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on a uptrend now..
The Board of Directors of CityAxis Holdings Limited (the "Company") is pleased to announce that further to the Company's announcement on 13 November 2006, the High Court has on 19 December 2006 given its approval and confirmation for the Capital Reduction with the grant of an order to the following effect:-
"That the reduction of the capital of the Company as per the Special Resolution passed by the shareholders of the Company at the Extraordinary General Meeting held on 23 October 2006, and the payment amount in the sum of S$6,750,000.00 to be distributed to the shareholders of the Company pursuant to the said capital reduction (on the basis of S$0.0500 per Share in respect of each of the 135,000,000 issued shares of the Company) as per the Resolution passed by the Board of Directors of the Company dated 13 November 2006, be sanctioned by the Court, specifically that the issued and paid-up share capital of the Company be reduced by an amount of S$6,750,000 (from S$15,334,788 to S$8,584,788) and that such reduction be effected and satisfied by returning to shareholders of the Company, an amount of S$0.05 per share for each share held as at a books closure date to be determined by the Directors."
The Capital Reduction will become effective when a copy of the Order of Court confirming the Capital Reduction has become lodged with the Registrar of Companies and Businesses of Singapore for registration, together with the other documents prescribed under the Companies Act, Chapter 50 of Singapore.
The Company will in due course make a further announcement on (i) when it intends to lodge the said Order of Court together with such other documents as prescribed, and (ii) the date on which the Transfer Books and the Register of Members of the Company will be closed for the purpose of determining the shareholders entitled to the Cash Distribution
"That the reduction of the capital of the Company as per the Special Resolution passed by the shareholders of the Company at the Extraordinary General Meeting held on 23 October 2006, and the payment amount in the sum of S$6,750,000.00 to be distributed to the shareholders of the Company pursuant to the said capital reduction (on the basis of S$0.0500 per Share in respect of each of the 135,000,000 issued shares of the Company) as per the Resolution passed by the Board of Directors of the Company dated 13 November 2006, be sanctioned by the Court, specifically that the issued and paid-up share capital of the Company be reduced by an amount of S$6,750,000 (from S$15,334,788 to S$8,584,788) and that such reduction be effected and satisfied by returning to shareholders of the Company, an amount of S$0.05 per share for each share held as at a books closure date to be determined by the Directors."
The Capital Reduction will become effective when a copy of the Order of Court confirming the Capital Reduction has become lodged with the Registrar of Companies and Businesses of Singapore for registration, together with the other documents prescribed under the Companies Act, Chapter 50 of Singapore.
The Company will in due course make a further announcement on (i) when it intends to lodge the said Order of Court together with such other documents as prescribed, and (ii) the date on which the Transfer Books and the Register of Members of the Company will be closed for the purpose of determining the shareholders entitled to the Cash Distribution
Slowly moving up, just take note..
Business Times - 07 Dec 2006
City Axis: another Wilmar in the making?
By VEN SREENIVASAN
IS CITY Axis - formerly known as ISG Asia - about to 'do a Wilmar'?
Just over a month ago, Salim-controlled Indofood Oil Palm announced a
reverse takeover of ISG Asia, an interior design firm listed on Sesdaq.
Under the terms of the deal, the Indonesian conglomerate plans to inject
some $392 million worth of assets in the edible oil business of Indofood
Sukses Makmur into ISG.
In return, ISG will issue Indofood some 9.9 billion new shares,
representing 98.5 per cent of the new company. ISG will then sell its
existing interior design business to ISG International. The proceeds of the
sale will be distributed back to shareholders at 5 cents per share at a
date to be determined.
Meanwhile, Sesdaq-listed ISG has now been renamed City Axis. But on
completion of the reverse takeover, City Axis will be renamed Indofood Agri
Resources, and its shares will be traded on the main board following a
10-into-1 consolidation. All this is expected to be completed some time in
January.
That's a brief background. What is interesting in all of this is the
uncanny resemblance that this deal has to the reverse takeover earlier this
year of Ezyhealth, which resulted in the creation of mainboard-listed
high-flier Wilmar International.
Just like City Axis, that takeover - led by Wilmar chairman and chief
executive Kuok Khoon Hong - involved the injection of palm oil assets into
a company which was largely trading unnoticed and under the radar screen.
Today, Wilmar appears to be one of the hottest plays on the bourse, with
its price having more than doubled since its listing. So are we seeing
another Wilmar in the making here?
