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GuocoLeisure
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sgp_user
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28-Apr-2021 09:59
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what going to be next since the share being suspended? I still have position in it and I' m stucked. | ||||
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Joelton
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17-Mar-2021 09:29
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Lim & Tan says ' reasonable' for GL shareholders to accept S$0.80 final offer
LIM & Tan Securities on Tuesday said it was " reasonable" for GL shareholders to accept Guoco Group' s final offer price of S$0.80 per share, even though the revised price was nearly a third lower than the brokerage' s initial fair value estimate of S$1.16.
The final offer price of S$0.80 reflects a price-to-book ratio of 0.84 time, in line with the valuations for other delisted property players such as United Engineers and Wheelock Properties. UE and Wheelock were delisted from the Singapore Exchange in 2020 and 2018, respectively.
Lim & Tan also noted that Guoco Group is paying minority shareholders a level that coincides with GL' s January to February 2020 trading price levels before the Covid-19 situation became a global pandemic that devastated hotel operators globally.
" The S$0.80 level that minority shareholders are getting now is as if Covid-19 did not happen," the research team said. In reality, most of GL' s UK hotels are operating at low utilisation levels as the emergence of new Covid-19 strains makes reopening UK' s hospitality industry still a distant possibility, Lim & Tan added.
Moreover, with the proposed privatisation offer now declared unconditional, assuming offeror GuocoLeisure garners close to the 90 per cent level of acceptances, minority shareholders who have not accepted the offer risk holding onto an " illiquid stock" .
They may also potentially see the stock price fall back to pre-offer price levels of S$0.50 to S$0.60. Thus, Lim & Tan advises minority shareholders to accept the revised final offer from Guoco Group.
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Starship
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16-Mar-2021 15:21
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Brokers' take: Lim & Tan says ' reasonable' for GL shareholders to accept S$0.80 final offer TUE, MAR 16, 2021 - 1:37 PM LIM & Tan Securities on Tuesday said it was " reasonable" for GL shareholders to accept Guoco Group' s final offer price of S$0.80 per share, even though the revised price was nearly a third lower than the brokerage' s initial fair value estimate of S$1.16. The final offer price of S$0.80 reflects a price-to-book ratio of 0.84 time, in line with the valuations for other delisted property players such as United Engineers and Wheelock Properties. UE and Wheelock were delisted from the Singapore Exchange in 2020 and 2018, respectively. Lim & Tan also noted that Guoco Group is paying minority shareholders a level that coincides with GL' s January to February 2020 trading price levels before the Covid-19 situation became a global pandemic that devastated hotel operators globally. " The S$0.80 level that minority shareholders are getting now is as if Covid-19 did not happen," the research team said. In reality, most of GL' s UK hotels are operating at low utilisation levels as the emergence of new Covid-19 strains makes reopening UK' s hospitality industry still a distant possibility, Lim & Tan added. Moreover, with the proposed privatisation offer now declared unconditional, assuming offeror GuocoLeisure garners close to the 90 per cent level of acceptances, minority shareholders who have not accepted the offer risk holding onto an " illiquid stock" . They may also potentially see the stock price fall back to pre-offer price levels of S$0.50 to S$0.60. Thus, Lim & Tan advises minority shareholders to accept the revised final offer from Guoco Group. https://www.businesstimes.com.sg/companies-markets/enviro-hub-forays-into-glove-making-with-pastel-glove-granted-manufacturing |
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Joelton
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16-Mar-2021 09:22
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Guoco Group unit raises offer price for GL by 14.3% to S$0.80 per share
THE Guoco Group unit looking to take GL private has raised its offer price by 14.3 per cent or S$0.10 to S$0.80 per offer share, from S$0.70 previously.
The offeror - GuocoLeisure Holdings - does not intend to increase the final price " under any circumstances whatsoever" , hotel operator GL said in a bourse filing on Monday.
The new offer price represents a premium of 42.9 per cent over the last transacted price of S$0.56 on Jan 14 - the last trading day before the proposed privatisation was announced.
It also represents a premium of 46.5 per cent, 52.4 per cent, 46.3 per cent and 25.2 per cent over the one-month, three-month, six-month and 12-month volume-weighted average prices up to and including the last trading day.
