Oxley Holdings

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Oxley asks UE to explain share sale
TUE, JUL 09, 2019 - 5:50 AM

MARISSA LEE   marilee@sph.com.sg 
@MarissaLeeBT
Singapore

THE decision by United Engineers (UE) to sell all of its treasury shares for S$56 million to undisclosed third parties last Friday was a board decision, managing director Roy Tan said on Monday.

Mr Tan was responding to concerns raised by UE shareholder and Oxley chief executive Ching Chiat Kwong, who questioned if UE had fetched the best price possible when it sold off the 3.14 per cent stake in the company at S$2.58 per share.


UE is one of the lowest-geared among property firms here with a net debt-to-equity ratio of 0.44 times, and a S$278 million cash pile as at end-March.

So UE should be gearing up if it needs to raise funds, instead of selling shares at an 18 per cent discount to book value, Mr Ching has argued. He told The Business Times: "We need to look at the whole process of how the shares were sold away at this price and see if, objectively, the board and the independent directors got the best value."

Mr Ching also expressed dismay that Oxley was not sounded out as a potential buyer for the block sale: "If we were offered, we would have seriously considered taking it up.


"Oxley has been acquiring shares in UE and during the annual general meeting last year, we did specify that if there's any intention to sell shares or issue rights, can you (the board of UE) let Oxley know. We know the value (of UE) and we will give a reasonable price that helps the company achieve better ground."


In reply, UE's Mr Tan told BT that it was only normal for companies to place out shares at the market price. UE shares closed at S$2.57 on Monday, down four Singapore cents or 1.53 per cent.

Shares of Singapore-listed real estate companies typically trade at an 18 per cent discount to book value or more, he added.
Mr Tan said that the board chose not to approach Oxley directly in order to avoid an interested-person transaction (IPT) that would require shareholders' approval: "We asked UOB Kay Hian to run a process to find the best price."

UE's treasury shares were placed out to a mixture of individual and institutional buyers, he said. UE is not required to name the buyers.

But Mr Ching was unconvinced: "You can go to the market, and the market can come to us. I don't think there's any IPT if you do run a process."


Mr Tan reiterated that UE needs to raise funds for investments and general working capital purposes: "We are running a company. I don't think shareholders need to worry."


UE made a joint bid with MCL Land for a private housing site along Clementi Avenue 1 last week but didn't win.
Nevertheless, UE is looking at other investment opportunities, Mr Tan said: "Opportunities will come in time and it's good to have cash ready for that purpose. It cannot be that when we need money, we raise funds - that's too slow."

Although UE officially states that it is comfortable as long as its net debt to equity ratio is below 1.1 times, "market conditions are bad so it's natural to take a conservative approach", Mr Tan added.

Oxley and the board of UE have had their differences ever since Oxley became a substantial shareholder in UE in 2017, after the Yanlord Perennial consortium bought a 33.5 per cent stake in the company (now 35.27 per cent).

Last year, Mr Ching made two appeals for a seat on the UE board. Both were rejected.

Oxley later foiled a bid by Yanlord Perennial and UE's former shareholder, OCBC, to sell their WBL shares to UE.

Drawn to UE's freehold Singapore real estate crown jewels, Oxley and its executives have been steadily accumulating more shares in the company.

They have a combined stake of 23.48 per cent now after Mr Ching bought more shares in June.
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Oxley asks UE to explain share sale
TUE, JUL 09, 2019 - 5:50 AM

MARISSA LEE   marilee@sph.com.sg 
@MarissaLeeBT
Singapore

THE decision by United Engineers (UE) to sell all of its treasury shares for S$56 million to undisclosed third parties last Friday was a board decision, managing director Roy Tan said on Monday.

Mr Tan was responding to concerns raised by UE shareholder and Oxley chief executive Ching Chiat Kwong, who questioned if UE had fetched the best price possible when it sold off the 3.14 per cent stake in the company at S$2.58 per share.


UE is one of the lowest-geared among property firms here with a net debt-to-equity ratio of 0.44 times, and a S$278 million cash pile as at end-March.

So UE should be gearing up if it needs to raise funds, instead of selling shares at an 18 per cent discount to book value, Mr Ching has argued. He told The Business Times: "We need to look at the whole process of how the shares were sold away at this price and see if, objectively, the board and the independent directors got the best value."

Mr Ching also expressed dismay that Oxley was not sounded out as a potential buyer for the block sale: "If we were offered, we would have seriously considered taking it up.


