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Chasen holdings could be the next big multiplier

Thanks for your info. Keep alert!

luckyguy3      ( Date: 23-Dec-2023 17:02) Posted: This really reminds me of Addvalue Tech 10 years ago. MANY retail investors were burnt BADLY. Some are still keeping the shares now which they bought at 20-25 cents and now only worth 1 cent. This Chasen deal is worth 4 times the market capitalisation which sounds alarm. News article 10 years back on Addvalue tech: Addvalue deal: do the values add up?, Companies & Markets - THE BUSINESS TIMES Published March 27, 2014 If ever there was an example of a corporate development that was a candidate for a Trade With Caution (TWC) notice from the Singapore Exchange (SGX), it is Addvalue Technologies' latest announcement - PHOTO: SPH Who exactly is the buyer and why would it pay the princely sum of $330m for a subsidiary of a company when that company, even after yesterday' s massive share price rise, still only commands a market capitalisation of about $185m? IF EVER there was an example of a corporate development that was a candidate for a " Trade With Caution" (TWC) notice from the Singapore Exchange (SGX), it is Addvalue Technologies' latest announcement. Addvalue said on Tuesday that it planned to sell its wholly owned subsidiary, Addvalue Communications (AVC), to a China buyer for an astounding $330 million in cash. Since Addvalue' s shares resumed trading yesterday following the announcement, its price has surged 9.4 cents or 149 per cent to 15.7 cents on heavy volume of 198 million shares traded. Clearly, the company has already gone a long way to achieving its goal of rewarding its loyal shareholders, an objective explicitly stated under its " rationale for the disposal" . Setting aside the bounty that shareholders are now enjoying, there are a few burning questions that have to be answered for the benefit of many sceptical observers. Who exactly is the buyer and why would it pay the princely sum of $330 million for a subsidiary of a company when that company, even after yesterday' s massive share price rise, still only commands a market capitalisation of about $185 million? Delve deeper into the numbers and more eyebrows are raised. First, AVC' s net asset value (NAV) as at Dec 31, 2013, was about US$13 million, which means the buyer is paying an incredible premium of 1,883 per cent over the NAV. Even more astonishing is that AVC' s net tangible asset (NTA) value at end-2013 was about US$942,000, which means the purchase premium is 27,419 per cent of NTA. By any standards, these are staggering numbers that beggar belief. Not surprisingly, in the absence of more information, many in the market are asking a) who exactly the buyer might be and b) whether the SGX should either ask the company for more details and/or issue its recently introduced TWC notice, until more details are released. On who the buyer is, details are vague. Addvalue' s announcement provides its name only in Chinese, saying its principal activities " relate to data security and related product development" . Going by hanyu pinyin, the name of the buyer translates to Tiancheng Hengsheng (Beijing) Technology Limited, an unlisted software and hardware development company. But this is not conclusive. There is another company that shares the same Chinese characters and goes by the name of Secbase. Secbase' s website says it specialises in computer and network security, similar to the description given by Addvalue. Its products include data destruction systems, mobile terminal protection systems, army file protection systems, email security systems and secure login systems. Secbase has an impressive customer list that includes Jiuquan Satellite Launch Centre, the Second Artillery Corps of China' s People' s Liberation Army (PLA), the PLA air force, China' s Ministry of Foreign Affairs and China National Radio. Addvalue last month announced that another wholly owned subsidiary, Addvalue Innovation Pte Ltd, was appointed by London-listed Inmarsat as a manufacturing partner for the latter' s new maritime satellite service called Fleet One, aimed at the leisure maritime and fishing industry. Based on these, market watchers say that since Addvalue and presumably AVC are involved in developing digital satellite technology, some premium is warranted. This is because there is growing interest in the technology and the associated intellectual property. The question, of course, is how much of a premium should be paid. Addvalue said in its release that the price was determined based on an arm' s length negotiation and on normal commercial terms using AVC' s NAV, the fact that payment will be fully in cash, and that the initial 10 per cent deposit of $33 million is non-refundable, subject to certain, as yet, unspecified exceptions. The rest of Addvalue' s release also states that a commission of $15 million will be paid to an unnamed party who introduced the parties and brokered the deal. This party is described as owning less than 5 per cent of Addvalue, and is not related to the directors or substantial shareholders. Also provided are numbers to show the massive boost the deal would give to Addvalue' s financials - if it goes through. So, is a TWC warranted? SGX' s actions over the past fortnight suggest that it only issues these alerts when the company has not made a material disclosure or replies " no" to a query as to whether it has yet to disclose material information. Since Addvalue has already made a significant announcement, this could explain the absence of a TWC on Addvalue' s trading. However, SGX should at the very least ask Addvalue for more information, such as the identities of the buyers and the unnamed broker. More details of what might cause the deal to be called off would also be useful. It was not that long ago (2006-2008) that the local market witnessed several eye-catching, profit-guaranteed deals which involved enormous sums and China counterparties, none of which eventually materialised. We are not suggesting that this same fate will befall the Addvalue deal but given the need for investors to tread with care, the exchange should consider issuing a TWC.

