Latest Forum Topics / Boustead Last:0.85 -- |
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Boustead on the move now
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governor
Member |
29-Sep-2023 06:13
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Wolf Money(Portfolio update end Sept 2023) Boustead Singapore related 🙏https://lonewolfinvestor.blogspot.com/2023/09/wolf-moneyportfolio-update-end-sept-2023.html |
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Joelton
Supreme |
28-Sep-2023 10:07
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Boustead Singapore seeks extension to provide exit offer details
BOUSTEAD Singapore is seeking an extension from the Singapore Exchange Regulation (SGX RegCo) to allow it to provide details of its exit offer for Boustead Projects only after its first-half results have been released.
 
This comes a day after SGX RegCo issued a directive for the delisting of Boustead Projects, as the issuer has not ensured that at least 10 per cent of the total number of issued shares are held by the public.
 
In its notice of compliance, the frontline regulator also directed Boustead Projects and/or Boustead Singapore to make an exit offer to shareholders that is &ldquo fair and reasonable&rdquo , with the proposal to be provided within one month from Tuesday (Sep 26).
 
Boustead Singapore said in a bourse filing on Wednesday that both the company and Boustead Projects are required to announce their first-half results within 45 days from Sep 30, and it is &ldquo unable to provide an update at this juncture&rdquo . It did not indicate the duration of extension required.
 
Boustead Singapore in February announced a voluntary unconditional general offer to privatise its real estate unit, Boustead Projects. The independent financial adviser (IFA), PrimePartners Corporate Finance, opined that the offer was &ldquo not fair but reasonable&rdquo .
 
In its report, the IFA noted that the final offer price of S$0.95 was not within its final estimated valuation range of between S$1.17 and S$1.38.
 
At the close of the offer, Boustead Singapore and its concert parties owned or controlled an aggregate of 299.2 million shares, representing approximately 95.5 per cent of the total number of shares in the company.
 
As less than 10 per cent of Boustead Project shares were held by the public, the counter was suspended in March.
 
Boustead Singapore disclosed previously that it would not be able to avail itself to the powers of compulsory acquisition under the Companies Act.
 
Under section 215(1) of the Companies Act, an offeror who acquires at least 90 per cent of the total number of shares (other than those already held by the offeror, its related corporations or nominees) would be entitled to exercise the right to compulsorily acquire all the shares from shareholders who have not accepted the offer.
 
The offer for Boustead Projects did not extend to 19.28 per cent of the shares that were held through nominees by chairman and chief executive of Boustead Singapore, Wong Fong Fui.
 
SGX RegCo said in March that Boustead Projects must restore its free float after its shares are suspended at the close of the takeover offer by its parent company. Otherwise, Boustead Projects would be directed to delist and provide an exit offer which is deemed fair and reasonable by an IFA.
 
Under listing rules, exit offers in conjunction with voluntary delistings must not only be reasonable, but also fair. An offer is deemed fair if the price offered is equal to or greater than the value of the securities.
 
Boustead Projects was granted two extensions to explore options to comply with listing rules, but did not restore its free float by the Sep 26 deadline.
 