"Oxley has been acquiring shares in UE and during the annual general meeting last year, we did specify that if there's any intention to sell shares or issue rights, can you (the board of UE) let Oxley know. We know the value (of UE) and we will give a reasonable price that helps the company achieve better ground."


In reply, UE's Mr Tan told BT that it was only normal for companies to place out shares at the market price. UE shares closed at S$2.57 on Monday, down four Singapore cents or 1.53 per cent.

Shares of Singapore-listed real estate companies typically trade at an 18 per cent discount to book value or more, he added.
Mr Tan said that the board chose not to approach Oxley directly in order to avoid an interested-person transaction (IPT) that would require shareholders' approval: "We asked UOB Kay Hian to run a process to find the best price."

UE's treasury shares were placed out to a mixture of individual and institutional buyers, he said. UE is not required to name the buyers.

But Mr Ching was unconvinced: "You can go to the market, and the market can come to us. I don't think there's any IPT if you do run a process."


Mr Tan reiterated that UE needs to raise funds for investments and general working capital purposes: "We are running a company. I don't think shareholders need to worry."


UE made a joint bid with MCL Land for a private housing site along Clementi Avenue 1 last week but didn't win.
Nevertheless, UE is looking at other investment opportunities, Mr Tan said: "Opportunities will come in time and it's good to have cash ready for that purpose. It cannot be that when we need money, we raise funds - that's too slow."

Although UE officially states that it is comfortable as long as its net debt to equity ratio is below 1.1 times, "market conditions are bad so it's natural to take a conservative approach", Mr Tan added.

Oxley and the board of UE have had their differences ever since Oxley became a substantial shareholder in UE in 2017, after the Yanlord Perennial consortium bought a 33.5 per cent stake in the company (now 35.27 per cent).

Last year, Mr Ching made two appeals for a seat on the UE board. Both were rejected.

Oxley later foiled a bid by Yanlord Perennial and UE's former shareholder, OCBC, to sell their WBL shares to UE.

Drawn to UE's freehold Singapore real estate crown jewels, Oxley and its executives have been steadily accumulating more shares in the company.

They have a combined stake of 23.48 per cent now after Mr Ching bought more shares in June.
Reply
Oxley bought the shares at above $2.65, i remember....
Reply
Oxley bought the shares at above $2.65, i remember....
Reply
I remember oxley bought the UE shares above 2.60..
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I remember oxley bought the UE shares above 2.60..
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So what will Oxley management do leh?

Just watch their investments being devalued by China man...
Reply
So what will Oxley management do leh?

Just watch their investments being devalued by China man...
Reply
so what will oxley management do leh?

watch their investments devalued by china man..
Reply
so what will oxley management do leh?

watch their investments devalued by china man..
Reply
(24-03-2019, 09:52 PM)jenson Wrote: I think Oxley is very responsive to news and i dont think our market really speaks the truth for high hearing company like Oxley. The sales of 2 hotels called off doesn't really spell bad news for Oxley, as those two are profit generating assets. Oxley can take their time to get new buyers which they already did, they engaged property agents to jointly promote and sell these 2 assets for Oxley.

Agreed with you, the management quite on the ball type.

what do you think about the UE shares being sold cheaply...
Reply
(24-03-2019, 09:52 PM)jenson Wrote: I think Oxley is very responsive to news and i dont think our market really speaks the truth for high hearing company like Oxley. The sales of 2 hotels called off doesn't really spell bad news for Oxley, as those two are profit generating assets. Oxley can take their time to get new buyers which they already did, they engaged property agents to jointly promote and sell these 2 assets for Oxley.

Agreed with you, the management quite on the ball type.

what do you think about the UE shares being sold cheaply...
Reply
(10-07-2019, 12:11 PM)Jamesbond008 Wrote:
(24-03-2019, 09:52 PM)jenson Wrote: I think Oxley is very responsive to news and i dont think our market really speaks the truth for high hearing company like Oxley. The sales of 2 hotels called off doesn't really spell bad news for Oxley, as those two are profit generating assets. Oxley can take their time to get new buyers which they already did, they engaged property agents to jointly promote and sell these 2 assets for Oxley.

Agreed with you, the management quite on the ball type.

what do you think about the UE shares being sold cheaply...


Sorry pal. Recently quite busy didn’t really follow up on that. So they sold their shares of UE off cheaper than their acquired price?


