ITC Corp (0372)

[opmi]

ITC Corp sells Rosédale stake to Hanny for $3.065 per share cash. Net proceeds HK$599.8 million

HK$3.065 per share is 4x the Rosédale closing price of $0.59 per share.
Rosedale has $X CASH per share (see Disposals below) + 3 PRC hotels + listing status
(NO GENERAL OFFER for Rosedale by Hanny as NO crossing 30% level)


ITCP buys from Rosedale: HK Hotel stake HK$533m and BJ Hotel stake HK$301 for $834m total.
Rosedale will pay out 10 cents special dividend. Not big enough.

The price involved are fair. No cheap assets sale. Can also be seen as movement of money from ITC Properties to ITC Corp in
a convoluted way.

[soros]

ITC Corp sells Rosédale stake to Hanny for $3.065 per share cash. Net proceeds HK$599.8 million

HK$3.065 per share is 4x the Rosédale closing price of $0.59 per share.
Rosedale has $X CASH per share (see Disposals below) + 3 PRC hotels + listing status
(NO GENERAL OFFER for Rosedale by Hanny as NO crossing 30% level)


ITCP buys from Rosedale: HK Hotel stake HK$533m and BJ Hotel stake HK$301 for $834m total.
Rosedale will pay out 10 cents special dividend. Not big enough.

The price involved are fair. No cheap assets sale. Can also be seen as movement of money from ITC Properties to ITC Corp in
a convoluted way.

I agree Rosedale's 10 cent dividend payment is not enough. This sale will add $834 Mil to the $733 Mil cash balance at yearend ( 2013 accounts). The market capitalisation of the company is only $420 Mil and fails to reflect the cash balance situation.

ITCC will collect nearly $600 Mil cash from the sale and I hope this result will fund a dividend rise on the 4 cents paid last year.

[soros]

Final results are due out on 26 Jun and hopefully there will be a rise in final dividend for shareholders.

[opmi]

Soros must be very happy. ITC Corp paying 3 cents final dividend and 3 cents special dividend. About 10% yield at current price.

[soros]

Soros must be very happy. ITC Corp paying 3 cents final dividend and 3 cents special dividend. About 10% yield at current price.

Yes, I am very happy to receive a bonus special dividend but I am a little disappointed the share price has failed to jump up to new highs.

[opmi]

Soros must be very happy. ITC Corp paying 3 cents final dividend and 3 cents special dividend. About 10% yield at current price.

Yes, I am very happy to receive a bonus special dividend but I am a little disappointed the share price has failed to jump up to new highs.

When u r eating wanton mee every day, u want the price to stay flat or go lower.

Flat or lower prices is better for dividend reinvestment.




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[soros]

OPMI,

I notice the shareprice has managed to rise above the 69 cts ceiling and crept up to 71 cts on Wednesday. Buying strength seems weak.

How many days must the share price remain above 69 level to confirm a higher trading range ?

[opmi]

OPMI,

I notice the shareprice has managed to rise above the 69 cts ceiling and crept up to 71 cts on Wednesday. Buying strength seems weak.

How many days must the share price remain above 69 level to confirm a higher trading range ?

you asking me about technicals??? I dont know.

[soros]

OPMI

Not enough buying power to rise above 71 cent resistance level .

The profit for one year period to end Mar 2014 was $110 Mil .
The profit for 6 month period to end Sept 2014 was $193 Mil.

Past dividend payments :

2013-2014 Int 1 cent ( paid 22 Jan 2014 )
2013-2014 Fin 3 cent + bonus 3 cent. ( paid 6 Oct 2014)

2014-2015 Int 1 cent + bonus 3 cent. ( paid 26 Jan 2015)
2014-2015 Fin 3 cent + Bonus ??? ( what div forecast in Oct 2015? )

What is your guess for the final div ?

[opmi]

At least 6 cents. I guess. But I prefer to see 50% share buyback via tender offer. Like the one Shell King Chan did for ITCP in 2012.