Wolf Money(Boustead Singapore offer to privatise Boustead Projects@90c)

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OFFER

Boustead Singapore makes 90 cent per share privatisation offer for Boustead Projects



Boustead Singapore came out with an unconditional offer to acquire shares it doesn’t own in Boustead Projects with a cash offer of 90c. 

On first look, it came across to me as an opportunistic offer that doesn’t take into account the substantial 30% discount to Nav of $1.265 and my back of envelope value of at least 50% discount to Rnav

Boustead Singapore cited the poor E&C business as the main reason for the offer. In my observation, E&C business is on a recovery as the recent contract win of 300m from a Fortune 500 company to build an industrial complex had put the E&C business on more firmer footing. Order book had reached pre covid high of 450m. Further more Property fund management and Vietnam business had exhibit strong growth to offset any weakness in the E&C

The offer also failed to address the deep undervalue of its property assets owned and under JV which are ripe for injection into Boustead industrial Fund. Most properties are kept at historical cost less depreciation. 

The company is in a net cash position to the tune of 49c cash per share. 

There is also a 4% stake in Beijing Tongzhou development which can worth up to 100m. 

Lone Wolf Fund is unlikely to accept the current offer.

https://www.bousteadprojects.com/wp-content/uploads/2023/02/2023-02-06_Voluntary-Unconditional-Offer.pdf



*Personal opinion not amount to financial advice. Please seek financial advice from professional. Vested interest with 2c worth caveat. 

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Disclaimers 

All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for education only. Buyer beware,do you own due diligence.

Comments

  1. Anonymous10 February 2023 at 21:19

    Hi,
    I have good news for potential NO voters!

    Wrong information is being posted regarding the "risk" of getting your shares delisted as a NO voter.

    The SGX listing code explicitly foresees a "sell-out right" during 3 months after vote results are in. Hence, no voters can always sell at a price at par with Yes voters.

    Can you share this clearly on all forums, together with the links below?
    Otherwise we might get the tragedy of mis-informed yes voters.

    https://resourcehub.bakermckenzie.com/en/resources/global-public-ma-guide/asia-pacific/singapore/topics/squeeze-out-of-minority-shareholders-after-completion-of-the-takeover

    Or page 499 https://www.bakermckenzie.com/-/media/files/insight/guides/2022/baker_mckenzie_global_public_ma_guide_2022.pdf

    More will follow to coordinate a large (and risk-free) NO vote to get much closer to a fair price. Rest assured.

    How can I contact you ?

    Thanks a lot !

    ReplyDelete

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