Star Trust, works out to S$1,112.44 per sq ft per plot ratio.

Directly connected to Tanjong Pagar MRT Station, the land parcel is expected to be developed into a high-quality office project and contribute towards strengthening the area as an attractive business and financial hub, the URA said.

At least 80 per cent of the gross floor area must be allocated for office use, while the rest can be developed for other commercial uses such as retail, as well as food and beverage uses.

http://www.todayonline.com/business/prop...4m-top-bid

(16-08-2013, 10:54 AM)CityFarmer Wrote: [ -> ]Two related news report on F&N...

F&N unit makes top bid in state land sale

The property arm of Singapore’s Fraser and Neave put in the top bid of $924 million for a commercial site at a government land sale, the highest amount offered for state land since May 2011, the Business Times newspaper reported on Friday.

The bid by F&N unit Frasers Centrepoint works out to $1,112.44 per square foot based on the maximum amount of built-up space permitted, which means the breakeven cost for the development is likely to be around $2,000 per square foot.

http://www.theedgesingapore.com/the-dail...-sale.html

Tanjong Pagar commercial site receives S$924m top bid

SINGAPORE — A commercial site at Cecil Street/Telok Ayer Street attracted four bids at the close of tender yesterday, with the top bid of S$924 million coming from Fraser & Neave unit FC Commercial Trustee, data from the Urban Redevelopment Authority showed.

The 99-year leasehold site, originally made available through the Reserve List of the Government Land Sales programme last December, was put up for tender in June after the URA announced that it had accepted a successful application for it to be put up for sale.

The site sits on 81,840 sq ft of land and has a maximum permissible gross floor area of 830,564 sq ft. The top bid from FC Commercial Trustee, as trustee of Aquamarine Star Trust, works out to S$1,112.44 per sq ft per plot ratio.

Directly connected to Tanjong Pagar MRT Station, the land parcel is expected to be developed into a high-quality office project and contribute towards strengthening the area as an attractive business and financial hub, the URA said.

At least 80 per cent of the gross floor area must be allocated for office use, while the rest can be developed for other commercial uses such as retail, as well as food and beverage uses.

http://www.todayonline.com/business/prop...4m-top-bid

Extract fm asiaone,

FRASERS Centrepoint's top bid yesterday for a 99-year leasehold commercial site at Cecil Street/Telok Ayer Street was 18.8 per cent higher than the next highest offer, by Far East Organization.


The details from URA site

[Image: 10csy77.jpg]

Pretty aggressive under new mgmt (?)....

Yes, a bid with S$1,112.44 per sq ft per plot ratio, was aggressive...

BTW, the latest update on the towkay's next move...

F&N considering REIT for serviced apartments, Charoen’s hotels

Fraser & Neave, the real-estate developer that was the target of a takeover battle last year, is considering setting up a real estate investment trust made up of hospitality assets.

The company is “still evaluating the feasibility of launching a hospitality REIT,” Chief Financial Officer Hui Choon Kit said in response to Bloomberg queries about its plans.

Thai tycoon Charoen Sirivadhanabhakdi won control of F&N earlier this year, after his $13.8 billion offer edged out a bid from Overseas Union Enterprise. F&N, whose businesses range from soft drinks to shopping malls, said in June it may consider separating its property arm from its other businesses.

F&N is assessing proposals from investment banks seeking to manage a possible initial public offering of the REIT, which may take place next year, said three people with knowledge of the matter, asking not to be identified as the information is private. The IPO could include serviced apartments that operate under the Frasers Hospitality brand and hotels owned by Charoen, the people said.

http://www.theedgesingapore.com/the-dail...otels.html