RafflesH   

Sale of Raffles City

All vested holders believe to have got their $$$, so price hanging around at $0.70 is at best what future vested holder can get.

 

Inaddition to after the capital reduction paidout of $0.70 in Oct 06, In the EGM, RH announced that an exit plan with some cash distributions to the  shareholders to delist the company. Is this true that some more peanuts are giving out ? Can somebody advise.

 

Summing it up, in short, well done, thks for d explanation shplayer(Member)

 

Hey Guys,

Seems that some of you are not aware of whats going on with RH.

After the sale of the hotel chain last year, RH was left with their only substantal asset of 45% of Tincel Prop (TP) which owns the Raffles City Mall and the 2 hotels...in that complex..think is the Swissotel Stamford and Raffles Plaza.

On 19 Mar 2006, Co announced their intention of TP to sell Raffles City to CapMall and CapComm Trusts (REITS). With this sale, RH will be left with cash and no other substantial asset. RH intends to distribute all their net cash to shareholders and delist the Co.  

On 13 June, Co announced that the cap distribution and div will be up to 70cts...... to be finalised after 30 Sep.

So, there is no more play/story on RH...price of RH 68cts....after Sep, you will get up to 70cts.So, you buy now @ 68cts, wait 4-5 mths get back 70ct...capital tied up for 2cts less buy/sell costs.....no meaning lah....

 

What will happen to the shares if the company decides to delist?

Will the company have to buy back all the shares in the market or compensate the shareholders?

 

Just wondering Friday closed at $0.68 and R.holding is giving out up to $0.70, so there is a up to -2 cents liao, how to do trading that ? no logic. feeling that RH is going for delisting isit ??

 

keep a close watch on this one... I believe there's going to be a sudden price change soon.

 

Market price is now 0.69.  I bought it at 0.715  three mths ago in anticipation of getting 0.73 back. Now it says giving you back 0.70. How to get excited over this?  But consolation : I got $200 for the recent dividend payout and I can also get back my investment at the end of the year.

 

I am puzzle despite the intention to give out 70 cents dividend, the price for RH did not reflect excitement. Why is this so? Can anybody help to enlighten me? Tks.

 

Extracted from my blog http://kelongstocks.blogspot.com please visit my blog for full writeup do remember to support my blog :) Summary Sale of Raffles City building to Capital Commercial Trust by 45% owned Tincel Properties. Sale price = $2.085b. Raffles Holdings receives only $924.3m after transaction costs since it only has 45% interest in Tincel Properties. Raffles Holdings earns $435.1m on net gains from this divestment. Balance sheet shows Raffles Holdings has about $620m in net assets (mostly cash) excluding the proceeds of this sale. This is taking into account any profits accrued since the beginning of this year, assume 2.5 months of profits or about $8m.