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Apex-Pal Expanding???
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Joelton
Supreme |
11-Nov 11:33
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Agreement by Sakae chairman to sell partial stake has lapsed but talks still ongoing
The sales and purchase agreement last July by Sakae Holdings 5DO ' controlling shareholder Douglas Foo to sell part of his stake to an entity called Makara Capital has lapsed.
However, in an update on Nov 8, Sakae Holdings, citing Foo, says that the agreement remains " in force" and parties are in still in talks on a " new completion date" .
Sakae Holdings, famous for its chain of sushi outlets, announced on July 19 2023 that Foo, executive chairman of the company, has reached an agreement to sell a 27,794,400 shares to Makara Capital for $26.5 million.
This works out to the equivalent of 95.3 cents per share, a stark difference from the then last traded price of 9.9 cents.
The stake of nearly 27.8 million shares is equivalent to 20% of the company. Foo holds just under two thirds of the company that he founded.
However, in conjunction with the update on this transaction, Sakae Holdings announced in a separate filing that one Ali Ijaz Ahmad, who controls Makara Capital, the buyer, has resigned from Sakae' s board on Nov 7 " to focus on his busy work commitments."
Ali Ijaz Ahmad was appointed to Sakae' s board on July 25 2023, a week after the proposed transaction with Foo was announced.
The developments triggered SGX to query Sakae Holdings on further details of the agreement which has lapsed.
In its response, Sakae, citing information provided by both Foo and Ali, the latter has asked for an extension to effect the completion of the transaction.
" Mr Foo has agreed in principle to grant the extension, and parties are in discussions on a new completion date.
The company says that it will update accordingly when a new completion date has been fixed.
" The company has sought information from Mr Foo on the above, including reasons for the delay in effecting completion of the SPA and when it expects completion of the SPA to occur," says Sakae in its response to SGX.
" However the company understands from Mr Foo that Makara Capital has not provided any further information on the sales and purchase agreement as it is an ongoing transaction," says Sakae.
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ccakg88
Member |
30-Oct 16:33
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From pre-AGM QnA Questions: What is the progress of the liquidation of Griffin Real Estate Investment Holdings Pte Ltd (GREIH)? What is the percentage completion? &bull How much more proceeds/returns can be expected from the liquidation of Griffin Real Estate Investment Holdings Pte Ltd (GREIH)? Company' s response: The liquidation of Griffin Real Estate Investment Holdings Pte Ltd (GREIH) is ongoing and the Group will continue to provide updates as and when appropriate to do so. The Group expects to receive another distribution of $4,073,804 from the liquidators of Griffin Real Estate Investment Holdings Pte Ltd (GREIH) before 31 December 2023. Another 4 million to be received by company vs Sakae current market capitalisation of 20 million. UNDERVALUED!!!! |
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Joelton
Supreme |
08-Aug-2023 12:53
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Joelton
Supreme |
02-Aug-2023 09:18
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Owners of discounted property groups should emulate Sakae&rsquo s Douglas Foo
SAKAE : 5DO +0.65%Holdings : 5DO +0.65%&rsquo founder and executive chairman Douglas Foo may have struck a great deal.
Foo recently inked an agreement with Makara Capital to sell 27.8 million shares in Sakae, or about 20 per cent of the food and beverage group, for S$26.5 million. The sale completion is set for Sep 12 and is conditional on various conditions being met.
The sale price works out to around S$0.953 per share or over nine times Sakae&rsquo s closing price of S$0.099 on Jul 18, prior to the deal&rsquo s announcement early on Jul 19.
Sakae&rsquo s shares closed 122 per cent higher on Jul 19 at S$0.22. The shares closed at S$0.155 on Aug 1 &ndash well above Jul 18&rsquo s closing price.
Makara&rsquo s chief executive officer Ali Ijaz Ahmad joined Sakae&rsquo s board of directors on Jul 25.
If the proposed sale completes, Foo will remain as executive chairman and continue to hold 64.1 million shares of Sakae, or a stake of around 46.2 per cent.
In short, with the Makara deal, Foo sells some Sakae shares at a huge premium to market price, sees a rise in the value of the shares he continues to hold, and still runs the business.
Makara&rsquo s bullish move
Sakae&rsquo s activities include the running of restaurants, kiosks and cafes. It also operates as a caterer and franchiser. Its flagship brand, Sakae Sushi, is a quick-service conveyor belt sushi concept.
Is Makara too bullish on Sakae&rsquo s prospects?
