"KWAN’s investment in two Thai associates for S$12.3m were sold last year for S$50m, and we expect this sum to be distributed over the next 10 years, doubling the dividend and raising the yield to 11%. The Thai associates were sold to Kaset Thai Industry Sugar (KTIS) for 5% in cash and 95% in shares of KTIS (equivalent to an estimated 3% of KTIS), which is headed for IPO within five months. Being the third-largest sugar miller in Thailand, and the largest listed one, we expect the IPO to perform well, which provides upside to the value of the Thai Associates.
KWAN has no moratorium on the sale of its KTIS shares and thus enjoys full flexibility on the timing of the sale. If KWAN sells its KTIS shares immediately on IPO, its net cash balance would be 74% of its entire market cap...."
And this is from SIAS ...
King Wan increased its stake in Meadows Bright Development Pte Ltd from 35% to 40% recently and now holds an effective stake of 17.5% in the Dairy Farm project. The project is likely to be launched over the next two months and TOP sometime in 2015/2016. The selling price should be around S$1,300 psf while breakeven cost should be around S$1,000. At the same time, the Starlight Suites is about 55-60% sold.
Between Feb to May 2013, King Wan secured six new M&E projects in Singapore worth S$28.4m. They are expected to be completed by 2016. Current order book stood at S$166.6m, similar to that of the previous quarter. Management also highlighted that they have taken the possible hike in labour price into consideration and mitigated it via several measures such as engaging in subcontractors & bidding projects with a slight price buffer.....
.... King Wan had exhibited great investment foresight in the past with its involvement in Cables International, the two Thai Associates and several property developments. We are optimistic about their recent vessel joint venture....."
Thank you whyme? this is great news -- the IPO is going to happen pretty soon. I believe it will be in a matter of weeks or months. The actual listing of KTIS will be the big catalyst for King Wan as it turns its KTIS shares into cold cash for shareholders woohoo!
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