 

This really reminds me of Addvalue Tech 10 years ago. MANY retail investors were burnt BADLY. Some are still keeping the shares now which they bought at 20-25 cents and now only worth 1 cent.

This Chasen deal is worth 4 times the market capitalisation which sounds alarm.

News article 10 years back on Addvalue tech:

Addvalue deal: do the values add up?, Companies & Markets - THE BUSINESS TIMES

Published March 27, 2014
If ever there was an example of a corporate development that was a candidate for a Trade With Caution (TWC) notice from the Singapore Exchange (SGX), it is Addvalue Technologies' latest announcement - PHOTO: SPH

Who exactly is the buyer and why would it pay the princely sum of $330m for a subsidiary of a company when that company, even after yesterday' s massive share price rise, still only commands a market capitalisation of about $185m?

IF EVER there was an example of a corporate development that was a candidate for a " Trade With Caution" (TWC) notice from the Singapore Exchange (SGX), it is Addvalue Technologies' latest announcement. Addvalue said on Tuesday that it planned to sell its wholly owned subsidiary, Addvalue Communications (AVC), to a China buyer for an astounding $330 million in cash.

Since Addvalue' s shares resumed trading yesterday following the announcement, its price has surged 9.4 cents or 149 per cent to 15.7 cents on heavy volume of 198 million shares traded. Clearly, the company has already gone a long way to achieving its goal of rewarding its loyal shareholders, an objective explicitly stated under its " rationale for the disposal" .

Setting aside the bounty that shareholders are now enjoying, there are a few burning questions that have to be answered for the benefit of many sceptical observers. Who exactly is the buyer and why would it pay the princely sum of $330 million for a subsidiary of a company when that company, even after yesterday' s massive share price rise, still only commands a market capitalisation of about $185 million?

Delve deeper into the numbers and more eyebrows are raised. First, AVC' s net asset value (NAV) as at Dec 31, 2013, was about US$13 million, which means the buyer is paying an incredible premium of 1,883 per cent over the NAV.

Even more astonishing is that AVC' s net tangible asset (NTA) value at end-2013 was about US$942,000, which means the purchase premium is 27,419 per cent of NTA.

By any standards, these are staggering numbers that beggar belief. Not surprisingly, in the absence of more information, many in the market are asking a) who exactly the buyer might be and b) whether the SGX should either ask the company for more details and/or issue its recently introduced TWC notice, until more details are released.

On who the buyer is, details are vague. Addvalue' s announcement provides its name only in Chinese, saying its principal activities " relate to data security and related product development" .

Going by hanyu pinyin, the name of the buyer translates to Tiancheng Hengsheng (Beijing) Technology Limited, an unlisted software and hardware development company.

But this is not conclusive. There is another company that shares the same Chinese characters and goes by the name of Secbase.

Secbase' s website says it specialises in computer and network security, similar to the description given by Addvalue. Its products include data destruction systems, mobile terminal protection systems, army file protection systems, email security systems and secure login systems.

Secbase has an impressive customer list that includes Jiuquan Satellite Launch Centre, the Second Artillery Corps of China' s People' s Liberation Army (PLA), the PLA air force, China' s Ministry of Foreign Affairs and China National Radio.

Addvalue last month announced that another wholly owned subsidiary, Addvalue Innovation Pte Ltd, was appointed by London-listed Inmarsat as a manufacturing partner for the latter' s new maritime satellite service called Fleet One, aimed at the leisure maritime and fishing industry.

Based on these, market watchers say that since Addvalue and presumably AVC are involved in developing digital satellite technology, some premium is warranted. This is because there is growing interest in the technology and the associated intellectual property. The question, of course, is how much of a premium should be paid.

Addvalue said in its release that the price was determined based on an arm' s length negotiation and on normal commercial terms using AVC' s NAV, the fact that payment will be fully in cash, and that the initial 10 per cent deposit of $33 million is non-refundable, subject to certain, as yet, unspecified exceptions.

The rest of Addvalue' s release also states that a commission of $15 million will be paid to an unnamed party who introduced the parties and brokered the deal. This party is described as owning less than 5 per cent of Addvalue, and is not related to the directors or substantial shareholders. Also provided are numbers to show the massive boost the deal would give to Addvalue' s financials - if it goes through.

So, is a TWC warranted? SGX' s actions over the past fortnight suggest that it only issues these alerts when the company has not made a material disclosure or replies " no" to a query as to whether it has yet to disclose material information. Since Addvalue has already made a significant announcement, this could explain the absence of a TWC on Addvalue' s trading.