GuocoLeisure has obtained the consent of the Securities Industry Council to waive the minimum acceptance condition of the proposed deal. Prior to the waiver, the offer was conditional upon the offeror obtaining at least 90 per cent of GL' s shares.
The waiver applies as long as the revised offer remains open for at least 14 days following the notification date and shareholders who accepted the previous offer are allowed to withdraw their acceptance within eight days of said notification date.
As at 6pm on March 12, GuocoLeisure Holdings and its concert parties held about 83.4 per cent of the total number of shares in GL.
This comprised some 133 million valid acceptances or about 9.72 per cent of the total number of shares, and around 1.1 billion shares held by another of Guoco Group' s wholly-owned units, GuocoLeisure Assets.
GuocoLeisure' s move comes over a week after it extended the closing date for its voluntary conditional cash offer by two weeks to 5.30pm on March 18. The offer was set to close at 5.30pm on March 4.
Investor watchdog Securities Investors Association (Singapore), or Sias, on Feb 26 called for GL' s offeror to " seriously reconsider" improving the offer price to reflect the true value of GL and extend the offer deadline by two weeks.
This came after shareholders highlighted their concern that the current offer price of S$0.70 per share " significantly undervalues" their shareholdings, and that the offer is not fair - an opinion affirmed by the independent financial adviser W Capital Markets.
GuocoLeisure is a special purpose vehicle of Hong Kong-listed Guoco Group. It earlier justified its offer price by citing the difficult operating conditions caused by Covid-19.
In January, GL posted a net loss of US$19.8 million for the six months to Dec 31, 2020, against a profit of US$26.9 million for the year-ago period. This came as the Covid-19 pandemic hit its British portfolio.
GL called for a trading halt before the market opened on Monday morning. Its shares last traded at 72.5 Singapore cents on Friday.
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SmallSmall
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15-Mar-2021 09:15
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Offer price revised to $0.80
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Joelton
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05-Mar-2021 09:03
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Guoco Group extends closing date for offer to take GL private
THE Guoco Group unit looking to take GL Ltd private has extended the closing date for its voluntary conditional cash offer by two weeks to 5.30 pm on March 18.
The offer had been set to close at 5.30 pm on March 4. As at 6pm on March 3, GuocoLeisure Holdings held about 83.18 per cent of the total number of shares in GL.
This comprised about 130 million valid acceptances, or about 9.5 per cent of the total number of shares, and the roughly 1 billion shares held by another of Guoco Group' s wholly owned units, GuocoLeisure Assets Ltd.
The offer is conditional upon the offeror obtaining at least 90 per cent of GL' s shares.
GuocoLeisure Holdings is offering S$0.70 per share in cash to take GL private. GL' s independent directors have recommended that minority shareholders accept the offer, even though its independent financial adviser deemed it " not fair but reasonable" .
Under changes to Singapore Exchange Regulation delisting rules in July 2019, exit offers in conjunction with voluntary delistings must not only be " reasonable" but also " fair" . In order to exercise the rights of compulsory acquisition in an offer that does not meet both of these requirements, the offeror must obtain more than 90 per cent of the shares held by minority shareholders at the time the offer is made.
This applies to Singapore-incorporated companies.
However, as GL is registered in Bermuda, Guoco Group intends to exercise its rights under Bermuda' s Companies Act to effect a compulsory acquisition if it obtains valid acceptances for 90 per cent of GL' s shares, or otherwise manages to hold 95 per cent of the company.
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Joelton
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27-Feb-2021 14:06
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Sias requests offer price revision, two-week extension for GL offer
INVESTOR watchdog Securities Investors Association (Singapore), or Sias, has called for GL' s offeror to " seriously reconsider" improving the offer price to reflect the true value of GL.
This came after shareholders highlighted their concern that the current offer price of S$0.70 per share " significantly undervalues" their shareholdings, and that the offer is not fair - an opinion affirmed by the independent financial adviser (IFA) W Capital Markets.
" Shareholders have been patient and are on a wait-and-see approach, hoping for an upward revision of the offer price," David Gerald, founder, president and chief executive officer of Sias, said in a letter to the board of GL, which was also sent to media.
