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(13-01-2011, 03:09 PM)valueinvestor Wrote: After selling the buildings, LCT will no longer have the rental income and the proceeds from the sales will have to pay back some loans, so it will be very much lesser than the 0.51/share.
Sure, but my main point is that at the last done share price of $0.51, Mr Market is giving away for FREE (1) the nett assets of the steel trading and residential property development businesses and their future earnings, and (2) any further upside gain from the sale or re-development of the freehold Lion Industrial Estate property/land plot.
Based on the latest 30Sep10 group B/S with the approx. $25.5m nett debt level and the remaining assets of the steel trading and residential property development businesses.....
http://info.sgx.com/webcoranncatth.nsf/V...90028A218/$file/LTC_First_Qtr_Results_Ann300910.pdf?openelement
, LCT can quite easily carry its present borrowings without the use of the freehold Lion Industrial Estate property/land plot as collateral. So conceivably, LTC could simply pay out substantially the sales proceeds of say $79.8m to its shareholders, if the freehold Lion Industrial Estate property/land plot is sold for cash.