WestMinister Travel

WestMinister Travel proposing disposal of their entire business.
• No debts
• no of shares: 280,000,000
• cash on hand after paying full year dividend: HKD$193.28mil (S$31.08mil)
• Disposal consideration:
HKD$471.57mil (S$75.83mil)
• Total cash after disposal: S$106.91mil
• equivalent to S$0.38 per share
• previous closing price: S$0.175
• can bet on it to give dividend from disposal gains.

But their trading volume very low

Thanks much! so based on 38 c cash, the stock now is still worth a buy at 26 cents?
How long to wait before cash payment of dividend?

The cash can be used for other acquisition, paid over a few years as special dividend. Or are they winding up totally or soon? But with such cash positive per share over cost, should be quite worth going in.

5. RATIONALE FOR THE PROPOSED DISPOSAL
5.1 The Disposal Consideration represents:
(a) 154.76% to the Company’s market capitalisation (or a premium of 54.76% to the market capitalisation) of S$49.00 million as set out in Section 4 of this announcement; and
(b) 28.97% premium to the highest market capitalisation of S$58.80 million achieved by the Company since its listing on 23 January 2009 (based on the highest closing price of S$0.21 per Share on 5 October 2009).
5.2 The Board has also considered the historical trading performance (including the thin liquidity) of the Shares traded on the Catalist since listing and believes that the Proposed Disposal would give Shareholders an opportunity to realize an attractive return on their investment in the Company.
5.3 Accordingly, the Board believes that the Proposed Disposal is in the best interests of the Company, having regard to the terms of the Proposed Disposal, the timing of the Proposed Disposal and the performance of the Shares on the Catalist since its listing.

7. CASH COMPANY – COMPLIANCE WITH RULE 1017 OF THE CATALIST RULES
7.1 Cash Company - The Company will cease to have any operating business upon completion of the Proposed Disposal and will be deemed a cash company under Rule 1017 of the Catalist Rules.
7.2 Use of Proceeds - Pursuant to Rule 1017 of the Catalist Rules, 10% of the Company's cash and short-dated securities as at the date of the completion of the Proposed Disposal may be retained by the Company for its daily operating expenses and the remaining 90% will be placed in an account opened with and operated by an escrow agent which is part of any financial institution licensed and approved by the Monetary Authority of Singapore.
7.3 Listing Status – The Company intends to maintain its listing status and to continue the trading of the Shares on Catalist and in accordance with Rules 1017(1)(c) and 1017(1)(d) of the Catalist Rules and in the event that the SGX-ST allows the Company to maintain its listing status and continue the trading of the Shares on Catalist, contractual undertakings will be provided by the Directors, controlling shareholders, chief executive officer and their respective associates to observe a moratorium on the transfer or disposal of all their interests, direct or indirect, in the Shares for the period commencing from the date of the EGM up to and including the date of completion of an acquisition of a new business which is able to satisfy the SGX-ST’s requirement for a new listing.
7.4 Future Plans – The Company is currently considering various options available to the Company after it becomes a cash company. In addition, the Company will appoint new management to oversee the affairs of the Company (including periodic reporting requirements pursuant to Rule 1017(b) of the Catalist Rules) in the interim. Shareholders will be informed in due course as and when material developments occur.

After the disposal, it will be a cash company. But it may take a while for the egm and meeting all conditions pertaining to the disposal. Based on the company announcement, it will stay listed and look for new business acquistions. There no written statements on giving big dividends from the disposal. That why i mention its a bet. Similar to Ocean Sky who sold their apparel business and finally giving S$0.13 dividend.