He also called on the offeror to extend the offer deadline by two weeks, to give minority shareholders time to understand the issues and concerns.
The deal was supposed to end at 5.30pm on March 4, 2021.
The offeror, a special purpose vehicle of Hong Kong-listed Guoco Group, had justified its offer price by citing the difficult operating conditions caused by Covid-19, and the premiums that the offer price carries compared to recent trading prices.
But Mr Gerald said that it may not be that enticing to long-term shareholders, evident from how GL' s market price has run up as high as S$0.725 - above the offer price - between Jan 15 and Feb 8.
The IFA had also computed using a sum of the parts analysis and given the company a lower and upper valuation of S$1.14 and S$1.32, respectively. Lim & Tan Securities also believes that GL is worth at least S$1.16 per share.
Sias thus asked the offeror to explain how the offer price was determined, including whether GL' s hotel assets, making up about four-fifths of its total assets, might be undervalued since they are valued through the cost less accumulated depreciation model, rather than the more commonly used fair value model, and as a result, would not have captured any price appreciation over time.
Furthermore, Savills' revaluation exercise had estimated and ascribed negative market value for five of its hotel properties, given their negative Ebitdas (earnings before interest, taxes, and amortisation) caused by Covid-induced short and medium-term revenue falls. " A negative market value means that GL Limited would have to pay a third party to buy the five properties," he said.
" Even if the buildings are completely worthless, the value of the land itself being worth less than zero flies in the face of market reality."
He asked management to explain why it did not use the sales comparison approach to value GL' s assets using actual transaction prices of comparable properties instead.
He also wanted to know how critical the privatisation exercise was to GL, given recovering prospects for oil prices and the UK' s hospitality sector. " In the interest of minority shareholders, do the involved parties think that this is the most opportune time for a privatisation exercise?" he asked.
He also noted that the offeror' s seeming determination to get the deal done this time - its second attempt - after beefing up its stake in GL earlier this year, meaning it will need to take a much smaller margin to successfully privatise and delist the target company.
Mr Gerald said that given this general offer does not require an extraordinary general meeting to be convened, the involved parties need to take additional effort to protect the interests of minority shareholders and address the questions they have, for a smooth facilitation of this exercise.
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FaceTheFact
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26-Feb-2021 19:43
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They are using this opportunity to pick up cheap shares from 70-72 this past mth... 90% is the limit for them to take it private. So, do NOT sell at such prices! |
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ysh2006
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26-Feb-2021 19:18
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Why IFA said "Not fair" but reasonable ?....from $1.20 to 70c maybe kopitiam coffee price few years ago? | ||||
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FaceTheFact
Member |
26-Feb-2021 15:45
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Very meaningful arguments here. Ask Kwek LC to pay us money to take over those assets lor! Blood sucker Billionaire. Don' t trust him! From 1.20 rejected => 0.90 rejected => now trying 70 - siao! |
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robinhoot
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26-Feb-2021 14:36
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https://www.businesstimes.com.sg/companies-markets/sias-requests-offer-price-revision-two-week-extension-for-gl-offer
Sias requests offer price revision, two-week extension for GL offer
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valuefish
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22-Feb-2021 14:35
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SGX Regco is weak and shitty useless regulator which nobody respects! https://www.businesstimes.com.sg/companies-markets/tougher-delisting-rules-have-little-impact-on-guoco-groups-bid-for-bermuda |
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robinhoot
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22-Feb-2021 14:14
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Daylight robbery. Thistle Heathrow hotel only has a valuation of only USD 2M with 148 years unexpired term? After spending 900K pounds in renovation in 2018. Don' t understand why the valuer used a cap rate of 11% in current low interest rate environment? 108-room Trafalgar Square Hotel worth only 1M pounds with 8 years unexpired lease and in normal times makes EBITDA of 2M pounds per year? Hard Rock Hotel London - 1,000-room hotel that generates north of 10M pounds EBITDA per annum in normal times and after spending 50M pounds in renovation, now is valued at -31M pounds?? Negative valuations for 5 prime hotel assets in prime London, just not intuitively and intellectually supportable. |
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ysh2006
Supreme |
20-Feb-2021 06:57
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IFA so far public never have a report request by IFA to ask company to raise take over price. Quarz not IFA dare to ask Sunningdale price increase.