David Gerald, president and chief executive of the Securities Investors Association (Singapore), said on Tuesday that the association supports SGX RegCo&rsquo s actions. &ldquo Some six months have elapsed, and there has been no response from the Boustead companies,&rdquo he noted.
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Corian99
Member |
27-Sep-2023 14:24
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Punishment will be based on contravention of listing rules, no clear guidelines of the extent that will be enforced on Boustead https://www.sgx.com/regulation/enforcement
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Alignment
Member |
27-Sep-2023 14:03
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As I said, I believe 1) " what next" is either for the SGX or for a court to decide, depending on various factors, and 2)  one possible outcome from either of these routes if the major shareholder is unable to deliver an appropriate exit offer is for it to be forced to sell sufficient shares for an appropriate free float to be maintained. I am not a lawyer and this is not legal advice! Just my opinion.   
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lifeisgood
Supreme |
27-Sep-2023 10:57
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For time being, SGX has avoided mentioning the " what if" BSL failed to provide a fair and reasonable exit offer. Then will be " forced" to exit and delist?
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Alignment
Member |
27-Sep-2023 10:54
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I think in practice there are two drivers that would force an outcome to stop this being indefinite 1) the SGX will decide to take some action at some point as it has its own reputation to think of, or 2) a thrid party will go to the courts and force a ruling.   
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HVRRVH
Elite |
27-Sep-2023 10:35
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It will take some time before a resolution. The unthinkable will be that Boustead privatise itself, then SGX cannot do anything about it as Boustead will be a privare company by then. This cannot be ruled out given its low market valuation. Time and again, when a company wanted to privatise, the price they offered was always above then market trading price but inevitably, everyone zoomed in on NAV and complained why below NAV? The question I always ask myself is why so many companies in SGX market trade below their NAVs? Most of them were far below its NAV. Granted, we should not expect all stocks to trade at a premium to their NAVs but to put it in a nutshell, stocks in SGX market are not commanding a ' fair and resonable' value to begin with. So, why should SGX expect the company to be ' fair and resonable' when the company wanted to exit? What have SGX, as a regulator and market operator, do to ensure that companies listed in it market are attractive ' fair and resonable' value? They are collecting listing fee yearly and cannot simply say the price is determined by market force. If that is the case, the company wanted to delist also can say the offer price is alreay above market price, we can' t offer NAV price because the share has never traded even near to NAV. To wake SGX up, I don' t mind if Boustead offer around $1 to delist Bousrtead as a whole.  | ||||
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lifeisgood
Supreme |
27-Sep-2023 10:34
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BSL was given 6 months to restore free float, and it didnt. So will it be given another 6 months to restore free float? and this thing will go on indefinitely?
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Joelton
Supreme |
27-Sep-2023 10:32
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SGX RegCo issues notice of compliance to Boustead and Boustead Projects
 
The Singapore Exchange Regulation (SGX RegCo) has issued a notice of compliance to Boustead Projects AVM 0.00% and its controlling shareholder Boustead Singapore F9D 0.00% following the former&rsquo s free float restoration deadline.
 
Boustead intends to privatise and delist Boustead Projects from the exchange, closing its privatisation offer on March 27. It was granted three months extension until June 26, followed by another three-months extension until Sept 26 to explore options to comply with the listing rules. 
 
As such, the exchange has directed the company to be delisted if its free float is not restored to at least 10% and it has to make a fair and reasonable exit offer to the shareholders.
 
The company must notify the exchange on its exit offer proposal no later than one month from Sept 26. Failure to comply with the requirements will be deemed to be a contravention of the listing rules, the exchange adds.
 
SIAS president and CEO David Gerald is supporting the exchange&rsquo s action, noting that there has been no response from the Boustead companies over the extension period. 
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Alignment
Member |
27-Sep-2023 10:07
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Good question. In theory not delisted. Presumably what is meant to happen is that if the majority shareholder is unwilling to make a fair and reasonable offer then they have to sell some shares to restore the free float. |
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lifeisgood
Supreme |
27-Sep-2023 09:05
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So if exit offer is not fair and reasonable, then will BP be delisted or not be delisted?  | ||||
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lifeisgood
Supreme |
27-Sep-2023 00:11
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Can change IFA to someone other than Prime Partners?
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Corian99
Member |
26-Sep-2023 23:26
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SGX is saying, you can delist, but you will need to submit an offer deemed fair and reasonable or you will contravene the listing rules.  Option 1: Restore Free Float Option 2: Delist with fair and reasonable offer Neither are favourable to Boustead. 
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lifeisgood
Supreme |
26-Sep-2023 21:07
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BSL has always wanted to delist BP. Isnt SGX giving BSL what it wants? 
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ysh2006
Supreme |
26-Sep-2023 20:36
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I think they announced no plan to top up the share to 10% so Sgx asked it subsidiary to delist maybe no exit offer ? | ||||
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lifeisgood
Supreme |
26-Sep-2023 11:21
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Boustead should be announcing its new plan for restoring free float of BP soon. | ||||
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HVRRVH
Elite |
26-Sep-2023 09:29
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These buyers in late Aug and last few days could cash in if the price hit closse to 90 cents. Big resistance at 90 cents and personally I will just watch. No adding no selling. 
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Joelton
Supreme |
26-Sep-2023 09:17
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OCBC starts coverage on Boustead Singapore with &lsquo buy&rsquo call
OCBC Investment Research said Boustead Singapore : F9D +1.79%&rsquo s current share price levels may present an &ldquo attractive entry point&rdquo for investors given its undemanding valuations, above-average yield and exposure to secular megatrends.
 
