Viz Branz

[VestedInterest]

I am monitoring the CBB vs CKP case, for the sake of educating myself.

If CKP does not ask for the transfer of the 15% share before book closing date and assuming CBB continue to enjoy the incentive awarded before the transfer, CBB holding will become larger than CKP after transfer the 15% (pre-bonus) as in the settlement.

Pre-bonus share
CKP : 23.25%
CBB : 50.32%

After bonus before transfer of 15%, the holding % remain the same.
CKP : 23.25%
CBB : 50.32%

After bonus and transfer of the 15% (diluted to 7.5% as number of share remain the same)
CKP : 30.75%
CBB : 42.82%

Interesting.... CKP will make a strong objection i assume...

Don't think it works like this. CKP's 15% entitlement should not be diluted to 7.5%.

[CityFarmer]

I am monitoring the CBB vs CKP case, for the sake of educating myself.

If CKP does not ask for the transfer of the 15% share before book closing date and assuming CBB continue to enjoy the incentive awarded before the transfer, CBB holding will become larger than CKP after transfer the 15% (pre-bonus) as in the settlement.

Pre-bonus share
CKP : 23.25%
CBB : 50.32%

After bonus before transfer of 15%, the holding % remain the same.
CKP : 23.25%
CBB : 50.32%

After bonus and transfer of the 15% (diluted to 7.5% as number of share remain the same)
CKP : 30.75%
CBB : 42.82%

Interesting.... CKP will make a strong objection i assume...

Don't think it works like this. CKP's 15% entitlement should not be diluted to 7.5%.

My previous view is similar as yours. But after following up with the CKP vs CBB case, there is something new to be learned.

There was already an argument on dividend received after settlement. Should the dividend transfer along with the 15% from CBB to CKP? or remain with CBB after the transfer? The bonus issue will be another argument on top of the dividend. The settlement agreement is confidential, but my guess is probably the settlement agreement did not clearly cover these scenarios.

http://info.sgx.com/webcoranncatth.nsf/V...B00222B5E/$file/UpdateToShareholders_8Mar12.pdf?openelement

Refer to clause (d) in the doc.

"CKP is of the view that his claim for dividends falls within the context of the Settlement agreement and his rights are contained in the Settlement agreement. CKP is currently taking legal advice on this and will not hesitate to take legal action in respect of such dividends. It is also inappropriate for CBB to seek to supplant the role of the Singapore courts by asking SIC to issue directions or guidance on this issue."

[dydx]

Since the announcement of the proposed 1-for-1 bonus issue on 25May12 noontime, based on today's (6Jun12) closing share price of $0.55, Mr Market has so far marked up Viz Branz by 8.9% (from 24May12's closing share price of $0.505).

Based on the company's latest 355.0m outstanding issued shares and today's closing share price of $0.55, Mr Market is now attaching a market cap of $195.25m on Viz Branz. If we extrapolate Viz Branz's 1st 3 quarters' NP.....
http://info.sgx.com/webcoranncatth.nsf/V...70028E076/$file/VB_3QResults.pdf?openelement
we can quite safely assume a full-year NP of $18.16m for FY12 (ending 30Jun12). Therefore, Mr Market is now attaching a current year PER of approx. 10.8x. Assuming Viz Branz continues to grow its NP by say 20%p.a., full-year NP for FY13 (ending 30Jun13) should come close to $21.8m. At the current market cap of $195.25m, Mr Market is attaching a 1-year forward PER of approx. 9.0x on Viz Branz.

I thought it is useful to make a comparison with Super Group which, based on its latest (as at 31Mar12) 557.47m outstanding issued shares and today's closing share price of $2.02, now has a market cap of $1,126.0m. When compared against Super Group's FY11 (ended 31Dec11) full-year NP of $61.898m (inclusive of an one-off $10.368m gain from disposal of a property), Mr Market is now attaching a historical PER of approx. 18.2x. If we exclude the $10.368m one-off gain - i.e. based on an adjusted NP of $51.53m for FY11 - the historical PER would be even higher at 21.9x. Assuming Super Group continues to grow its NP by say 20%p.a., full-year NP for FY12 (ending 31Dec12) should come close to $61.8m, which means Super Group's current market cap of $1,126.0m would equate to a 1-year forward PER of 18.2x.

