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Lai ah Lai ah! Buy 1 get 2 Free!!
Sell durians! lol
TP : $ 6.61
We update our estimates and lower our FY14-15 core EPS by 2-3% to factor in the latest land win at Cecil Street. Our SOP value rises to S$7.73 from S$7.70 with the target price still based on a 20% discount to property RNAV, up from S$6.53 to S$6.61. Maintain Outperform with catalysts from more corporate actions.
https://brokingrfs.cimb.com/dE7o-12lUzkN7qwyw264pWoq5kjxI-ICg50An67b2XzpU6_8zPzIk5lujVg--36I0ElQ3El5hSs1.pdf
Step-one: price discovery
FNN?s planned demerger and listing of two separate entities appear to be a price discovery exercise for now. While questions remain on the consumer division, it is clear that more is expected to be done to unlock the property value. A hospitality REIT may be a start.
What You Should Do
FNN remains an Outperform. We will give more updates after the analyst briefing.
https://brokingrfs.cimb.com/dE7o-12lUzkN7qwyw264pWoq5kjxI-ICg50An67b2XzpU6_8zPzIk5lujVg--36I0ElQ3El5hSs1.pdf
https://brokingrfs.cimb.com/dE7o-12lUzkN7qwyw264pWoq5kjxI-ICg50An67b2XzpU6_8zPzIk5lujVg--36I0ElQ3El5hSs1.pdf
Details of the FCL distribution in specie
FNN has announced a proposal to list its property arm Fraser Centrepoint Limited (FCL) by way of a dividend in specie (DIS) distribution of FCL shares to FNN shareholders. The process and structure will be as such:
a) Two FCL shares will be distributed back for every one FNN share owned, at no cost
b) FNN and FCL will be traded separately on the SGX mainboard. The listing of FCL is expected in Nov or Dec 2013
c) The listing of FCL on SGX will be by way of introduction
d) Upon the proposed transaction, FNN will no longer hold any stake in FCL
e) FCL will hold all property and property-related assets, including its AUM business. FNN will hold all the F& B businesses, including FNH and Myanmar Brewery, and Times Publishing and all its related businesses.
The DIS exercise is subjected to shareholder approval at an EGM by way of a simple majority vote. TCC, which owns 61.7% of FNN, has voted in favour.
Financial impact
The NAV of FNN shares pre-DIS was S$5.59 as at Jun 2013. This will rise to S$5.77 post-DIS, after factoring revaluation gains from investment properties and realisation of gains from DIS. The NAV split post-DIS will be S$2.04 per FCL shares (FNN shareholders will get two FCL shares for every one held) and S$1.69 for FNN. This will amount to S$5.9bn and S$2.44bn respectively. FNN (ex-FCL) will have a 9M13 proforma net cash position of S$903m, while FCL will have a 9M13 proforma net gearing of 36%. FCL?s balance sheet will remain strong with S$980m in cash and over S$2.75bn of financial resources at hand. Property Development│ Singapore August 12, 2013 IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT. Designed by Eight, Powered by EFA
FCL?s net gearing is expected to decline in FY14-15 with over S$3.3bn of presales proceeds yet to be recognised.
Fraser and Neave (F& N) will take its largest step yet toward breaking up one of Singapore's oldest conglomerates with a plan to spin off its property business into a new listed entity via an in specie distribution of stock.
F& N on Tuesday said that it would distribute 2 shares of Frasers Centrepoint Limited (FCL) for every one F& N share held, for free.
FCL will then trade separately from F& N, with listing expected in November or December this year.
Following the exercise, F& N will no longer hold any shares in FCL, and its remaining key businesses will be food and beverage (F& B), and printing and publishing.
RESPONSE TO STRAITS TIMES AND BUSINESS TIMES ARTICLES ON 27 AUGUST 2013
Fraser and Neave, Limited (the Company) refers to the newspaper article published on 27 August 2013 in The Straits Times entitled Thai tycoon to list hospitality trust here" and the article in the Business Times entitled " Hospitality REIT a good move by F& N: Analysts" .
The Company wishes to highlight that while the Company is considering the establishment of a hospitality REIT to be listed on the Main Board of Singapore Exchange Securities Trading Limited (the SGX-ST), these considerations are ongoing and no decision has been made as to whether the transaction will take place. In addition, the Company has yet to determine the appropriate timing, offering size and assets to be included in such a REIT.
The Company will make the appropriate announcements in due course in the event of any material development.
