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04-06-2014, 12:38 PM
Mr Market is a fair player. Understandably, there are people who are preying on the deal. As a vested interests, I can only see this deal as half full.
FCL has never been listed to return cash. If that was the original intention, it would not have been listed. I think the latest deal is totally unexpected and not according to my "drama serial" script.
Based on the serial so far, FCL is well run and has very little exposure in the markets that are facing turbulence. To make it even better, they have locked in whatever they can and even have platforms for them to enhance the efficiency of capital deployed.
That bags the other question of where to recycle capital - we got the first glimpse of what is being intended. Its obvious that the market is not happy with the price that was paid and came so shortly after Capitaland sold its strategic stake - a big question mark.
However, we have to bear in mind that FCL was only listed on 9 Jan 14 and most of the placement was done when FCL was very raw during the infancy stage of listing.
Personally, I think both Standard Chartered and DB has been appointed to advise FCL on the details of the takeover and financing to see through the whole deal. We must never forget that Charoen has his internal investment banker son-in-law, Chotipat Bijananda, adviser to the TCC Group.
Anyway, the most comforting thing is that Towkay still owns 88% of FCL, if he does anything foolish, his wealth will be affected. I am only a small fry so for me to be able to invest my $ with such a big swinging Towkay, it is a small honour. Mind you, cutting a mega deal Down Under is more transparent and regulated than a deal in the Middle Kingdom.
I think given the focus of ALZ that emphasis on Residential balanced with stable and strong recurrent income, there is definitely synergies to be extracted over time. If Stockland is keen, then FCL will also have their own reason for the bid.
Short term turbulence on the market is expected but doing the real business and extracting the synergies will take time. Real business is never easy and moreover to cut a sizable deal at a slight premium to book is equally hard to come by as well.
Vested
GG
FCL has never been listed to return cash. If that was the original intention, it would not have been listed. I think the latest deal is totally unexpected and not according to my "drama serial" script.
Based on the serial so far, FCL is well run and has very little exposure in the markets that are facing turbulence. To make it even better, they have locked in whatever they can and even have platforms for them to enhance the efficiency of capital deployed.
That bags the other question of where to recycle capital - we got the first glimpse of what is being intended. Its obvious that the market is not happy with the price that was paid and came so shortly after Capitaland sold its strategic stake - a big question mark.
However, we have to bear in mind that FCL was only listed on 9 Jan 14 and most of the placement was done when FCL was very raw during the infancy stage of listing.
Personally, I think both Standard Chartered and DB has been appointed to advise FCL on the details of the takeover and financing to see through the whole deal. We must never forget that Charoen has his internal investment banker son-in-law, Chotipat Bijananda, adviser to the TCC Group.
Anyway, the most comforting thing is that Towkay still owns 88% of FCL, if he does anything foolish, his wealth will be affected. I am only a small fry so for me to be able to invest my $ with such a big swinging Towkay, it is a small honour. Mind you, cutting a mega deal Down Under is more transparent and regulated than a deal in the Middle Kingdom.
I think given the focus of ALZ that emphasis on Residential balanced with stable and strong recurrent income, there is definitely synergies to be extracted over time. If Stockland is keen, then FCL will also have their own reason for the bid.
Short term turbulence on the market is expected but doing the real business and extracting the synergies will take time. Real business is never easy and moreover to cut a sizable deal at a slight premium to book is equally hard to come by as well.
Vested
GG