United Engineers   

United Engineers

RNAV is used for lack of any measure of the worth of UE.

In a takeover, if the assets are good, buyer would be willing to pay a higher price.   

UE, after a rights issue (due to the Wearns takeover), saw it' s price plummet.    Price to book is below $1 (using the raw POEMs data of BV of 2.7883), whereas HPL is above $1, the property portfolios are different, profitability also, therefore,  we are comparing apples  against oranges.   

Nevertheless, in any takeover situation, if the company to be taken over is attractive and doing well, price tends to be bidded up.

I' ve been observing UE price being very stable after the first announcement that Charoen is doing a due diligence with OCBC and GE Life to buy over their 36% stake in UE, it shot up to $2.95 when CIMB released the RNAV, then went back to about $2.85.    And in these past few days, there is some selling due to the global market decline in share prices.    Price went down to $2.73.    The volumes are moderate, daily about 1.5 to 2 mln shares, however there was a spike in volume to 3.9mln  on 19th Sep when price shot up to $2.93.          Can only see good news coming forth for this stock.

 

 

 

HPL' s price is now $4.05 today, the offer was $3.50, at the time the offer was made, market price of HPL at14th Apr close is $3.13 (offer of $3.50 was made on 15th Apr).

HPL price skyrocketed to as hgih as $4.537.

If you have owned HPL stocks before the offer, you would have made $1 per share.

 

jwong016      ( Date: 17-Oct-2014 16:16) Posted: what about 68 holding' s offer for HPL? it wasnt based on RNAV.

 

UE has sold off some assets and these turned into realised monies, the RNAV would have even gone up further, it' s just no analyst went to give further updates.

It will be highly unusual  to sell at NAV unless UE is a lousy company, but if you look at the freehold commercial properties they own, you could perhaps understand why Charoen wants them.

Charoen has done a $13.7 bln takeover of  F& N, UE is small in comparison perhaps $2bln.          Chances are that this deal will go through.

I

Kyoto2008      ( Date: 17-Oct-2014 16:09) Posted: That would not be fair to OCBC shareholders as they would have sold below the real value of UE.      When you sell a house, do you sell at cost or market value? jwong016      ( Date: 17-Oct-2014 16:00) Posted: they will make offer based on NAV, not RNAV right?

 

what about 68 holding' s offer for HPL? it wasnt based on RNAV.

 

That would not be fair to OCBC shareholders as they would have sold below the real value of UE.     

When you sell a house, do you sell at cost or market value?

jwong016      ( Date: 17-Oct-2014 16:00) Posted: they will make offer based on NAV, not RNAV right?

 

they will make offer based on NAV, not RNAV right?

 

On Phillips infor...the Book value of UE is 2.7883 only.  Just for infor.

 

 

UE price now dirt cheap compared with the RNAV by CIMB of $3.17 to $3.57.

Once Charoen buys the OCBC & GE block of shares totalling 36% of UE, he will have to make an offer to the rest of the shareholders.     

The eventual takeover price could be a lot higher than $3.57.      With the currrent UE price at $2.75, that' s a whopping potential price gain of 82 cents and more!

 

Kyoto2008      ( Date: 05-Oct-2014 22:22) Posted: Charoen seems interested in grabbing as much properties as possible, lately making a foray into Australia. Agree, that UE shareholders should not sell too cheaply.  BTW, I found in the Edge that CIMB raised the RNAV of UE from $3.17 to $3.57. Qanghoo      ( Date: 05-Oct-2014 08:08) Posted: Let' s also bear in mind that when UE bought WBL, it was for the property portfolio, particularly in the PRC (I think).  So, the deep value probably include the holdings in the PRC whcih Mr C might be eying, but keeping  mum.  But then if the offer is too cheap, like FnN originally, and more recently LCD, some big brothers wld not standby without upping the ante.  The lesson for minorities is don' t sell out too cheap, wait first for the real value to emerge (very painful for me cos I sold LCD, which I had been holding on for yrs at 23.5).

 

Surprised that UE price went down to 2.73, anyone picked up?

 

That means he get 71 lots.

 

he use all his limit of 200k for this..

kirana      ( Date: 12-Oct-2014 17:54) Posted: If your friend buy few lots then just test water. If they buy in bulk with confidence, then they might know something. Charoen always surprises.

 

If your friend buy few lots then just test water. If they buy in bulk with confidence, then they might know something. Charoen always surprises.

 

insider trading...many friend bought UE at 2.80 - 2.82 range...targeting a dividend distribution and a takeover price...

 

There should be an announcement on the discussions between Charoen and OCBC/GE soon.

 

 

 

There are only these three sales of UE shares at this critical period.      Can see that the sales of the UE shares most likely have nothing to do with the outcome of Charoen' s discussion with OCBC/GE

D remember also that the UE BOD may not be kept informed in detail of Charoen' s discussions, since Charoen is dealing with OCBC/GE and not UE.   

 

  This is the last sale of UE shares by one of UE' s directors on 8th Sep 2014. He sold 10 lots, and has another 131 lots.  Since this was done last month, it is unlikely it is due to knowledge of Charoen' s deal with OCBC/GE.

Kyoto2008      ( Date: 11-Oct-2014 20:02) Posted: Another director of one of UE' s subsidiary who sold 47,640 shares of UE on 11th Sep 2014, one month ago.  Unlikely for the outcome of Charoen' s buyout of OCBC/GE shares to be known so early.  Kyoto2008      ( Date: 11-Oct-2014 19:54) Posted: This is the director of one of UE' s subsidiary (he is not a director of UE) who sold 50 lots of UE shares, still has 184 lots.

 

Another director of one of UE' s subsidiary who sold 47,640 shares of UE on 11th Sep 2014, one month ago.  Unlikely for the outcome of Charoen' s buyout of OCBC/GE shares to be known so early. 

Kyoto2008      ( Date: 11-Oct-2014 19:54) Posted: This is the director of one of UE' s subsidiary (he is not a director of UE) who sold 50 lots of UE shares, still has 184 lots.

 

This is the director of one of UE' s subsidiary (he is not a director of UE) who sold 50 lots of UE shares, still has 184 lots.

 

Kyoto is right. But then the buyers are the beleivers. It is a mind game. For tycoons, they always win. For small shareholders, there are losers and gainers.

 

Chaoren like shopping in property market like that ah! Keep buying companies. His FCL shares like stagnant like that! Like mati like that sia