In the meantime, shareholders of the Company are advised to refrain from taking any action in respect of their shares in the Company which may be prejudicial to their interests, and to exercise caution when dealing with shares in the Company.
Anthony Cheong
Group Company Secretary
27 August 2013
For Immediate Release
Fraser and Neave further unlocks shareholder value via the listing of its property arm, Frasers Centrepoint Limited
? F& N shareholders to receive, at no cost, two FCL shares for each F& N share held
? The listing of FCL shares is expected in November or December 2013
? TCC Assets intends to vote in favour of the in-specie distribution
Singapore, 27 August 2013 ? Fraser and Neave, Limited (" F& N" or the " Company" ) today announced a proposal to list its property arm, Frasers Centrepoint Limited (" FCL" ) by undertaking a dividend in-specie distribution of FCL shares to F& N shareholders. FCL is expected to be listed by way of introduction on the Main Board of the Singapore Exchange Securities Trading Limited (" SGX-ST" ).
F& N plans to list property arm Frasers Centrepoint.....
http://www.channelnewsasia.com/news/business/f-n-plans-to-list/791976.html
Singapore's Fraser and Neave , controlled by Thai billionaire Charoen Sirivadhanabhakdi, said it will separately list its property
business later this year as it moves to spin off the firm's soft
drinks and real estate units. ...
The company also confirmed plans for a hospitality real estate investment trust, which sources have told Reuters are part of the Thai tycoon's plan to merge some of F& N's assets and his own business empire.
The restructuring comes a few months after Charoen took control of the Singapore real estate and soft drinks conglomerate after a bidding war with a group led by Overseas Union Enterprise.
" It provides sharper focus on the growth of the food and beverage and properties businesses as independently-listed entities and paves the way for further growth in both sectors," F& N said in a statement on Tuesday.
" The in-specie distribution and listing exercise is an effective way to release value to F& N shareholders."
DBS is joint adviser on the demerger, F& N said.
The Thai tycoon owns F& N through his family vehicle TCC and Thai Beverage PCL.
Sources had earlier told Reuters F& N is considering a hospitality REIT that may raise at least $500 million to help refinance some of the debt that Charoen's companies took on to win control of the Singapore firm.
1) restructure FNN’s F& B and property businesses and
2) restore the stock’s public float will be the key milestones to watch for and could catalyse the stock. House slash our SOP estimates from $10.94 to $7.60, largely to account for the capital reduction. House FY14-15 core EPS numbers are cut by 3-6%. (still based on a 20% discount to its property RNAV) is now lower. We estimate that investors will be getting its property business at an implied discount to RNAV of 37% – among the widest in the sector. Maintain Outperform.
kahdeve ( Date: 22-Jul-2013 10:37) Posted:
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woke up in the morning to a nasty shock...does anyone know the reason for the massive drop?
is it a time to buy or just watch..thanks everyone,,:)
(a) TCCA has not been able to dispose of the Company’s shares with a view to restoring the public float during the Initial Period, due to the following:
(i) TCCA was in discussions with potential investors on the disposal of the Company's shares during the Initial Period, but was unable to undertake the disposal as market conditions became unfavourable and
(ii) the ongoing Review, which may lead to an evaluation of possible corporate actions by the Company
(b) accordingly, a request has been made to the Singapore Exchange Securities Trading Limited (" SGX-ST" ) for a further extension of time until 31 December 2013 to restore the public float of the Company, in view of the current market conditions and the time required for the Company and its advisers to complete and evaluate the Review
(c) further to the discussions with the SGX-ST and assurances given by TCCA to the SGX-ST:
(i) the Company has been allowed an additional and final period of up to 31 December 2013 to restore its public float and
(ii) trading of the Company's shares will continue during the abovementioned period beyond 19 July 2013.
The Company will update shareholders as and when it has further information regarding the restoration of the public float of the Company.
FNN-Notice-of-Books-Closure-for-Proposed-Capital-Reduction-16.07.13.pdf
Notice is hereby given that the Transfer Books and Register of Members of the Company will be closed from 5.00 p.m. on 24 July 2013 (the “Books Closure Date”) for the purpose of determining the entitlements of Shareholders under the Capital Reduction.
Stock price After returning $3.28/shares would be key as owner has 90% - absolute control. Can take it private which is a major risk to minority shareholders.
Like to see how the minimum float is to be restored, after throwing in the investment & bank loans for the acquisition.Most likely the bankers have already agreed and committed to take up the free float one way or another...