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Chasen holdings could be the next big multiplier
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SmallSmall
Supreme |
02-Jun-2020 13:58
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The net proceeds from the Proposed Transaction, after deducting all costs and expenses, is estimated to be approximately RMB 257,048,000. The net proceeds are intended to be used by the Group for any or all of the following purposes as determined by the Directors: (a) investments into infrastructure and water and environmental conservation (WEM) projects and transit-oriented development (TOD) projects, as and when opportunities arise (b) purchase of construction equipment by SYE for its leasing business (c) expansion of the building estate management (&ldquo BEM&rdquo ) business of CJPS, including investments into other companies undertaking the BEM business or by increasing the headcount of CJPS (d) contributions to Ranken Railway&rsquo s capital (whether by way of equity or debt) as required by Ranken Railway (e) contingency for reimbursement of any losses during the Audit Period as described in paragraph 3.3 &ldquo Salient terms of the Proposed Transaction &ndash Reimbursement of losses during the Audit Period&rdquo above and reimbursement of outstanding accounts receivables of Ranken Railway as described in paragraph 3.3 &ldquo Salient terms of the Proposed Transaction &ndash Guarantee of accounts receivables&rdquo above and (f) general corporate purposes including general working capital, financing of new business ventures through acquisitions and/or strategic investments as and when opportunities arise, and share buy-back exercises and dvidend distributions to Shareholders
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SmallSmall
Supreme |
02-Jun-2020 13:55
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This deal is massive and it is massively positive for Sapphire. They will collect a total of RM 355.7 mil in cash which is about S$70.2 mil in Sing $. That would translate to a cash per share of $0.1722. Hopefully they can delcare a dividend to reward the shareholders. In addition they will still retain 48.82% of Ranken Railway which by then would be part of a wholly-state-owned enterprise ! Buy some to hold for the plays expected over the next few days. :) Press Release today: Sapphire to Strategically Divest 43.87% Equity Stake of its Subsidiary, Ranken Railway, for a Cash Consideration of RMB 280 Million To Retain 48.82% Effective Interest in Ranken Railway after Divestment With Ranken Railway& rsquo s (excluding the carved-out assets) transaction valuation of approximately RMB 638.2 million, Shandong Hi-Speed will purchase a 43.87% equity stake from Sapphire for RMB 280 million and subscribe for more shares in Ranken Railway, amounting to approximately 10.6% of the enlarged equity capital post-proposed transactions, for approximately RMB 75.7 million Shenzhen-listed Shandong Listco (Shandong Hi-Speed& rsquo s sole shareholder) has a market capitalisation of approximately RMB 5.24 billion as at 31 December 2019 and it is majority-owned by a ewholly-state-owned enterpris in the PRC, hence Ranken Railway will become an indirect and partial SOE and it will be able to tender for key infrastructure projects in the PRC which require contractors or vendors to be state-owned Upon the completion of the proposed transactions, Sapphire will retain 48.82% effective interest of Ranken Railway The total consideration is 314% of Company& rsquo market capitalisation based on the closing price of the shares of the trading day prior to the date of this announcement From a financial perspective, the proposed transactions has positive financial effects on the Group and in particular, the Group&rsquo s net tangible assets (&ldquo NTA&rdquo ) per share will increase from RMB cents 131.82 to RMB cents 155.51 (NTA in S$ $0.307) (where retained interest in Ranken Railway is measured at fair value), and which the NTA of RMB cents 155.51 represents more than 5.6 times the closing price of the shares of the trading day prior to the date of this announcement and (ii) a gain of approximately RMB 58 million (where retained interest in Ranken Railway is measured at fair value) |
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