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fun2av66
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19-Feb-2021 17:49
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not fair but reasonable? my ass! think go rob the bank faster & easier
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lausk22
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19-Feb-2021 09:26
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' not fair but reasonable' an oxymoron
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Joelton
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19-Feb-2021 09:16
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Privatisation bid for GL ' not fair but reasonable' : IFA
GUOCO Group' s offer to take GL private at S$0.70 has been deemed " not fair but reasonable" by GL' s appointed independent financial adviser, W Capital Markets.
In a circular released on Thursday, GL' s independent directors recommended - based on W Capital' s advice - that its shareholders accept the offer.
They added that shareholders can choose to sell their shares in the open market if they can obtain a price higher than the offer price, after taking into account the brokerage and related costs in connection with open market transactions.
Compared to the closing price of S$0.71 at the last practicable date, the offer price represents a 1.4 per cent discount, and a 0.5 per cent discount against the volume-weighted average price of S$0.704 per share for the period between the offer announcement date and the latest practicable date.
This led W Capital to believe the offer is " not fair" .
However, it noted that the group had posted a net loss of US$19.8 million for the six months ended Dec 31 last year, a reversal from its US$26.9 million profit in the year-ago period.
GL also said that they expect strong headwinds in the UK hotels to continue in 2021 due to renewed lockdown with tiered restrictions being imposed by the UK government as a result of a record number of COVID-19 cases.
W Capital further noted that the offer price to net asset value (P/NAV) per share was 0.73 times, which is above the mean and median weighted average of P/NAV of comparable companies of 0.7 times and 0.63 times respectively.
Given that GuocoLeisure Assets Limited, which owns 73.67 per cent of the shares, has irrevocably undertaken to accept the offer, it is unlikely that there will be a competing offer from any third party, said the financial adviser.
Shareholders who wish to accept the offer must do so by 5.30pm on March 4, though the offerer has a choice to extend the closing date.
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kepoh88
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19-Feb-2021 00:16
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Read between the lines...very contradicting statement Privatisation bid for GL ' not fair but reasonable' : IFA GL expect strong head wind ahead and posted net loss of usd19.8m...YET the GG wants to take it private??? so good anh? think they are buying cheaply..... Not holding any GL shares..kust personal opinion. |
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Starship
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18-Feb-2021 18:36
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Privatisation bid for GL ' not fair but reasonable' : IFA THU, FEB 18, 2021 - 5:10 PM GUOCO Group' s offer to take GL private at S$0.70 has been deemed " not fair but reasonable" by GL' s appointed independent financial adviser, W Capital Markets. In a circular released on Thursday, GL' s independent directors recommended - based on W Capital' s advice - that its shareholders accept the offer. They added that shareholders can choose to sell their shares in the open market if they can obtain a price higher than the offer price, after taking into account the brokerage and related costs in connection with open market transactions. Compared to the closing price of S$0.71 at the last practicable date, the offer price represents a 1.4 per cent discount, and a 0.5 per cent discount against the volume-weighted average price of S$0.704 per share for the period between the offer announcement date and the latest practicable date. This led W Capital to believe the offer is " not fair" . However, it noted that the group had posted a net loss of US$19.8 million for the six months ended Dec 31 last year, a reversal from its US$26.9 million profit in the year-ago period. GL also said that they expect strong headwinds in the UK hotels to continue in 2021 due to renewed lockdown with tiered restrictions being imposed by the UK government as a result of a record number of COVID-19 cases. W Capital further noted that the offer price to net asset value (P/NAV) per share was 0.73 times, which is above the mean and median weighted average of P/NAV of comparable companies of 0.7 times and 0.63 times respectively. Given that GuocoLeisure Assets Limited, which owns 73.67 per cent of the shares, has irrevocably undertaken to accept the offer, it is unlikely that there will be a competing offer from any third party, said the financial adviser. Shareholders who wish to accept the offer must do so by 5.30pm on March 4, though the offerer has a choice to extend the closing date. https://www.businesstimes.com.sg/companies-markets/privatisation-bid-for-gl-not-fair-but-reasonable-ifa |
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fun2av66
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08-Feb-2021 09:29
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Please do not accept the ' stupid' offer....
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