I suppose what we can conclude from the above is that, using Super Group as a reference, and assuming Viz Branz continues to grow its business and profits over the next few years, both its market cap and PER have the potential to rise significantly over time.

[Dodo]

The Company has on 21 June 2012 received an update from CKP by way of a letter addressed to CBB's counsel and copied to the SGX-ST and the Company, which letter states, inter alia, that:
(a) SIC has on 20 June 2012 ruled that CKP is not required to make a general offer pursuant to his acquisition of the Settlement shares under the Settlement agreement; and
(b) CKP requires CBB to procure the transfer of the 53,258,361 Settlement shares to CKP by no later than 28 June 2012.

[CityFarmer]

The Company has on 21 June 2012 received an update from CKP by way of a letter addressed to CBB's counsel and copied to the SGX-ST and the Company, which letter states, inter alia, that:
(a) SIC has on 20 June 2012 ruled that CKP is not required to make a general offer pursuant to his acquisition of the Settlement shares under the Settlement agreement; and
(b) CKP requires CBB to procure the transfer of the 53,258,361 Settlement shares to CKP by no later than 28 June 2012.

I am waiting for the update of the CKP vs CBB issue. Here it came

After 28 Jun, CKP holding is increase to 38%, while CBB holding drop to 35%. CKP been the largest shareholder.

Next questions are
- will the management team been restructured?
- will the bonus issue supported by CKP?

Let's see...

[Dodo]

[/quote]

I am waiting for the update of the CKP vs CBB issue. Here it came

After 28 Jun, CKP holding is increase to 38%, while CBB holding drop to 35%. CKP been the largest shareholder.

Next questions are
- will the management team been restructured?
- will the bonus issue supported by CKP?

Let's see...
[/quote]

Not forgetting there is still the CAD report too on Myanmar payment arrangement which has been quiet too.

But for SIC to waive the GO, does it mean father and son are still acting in concert?!

[CityFarmer]

Not forgetting there is still the CAD report too on Myanmar payment arrangement which has been quiet too.

But for SIC to waive the GO, does it mean father and son are still acting in concert?!

I believe the CAD case will void in due course. That is the way of doing biz in Myanmar.

The son has already declined to be acting in concert.

[dydx]

I think it is relevant and good to know that Viz Branz's products - including (1) its leading local "Royal Myanmar" brand of 3-in-1 Myanmar-styled milk tea mix, (2) its leading "Calsome" brand of calcium-enhanced 3-in-1 cereal mix, and (3) its well-established regional "Gold Roast" brand of a comprehensive line of coffee mix products - are distributed by Myanmar Distribution Group (MDG) in Myanmar.....
http://www.myanmardistributiongroup.com/index.php

From NDG's website, this Yangon-based distribution company/organisation has 24 branches in Myanmar, servicing 32,000 retail outlets/points, and boasting to have assess to practically the entire population of approx. 55.0m people/consumers in Myanmar.....
http://www.myanmardistributiongroup.com/...bution.php

[CityFarmer]

According to my "un-official" survey with my china counterparts.

"Gold Roast" brand is well-known, and perceived as better one than "Super", the next comparable one is "Nestle" but more expensive

Viz brand had a better position in China compare with Super

[dydx]

Mamma Mia! Viz Branz hit an all-time high of $0.595 intra-day today (26Jun12) and closed at $0.59, with quite a high volume of 708 lots transacted.

It really pays to be a long-term investor in this case, as Viz Branz has out-performed STI - before counting the solid dividends! - by a big, big margin over the past 5 years.....
http://finance.yahoo.com/echarts?s=L5J.S...=undefined;