Sent from my iPhone using Tapatalk
Reply
(10-07-2019, 12:11 PM)Jamesbond008 Wrote:
(24-03-2019, 09:52 PM)jenson Wrote: I think Oxley is very responsive to news and i dont think our market really speaks the truth for high hearing company like Oxley. The sales of 2 hotels called off doesn't really spell bad news for Oxley, as those two are profit generating assets. Oxley can take their time to get new buyers which they already did, they engaged property agents to jointly promote and sell these 2 assets for Oxley.

Agreed with you, the management quite on the ball type.

what do you think about the UE shares being sold cheaply...


Sorry pal. Recently quite busy didn’t really follow up on that. So they sold their shares of UE off cheaper than their acquired price?


Sent from my iPhone using Tapatalk
Reply
Oxley divests No. 3 Dublin Landings for EUR115.0 million
* Marks the completion of sale of the development at Dublin Landings, Ireland
* Total consideration from the development and sale of the commercial and residential developments is EUR745.4 million, of which EUR591.5 million (approximately S$893.2 million) is received by Oxley
* Embarks on the new development at Connolly Station with gross development value of more than S$1.0 billion
* Cements Oxley’s reputation as an established and reliable property developer in the UK and Ireland

Oxley Holdings Limited announced that its wholly-owned subsidiary, Oxley Docklands Quay Two Limited, has entered into a memorandum of agreement with Iput PLC, as the purchaser, for the sale of the leasehold interest of 297 years in No. 3 Dublin Landings for EUR115.0 million (approximately S$173.7 million), of which Oxley is entitled to receive 77.8% of the sale price while National Asset North Quays DAC is entitled to receive the balance.

The sale price was negotiated based on the prevailing market conditions and the nearly completed state of the property. A deposit of EUR11.0 million has been paid upon signing of the memorandum of agreement and held in escrow. Upon completion of the sale (which is expected to take place by end of 2019), the balance of the sale price, less an escrow sum of EUR2.4 million, will be paid and the deposit shall be released to Oxley. The escrow sum will be progressively released to Oxley upon the expiry of the defects liability period and the issue of certain certifications in respect of the property. The proceeds from the sale will contribute positively to the cashflow of the Group.

More details in :
1. https://links.sgx.com/FileOpen/Annc_3%20...eID=590582
2. https://links.sgx.com/FileOpen/PressRele...eID=590583
Specuvestor: Asset - Business - Structure.
Reply
Oxley divests No. 3 Dublin Landings for EUR115.0 million
* Marks the completion of sale of the development at Dublin Landings, Ireland
* Total consideration from the development and sale of the commercial and residential developments is EUR745.4 million, of which EUR591.5 million (approximately S$893.2 million) is received by Oxley
* Embarks on the new development at Connolly Station with gross development value of more than S$1.0 billion
* Cements Oxley’s reputation as an established and reliable property developer in the UK and Ireland

Oxley Holdings Limited announced that its wholly-owned subsidiary, Oxley Docklands Quay Two Limited, has entered into a memorandum of agreement with Iput PLC, as the purchaser, for the sale of the leasehold interest of 297 years in No. 3 Dublin Landings for EUR115.0 million (approximately S$173.7 million), of which Oxley is entitled to receive 77.8% of the sale price while National Asset North Quays DAC is entitled to receive the balance.

The sale price was negotiated based on the prevailing market conditions and the nearly completed state of the property. A deposit of EUR11.0 million has been paid upon signing of the memorandum of agreement and held in escrow. Upon completion of the sale (which is expected to take place by end of 2019), the balance of the sale price, less an escrow sum of EUR2.4 million, will be paid and the deposit shall be released to Oxley. The escrow sum will be progressively released to Oxley upon the expiry of the defects liability period and the issue of certain certifications in respect of the property. The proceeds from the sale will contribute positively to the cashflow of the Group.

More details in :
1. https://links.sgx.com/FileOpen/Annc_3%20...eID=590582
2. https://links.sgx.com/FileOpen/PressRele...eID=590583
Specuvestor: Asset - Business - Structure.
Reply
The board of directors (the “Board”) of Oxley Holdings Limited (the “Company”) is pleased to announce that the Company’s wholly-owned subsidiary, Oxley MTN Pte. Ltd. (the “Issuer”) has on 24 February 2020  priced  its  S$75,000,000  6.5  per  cent.

https://links.sgx.com/FileOpen/OHL%20-%2...eID=597556

--------------------

Whopping 6.5% ! - Is Oxley that high risk ?

