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what constitute the selldown? dividend ex? well not sure if may still sustain at this level. it could fall to 4?
Thanks tiandi,
I am vested in this counter, I will continue to hold on for some good news (on rights issues or special dividends), I understand that Isetan (S), is cash rich. Thanks, Regards, mirage.
hi mirage,
as divvy was 1.5, when xd today, the 'equivalent price compare with friday close of 6.9 is = 6.9-1.5=5.40".
This morning Mr Market determined to set the price around 5.35+/- 0.1, this said that this counter is still holding onto last friday's price. Volumne is small though.
good luck.
Can someone please help to calculate the price of Isetan (S) after XD? Closing price on 04.05.2007 friday is 6.90. This morning it went as low as 5.30 down by 1.60. Thanks for your help. Regards, Mirage.
I certainly hope so because vested at $5.60. To contra some losses during bloodbath:)
It should still move up slightly with such strong div payout
Now that Isetan has announced a bonus dividend of $1.50 per share thereby using some of the tax credit.. share price is at $6.60...
time to sell? or likely go up further? Need advice..
Isetan hit a high of 6.50 today, one of the top gainer today. !!!!!!!
Yah... lausk22 is right... volumes are really sluggish. Not too good for traders.
but volume not too exciting...
Isetan is up 0.30 today, it reach a high of 5.80...
Isetan (S) is up 0.15 cts today, I am vested.
Looks like no one is interested in Isetan though it has a cash hoard of 95.8 million S$. Will the company distribute this to shareholders before 31st Dec 2007??? FA gurus, any views.
Anyone looking at Isetan???? Is this counter worth to invest in ????
News out in BT today & see also SGX announcement by the co.
Business Times - 11 Jan 2007
Isetan minorities fail to unseat directors
Company reveals it has appointed adviser to look into tax credit issue
By WONG WEI KONG
MINORITY shareholders of Isetan (Singapore) failed yesterday in their bid to unseat the independent directors of the company, but still made their point that the board should look after their interests, particularly over the controversial subject of Isetan's tax credits.
Around 200 people attended the extraordinary general meeting (EGM) requested by a group of disgruntled minority shareholders to remove independent directors Tan Boen Ho, Tan Boen Hian and Adrian Chan Pengee, and to appoint Tan Lye Huat, Eng Guan Siah and Soh Suwe in their place.
The minority shareholders had claimed that the serving independent directors have neglected the interests of minorities, with their unhappiness centring around Isetan's failure so far to use up its $61 million in Section 44 tax credits - which expires at the end of 2007 - by paying out dividends to shareholders.
Isetan could pay up to $305 million in tax-franked dividends, based on the current corporate tax rate of 20 per cent, and shareholders stand to gain both from the dividends received as well as the tax refund that many will get from the payout. The stumbling block appears to be that if dividends were paid, parent Isetan Tokyo would have to foot a huge tax bill on these dividends as Japan has a higher tax rate than Singapore.
With parent Isetan Tokyo controlling 61 per cent of the Singapore company - the resolutions to remove and appoint new directors require a simple majority to be carried - the outcome of the EGM was never seriously in doubt. Still, Mr Eng, the spokesman for the group of minority shareholders, felt that the effort was worthwhile.
'It's expected,' Mr Eng said of the voting results. 'We're very happy. That the EGM was held in itself is a victory. It is very positive that the board says it is looking into the tax credits. They have hired tax advisers. They are very serious.'
A less sanguine Mr Soh, who had offered to be paid a nominal $1 if he was elected an independent director, said he was 'disappointed they have decided to keep the door closed'.
Mr Eng said the minority shareholders will discuss their next course of action, which could include calling another EGM.
In addition to the removal of the directors, the minority shareholders had asked Isetan to table other resolutions to pay out a $2 dividend, which would use up some of the tax credits and have a rights issue, and to stop all royalty payments to Isetan Tokyo.
The company, however, did not table these at the EGM. 'The other matters were not appropriate to be tabled before shareholders,' independent director and lawyer Mr Chan told shareholders at the start of the meeting, saying Isetan had sought legal advice.
Still, the question of tax credits and dividends was very much on the agenda. While there were no fireworks, the EGM, which stretched over two hours, saw minority shareholders chiding the Isetan board for their apparent tardiness in handling the Section 44 issue.
'For the past four or five AGMs, we have brought up these issues to the board. Each time, the board says it has been noted. I hope after this EGM the board will not say 'noted' again, because time is running out,' said Mr Eng.
'This is Isetan Singapore. Isetan Singapore must look after all shareholders, not just Isetan Tokyo,' he told the board.
Other minority shareholders urged the board to explore ways to find a solution, such as a capital reduction, a dividend and rights issue, and setting up an intermediary company to resolve the tax issue facing Isetan Tokyo.
Board members took pains to explain the constraints facing the company and emphasised their commitment to resolve the issues. Isetan chairman Toshiaki Nakagawa said he has explained the Singapore situation to the board of Isetan Tokyo.
