Frasers Property (formerly: Frasers Cpt (FCL))

[specuvestor]

Whether which companies within are cash cows is not a concern for him at all. He does not need excess cash in the holding level unless he tries to make another large acquisition on the holding level as cash is the worst performing asset for a business owner. Cash merely ensures liquidity and solvency, but does not generate adequate return. The merely cash flow required in the holding level are for interest payment and maybe a little debt repayment.

It is entirely unnecessary to extract more than enough cash from its operating companies as the regular dividend payment is sufficient.

FCL will continue to be the oversea property platform for the foreseen future among his business empire. He is not buying FCL to liquidate it. Any expectation of extracting more value from it will be duly surprised. FCL will behave like any other normal property company though dividend yield could be a little higher than Capitaland/CityDevelopment/Keppel Land, but nothing significantly different.

I wonder where is the capital to support the bid for Australand? Can't be all funded by debt as FCL is a public company, not a private holding company.

If we look at the LBO of FNN, anecdotally we can say that TCC is not exactly cash rish because 1) They needed funding/ cooperation from ThaiBev 2) the speed and massive capital restructuring of FNN to delever TCC

So TCC is using cashcows to leverage and pay back his credit cards. I don't think TCC has tons of excess cash sitting in banks.

FCL likely would have to raise capital and like I said, ThaiBev & probably FNN will providing large part of the funding directly and indirectly