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68 Holdings Pte Ltd, a company owned by hotelier Ong Beng Seng (above) and Wheelock Properties, is making a mandatory cash offer to buy Hotel Properties Limited (HPL) at S$3.50 a share - PHOTO: SPH
At S$3.50 a share, the offer price represents a 11.82 per cent premium to HPL' s last traded price on April 11, 2014.
The offer follows 68 Holding' s agreement on Monday to buy a total of 213.98 million HPL shares, representing a 41.91 per cent stake at S$3.50 each.
It will buy an 18.44 per cent stake from Ong Beng Seng (OBS), Reef Holdings Pte Ltd and Como Holdings Inc., which are companies controlled by OBS. Another 0.32 per cent will be bought from Christina Ong, Mr Ong' s spouse.
Mandatory Conditional Cash Offer for Hotel Properties Limited
1.1 Standard Chartered Bank (&ldquo SCB&rdquo ) wishes to announce, for and on behalf of 68 Holdings Pte.
Ltd. (&ldquo 68 Holdings&rdquo or the &ldquo Offeror&rdquo ), that:
(i) the Offeror has on 14 April 2014 agreed to purchase an aggregate of 213,980,130
ordinary shares (the &ldquo Sale Shares&rdquo ) in the capital of Hotel Properties Limited (&ldquo HPL&rdquo ),
representing approximately 41.91 per cent. of the ordinary shares in the capital of
HPL (&ldquo HPL Shares&rdquo ) in issue1, at S$3.50 for each Sale Share from the following
persons:
1.2 The Offeror is a private limited company incorporated in Singapore on 14 February 2014, in
which Cuscaden Partners Pte. Ltd. (&ldquo Cuscaden&rdquo ) has a 60 per cent. interest, and Nassim
Developments has a 40 per cent. interest. Cuscaden is an investment holding company in
which OBS has a 90 per cent. interest and DB has a 10 per cent. interest. OBS is the
Managing Director and a substantial shareholder of HPL. DB is a director of various entities,
including, but not limited to, the Offeror, 98 Holdings Pte. Ltd. and NSL Ltd. Nassim
Developments is an indirect wholly-owned subsidiary of Wheelock Properties (Singapore)
Limited (&ldquo Wheelock Singapore&rdquo ). Cuscaden and Nassim Developments have formed a
consortium (the &ldquo Consortium&rdquo ) in connection with the Offer and have entered into an
investors&rsquo agreement (the &ldquo Investors&rsquo Agreement&rdquo ) with the Offeror to set out their respective
rights and obligations in the Consortium. Further information on the Consortium is set out in
paragraph 3 of this Announcement.
2. THE OFFER
2.1 In accordance with Section 139 of the Securities and Futures Act, Chapter 289 of Singapore
and Rule 14.1(a) of the Code, subject to the terms and conditions set out in the offer
document to be issued by SCB on behalf of the Offeror (the &ldquo Offer Document&rdquo ), the Offer will
be made by the Offeror on the following basis:
For each Offer Share : S$3.50 in cash (the &ldquo Offer Price&rdquo )
http://infopub.sgx.com/FileOpen/HPL_Offer_Announcement.ashx?App=Announcement& FileID=291578
Just received the annual report. HPL is doing very well :)
not too sure if anybody noticed this counter, but it was called for trading halt this morning. prior to this halt, wheelock properties, which owns about 20 over percent of hotel properties was halted on sunday night. likely scenarios are:
1) Buyout of HPL - buyer likely to be either Ong Beng Seng (owns over 30 percent of HPL, which have been accumulating shares at current price), or Wheelock Properties
2) Substantial Merger and Acquisition
Just a contemplation of likely scenarios which may not materialise, because it could be coincidental that wheelock and HPL both have some announcement to make but are not related to each other =]
but i see the above most likely. =]
By Philip Teo
Tue, 8 Apr 2014, 11:13:53 SGT
Bullish break suggests further recovery
Key resistances taken out.
Hotel Properties Ltd could see more upside ahead after initiating strong bullish breaks above both its 1-year downtrend resistance and $3 key resistance on heavy volume yesterday.
Indicator turning bullish.
The MACD has also just initiated a sharp bullish crossover this suggests that the upside momentum is accelerating.
Target price at $3.60.
The counter could recover further towards the next key resistance at $3.60 (key peak) in the weeks ahead.
