GSH Corp (formerly: JEL Corp)

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#1
The Straits Times
Apr 3, 2012
Companies
Sam Goi set to pump $14m into JEL Corp

Share purchase would raise his direct holding in firm to 57.75%

By Melissa Tan

LOCAL food tycoon Sam Goi Seng Hui is set to pump an additional $14 million into mainboard-listed consumer goods distributor JEL Corp (Holdings), which is on the Singapore Exchange's (SGX) watch list.

Mr Goi, 62, will buy two billion ordinary shares in the company at 0.6999 cents apiece, JEL Corp told the SGX on Friday.

If his purchase goes through, these shares will make up around 50.3 per cent of the firm's enlarged share capital.

Mr Goi, known as the 'Popiah King' for building up frozen popiah skin maker Tee Yih Jia Food Manufacturing, already owns around 15 per cent - or nearly 296.4 million shares.

The latest share subscription would bring his direct holding in JEL to around 57.75 per cent. Mr Goi's purchase of the additional stake is subject to the Securities Industry Council granting him a 'whitewash waiver', the company noted in its filing.

This waiver removes his obligation to make a mandatory takeover offer for the remaining shares of JEL.

His purchase is also subject to shareholder approval at an extraordinary general meeting to be held later.

JEL Corp said Mr Goi's 'increased involvement in the company will be beneficial and strategic', citing his 'strong business connections, influence and expertise'.

It added that Mr Goi's agreement to subscribe to the shares would 'expand the group to a larger economic size and market capitalisation'.

This, in turn, would meet the minimum market capitalisation for the firm to qualify to be taken off the watch list, it stated.

Mr Goi said in a statement yesterday: 'JEL has a viable business in marketing and distribution of IT, photography and imaging products, as well as timepieces in Central Asia, the Middle East and Indochina. I think JEL has demonstrated good ability in handling various businesses in these developing markets, and believe that it can grow even more in China, where I intend to facilitate its growth.'

Last month, it was reported that Mr Goi would sell his 22.07 per cent stake in China Healthcare, the target of a buyout offer.

He also sold his 7 per cent stake in Asia Environment Holdings last year when its chief executive, Mr Wang Hongchun, bought out the China- based wastewater treatment company.

The proceeds from his JEL share subscription would be used for working capital and for potential opportunities for mergers and acquisitions, JEL Corp said.

It went on the SGX watch list in March 2010 after posting pre-tax losses for three consecutive financial years and its market cap fell to $11.9 million, below the $40 million watch-list threshold.

The counter rose 0.7 cents to 1.8 cents yesterday.

melissat@sph.com.sg
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#2
I remember this was potential "growth" stock in wallstraits days, even sage (curtis) was independent director with a sizable vested interest in it this counter used to have a huge following ... ah such memories Big Grin
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#3
Yes then the fraud case came along, somewhat akin to ACCS that time. Memories indeed. Tongue
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#4
(04-04-2012, 09:02 AM)sgd Wrote: I remember this was potential "growth" stock in wallstraits days, even sage (curtis) was independent director with a sizable vested interest in it this counter used to have a huge following ... ah such memories Big Grin

Ah... I remembered the rather heated debates between sage and several forummers (I can only remember d.o.g. and his usual strong supporting facts and figures). Sage was still expounding on all the wonderful merits of JEL before he suddenly and quietly sold off his holdings and quitted as an ID. Just in the nick of time before some investigations (CAD?)!

No offense to anyone here in case I remembered the sequence or events wrongly. I sense many easily offended people in forum these days! Sad
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
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#5
yes yes but before that happened curtis suddenly unloaded everything without explaination, maybe as director he could not disclose what he found but his actions led to an uproar in wallstraits maybe it was the beginning of the revolt Big Grin

am curious however what Mr Goi sees in this company Big Grin
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#6
(04-04-2012, 09:37 AM)sgd Wrote: am curious however what Mr Goi sees in this company Big Grin

Before Mr. Goi can add value, he's already up about 285%. Tongue
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#7
I can only think Maybe the value of distribution network, I recall vaguely during wallstraits forum it was mentioned somewhere they had very comprehensive and strong distribution network hence able to be appointed distributor for companies like P&G.

So for someone who is in the business of package foods like Mr Goi having such network that move his products should be very valuable to him. (just guessing Big Grin)
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#8
For JEL, it's a volume business. The last I checked, net margin was a mere 0.5%...... Confused
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#9
JEL... lol ya those memories... already lost trust in this biz..
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#10
I was looking curiously at Super Gp which Sam Goi is a major shldr and could help but wonder if Sam private stake in TYJ will be injected.

It will be the biggest deal the SGX RTO will ever experience if this is true?

Back to the hay days of SGX, when Wilmar was injected into EZYhealth, we got a big boost in Market Cap.

I hope Sam is seriously looking into this as the SGX needs a new lease of life. Nobody else can help SGX except our own home grown Co. TYJ would be just as successful if a deal could be struck between the custodian of the company now, which essentially consist of Koh B W and Eric, all top class professional.

At 2times revenue valuation, JEL could be worth a lot if TYJ is injected? I think its a possibility as Super Gp is worth a lot more now!!

Will Viz Branz be worth a lot more?
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