For the six months to end-December 2022, Sakae posted a lower year-on-year profit attributable to equity holders of S$9,000. The group said while the rise in revenue for the half-year reflects optimistic signs of recovery in the F& B sector, the industry continues to grapple with rising raw material costs and tight labour conditions.
Sakae faces cost challenges and intense competition among Japanese food brands. Furthermore, consumers here may tighten their belts due to possible economic weakness and the rise in the goods and services tax next year.
Makara&rsquo s share purchase price is over 2.2 times of Sakae&rsquo s net asset value (NAV) per share as at end-2022. Still, such a premium to NAV is below the share price premium to the latest NAV of F& B operator Jumbo Group : 42R 0% and roughly in line with that of Japan Foods Holding : 5OI 0%.
Because of the positive share price reaction, Foo&rsquo s deal with Makara helps Sakae&rsquo s minority shareholders. Of course, small investors could potentially have gained even more if Makara made a partial offer for Sakae that is open for acceptance by all shareholders. Perhaps Makara could have bought a combined 20 per cent stake from Foo and small investors.
Welcoming large minority investors
In any case, Foo&rsquo s deal with Makara offers lessons for listed groups where an individual or family holds a big stake. Think of property-related names that trade substantially below NAV.
For instance, Chua Thian Poh, executive chairman of Ho Bee Land : H13 0%, and Henry Ngo, executive chairman of Bonvests Holdings : B28 0%, own large chunks of shares in their respective groups.
Like many asset-heavy property groups, Ho Bee and Bonvests trade way below NAV, despite owning attractive assets. The former&rsquo s portfolio includes high-quality commercial buildings in Singapore and the United Kingdom. The latter&rsquo s portfolio includes Liat Towers along Orchard Road and Sheraton Towers Singapore in the Newton area as well as luxury resorts abroad.
Other undervalued listed property groups where tycoons own large stakes include Far East Orchard : O10 +0.96%, Frasers Property : TQ5 0% and GuocoLand : F17 +0.65%.
Chua and Ngo, and others in similar positions, can look to sell large minority stakes in their groups. Like Sakae&rsquo s Foo, they could sell shares at above market price, continue running the business, and hopefully see their share prices spike.
For an investor looking to own a large position in a listed group where trading liquidity of shares is poor, the only source of the supply of shares could be the controlling shareholder.
Sums needed to buy large minority stakes in some property groups are sizeable, and investors may pay a less frothy premium to market price versus what Makara is paying for Foo&rsquo s Sakae shares.
Still, with many property groups, an investor can buy shares at a significant premium to market price that represents a big discount to NAV.
Makara is a global financial services company headquartered in Singapore, which specialises in fund management, private equity and structuring and financing. Expect Makara to have done its work before entering a deal to buy into Sakae.
Perhaps, a group&rsquo s share price can re-rate when an investor buys a large stake at above market price, because such an action tells the market a company is undervalued. Also, with illiquid stocks, a third party buying a big stake shows there is a party that is keen to build a position in, or even take control, of the business.
Moreover, a big minority investor might influence a controlling shareholder to support value unlocking moves that aid all shareholders.
Sure, some tycoons owning listed property groups may not be hugely fussed over lacklustre share prices. These tycoons may be perfectly fine collecting dividends, seeing investment properties grow in value, and retaining control of the entities to hand over to the next generation.
Nevertheless, tycoons can do more to help small investors. They can enrich themselves and small shareholders by selling large minority stakes at attractive prices. Often, such share sales need not result in losing control of the business.
Hopefully, controlling shareholders of tightly-held entities will do more to create value for all shareholders and thereby boost investor interest in local shares.
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Joelton
Supreme |
20-Jul-2023 10:02
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Sakae Holdings hits five-year high following news of Douglas Foo&rsquo s proposed share sale
SHARES of mainboard-listed Sakae : 5DO +122.22% jumped more than 157 per cent on Wednesday (Jul 19), hitting a five-year high.
This came after the company said its executive chairman Douglas Foo entered into a sale and purchase agreement with fund manager Makara Capital to dispose of a 20 per cent stake in Sakae for S$26.5 million. This amount is nearly double the company&rsquo s market capitalisation of S$14.1 million as at 4.50 pm on Wednesday.
Sakae&rsquo s counter reached a high of S$0.255, up 157.6 per cent or S$0.156, as at 1 pm. The last time the counter closed near this level was in July 2018.
Foo, who will retain about 46.2 per cent following the sale, founded Sakae as Apex-Pal International in 1996. The company was listed on the Singapore Exchange in 2003 and renamed to Sakae Holdings in 2010.