However, SGX should at the very least ask Addvalue for more information, such as the identities of the buyers and the unnamed broker. More details of what might cause the deal to be called off would also be useful.

It was not that long ago (2006-2008) that the local market witnessed several eye-catching, profit-guaranteed deals which involved enormous sums and China counterparties, none of which eventually materialised.

We are not suggesting that this same fate will befall the Addvalue deal but given the need for investors to tread with care, the exchange should consider issuing a TWC.

 

How not to be excited?

0.153 net gain from disposal + 0.166 = theoretical Book Value is 0.319. Price will sure react. Open at 10 cents above seems a certainty on Tuesday.

The big query will be how it was derived at such valuation.

Chansenghoe1971      ( Date: 23-Dec-2023 16:54) Posted: Upon completion of the deal, which is subjected to regulatory approvals, the company can pocket a net gain of around $59.3 million. Based on the company's share base of just over 387 million shares, the sale, if completed at this price, will net a gain of 15.3 cents per share. https://www.theedgesingapore.com/news/company-news/chasen-holdings-sell-stake-subsidiaries-674-million

 

Upon completion of the deal, which is subjected to regulatory approvals, the company can pocket a net gain of around $59.3 million.

Based on the company's share base of just over 387 million shares, the sale, if completed at this price, will net a gain of 15.3 cents per share.

https://www.theedgesingapore.com/news/company-news/chasen-holdings-sell-stake-subsidiaries-674-million

 

Well said! 

Chansenghoe1971      ( Date: 23-Dec-2023 16:23) Posted: For those who miss the boat, may try to talk it down by saying deal not done. So on and so forth The fact is the traits of both Justin and Eddy are one of careful types. Nothing wrong with them. If the deal is abstract, they would never want to announce. They have had lots of deals in the past but never get to announce. Now this deal is near to certainty and they have chosen to announce to be on the safe side. The Crux is probably not whether the deal will or will not be done. The matter at hand is why is the offer so Damn good? 4 times the current market cap. What sort of subsidiaries? What sort of assets left? Impact on the balance financials and balance sheet. Usage of proceeds etc. lots of questions in the air. Come what may, Like it or not, this is STOCK market and is sentiment-driven. This sort of news will move the price. At 0.05 cents it?s has potential to at least double or triple and near to completion or have more information, it may even quadruple if bundle with special fat CNY ang Bao dividends.

 

For those who miss the boat, may try to talk it down by saying deal not done. So on and so forth

The fact is the traits of both Justin and Eddy are one of careful types. Nothing wrong with them. If the deal is abstract, they would never want to announce. They have had lots of deals in the past but never get to announce.

Now this deal is near to certainty and they have chosen to announce to be on the safe side.

The Crux is probably not whether the deal will or will not be done. The matter at hand is why is the offer so Damn good? 4 times the current market cap. What sort of subsidiaries? What sort of assets left? Impact on the balance financials and balance sheet. Usage of proceeds etc. lots of questions in the air.

Come what may, Like it or not, this is STOCK market and is sentiment-driven.

This sort of news will move the price.
At 0.05 cents it?s has potential to at least double or triple and near to completion or have more information, it may even quadruple if bundle with special fat CNY ang Bao dividends.

 

It is like saying nothing is confirmed yet , just talk talk only , if no final confirmation is no deal

Alignment      ( Date: 23-Dec-2023 15:33) Posted: If SGX approval was the only issue that I could understand what the risks are. The one that concerns me in particular in this case is " subject to final agreements" (as separate from regulatory approvals) - that could mean anything without further elaboration. In other large stock exchanges such a phrase would normally be accompanied by details about what is outstanding to secure such approvals, whether it be due diligence, financing etc. The stock exchange would insist on it, to ensure the market is informed appropriately. hschsc      ( Date: 23-Dec-2023 15:23) Posted: Recently few company also announced some action and given a statement said: wait for SGX approval.

 

I read the question raised during the AGM : " Why is Chasen CEO Mr Low paid $500k to $1 million while Chasen net profit for 2023 is only 0.516 mil.....and do the management has shareholders in mind because directors are well paid and shareholders received no dividents for a few years " ...dated 21/July 2023 on Response to Questions from Shareholders. The response from managemet were not convincing.
Look at Jubile- selling assets but shareholders keep waiting n waiting....
SGX should look at all there companies paying big bucks to themself and performing badly and small shareholders suffer with no didvidents for many years.

 

Discussions most likely is on going. They only can release what they can confirm. 

Alignment      ( Date: 23-Dec-2023 15:14) Posted: They should really give more information on the conditionality of the transaction to allow the market to make a more informed view of the likelihood of success.

