Boustead Singapore

[LionFlyer]

You are welcome to your view. I am vested for more than 10 years and it is a significant part of my portfolio (>40%).

[Dosser]

Shares made a small jump on news that Boustead is expected to put COMO on the market:

https://www.businesstimes.com.sg/propert...king-price

COMO always looked to me like a poor fit for the rest of the company, and a concern given my relatively large weighting in Boustead. The market obviously liked the news as well.

[weijian]

Shares made a small jump on news that Boustead is expected to put COMO on the market:

https://www.businesstimes.com.sg/propert...king-price

COMO always looked to me like a poor fit for the rest of the company, and a concern given my relatively large weighting in Boustead. The market obviously liked the news as well.

Hi Dosser,

IIRC, COMO was a result of seizing the collateral (land) or capitalizing their "private credit" loan and then build a hotel site on the land.

Personally, I think this is type of modus operandi will be able to extract more value, compared to a bank whom will never do anything beyond auctioning off the collateral of a failed loan. Now that the land has some building, a COMO branded hotel managed by a professional team and wellness commercial activity in it, it is definitely a good thing for OPMIs that the investment property is monetized.

If we were to look at the current Boustead businesses, they are relatively diverse with little synergies between them. So, I don't think there is really a "poor fit" per say with regards to FF Wong's entrepreneurship spirit.

[EnSabahNur]

"If we were to look at the current Boustead businesses, they are relatively diverse with little synergies between them. So, I don't think there is really a "poor fit" per say with regards to FF Wong's entrepreneurship spirit."

What happens when FF Wong leaves the company?

[weijian]

"If we were to look at the current Boustead businesses, they are relatively diverse with little synergies between them. So, I don't think there is really a "poor fit" per say with regards to FF Wong's entrepreneurship spirit."

What happens when FF Wong leaves the company?

Hi EnSabahNur,

FF Wong has 2 sons each with ~20years experience working at the company. The unfortunate thing is FF Wong still holds the executive chairman/CEO at the age of 80. We can only speculate that he loves toiling at the company he founded. In the meanwhile, OPMIs will hope that acorns can still prosper under mighty oaks.

Both sons have had clear duties for some time, with the elder one in charge of engineering/geospatial and younger son at BP. So it is tempting to think while trying to unlock some value from the conglomerate discount, splitting BP out is also some sort of succession plan. If there is a possibility to my thought above, then it is clear that FF Wong has a plan.

[Curiousparty]

FF Wong, at 80, remains at the helm of Boustead, with his two sons managing distinct responsibilities—engineering/geospatial for the elder and Boustead Projects (BP) for the younger. Despite this, succession remains unclear, and recent moves add to the confusion.

BP’s 2015 spin-off seemed like a logical step to unlock value and test the younger son's leadership. However, its reintegration into Boustead in 2023 raises questions: What is FF Wong trying to achieve? Was the spin-off a failed experiment, or has the strategy evolved due to changing market dynamics?

The reintegration suggests a shift toward consolidation—perhaps to strengthen the group’s position or ensure tighter control under Wong’s leadership. This could reflect either strategic adaptability or a delay in transitioning leadership.

For OPMIs, the narrative remains puzzling, oscillating between value unlocking and consolidation. Whether the moves are part of a broader plan or reactive adjustments, the hope is that the outcomes will eventually align with shareholder interests.

[CY09]

The reintegeration of BP is more of a value move. Despite the spin off, BP constantly was at a huge discount to its RNAV. So for FF Wong seeing such a discount, it was natural to sweep in to buy off the company for a cheap.