Indofood has an estimated 38 per cent share of Indonesia's market for
branded edible oils and fats by retail value. More interestingly, it is
expanding into commercial production with an eye on the bio-fuels market,
which seems to be the flavour of the moment, amid stubbornly high oil
prices.
But for the moment, it is intent on consolidating its palm oil-related
businesses under a Singapore-listed subsidiary.
The businesses it will inject into City Axis/ISG had a combined revenue of
$613.5 million and net profit of $92.7 million in 2005.
Attractive figures
For the first six months of this year, Indofood oil palm made 285 trillion
rupiah. Assuming the second half remains as strong (indications are it
could be even stronger), and converting to Singapore dollars, this works
out to about S$100 million in FY06 earnings.
The new company will have 10 billion shares, giving it a market
capitalisation of around $2.1 billion, compared with its current value of
around $35 million. Following a 10-for-1 consolidation, this market cap
will be spread over one billion shares.
City Axis is currently trading at around 25 cents. After the 5 cents per
share payout to shareholders, the net price works out to 20 cents. Assuming
earnings of $100 million, this works out to a FY06 price-earnings multiple
of around 20 times.
These are very attractive numbers compared with even high-flying Wilmar,
which is trading at around 32 times estimated FY06 price-earnings multiple,
and over 40 times FY05 earnings.
If the same valuation were to be used, Indofood's new Singapore entity
should have a market capitalisation of some $3 billion, giving City Axis an
imputed price of 35 cents, including the 5-cent payout.
All this is moot at the moment, though, as there is a lot of work to be
done between now and end-January, when the takeover and share restructuring
is completed. But with ISG Asia chief executive Alex Yeunh (who controls
about 37.2 per cent of the company's shares) and other major shareholders
backing the deal, we just could be seeing another Wilmar in the making.
And given how City Axis has been steadily rising in recent weeks, some in
the market appear to have already done their sums
City Axis: another Wilmar in the making?
By VEN SREENIVASAN
IS CITY Axis - formerly known as ISG Asia - about to 'do a Wilmar'?
Just over a month ago, Salim-controlled Indofood Oil Palm announced a
reverse takeover of ISG Asia, an interior design firm listed on Sesdaq.
Under the terms of the deal, the Indonesian conglomerate plans to inject
some $392 million worth of assets in the edible oil business of Indofood
Sukses Makmur into ISG.
In return, ISG will issue Indofood some 9.9 billion new shares,
representing 98.5 per cent of the new company. ISG will then sell its
existing interior design business to ISG International. The proceeds of the
sale will be distributed back to shareholders at 5 cents per share at a
date to be determined.
Meanwhile, Sesdaq-listed ISG has now been renamed City Axis. But on
completion of the reverse takeover, City Axis will be renamed Indofood Agri
Resources, and its shares will be traded on the main board following a
10-into-1 consolidation. All this is expected to be completed some time in
January.
That's a brief background. What is interesting in all of this is the
uncanny resemblance that this deal has to the reverse takeover earlier this
year of Ezyhealth, which resulted in the creation of mainboard-listed
high-flier Wilmar International.
Just like City Axis, that takeover - led by Wilmar chairman and chief
executive Kuok Khoon Hong - involved the injection of palm oil assets into
a company which was largely trading unnoticed and under the radar screen.
Today, Wilmar appears to be one of the hottest plays on the bourse, with
its price having more than doubled since its listing. So are we seeing
another Wilmar in the making here?
Indofood has an estimated 38 per cent share of Indonesia's market for
branded edible oils and fats by retail value. More interestingly, it is
expanding into commercial production with an eye on the bio-fuels market,
which seems to be the flavour of the moment, amid stubbornly high oil
prices.
But for the moment, it is intent on consolidating its palm oil-related
businesses under a Singapore-listed subsidiary.
The businesses it will inject into City Axis/ISG had a combined revenue of
$613.5 million and net profit of $92.7 million in 2005.
Attractive figures
For the first six months of this year, Indofood oil palm made 285 trillion
rupiah. Assuming the second half remains as strong (indications are it
could be even stronger), and converting to Singapore dollars, this works
out to about S$100 million in FY06 earnings.
The new company will have 10 billion shares, giving it a market
capitalisation of around $2.1 billion, compared with its current value of
around $35 million. Following a 10-for-1 consolidation, this market cap
will be spread over one billion shares.