Stop loss level at $2.90.
Meanwhile, we advocate a stop-loss exit around $2.90, which is slightly below the newly established resistance-turned-support of $3. ...last:$3.11...
below NAV buy..$3.53
gd luck dyodd
HPL latest results ...... pretty decent.
For the year ended December 31, 2012, the Group achieved a revenue of $542.8 million, which is 10% higher than the $493.8 million recorded last year. The increase was mainly attributable to income recognition from the Tomlinson Heights condominium development on percentage of completion basis as well as better performances by the Group's hotels and resorts, especially those in Singapore and the Maldives. The Group's share of results of associates and jointly controlled entities has also improved significantly from $33.1 million for year 2011 to $52.6 million for the year ended December 31, 2012, mainly due to higher profit recognized from The Interlace condominium development at Alexandra Road, Singapore, and d'Leedon condominium development at Farrer Road, Singapore. During the year under review, the Group has made investments in various new associates and jointly controlled entities including Bilila Lodge, Tanzania, which had recently been reflagged as Four Seasons Safari Lodge Serengeti, Gili Lankanfushi, Maldives, Westcliff Hotel, Johannesburg, and a property at Old Burlington Street, London. This has attributed to the increase in Associates and jointly controlled entities balance in the Group's Statement of Financial Position.
Group profit before tax and fair value changes in investment properties for the year ended December 31, 2012, was $131.9 million compared to $91.9 million last year.
The global economic outlook remains uncertain. Competitive pressure on room rates and escalating operating costs are also some of the challenges expected for the Group's hotel business. The Group will continue its strategy of owning and operating hotels and resorts under strong hospitality brands and in diversified locations. On the property front, the Singapore market has been dampened by the series of cooling measures implemented by the government. Nevertheless, the demand for quality developments in good locations is expected to be sustainable, especially from first-time local buyers.
The Board of Directors has recommended a first and final one-tier tax exempt cash dividend of 4 cents per ordinary share, and a one-tier tax exempt special dividend of 3.5 cents per ordinary share, in respect of the current financial year reported on. Payment of the said dividend is subject to the approval of shareholders at the forthcoming Annual General Meeting.
Cooling measure has little impact on HPL.
Grossly undervalued HPL is for privatisation play.
guoyanyunyan ( Date: 14-Jan-2013 16:22) Posted:
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Overseas Union Enterprise Ltd. (LJ3.SG) said Wednesday it has given an unnamed party exclusive rights to conduct preliminary due diligence for a potential purchase of a hotel and shopping mall owned by the
Singapore developer.
After approaches from several parties, OUE " has offered a potential buyer exclusivity to conduct preliminary due diligence on Mandarin Orchard Singapore and Mandarin Gallery," the developer said in a statement
filed with the Singapore Exchange.
OUE said it hasn't made a firm decision to sell the two properties, which are located in Singapore's prime Orchard Road retail district. It didn't offer potential sale values for the two properties.
U.S. property fund manager Pramerica may be partnering the Abu Dhabi Investment Authority to bid for the properties, Singapore's Business Times reported earlier Wednesday, citing unnamed sources.
The 1,051-room Mandarin Orchard Singapore was valued at 1.18 billion Singapore dollars (US$963 million) at the end of 2011, according to the report. Mandarin Gallery, a shopping mall with more than 196,000
square feet in gross floor area, was valued at S$520 million, it added.
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If Mandarin Hotel sitting on 50 odd years lease is priced at $1.13m per room, the value of HPL portfolio of hotels on freehold land would be greatly enhanced.
Contd:
But even setting aside the re-valuation proposition, there are two more potential scenarios for HPL.
HPL’s properties - comprising its two prime hotels, Forum and HPL House - sit on a 2-hectare tract of land straddling the prime Orchard Road belt. At the western tip stands Wheelock Place, owned by the Wheelock group which controls 20 per cent of HPL. Also, there is the Anguilla Carpark, which sits between Four Seasons Hotel and Wheelock Place.
There has long been market speculation that at some point in time, sleepy HPL will stir from its slumber and look at redeveloping its Orchard properties. Such a redevelopment master plan could envisage the tearing down, relocation and rebuilding of all the existing HPL properties on Orchard Road into a contiguous lifestyle, shopping, hotel and residential development stretching from Cuscaden Road to Anguilla Park. Analysts estimate that such a redevelopment would yield a gross floor area of more than 1 million square feet and a market value well in excess of $2 billion, or $4 per share.
