San Teh

[pianist]

Personally I hope this offer does not go through.

NAV 50c, but RNAV is much higher:

a. Investment properties in Shanghai Anting, Nantong mall, unit in LHK building has reval of 125mio vs carrying of 56mio i.e. 20c of reval gains
b. Nantong hotel has been reclassified to PPE but valuation should be higher as well
c. there's prob also hidden values in the land on which their PVC factories sit, together with the Dali plots of land
d. the huge plot of land that the Suzhou resort/hotel sits on

All in, RNAV should top 80c conservatively

Kaos currently own 67% with Poh Choo Bin 5+%, and the 2 IDs (Gui Kim Young and Chuang WenFu) combined 2.1%
To privatise @ 28c, the Kaos need 0.33*342*0.28 = $31mio, but there's 23mio of cash + 12mio of financial assets on the balancesheet i.e. no personal cash needed to buyout the OPMIs.

While the past 5 yrs have been disastrous with lawsuits, and next 2-3yrs looks flat with gestation periods in the Suzhou+Nantong hotels, the buyout offer is just too low agst real assets.

based on yr analysis, I suppose u r holding onto the shares?
i'm contemplating whether to accept