City Axis is currently trading at around 25 cents. After the 5 cents per
share payout to shareholders, the net price works out to 20 cents. Assuming
earnings of $100 million, this works out to a FY06 price-earnings multiple
of around 20 times.
These are very attractive numbers compared with even high-flying Wilmar,
which is trading at around 32 times estimated FY06 price-earnings multiple,
and over 40 times FY05 earnings.
If the same valuation were to be used, Indofood's new Singapore entity
should have a market capitalisation of some $3 billion, giving City Axis an
imputed price of 35 cents, including the 5-cent payout.
All this is moot at the moment, though, as there is a lot of work to be
done between now and end-January, when the takeover and share restructuring
is completed. But with ISG Asia chief executive Alex Yeunh (who controls
about 37.2 per cent of the company's shares) and other major shareholders
backing the deal, we just could be seeing another Wilmar in the making.
And given how City Axis has been steadily rising in recent weeks, some in
the market appear to have already done their sums
Good stronghold today even though the market is down 66 pts.
Jan'07 will be good for this stock..
every 10 CityAxis shares would be consolidated into one consolidated share , and will given 0.05 div for each share
To find the thread, just click on the Forum link on the left and navigate to the Axis forum.
Apologies - don't know how to post it in the other thread.
A bit more info - according to their SGX annoucement, they will be doing a private placement of 400 over million shares, after the share consolidation (price not determined yet), and the total number of shares will then increase from approx 1 billion to 1.4 billion approx. All these will probably take place next yr Jan 07 or thereabout.
Hi investor,
Thanks for the info. Perhaps you would like to re-post in the "CityAxis" thread.
This counter has potential. However, it has a smaller plantation land bank than Wilmar. A catalyst would be a merger with another company.
Well, this one sure got buying potential , but need to wait for a while like Wilmar..
Found a bit more details abt the company. It does have palm oil plantations, a landbank of 138,500 hectares, with approx 63,000 hectares of palm oil.
Its landbank will eventually reach 224,000 hectares, and its long term objective is to have a total planted area of 250,000 hectares by 2015.
It actually make S$103 million in FY2005, on a revenue of S$613 million. Based, on a price of 0.27 cents, its, with a 5 cents special div, its pe ratio is approx 22 times. I dont know what the earning will be for FY 2006.
Wilmar has a projected PE of nearly 40 times for FY 2006 (base on GK goh report of eps 5.2 cents and current price of 2.05). However based on GK Goh projection of eps of 10.5 cents for FY2007, Wilmar PE ration will drop to approx 20 times.
This does not take into account its recent proposed merger with PPB palm oil and asset injection.
Lousy volumes .... also may be on a downtrend soon
City Axis was the subject of a business times article dated 7 dec 2006, asking the same question -Is it another Wilmar ?.
Based on the info provided, after the asset injection, the new company will have approx 1 billion shares (after consolidation), with revenue of S$613 million, and net profit of S$92.7 million, base on FY2005.
Indications are that it will probably make S$100 million net profit for FY2006, based on the current 1st half yr results.
The new company has a 38 % share of Indonesia's mkt for branded edible oils, and fats by retail value, and it is suppose to have plans to go into bio-fuel mkt, like Wilmar.
At closing price of 0.27 cents, and the fact that it will return 5 cents to shareholders, after the share consolidation (10 become 1), it is probably trading at PE of 22 times, approximately, whereas Wilmar was supposed to be trading at PE of 32 times for FY 2006, at the time that the BT article was written.
However, at the present moment, details are rather sketchy, like do they own plantations like Wilmar, do they have expertise to manufacture bio-fuel, etc ?
Restructurung is scheduled for completion in end Jan 2007, according to the BT article.
CityAxis Holdings Limited (CityAxis) had received approval in-principle from the SGX-ST for its acquisition of PT Indofood Sukses Makmur Tbk's (PT ISM) oil palm plantations and edible oils and fats business. The total consideration is S$392.7 million, which would be satisfied by the issue of 9.982 billion new CityAxis shares. Pursuant to the Reverse Take Over (RTO), every 10 CityAxis shares would be consolidated into one consolidated share, and CityAxis will have an issued share capital of S$397.7 million divided into 1, 011.7 million consolidated shares. Subject to approval, CityAxis will be renamed Indofood Agri Resources Ltd (IndoAgri). With its large market capitalisation, IndoAgri is expected to be one of the largest listed companies on the SGX-ST.
Another Wilmar in the making?? Any comments? News ??