The research house initiated coverage on the conglomerate with a &ldquo buy&rdquo call and a fair value estimate of S$1.05, which values its real estate segment at a 40 per cent discount to net asset value. 
 
&ldquo Considering that Boustead is trading at a forward price-to-earnings ratio of 8.1 times, which represents more than one standard deviation below its five-year historical average of 11.2 times, we think current valuations present an attractive entry point for investors to lock in a higher-than-average dividend yield,&rdquo said analyst Ada Lim on Friday (Sep 22). 
 
She noted that the stock currently offers a forward dividend yield of 5.3 per cent. This is above its five-year historical average of 4.3 per cent.
 
In Lim&rsquo s view, Boustead Singapore&rsquo s financials are poised to improve based on its project order and deferred services backlogs as at end-FY2023, along with stable contract wins in the year to date.
 
&ldquo Boustead&rsquo s healthy balance sheet and strong net cash position also lends potential for the company to deploy cash through further investments and inorganic acquisitions to unlock value for shareholders, beyond the ongoing privatisation of Boustead Projects,&rdquo added the analyst.
 
Lim is also positive about the group&rsquo s growth profile as she said it provides exposure to multiple long-term secular trends including the Asia-Pacific&rsquo s &ldquo silver tsunami&rdquo , as evident through the group&rsquo s healthcare division that was set up to provide age-related healthcare solutions.    
 
Riding on the trends of climate action and sustainability are Boustead Singapore&rsquo s energy engineering and real estate divisions, which specialise in energy-efficient and eco-sustainable projects. 
 
Given the continued growth in value of Internet of Things, the group&rsquo s geospatial division is likely to see continued demand for its technology and managed services, said Lim. 
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SmallSmall
Supreme |
26-Sep-2023 09:05
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Brokers&rsquo take: OCBC starts coverage on Boustead Singapore with &lsquo buy&rsquo call![]() OCBC Investment Research says Boustead Singapore is exposed to various secular megatrends such as Asia Pacific' s " silver tsunami" . 
OCBC Investment Research said  Boustead Singapore : F9D 0%&rsquo s current share price levels may present an &ldquo attractive entry point&rdquo for investors given its undemanding valuations, above-average yield and exposure to secular megatrends.The research house initiated coverage on the conglomerate with a &ldquo buy&rdquo call and a fair value estimate of S$1.05, which values its real estate segment at a 40 per cent discount to net asset value.  &ldquo Considering that Boustead is trading at a forward price-to-earnings ratio of 8.1 times, which represents more than one standard deviation below its five-year historical average of 11.2 times, we think current valuations present an attractive entry point for investors to lock in a higher-than-average dividend yield,&rdquo said analyst Ada Lim on Friday (Sep 22).   
She noted that the stock currently offers a forward dividend yield of 5.3 per cent. This is above its five-year historical average of 4.3 per cent. In Lim&rsquo s view, Boustead Singapore&rsquo s financials are poised to improve based on its project order and deferred services backlogs as at end-FY2023, along with stable contract wins in the year to date. &ldquo Boustead&rsquo s healthy balance sheet and strong net cash position also lends potential for the company to deploy cash through further investments and inorganic acquisitions to unlock value for shareholders, beyond the  ongoing privatisation of Boustead Projects,&rdquo added the analyst. |
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lifeisgood
Supreme |
26-Sep-2023 07:51
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BOUSTEAD Projects  has applied to the Singapore Exchange Regulation for yet another three-month extension for it to comply with the public float rule, which requires at least 10 per cent of its shares to be in public hands. The real estate-solutions provider requested the extension to take effect from Jun 27, when its first three-month period to resolve the matter would have ended, it said in a bourse filing on Friday (Jun 23). The Singapore Exchange may grant an issuer a period of three months to raise the percentage of securities in public hands to 10 per cent, after which the issuer may be directed to delist and provide an exit offer deemed fair and reasonable by an independent financial adviser |
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