'Isetan Singapore is very, very serious about studying the Section 44 issue and also the tax issue in Japan and in Singapore,' Mr Nakagawa said. He also stressed the importance of finding a compromise. 'The cooperative approach is very important. The fighting approach is very bad.'
Independent directors Tan Boen Ho and Mr Chan highlighted the need to strike a balance between the interests of majority and minority shareholders.
Mr Chan, a minority shareholder himself, revealed that Isetan has appointed a tax adviser to advise the company not just in Singapore but in Japan. 'The issues are not simple ones and you have to give us time to work through them.'
'We are all painfully aware of the deadline. You have to be patient and trust us to find the best balance. We're still considering the issue. We never said we will not do it or that it is something we do not favour.'
Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.
By WONG WEI KONG
MINORITY shareholders of Isetan (Singapore) failed yesterday in their bid to unseat the independent directors of the company, but still made their point that the board should look after their interests, particularly over the controversial subject of Isetan's tax credits.
Around 200 people attended the extraordinary general meeting (EGM) requested by a group of disgruntled minority shareholders to remove independent directors Tan Boen Ho, Tan Boen Hian and Adrian Chan Pengee, and to appoint Tan Lye Huat, Eng Guan Siah and Soh Suwe in their place.
The minority shareholders had claimed that the serving independent directors have neglected the interests of minorities, with their unhappiness centring around Isetan's failure so far to use up its $61 million in Section 44 tax credits - which expires at the end of 2007 - by paying out dividends to shareholders.
Isetan could pay up to $305 million in tax-franked dividends, based on the current corporate tax rate of 20 per cent, and shareholders stand to gain both from the dividends received as well as the tax refund that many will get from the payout. The stumbling block appears to be that if dividends were paid, parent Isetan Tokyo would have to foot a huge tax bill on these dividends as Japan has a higher tax rate than Singapore.
With parent Isetan Tokyo controlling 61 per cent of the Singapore company - the resolutions to remove and appoint new directors require a simple majority to be carried - the outcome of the EGM was never seriously in doubt. Still, Mr Eng, the spokesman for the group of minority shareholders, felt that the effort was worthwhile.
'It's expected,' Mr Eng said of the voting results. 'We're very happy. That the EGM was held in itself is a victory. It is very positive that the board says it is looking into the tax credits. They have hired tax advisers. They are very serious.'
A less sanguine Mr Soh, who had offered to be paid a nominal $1 if he was elected an independent director, said he was 'disappointed they have decided to keep the door closed'.
Mr Eng said the minority shareholders will discuss their next course of action, which could include calling another EGM.
In addition to the removal of the directors, the minority shareholders had asked Isetan to table other resolutions to pay out a $2 dividend, which would use up some of the tax credits and have a rights issue, and to stop all royalty payments to Isetan Tokyo.
The company, however, did not table these at the EGM. 'The other matters were not appropriate to be tabled before shareholders,' independent director and lawyer Mr Chan told shareholders at the start of the meeting, saying Isetan had sought legal advice.
Still, the question of tax credits and dividends was very much on the agenda. While there were no fireworks, the EGM, which stretched over two hours, saw minority shareholders chiding the Isetan board for their apparent tardiness in handling the Section 44 issue.
'For the past four or five AGMs, we have brought up these issues to the board. Each time, the board says it has been noted. I hope after this EGM the board will not say 'noted' again, because time is running out,' said Mr Eng.
'This is Isetan Singapore. Isetan Singapore must look after all shareholders, not just Isetan Tokyo,' he told the board.
Other minority shareholders urged the board to explore ways to find a solution, such as a capital reduction, a dividend and rights issue, and setting up an intermediary company to resolve the tax issue facing Isetan Tokyo.
Board members took pains to explain the constraints facing the company and emphasised their commitment to resolve the issues. Isetan chairman Toshiaki Nakagawa said he has explained the Singapore situation to the board of Isetan Tokyo.
'Isetan Singapore is very, very serious about studying the Section 44 issue and also the tax issue in Japan and in Singapore,' Mr Nakagawa said. He also stressed the importance of finding a compromise. 'The cooperative approach is very important. The fighting approach is very bad.'
Independent directors Tan Boen Ho and Mr Chan highlighted the need to strike a balance between the interests of majority and minority shareholders.
Mr Chan, a minority shareholder himself, revealed that Isetan has appointed a tax adviser to advise the company not just in Singapore but in Japan. 'The issues are not simple ones and you have to give us time to work through them.'
'We are all painfully aware of the deadline. You have to be patient and trust us to find the best balance. We're still considering the issue. We never said we will not do it or that it is something we do not favour.'
Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.
Dear TA / FA gurus, members, anyone got any views for Isetan (S)?? Today's paper on Jan 11, 2007 pg 28, says, " All eyes will be on Isetan's full-year results scheduled for release next month to see how the company deals with it's cash hoard of S$95.8 million. Around 90% of the cash is in fixed deposits. For 2005, about $14.4 million was distributed in the form of a 17.5-cents-per-share special dividend and an ordinary dividend of 7.5 cts. per share.