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Lee Family added 200 lots at $0.625/share, increased shareholding by another 0.04%.
http://info.sgx.com/webcorannc.nsf/Annou...endocument
At this rate, every month that passes by (22 days), Lee Family can increase shareholding by almost 1%, in 1 year's time they should hit 10%. Will all shareholders see something wonderful before the Dragon year is over?
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12-03-2012, 06:14 PM
(This post was last modified: 12-03-2012, 06:20 PM by RBM.)
(12-03-2012, 05:53 PM)psolhawk Wrote: Yet another 200 lots, another 0.04% increment
http://info.sgx.com/webcorannc.nsf/Annou...endocument
Thank you psolhawk - I also noticed another announcement by LKT this evening, referring to the "open market purchase of 2,468,000 shares by Lee Kim Tah Investments Pte Ltd" - a whopping 0.49% addition shares. But it looks like this was a purchase from the estate of the late founder Lee Soon Kiat, so the total under the control of the Lee's remains the same. Thats how I read it any way.
"Intriguing" that this transaction is done now. Lets see if something is pending??!!
I can't see the amount per share the Lee's paid for the 200 lots you referred to in your posting psolhawk - I've looked on the SGX Disclosures Listing and I could not find it among the announcements disclosed so far today (18.15 hrs).
Vested,
RBM, Retired Botanic MatSalleh
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12-03-2012, 07:28 PM
(This post was last modified: 12-03-2012, 07:59 PM by dydx.)
Such persistent and large purchases simply mean the Lee's are very committed to raising the family's stake in LKT further, and it seems the Lee's are prepared to pay a higher and higher price in order to mop up all the loose shares from those minority shareholders who turn willing sellers from time to time. I can see the Lee's having 2 likely intentions or ultimate objectives:
(1) at a certain point to privatize LKT by way of a GO, when the Lee's are confident enough to raise their shareholding to cross the all-important 90% mark with an offer likely at a higher price but still considered as reasonable to them; and
(2) at a certain point LKT togther with Guthrie GTS sell the entire JP for a princely sum and a huge gain, to be followed by LKT paying out a super-jumbo dividend to shareholders.
While theoretically the Lee's will stand to reap the maximum financial benefits if (1) precedes (2), practically speaking (2) may happen first if and when a willing buyer for the entire JP emerges with a very attractive offer which will allow LKT and Guthrie GTS to realize their expected maximum gain on an aftertax basis.
I can't wait to see the above possible value and share price enhancing events happening - hopefully soon!
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(12-03-2012, 07:28 PM)dydx Wrote: Such persistent and large purchases simply mean the Lee's are very committed to raising the family's stake in LKT further, and it seems the Lee's are prepared to pay a higher and higher price in order to mop up all the loose shares from those minority shareholders who turn willing sellers from time to time. I can see the Lee's having 2 likely intentions or ultimate objectives:
(1) at a certain point to privatize LKT by way of a GO, when the Lee's are confident enough to raise their shareholding to cross the all-important 90% mark with an offer likely at a higher price but still considered as reasonable to them; and
(2) at a certain point LKT togther with Guthrie GTS sell the entire JP for a princely sum and a huge gain, to be followed by LKT paying out a super-jumbo dividend to shareholders.
While theoretically the Lee's will stand to reap the maximum financial benefits if (1) precedes (2), practically speaking (2) may happen first if and when a willing buyer for the entire JP emerges with a very attractive offer which will allow LKT and Guthrie GTS to realize their expected maximum gain on an aftertax basis.
I can't wait to see the above possible value and share price enhancing events happening - hopefully soon!
Time to load some more, gentlemen? 
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by paying themselves 1-1.5cent dividend per year, i think the lee family is really rich and in no need to milk cash from dividends.
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by paying themselves 1-1.5cent dividend per year, i think the lee family is really rich and in no need to milk cash from dividends.
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(12-03-2012, 11:43 PM)pianist Wrote: by paying themselves 1-1.5cent dividend per year, i think the lee family is really rich and in no need to milk cash from dividends.
I don't think that's the right way to put it.