 

If SGX approval was the only issue that I could understand what the risks are. The one that concerns me in particular in this case is " subject to final agreements" (as separate from regulatory approvals) - that could mean anything without further elaboration. In other large stock exchanges such a phrase would normally be accompanied by details about what is outstanding to secure such approvals, whether it be due diligence, financing etc. The stock exchange would insist on it, to ensure the market is informed appropriately.

hschsc      ( Date: 23-Dec-2023 15:23) Posted: Recently few company also announced some action and given a statement said: wait for SGX approval.  Alignment      ( Date: 23-Dec-2023 15:14) Posted: They should really give more information on the conditionality of the transaction to allow the market to make a more informed view of the likelihood of success.

 

Recently few company also announced some action and given a statement said: wait for SGX approval. 

Alignment      ( Date: 23-Dec-2023 15:14) Posted: They should really give more information on the conditionality of the transaction to allow the market to make a more informed view of the likelihood of success.

 

They should really give more information on the conditionality of the transaction to allow the market to make a more informed view of the likelihood of success. 

 

I' m a shareholder of Chasen. This is good news. Let' s see next Tuesday. 

 

 

Someone missing something here.
Well, they are someone who will only announce when something is concrete. They are not someone who is keen in making a one day share price pop.
Lo and behold. Wait for Tuesday.
I will add if no one buys.
Mark this.

eddyeddy      ( Date: 23-Dec-2023 09:00) Posted: Not a done deal la , but talk like a done deal . luckyguy3      ( Date: 23-Dec-2023 08:28) Posted: Those old bird investors will remember Addvalue tech potential " deal" with a china company worth $20 or 200million? (something like that). Share price shot up  from 5 cents and reached a peak of 25 cents and and many small investors loaded at 20 cents and above..  Then the " deal" never came and MANY small investors kana trapped at 20 cents and above.. I think that was more than 10 years ago.. now share price is 1 cent and many investors still holding on to their shares.

 

Not a done deal la , but talk like a done deal .

luckyguy3      ( Date: 23-Dec-2023 08:28) Posted: Those old bird investors will remember Addvalue tech potential " deal" with a china company worth $20 or 200million? (something like that). Share price shot up  from 5 cents and reached a peak of 25 cents and and many small investors loaded at 20 cents and above..  Then the " deal" never came and MANY small investors kana trapped at 20 cents and above.. I think that was more than 10 years ago.. now share price is 1 cent and many investors still holding on to their shares.

 

Fact: Building Integrated Warehouse
Implication Keeping Core business. Value Retenrion
Latest Disposal: Unlocking Non-Core Asset

The only point I can t fathom is what assets are they unlocking. They might have attempted spin off for years. Perhaps link to these assets. The gain from disposal must be significant to say the least. Sgx will respond with queries for certainty. More stories unfold.

Disposal value of such subsidiaries already more than 4 times market value. What do you think?

Surely they are not divesting the core when they just announced the building of the integrated building with a big bang.

So price will react, like it or not.
For huge holders, this is good news and containment of excitement is a challenge.

hschsc      ( Date: 23-Dec-2023 08:00) Posted: Calm down, " if" the transaction successful， after selling these subsidiaries, what will be left? Where is the value for CS? Chansenghoe1971      ( Date: 22-Dec-2023 22:05) Posted: Correction They should book in huge gain from disposal perhaps $0.12 to $0.15 per share So nav likely be $0.28 Tuesday has to gap up more than $0.10 potentially crossing 0.12. Can t wait We will see

 

Those old bird investors will remember Addvalue tech potential " deal" with a china company worth $20 or 200million? (something like that). Share price shot up  from 5 cents and reached a peak of 25 cents and and many small investors loaded at 20 cents and above.. 

Then the " deal" never came and MANY small investors kana trapped at 20 cents and above.. I think that was more than 10 years ago.. now share price is 1 cent and many investors still holding on to their shares.

 

:) 

SmallSmall      ( Date: 14-Dec-2023 11:01) Posted: NAV $0.168 Cash value $0.047 Hope they can dispose their subsidiaries at a good price. Don' t think will be a firesale as the company is profitable Now trading at cash value @ $0.047 msksmsks      ( Date: 14-Dec-2023 09:11) Posted: people can't wait to unload for stuckist talk doesn't mean wl materialise anything jus be careful

 

Calm down, " if" the transaction successful， after selling these subsidiaries, what will be left? Where is the value for CS?

Chansenghoe1971      ( Date: 22-Dec-2023 22:05) Posted: Correction They should book in huge gain from disposal perhaps $0.12 to $0.15 per share So nav likely be $0.28 Tuesday has to gap up more than $0.10 potentially crossing 0.12. Can t wait We will see Chansenghoe1971      ( Date: 22-Dec-2023 17:51) Posted: Tuesday gap to 7. 10 is easy target now. NAV 0.1