Commentary from second quarter results:
On 3 July 2013, the Company announced that it has received the 2nd tranche consideration for the disposal of Ocean Sky Global (S) Pte Ltd to Sunny Force Limited, a wholly-owned subsidiary of Luen Thai Holdings Limited. As mentioned previously, the Company intends to develop its civil engineering and construction business and is also exploring new business and investment opportunities in both the construction and property sectors. Going forward, the Company will continue to take a prudent approach in venturing into new business and investment opportunities in the construction and property businesses.
Ocean Sky disposed their apparel business, has received the 2nd tranche consideration and is proposing an interim dividend of S$0.13 to return the cash from the disposal to its shareholders.
No of Shares: 449,441,053
Exchange Rate: SGD $1.00 = USD $0.75
Ezion has terminated the deal with Ocean Sky causing Ocean Sky to plunge from $0.285 to $0.127. After paying the $0.13 dividend, it still has abt $26mil in cash.
Ocean sky currently owns 30% of ang tong seng brothers (ats) a civil engineering services such as earth work, roadwork, drainage work, basement work and structural work involving demolition and underground infrastruture as well as other general building works.
Ocean sky may acquire additional 30% stake in ats through a call option. The call option should last till march 2014 and cost $3.377mil which ocean sky has more than enough cash to acquire as subsidiary or as core business.
Investors who had bought ocean sky less than or equal to 26cents and collected the dividend should be okay as for now. Investors who trade the ups and downs should have significant profit.
