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that's true........... nonethess, they either pay out (highly likely) or use the cash to acquire the businesses. (SUTL).
There is little premium in any case so there must be something else. In anycase....this counter will be in play for a long time once the corporate moves are complete.
shplayer ( Date: 10-Dec-2009 09:06) Posted:
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victorian2 ( Date: 10-Dec-2009 08:42) Posted:
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Vic2 post..... "wait for payout of divident....thats usually the deal struck between buyer and seller.."
Seller has sold....henceforth, he will not benefit from any div payout. The moves are now strictly for SUTL to decide and play.
In anycase, I just looked at the buy/sell quotes. They are defintely blocking the price to force sellers out for further accumlation.
So, anyone who wants to buy this sweet baby better have some time horizon to max out profit.
They defintely have more than 23% of the stock. The good thing is they got it damn cheap.
The value of SUTL is defintely much higher from a profitability value so by the time it is injected........my goodness, I wonder how much would Achieva shares be worth by then. name would probably be changed then....
Some good examples...as shplayer has quoted.... Wilmar....from the ashes of Exyhealth.
Looks like I'll sit tight and wait for the payout of the dividend...that's usually the deal struck between buyer and seller....and amongst other goodies for letting go at 12.5c.
shplayer ( Date: 09-Dec-2009 22:54) Posted:
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Totally agreed..
Brilliant move by Arthur Tay, backdoor listing cost bewteen $5.5m to $3.25m only.
nice analysis........thanks shplayer !
Hope to see more analysis by you in future.
Dilution is usually bad for minorities.......but in this case, I believe SUTL can add value to Ach. If its a choice of Ach status quo and Ach with SUTL business injected, I am sure most will agree that the latter is far better.
Look at Wilmar - ex EzyHealth. EzyHealth was a cash company morphed out of the dotcom frenzy....but was a drifitng and floundering directionless penny stock (<10c) . The rest is history.
kittyhawk ( Date: 09-Dec-2009 22:46) Posted:
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wow..nice analysis..thanks shplayer~! Hope to see some action tmr.
Cheers~
Business of SUTL includes:
Distributor of Evian mineral water
Distributer of wines and spirits - penfolds, Stellenzicht, Drostyhof
Distributor of Cigarettes - Dunhill, Benson & Hedges
Perfumes - Lancome, Estee Lauder, Clinique etc.
Franchisee - KFC
Developer - of high end residences
Marina - Owner and developer of One deg 15
http://www.sutl.com.sg/
Without the GO means SUTL only controls 23% of Ach...which is enough to control the company.
The cost of the 23% is $15m.....valuing Ach at $65m.
Given the pedigree of SUTL, the objective of the acquisition is definitely not for the $37m cash sitting in Ach books. It is for the listing status.
Now, what next for Ach.....this is my guess.
1. SUTL will pare down the cash holding of Ach through a divident distribution.....my guess is it will be about 5c....which SUTL will reap about $6m.
2. Post div, Ach will be left with about 2.5c cash for working capital.
3. As Ach business does not fit into SUTL business, it will be sold. My est of FY09 operational eps will be about 1c....or operational profit of about $5m.
4. Sale price of Ach business will be between 3X to 5X earnings......i.e $15m to $25m ($3.45mto $5.75m is attributable to SUTL for their 23% stake). Now, Ach will be a shell Co.
5. SUTL will then inject their business into Ach by issue of additional shares....dilution of other shareholders.
This is brilliant of SUTL......cost of listing status is between $5.5m to $3.25m..........much cheaper and quicker than going thru an IPO route.
As usual, caveat emptor.
What will be the opening proce tomorrow?
hi vic....is this considered as a RTO for SUTL?
victorian2 ( Date: 09-Dec-2009 17:39) Posted:
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SUTL Global is into FMCG and leisure businesses, interesting to see what is in placed with Achieva.
Anyway, Mr Arthur Tay is a reputable businessman.
The Board of Directors (the “
has received notification that Mr Henry Lim Yong Choon (“
of the Company, has today sold his entire shareholding of 121,478,009 ordinary shares, representing
approximately 23.36% of the issued ordinary shares in the capital of the Company at a price of
S$0.125 per share, in a married deal. The buyer is SUTL Global Pte. Ltd. (“
The Company has been informed that SUTL is a lifestyle consumer group and leisure enterprise
Board”) of Achieva Limited (the “Company”) wishes to announce that itMr Henry Lim”), a controlling shareholderSUTL”).New controlling shareholder in town!!!!
This stock is going to be one hot stock in the next 12 mths with new business injection....