Chasen
Last:0.186
+0.001
Chasen holdings could be the next big multiplier
Post Reply
1261-1280 of 1739
this deal?
Godwinlow ( Date: 28-Dec-2023 15:37) Posted:
Thank you for the article
SmallSmall ( Date: 28-Dec-2023 15:22) Posted:
CHASEN: Eye-catching buyout is Xmas present for shareholders?
Leong Chan Teik
25 December 2023
This is one of the most eye-catching buyouts in a long time among Singapore-listed stocks.
A small-cap company gets an offer to buy 72% of some of its subsidiaries for almost 4X the company' s recent market cap.
 Relocating sophisticating manufacturing equipment is a core business of Chasen.
In what could be a Xmas present for shareholders, Chasen Holdings (market cap: S$18 million) announced after the market closed last Friday that it had accepted an offer of S$67,401,360 from " an international company" .
That values Chasen in its entirety at at least S$94 million (based on 72% of some -- not all -- of Chasen' s subsidiaries), or 5X its recent market cap.
S$&rsquo m
|
FY20
|
FY21
|
FY22
|
FY23
|
Net profit
|
-15.2
|
3.4
|
4.3
|
2.1
|
Dividend
|
0
|
0
|
0
|
0
|
The stock traded in the 4-6 cent range this year while its 5-year high was around 9 cents.
The stock performance sort of reflects Chasen' s track record of dividends and earnings, which has not been scintillating (see table). |
 But where Chasen was strong in was its net asset value -- which stood at 16.8 cents per share as at end-Sept 2023, translating into S$65 million of value.
Its property, plant and equipment on the balance sheet stood at S$95.8 million while an investment property was valued close to S$1 million.
Chasen said the buyout offer it received is on a " cash-free and debt-free basis" .
That means the buyer will not assume any debt on the subsidiaries' balance sheet nor will the buyer get to keep any of the cash.
Chasen said the net amount it expected to receive will be approximately S$59,261,760. (This is presumably after deducting professional fees and what not).
The deal sounds pretty firm at this stage and appears to be a sequel to Chasen' s attempt, some 4 years ago, to spin-off 2 subsidiaries on the Hong Kong stock exchange. (See: CHASEN: Progressing towards spin-off of 2 subsidiaries)
At that time, then Non-Executive Chairman Eric Ng said: &ldquo Right now, if you add up the value of all the subsidiaries, they far exceed the value of the parent company. So, the only thing to do is to let the subsidi aries go to realise the full value of the Group.&rdquo
Of course, Chasen said the recent buyout offer is " still subject to final agreements as well as the necessary approvals and clearances from all required governmental and regulatory bodies and any other third-parties and the shareholders of the Company."
Chasen added the customary (but important) caveat: " The Board wishes to emphasize that there is no certainty or assurance that any transaction will occur."
Chasen did not say, among other things:
&bull .... what the identity of the buyer is.
&bull .... which subsidiaries are covered by the deal.
&bull .... how the buyout valuation was arrived at.
&bull .... what it will do with the cash windfall.
&bull .... what Chasen' s financial structure looks like post-completion. |
Lots of questions are outstanding and until there are answers, presumably when the above-mentioned hurdles are cleared, the market will be sitting on edge and some speculation will drive people' s decisions to buy or sell or hold the stock.
On the use of the cash windfall, investors naturally want to know if special dividends are coming.
It' s relevant to consider that Chasen is pursuing a large investment to grow its logistics business.
In Sept this year, the company held a ground-breaking ceremony for a new facility -- an integrated logistic warehouse cum corporate HQ -- in Singapore, which will cost S$78 million.
|
|
|
|
if the deal comes true shd be x 4 correct? dydd
wooncs8870 ( Date: 05-Jan-2024 11:22) Posted:
What are the chances of the share price breaking through 0.10 today?
tofudidi ( Date: 05-Jan-2024 11:19) Posted:
| Dyodd.. 100 is coming. Not for weak heart. |
|
|
|
What are the chances of the share price breaking through 0.10 today?
tofudidi ( Date: 05-Jan-2024 11:19) Posted:
| Dyodd.. 100 is coming. Not for weak heart. |
|
Dyodd.. 100 is coming. Not for weak heart.
The price is trying hard to break through 0.099 a few times and not successful. Keep on trying until it breaks through the barrier, only them it can go on to 0.103
really memory of The Place when i got burn badly...dare not short...dydd
Slowturtle ( Date: 05-Jan-2024 10:29) Posted:
T-5 ago was a down day at $0.071 and $0.073. Those who shorted and hoping for miracle to get out already lost a tonne.
ThankYou ( Date: 05-Jan-2024 10:09) Posted:
| Buy in is T+2, T+5 for those contra who needs to sell |
|
|
|
T-5 ago was a down day at $0.071 and $0.073. Those who shorted and hoping for miracle to get out already lost a tonne.
ThankYou ( Date: 05-Jan-2024 10:09) Posted:
Buy in is T+2, T+5 for those contra who needs to sell.
Slowturtle ( Date: 05-Jan-2024 09:50) Posted:
| What issit about T+5? You mean buy-in by SGX? Those who naked short are in the hands of SGX buy-in at price higher than last traded price on buy-in time. Not worth it |
|
|
|
Hohoho.. break 100 next week good start
Buy in is T+2, T+5 for those contra who needs to sell.
Slowturtle ( Date: 05-Jan-2024 09:50) Posted:
What issit about T+5? You mean buy-in by SGX? Those who naked short are in the hands of SGX buy-in at price higher than last traded price on buy-in time. Not worth it.
ThankYou ( Date: 05-Jan-2024 09:45) Posted:
|
|
|
What issit about T+5? You mean buy-in by SGX? Those who naked short are in the hands of SGX buy-in at price higher than last traded price on buy-in time. Not worth it.
ThankYou ( Date: 05-Jan-2024 09:45) Posted:
|
Cannot judge the buy/sell queue volumes. Can be fake. You never know who is in it with deep pockets. Contra players who cannot stomache the volatility can be bruised badly.
wooncs8870 ( Date: 05-Jan-2024 09:31) Posted:
Do you mean the thin buy queue and thick sell queue is just a smoking screen tp force sellers to sell lower?
Chansenghoe1971 ( Date: 05-Jan-2024 09:27) Posted:
| Never be tricked by the thin buy queue and the thick sell queue |
|
|
|
Is today considered T+5?
The price is very close to 0.10 and once it breaks through this barrier, it might end up higher at 0.103 today
Do you mean the thin buy queue and thick sell queue is just a smoking screen tp force sellers to sell lower?
Chansenghoe1971 ( Date: 05-Jan-2024 09:27) Posted:
| Never be tricked by the thin buy queue and the thick sell queue |
|
Okay I will help take down a bit of it.
Chansenghoe1971 ( Date: 05-Jan-2024 09:09) Posted:
| 4kk shares at 0.10 will be taken down |
|
Never be tricked by the thin buy queue and the thick sell queue
If more pessimists keep shorting, may reach 0.10.
Will the share price hits 0.10 today?
Chansenghoe1971 ( Date: 05-Jan-2024 09:09) Posted:
| 4kk shares at 0.10 will be taken down |
|
Rocket losing propulsion today.
4kk shares at 0.10 will be taken down
