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The IFA has responded (luckily not to me) to SIAS. There is a lot sense and no sense, as usual. Sometimes, when a dog has 4 legs + 1 tail, you say it has 5 legs to suit you. And when 4 legs suit your situation, you call out the facade that the tail is not a leg.
Come to think of it, has any OPMI made decent money (after accounting for the risks and incurring brain damage) that is comfortably above opportunity costs by riding along with Indonesian Tycoons?
Response to The Business Times Article and The Edge Singapore Article of 5 May 2025
In addition, it should be noted that Sinarmas Land is a pure investment holding company with no immediate control over the assets owned by its IDX-listed subsidiaries which are managed by separate management teams with independent governance structures. Accordingly, the more likely and practicable way for Sinarmas Land to realise the value of its investments in the IDX-listed subsidiaries is to sell the shares of BSDE and DMAS which are actively traded and for which the market price provides an indication of fair value of the Listed Indonesia Assets as ascribed by the stock market
In our assessment of the fair value of the Remaining Unlisted Assets, as set out in paragraph 7.9.2 of our IFA Letter, we have highlighted, inter alia, that: (i) RNAV may not be a realisable value as the disposal values of such assets are likely to vary depending on the prevailing market and economic conditions; (ii) the RNAV computation does not take into account factors such as, inter alia, time value of money, legal and professional fees, liquidation costs, other potential duties, contractual obligations, regulatory requirements and availability of potential buyers, which would theoretically lower the RNAV that can be realized;
When performing a SOTP valuation analysis, it is a commonly accepted practice to apply a holding company discount to the valuation of the holding company relative to its sum of parts to reflect the true market perception of the risks and challenges associated with owning a holding company. Such discounts can also be attributable to the additional corporate expenses at the holding company, tax implications relating to dividend or capital distributions from the subsidiaries to the holding company, as well as investors’ potential lack of control over the underlying assets and their reduced marketability.
https://links.sgx.com/FileOpen/Response%...eID=844454
P.S. I had my fair share of luck when involved with China Minzhong many years ago. Thanks to Pak Antoni Salim for the rescue to make that a profitable investment (but maybe not worth it in terms of brain damage)
Come to think of it, has any OPMI made decent money (after accounting for the risks and incurring brain damage) that is comfortably above opportunity costs by riding along with Indonesian Tycoons?
Response to The Business Times Article and The Edge Singapore Article of 5 May 2025
In addition, it should be noted that Sinarmas Land is a pure investment holding company with no immediate control over the assets owned by its IDX-listed subsidiaries which are managed by separate management teams with independent governance structures. Accordingly, the more likely and practicable way for Sinarmas Land to realise the value of its investments in the IDX-listed subsidiaries is to sell the shares of BSDE and DMAS which are actively traded and for which the market price provides an indication of fair value of the Listed Indonesia Assets as ascribed by the stock market
In our assessment of the fair value of the Remaining Unlisted Assets, as set out in paragraph 7.9.2 of our IFA Letter, we have highlighted, inter alia, that: (i) RNAV may not be a realisable value as the disposal values of such assets are likely to vary depending on the prevailing market and economic conditions; (ii) the RNAV computation does not take into account factors such as, inter alia, time value of money, legal and professional fees, liquidation costs, other potential duties, contractual obligations, regulatory requirements and availability of potential buyers, which would theoretically lower the RNAV that can be realized;
When performing a SOTP valuation analysis, it is a commonly accepted practice to apply a holding company discount to the valuation of the holding company relative to its sum of parts to reflect the true market perception of the risks and challenges associated with owning a holding company. Such discounts can also be attributable to the additional corporate expenses at the holding company, tax implications relating to dividend or capital distributions from the subsidiaries to the holding company, as well as investors’ potential lack of control over the underlying assets and their reduced marketability.
https://links.sgx.com/FileOpen/Response%...eID=844454
P.S. I had my fair share of luck when involved with China Minzhong many years ago. Thanks to Pak Antoni Salim for the rescue to make that a profitable investment (but maybe not worth it in terms of brain damage)
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.