"Net  gearing ratio decreased  to  1.94  times  as  compared  to  2.25 times  as  at  30  September  2019 and  restated  gearing  ratio  of  2.20  times as  at  30  June  2019. " https://links.sgx.com/FileOpen/Oxley2Q20...eID=595771  [2Q2020 Results PR]
Reply
The board of directors (the “Board”) of Oxley Holdings Limited (the “Company”) is pleased to announce that the Company’s wholly-owned subsidiary, Oxley MTN Pte. Ltd. (the “Issuer”) has on 24 February 2020  priced  its  S$75,000,000  6.5  per  cent.

https://links.sgx.com/FileOpen/OHL%20-%2...eID=597556

--------------------

Whopping 6.5% ! - Is Oxley that high risk ?

"Net  gearing ratio decreased  to  1.94  times  as  compared  to  2.25 times  as  at  30  September  2019 and  restated  gearing  ratio  of  2.20  times as  at  30  June  2019. " https://links.sgx.com/FileOpen/Oxley2Q20...eID=595771  [2Q2020 Results PR]
Reply
Update on "The Peak" Project in Cambodia

The Peak is a 55-storey mixed hotel development project comprising one tower of hotel and offices, two towers of residential units, a retail mall and a multi story car park (the "Project"), which is being developed by Oxley Gem (Cambodia) Co., Ltd. ("Oxley Gem"), a subsidiary of Oxley Holdings Limited. Oxley Gem had engaged Sino Great Wall International Engineering Co., Ltd. ("SGW") as the main contractor for the Project.

Unfortunately, due to financial difficulties faced by the parent company of SGW and their continued mismanagement of the Project, the Project was wrought with significant delays and difficulties. In light of the foregoing, Oxley Gem had called on the two performance bonds provided by SGW for the Project. In order to mitigate any further delays in the Project, Oxley Gem also decided to terminate the contract with SGW in October 2019.

Oxley Gem has since vetted and appointed another main contractor, China Railway Urban Construction Group Co., Ltd. ("CRUCG"), which is a state-owned entity with strong financials, to ensure the smooth completion of the Project.

After termination, SGW was required to vacate the site in order for CRUCG to complete the Project. In defiance of its contractual obligations, SGW refused to vacate the Project site and wrongfully occupied the site. This had caused further delays in the Project as CRUCG was not able to enter the site to commence work on the Project.

Oxley Gem thus commenced legal proceedings and successfully obtained an injunction order to evict SGW on 14 February 2020. On 25 February 2020, the Cambodian court bailiff commenced the execution of the injunction order at the Project site in accordance with legal procedures. As of today, SGW has completely vacated the Project site and CRUCG will be commencing work on the Project as soon as possible.

Oxley Gem is instructing its lawyers to seek compensation from SGW for all damages suffered due to SGW's repeated breaches of its obligations under the contract and at law.
Specuvestor: Asset - Business - Structure.
Reply
Update on "The Peak" Project in Cambodia

The Peak is a 55-storey mixed hotel development project comprising one tower of hotel and offices, two towers of residential units, a retail mall and a multi story car park (the "Project"), which is being developed by Oxley Gem (Cambodia) Co., Ltd. ("Oxley Gem"), a subsidiary of Oxley Holdings Limited. Oxley Gem had engaged Sino Great Wall International Engineering Co., Ltd. ("SGW") as the main contractor for the Project.

Unfortunately, due to financial difficulties faced by the parent company of SGW and their continued mismanagement of the Project, the Project was wrought with significant delays and difficulties. In light of the foregoing, Oxley Gem had called on the two performance bonds provided by SGW for the Project. In order to mitigate any further delays in the Project, Oxley Gem also decided to terminate the contract with SGW in October 2019.

Oxley Gem has since vetted and appointed another main contractor, China Railway Urban Construction Group Co., Ltd. ("CRUCG"), which is a state-owned entity with strong financials, to ensure the smooth completion of the Project.

After termination, SGW was required to vacate the site in order for CRUCG to complete the Project. In defiance of its contractual obligations, SGW refused to vacate the Project site and wrongfully occupied the site. This had caused further delays in the Project as CRUCG was not able to enter the site to commence work on the Project.

Oxley Gem thus commenced legal proceedings and successfully obtained an injunction order to evict SGW on 14 February 2020. On 25 February 2020, the Cambodian court bailiff commenced the execution of the injunction order at the Project site in accordance with legal procedures. As of today, SGW has completely vacated the Project site and CRUCG will be commencing work on the Project as soon as possible.

Oxley Gem is instructing its lawyers to seek compensation from SGW for all damages suffered due to SGW's repeated breaches of its obligations under the contract and at law.
Specuvestor: Asset - Business - Structure.
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