Assuming a willing buyer emerges and makes an offer for the entire JP for say $1.6b - i.e. $800m for LKT's 50% share, or 9% above the latest valuation/BV of $733.945m, as at 31Dec11) - and both LKT and Guthrie GTS agree to sell, and after paying off all its latest net debt of $332.45m and assuming also the $64.377m already provided for deferred income taxe liability, LKT would end up having a net cash balance of approx. $403.2m. This is equivalent to approx. $0.798/share, based on the latest 505.443m outstanding issued shares. At this point, I suppose LKT can easily afford to pay out a special dividend of $0.60/share (or $303.3m), and retains the balance of approx. $100.0m to fund new projects or businesses, including the stalled but massive township development project (comprising 6,000 residential units and retail, commercial office space) at the SIPCOT Information Technology Park, Siruseri, Tamilnadu, India.
The Lee's/LKT and Guthrie GTS have together developed the entire JP in 3 phases over the last some 15 years. If they now choose to sell this mature prime property asset in order to realize the full development profit, and pay out a big portion of it to all their shareholders (including the Lee's in LKT's case), I don't think there is any wrong in it.
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15-03-2012, 12:22 PM
(This post was last modified: 15-03-2012, 12:32 PM by dydx.)
I just chanced upon the old presentation slides CapitaMalls Asia / CapitaLand Group used when they successfully tendered for the Jurong Gateway site located in Jurong East - which is being transfomed into the largest Regional Centre at the much publicised Jurong Lake District - for a huge $969m, equivalent to $1,012 psfppr (per square foot per plot ratio).....
http://info.sgx.com/webcoranncatth.nsf/V...1007B875E/$file/Slides_JurongGateway_final2250hrs_20110601.pdf?openelement
In p8 of the slides giving some Development Details of the mixed shopping mall/office project, CapitaMalls Asia / CapitaLand Group have projected a Total Development Cost of approx. $1.5b and a Capital Value for the shopping mall portion - which will have a GFA (gross floor area) of 575,000 sq ft - at approx. $2,800 –3,000 psfNLA (per square foot net lettable area).
If we just use the above Capital Value assumption and, to be conservative, adopt the lower point (i.e. $2,800 psfNLA) of the range and take a further 15% discount - i.e. $2,800 x 0.85 = $2,380 psfNLA - and apply it to the entire JP's approx. 750,000 NLA.....
http://www.jurongpoint.com.sg/fact-sheet
we can derive a fairly good estimate of JP's CMV at $1,785m.
Based on the above estimate, LKT's 50% share in the entire JP is potentially worth and could be sold for $892.5m - i.e. approx. $158.5m, or 21.6%, above its latest (as at 31Dec11) BV of 733.945m. Based on the above and LKT's latest (as at 31Dec11) 505.443m outstanding issued shares, the potential extra gain over its latest valuation, if and when the entire JP is sold, could add another up to approx. $0.313 to EPS and NAV/share.
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(15-03-2012, 12:22 PM)dydx Wrote: I just chanced upon the old presentation slides CapitaMalls Asia / CapitaLand Group used when they successfully tendered for the Jurong Gateway site located in Jurong East - which is being transfomed into the largest Regional Centre at the much publicised Jurong Lake District - for a huge $969m, equivalent to $1,012 psfppr (per square foot per plot ratio).....
http://info.sgx.com/webcoranncatth.nsf/V...1007B875E/$file/Slides_JurongGateway_final2250hrs_20110601.pdf?openelement
In p8 of the slides giving some Development Details of the mixed shopping mall/office project, CapitaMalls Asia / CapitaLand Group have projected a Total Development Cost of approx. $1.5b and a Capital Value for the shopping mall portion - which will have a GFA (gross floor area) of 575,000 sq ft - at approx. $2,800 –3,000 psfNLA (per square foot net lettable area).
If we just use the above Capital Value assumption and, to be conservative, adopt the lower point (i.e. $2,800 psfNLA) of the range and take a further 15% discount - i.e. $2,800 x 0.85 = $2,380 psfNLA - and apply it to the entire JP's approx. 750,000 NLA.....
http://www.jurongpoint.com.sg/fact-sheet
we can derive a fairly good estimate of JP's CMV at $1,785m.
Based on the above estimate, LKT's 50% share in the entire JP is potentially worth and could be sold for $892.5m - i.e. approx. $158.5m, or 21.6%, above its latest (as at 31Dec11) BV of 733.945m. Based on the above and LKT's latest (as at 31Dec11) 505.443m outstanding issued shares, the potential extra gain over its latest valuation, if and when the entire JP is sold, could add another up to approx. $0.313 to EPS and NAV/share.
Good work.
Just one question. LKT revalued JP periodically. Now, why is there such a difference then? 
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