But HPL has shown little inclination so far to do much more than sit patiently on its precious assets.
However, market circumstances in Singapore have changed dramatically over the past decade. Today, Singapore is much more cosmopolitan and crowded. Could that prompt a strategy rethink within the company?
If not, there is always the potential that its elusive controlling shareholder, Ong Beng Seng (who together with his family owns 45 per cent), could initiate a privatisation of the company. Another 41 per cent is tightly controlled by another 20 shareholders, including 20 per cent held by Wheelock group.
The latter certainly has enough cash to support a privatisation. Privatisations have been the rage lately for undervalued, under-appreciated and tightly controlled companies.
Given the fast-evolving market conditions, the folks running HPL will have to decide - sooner, rather than later - what to do about its hugely undervalued but precious assets. Mr. Ong is one of Singapore’s - if not the world’s - most savvy and best-connected businessmen. When he makes his move, the market will move with him.
Spotlight falls on low-profile Hotel Properties
Ven Sreenivasan
15 September 2012
The recent successful listing of Far East Hospitality Trust (FEHT) - which attracted a subscription rate of over 30 times - has thrown the spotlight on the somewhat low-profile and under-researched Hotel Properties Ltd (HPL).
In a July 12 Maybank-Kim Eng report, analyst Alison Fok noted that Orchard Parade Holdings’ spin-off of Orchard Parade Hotel into Far East Hospitality had yielded a gain of $702 million for the listed entity. Turning to HPL’s own significant asset holdings - including two prime hotels in the Orchard Road belt - her report concluded that there was a huge “undervaluation of HPL’s assets in the Orchard Road area”.
Not surprisingly, activity in HPL’s stock has picked up significantly, with the counter now surpassing Ms Fok’s own target price of $2.75.
FEHT effectively encapsulates Far East group’s assets worth some $1.5 billion, re-valuing its 388-room Orchard Parade Hotel, which has a lease of 50 years, at $1.1 million per room key.
HPL’s own properties include the freehold Hilton Hotel, the 999-year leasehold Four Seasons Hotel and the 99-year leasehold Concord Hotel. Its other properties include the freehold Forum mall next to the Hilton, HPL House and Ming Arcade at Cuscaden Road, and the Concorde Shopping Mall. On the residential front, there is the 36-storey Tomlinson Heights, and shares in The Interlace and d’Leedon. It will soon be launching Beverly Mai, which was bought some six years ago. It also has about two dozen other good-class properties, comprising predominantly hotels, in Malaysia, Maldives, Thailand and Indonesia.
HPL has never re-valued its books to account for the appreciation of its properties, which were mostly bought in the 1980s and 1990s.
The FEHT restructuring and listing valued Orchard Parade Hotel at $1.1 million per room key. Applying a conservative 20 per cent premium to this valuation - to account for the fact that HPL’s hotels have much longer leases - would yield a valuation of $1.32 million per room key. Applying this to its three Singapore hotels - comprising 1,083 rooms - would place their value at about $1.43 billion.
HPL carries the three hotels in its books for some $440 million, or about 28 per cent of the value of total assets. So a revaluation would give HPL a potential realisable one-off gain of almost $1 billion.
As at June 2012, the net book value per HPL share was $3.08. Going by the current market prices, this should be at least 2.5 times higher, at $7.70 per share.
The under-valuation is glaring.
It's so amazing! This counter has moved up from 1.80 in late May to 2.84 and most of the folks here have missed it.
Am feeling pretty lonely riding on this HPL.
Wah liu! HPL hit 2.84 liao.
Go HPL go, go with a clean pair of heels.
I'm holding, pls advise if I shud buy some more or sell to take profits.
Thank you in advance.
P/S: NTA of HPL is 4.58 so at 2.74 it's still cheap.
stockmarketmind ( Date: 28-Aug-2012 10:42) Posted:
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Anyone holding this counter, i think you better watch your positions.
http://stockmarketmindgames.blogspot.sg/2012/08/sakari-golden-advice.html
wanglausern ( Date: 21-Aug-2012 22:10) Posted:
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What's cooking with HPL......it's been surging.
Vested.
| sgnewbie ( Date: 12-Jul-2012 09:23) Posted: |