27-04-2013, 10:27 AM
(This post was last modified: 27-04-2013, 10:28 AM by CityFarmer.)
It states a key part of story to justify F&N as asset play for me. 
YMMV

YMMV
(27-04-2013, 08:46 AM)greengiraffe Wrote: Not too long ago, a bunch of highly paid investment bankers did their comprehensive due diligence on F&N, RNAV ranges between $8.30 to $11.22:
The Independent Directors wish to highlight the following for Shareholders’ attention:
(a) The range of the estimated sum-of-the-parts valuation of each Share by J.P. Morgan (as set
out in Section 8.10 of the J.P. Morgan Letter)4 is between S$8.30 and S$11.22. As such,
while the Offer Price at S$8.88 falls within the range of such valuation, it lies at the low end
of the range.
(b) The fi gure of S$8.30 at the bottom end of J.P. Morgan’s valuation range comprises certain
valuations for the individual parts of the F&N Group which, in the Independent Directors’
opinion, present in aggregate a conservative view on the value of the F&N Group. The Board
especially notes, inter alia5, that:
(i) The bottom end of the F&N Group’s property business valuation is approximately
S$4,433 million, which is based on the median P/B multiple of listed comparable
companies as described in Section 8.10.1 Properties under “(iii) Valuation ratios
of listed comparable companies” of the J.P. Morgan Letter. This values the F&N
Group’s development and investment properties at approximately S$2,562 million,
an approximately 48% discount to the RNAV of approximately S$4,949 million6.
Shareholders should note that the median discount to RNAV implied by the share
prices of the selected Property Companies trading comparables, as shown in Chart 10
of the J.P. Morgan Letter, is 30% (or a P/RNAV ratio of 0.70).
(ii) The F&N Group’s 55.0% stake in Myanmar Brewery Limited (“MBL”) is valued at
approximately S$211 million, which is equivalent to approximately 7.1 times the
attributable profi t (before exceptional items) for the twelve month period ending 30
June 2012. The Independent Directors believe that MBL is a unique asset, with a
leadership position in the Myanmar beer market, at a time when Myanmar is attracting
foreign investor interest with the recent positive political and economic developments
in the country. Shareholders should also note that the median last twelve months’
price-to-earnings ratio of the select Asia breweries trading comparables, as shown in
Chart 17 of the J.P. Morgan Letter, is 22.5 times.
© Based on the advice of J.P. Morgan as set out in the J.P. Morgan Letter, the Independent
Directors note that the Offer Price (i) reflects a premium over the volume-weighted average
price of the Shares over various reference periods in the J.P. Morgan Letter; and (ii)
represents a premium to the valuation multiples implied by the Offer Price relative to the
historical trading levels of the Company.
However, the Independent Directors also note that such historical prices may not fully refl ect
the cash proceeds to be received by the Company pursuant to the APB Sale of S$5.591
billion in aggregate or S$3.88 per Share.
http://info.sgx.com/listprosp.nsf/5ec09b...4002c4d42/$FILE/F&N-OffereeCir-MAS.pdf
http://info.sgx.com/listprosp.nsf/5ec09b...300366582/$FILE/F&N%20Offeree%20Circular%2011.10.2012%20(%231%20of%204%20-%20Cvr-App%20IV).pdf
Old Friends With New Ideas - Old Company With New Towkay - Akan Datang
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