Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Kayin Holdings, the 68.23% shareholder of <a href="https://www.smartkarma.com/entities/10633" target="_blank" data-smartkarma-citation="entities:10633:1">Selangor Properties (SPR MK)</a>, the largest landowners in Damansara Heights, has <a href="http://www.selangorproperties.com.my/wp-content/uploads/2018/10/25-1-others.pdf" target="_blank">proposed</a> a selective capital reduction and a corresponding capital repayment of RM5.70/share (a 40.39% premium to last close and a two-year high) in SPR for all remaining shareholders.
Conditions include ≥75% of disinterested shareholders voting for the proposal, and ≤10% against.
However, the proposed offer price looks off. Four years ago, SPR sold a 6.3-acre parcel of land in Damansara Heights, which now forms part of Pavillion Damansara Heights. SPR continues to hold 15 acres in close proximity to Pavilion (and other mega projects); but that undeveloped land is on the books at a fraction of the price/sqft to the 2014 sale. This has also been<a href="https://www.edgeprop.my/content/1438677/dissenting-voices-selangor-properties%E2%80%99-privatisation-offer-says-report" target="_blank"> flagged</a> by Pangolin Investment Management, a 1.24% shareholder in SPR.
The company is also net cash (~RM2.15/share), sufficient to fund the RMB622mn acquisition of all shares not owned by Kayin.
SPR's board has until 17 December in which to support the proposal. On the assumption the board backs the Offer, completion will likely take place within 3 months. 
The premium is decent and does provide an exit for shareholders in what is a very illiquid stock. Yet there is conceivably more value - a lot more value - over and above this offer. Minority shareholders should argue their case for a larger payout.

Kayin Holdings, the 68.23% shareholder of Selangor Properties (SPR MK), the largest landowners in Damansara Heights, has proposed a selective capital reduction and a corresponding capital repayment of RM5.70/share (a 40.39% premium to last close and a two-year high) in SPR for all remaining shareholders.
Conditions include ≥75% of disinterested shareholders voting for the proposal, and ≤10% against.
However, the proposed offer price looks off. Four years ago, SPR sold a 6.3-acre parcel of land in Damansara Heights, which now forms part of Pavillion Damansara Heights. SPR continues to hold 15 acres in close proximity to Pavilion (and other mega projects); but that undeveloped land is on the books at a fraction of the price/sqft to the 2014 sale. This has also been flagged by Pangolin Investment Management, a 1.24% shareholder in SPR.
The company is also net cash (~RM2.15/share), sufficient to fund the RMB622mn acquisition of all shares not owned by Kayin.
SPR's board has until 17 December in which to support the proposal. On the assumption the board backs the Offer, completion will likely take place within 3 months. 
The premium is decent and does provide an exit for shareholders in what is a very illiquid stock. Yet there is conceivably more value - a lot more value - over and above this offer. Minority shareholders should argue their case for a larger payout.

Selangor Props - Privatisation Offer Does Not Reflect Full Value

Deciphering real estate markets globally., Rems Advisors

TAN Kok Keong

Deciphering real estate markets globally.

Rems Advisors

Thematic (Sector/Industry)

We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for <a href="https://www.smartkarma.com/entities/5225" target="_blank" data-smartkarma-citation="entities:5225:1">Country Garden Holdings Co (2007 HK)</a> to close all its showrooms in China.  The following are some observations from us, post-visit. <h2>Key observations from the visit</h2>The following are our key observations and feedback from agents/visitors we spoke to: <ul><li>
The number of visitors shrank: The sale agent we met told us that the news of closing down of all showrooms in China really hurt their…</li></ul>

We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for Country Garden Holdings Co (2007 HK) to close all its showrooms in China.  The following are some observations from us, post-visit. Key observations from the visitThe following are our key observations and feedback from agents/visitors we spoke to: 
The number of visitors shrank: The sale agent we met told us that the news of closing down of all showrooms in China really hurt their…

Seeing the Forest for the Trees in Malaysia - Country Garden

Malaysia

Selangor Properties Berhad develops and invests in properties, and provides related services.  Through its subsidiaries, the Company also manages and operates educational facilities, recruitment agencies, and provides nominee services.

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Selangor Properties (SPR MK)

Selangor Props - Privatisation Offer Does Not Reflect Full Value

Kayin Holdings, the 68.23% shareholder of Selangor Properties (SPR MK), the largest landowners in Damansara Heights, has proposed a selective...

David Blennerhassett

Seeing the Forest for the Trees in Malaysia - Country Garden

We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for Country Garden Holdings Co...

TAN Kok Keong

Price Gauge

52-week Range

Market Cap (USDm)

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Dividend (Yield)