Foo was also the first Singaporean who successfully founded a conveyor belt sushi chain in Singapore.
In 2016, there were over 200 Sakae Sushi outlets worldwide.
The company has done poorly in recent years, though. After suffering a S$12.4 million net loss in 2016, it has closed quite a few of its outlets.
It also made headlines over a dispute with its former director Andy Ong, who allegedly misappropriated S$15.8 million from a real estate investment joint venture in which Sakae was a party.
In its 2018 financial statement, the company booked a loss of US$4.3 million from a sale of sugar to a client who never paid up.
Sakae Holdings reported net losses in the financial years of 2019 and 2020. Its profits for the most recent financial year have more than halved year on year.
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bernardc
Elite |
20-Jul-2023 08:29
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BOOM.. BOOMM. OR BUST.... fishy agreement.. September to complete transaction.. Enough time to hook in big fish?? Or the big one got away?? | ||||
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hschsc
Master |
20-Jul-2023 07:18
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Sure SGX will go to dig and dig the company " Makara" .
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superstartup
Elite |
20-Jul-2023 00:42
Yells: "Enjoy doing Fundamental Research" |
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Tioed SGX query and company responded fast But then SGX asked " ... please disclose the conditions precedent provided in the agreement. .....] Company responded " ... conditional upon the following .... each of the representations, undertaking and warranties .... is true ... " Not sure if the response is a standard legal text in agreement or what But the reply like not answering at all Maybe SGX Regco should ask company to disclose a) all conditions, and b) all the conditions conditional on the precendent condition . . . . .
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superstartup
Elite |
19-Jul-2023 17:25
Yells: "Enjoy doing Fundamental Research" |
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Sure tioed query from SGX Regco This company lotsa problems / issues |
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iinvestor
Veteran |
19-Jul-2023 17:25
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Risk of SGX query/investigation is also very real..... and who is makara? 1st time see a fund pay 1000% premium...only in sick sg mkt. better steer clear. |
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Heerbrugg
Veteran |
19-Jul-2023 16:54
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Something not right with the price, later buy liao tio stuck inside...
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tankoksee
Supreme |
19-Jul-2023 16:53
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$$ laundering?
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hschsc
Master |
19-Jul-2023 16:26
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Totally agree your comment. Something is????
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axlaxlaxl
Member |
19-Jul-2023 16:20
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something is really off.... current price is 9 cents and he managed to sell at 90 cents... 1000% higher. Doesnt make sense. Esp for a company that is making losses every quarter and quite frankly, no one ever go to their resturants anymore | ||||
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hschsc
Master |
19-Jul-2023 11:04
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Very scary and terrible deal price.
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SmallSmall
Supreme |
19-Jul-2023 10:10
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Good luck to the short sellers .........
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SmallSmall
Supreme |
19-Jul-2023 10:07
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Sakae&rsquo s executive chairman sells partial stake at 95.3 cents each vs last traded price of 9.9 cents  Felicia TanWed, Jul 19, 2023 &bull 08:31 AM GMT+08 &bull a hour ago &bull 1 min read
       Sakae Holdings&rsquo executive chairman and controlling shareholder, Douglas Foo, plans to sell 27.79 million shares to Makara for a consideration of $26.5 million. The shares represent some 20.0% of the total number of issued shares in Sakae. The purchase price works out to 95.3 cents per share, a very significant premium over Sakae' s last traded price of 9.9 cents at close of July 18. The buyer is an asset manager called Makara Capital. " Completion of the proposed sale is subject to the fulfilment of certain conditions precedent provided in the agreement," the company says on July 19. After the completion of the proposed sale, Foo will remain as the company&rsquo s executive chairman and controlling shareholder with a remaining stake of 46.15% in the company. His stake amounts to some 64.13 million shares left in Sakae. |
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Joelton
Supreme |
26-Oct-2022 11:53
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Disclosing remuneration of directors would &lsquo adversely impact&rsquo business: Sakae Holdings
DISCLOSING the exact remuneration of Sakae Holdings&rsquo chairman and chief executive officer, as well as its directors and other key management personnel, would &ldquo adversely impact&rdquo its operations and business, said the restaurant operator on Tuesday (Oct 25).
Due to the sensitive nature and confidentiality of remuneration, Sakae Holdings : 5DO -10.19% in a bourse filing said that disclosing such information would be prejudicial to the interests of the company, as well as its employees.
&ldquo There is keen competition for talent in the food and beverage industry and it is important that the company retain its competent and committed key personnel, regardless of their positions,&rdquo read the filing.
The restaurant operator was responding to queries from the Singapore Exchange (SGX) on how specific disclosure of the remuneration of chairman Douglas Foo and that of his sister Foo Lilian, who is Sakae&rsquo s CEO, would be prejudicial to the company over competitive reasons, considering the nature of their relationship to the company.
The queries from SGX came after the group&rsquo s 2022 annual report, released on Oct 18, did not contain specific disclosures of the remuneration of the siblings, as well as that of other directors. They were, instead, disclosed under remuneration bands.
Douglas Foo&rsquo s remuneration for the year was between S$750,000 and under S$1 million, while that of his sister was from S$500,000 to below S$750,000.
The company had said that it was disclosing the remuneration of individual directors in bands of S$250,000, for competitive reasons.
&ldquo The Group remunerates its key management personnel competitively. To maintain confidentiality of staff remuneration and to prevent poaching of key management personnel in a highly competitive industry, the company discloses the remuneration of the key management personnel of the Group, in this report, in bands of S$250,000 without aggregate of total remuneration paid to the key management personnel,&rdquo read the annual report.
In its response to the SGX queries, Sakae reiterated that its remuneration packages are competitive enough to attract directors and key management personnel with the right experience and expertise to run the company.
It also noted that the board has a formal and transparent procedure for developing policies on director and executive remuneration, and for fixing the remuneration packages of individual directors and key management personnel. No director is involved in deciding his or her own remuneration, it added.
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Joelton
Supreme |
16-May-2022 10:55
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Sakae Holdings reports Q3 net loss of S$317,000
MAINBOARD-LISTED restaurant operator Sakae Holdings : 5DO -0.92% sank into the red in the third quarter on a decline in other operating income and gains, as well as the cost of operating expenses.
Sakae reported a net loss of S$317,000 for the 3 months to Mar 31, 2022, against a net profit of S$219,000 in the year-ago period, as revenue fell by 19.3 per cent to S$4.6 million.
That comes even as it managed to maintain its gross profit margin despite rising costs and lower revenue during the pandemic, Sakae said in unaudited financial statements on Sunday (May 15).
The group noted that topline impact was cushioned by a pivot to online orders and delivery services &ndash but that was at the cost of revenue from physical stores, which were reduced.
With Sakae receiving lower rental rebates than in the previous year, other operating income decreased, while other operating expenses rose on the reversal of an earlier impairment loss.
For the 9 months, Sakae chalked up a net loss of S$283,000, against a net profit of S$836,000 previously, on a 22.6 per cent drop in revenue, to S$13.1 million.
Loss per share was 0.23 Singapore cent for the 3 months, compared with earnings per share of 0.16 Singapore cent before and 0.20 Singapore cent for the 9 months, compared with earnings per share of 0.60 Singapore cent before.
Net asset value stood at 39.01 Singapore cents a share, against 40.45 Singapore cents as at Jun 30, 2021.
Sakae, which counts Singapore and Malaysia as its key markets, warned in its outlook statement that it &ldquo expects the operating environment of the food and beverage industry to remain challenging in the next 12 months&rdquo , even as Covid-19 restrictions are relaxed.
No dividend was recommended, unchanged from the year before, which the board said was &ldquo to conserve liquidity to fulfil the operational and financial requirements of the group amid the uncertainties caused by the Covid-19 pandemic&rdquo .
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Joelton
Supreme |
15-Nov-2021 09:04
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Sakae Holdings sinks into red with Q1 net loss of $134,000
Sakae Holdings, which owns the Sakae Sushi restaurant chain, posted a net loss attributable to shareholders of S$134,000 for its first quarter ended Sept 30, turning red after a S$69,000 profit in the same period last year.
The results translate to loss per share of 0.1 Singapore cent, against earnings per share of 0.05 cent the year before.
Revenue was down 32.5 per cent to S$3.8 million on the back of dining restrictions and reduced operating capacities at restaurants, the company said.
It added that given the " unstable" economic sentiment, Sakae Holdings plans to reduce the number of physical outlets and focus more on online and delivery sales.
Cost of sales decreased by 22.7 per cent to S$1.3 million, while gross profit fell 36.8 per cent to S$2.5 million.
The three months also saw a net cash and cash equivalents inflow of S$76,000, with that of the period ending at S$2.7 million.
" No dividend has been declared or recommended for the current financial period in view of the group' s financial position as at Sep 30, 2021, and as the group wishes to conserve cash to fulfil its operational and financial requirements," Sakae Holdings said.
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