Good pick, coverup! U made good gain on Elite? Now, 42 cents (+4.5 cents).
What else is in your must-buy list? I must pay close attention to you from now....
As for Elite, I bought it some time back and I am in the money.
As for Elite's future, I am still trying to figure that out since it is left with investments and a property.
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[Joes 22-05-2012]:
Good pick, coverup! U made good gain on Elite? Now, 42 cents (+4.5 cents).
What else is in your must-buy list? I must pay close attention to you from now....
I was itching to buy Elite in February after NextInsight had an article on Ang Hao Yao who said he had been buying Elite. Sigh! If only, I had... [url=http://www.nextinsight.net
/story-archive-mainmenu-60/916-2012/4854-ang-hao-yao-sti-recovering-to-above-3000-this-quarter-woulnt-surprise-me]ANG HAO YAO: 'STI at above 3,000-3,100 this quarter? Wouldn't surprise me'[/url]
Very interesting = the Elite people actually were looking to sell out!
Read their response to SGX query:
The Company has from time to time in the past several years received indications of interest from different potential investors and other parties to acquire all or part of the Group’s meat processing business.
In the interests of enhancing shareholder value, instead of entering into bilateral discussions with any particular potential investor, the Board decided to run a formal process to explore the possibility of a potential realisation of value for the Company’s assets.
In connection therewith, the Company engaged the services of Ernst & Young Corporate Finance Pte. Ltd. (“EYCF”) to conduct a formal process, on a confidential basis, to seek indications of interest globally for potential acquirors of the Group’s meat processing business.
Based on the indications of interest, the Purchaser, being the party with the most attractive offer, was selected as a potential transaction partner. Thereafter, the Company and the Purchaser entered into arm’s length discussions and commercial negotiations, on a willing-buyer and willing-seller basis, on the scope of assets to be acquired by the Purchaser and the indicative purchase price payable for the assets.
The Purchase Price:
(a) represents approximately 133% to the Company’s market capitalisation as at the market day prior to the signing of the SPA;
(b) values the Target Entities at 11 times FY2011 earnings which is a premium to the median of global comparable companies;
(c) is 20.4% higher than the highest market capitalisation achieved by the Company of S$51.5 million on 3 April 2012 in the period before the Disposal Announcement; and
(d) is 4.2% higher than the total value of all the shares transacted in the Company since its listing on 12 February 2004.
Whilst the Target Entities have been profitable in prior years, further growth opportunities e.g. by vertical integration into the farming and breeding of chickens would require significant investment, have a long gestation period and increase the Target Entities’ exposure to biological risks such as Avian Influenza
The Board has also taken into consideration the historical trading performance of the Company’s shares traded on the SGX-ST since listing and believes that the proposed Disposal would give shareholders of the Company a chance to realize the true value of the Group’s meat processing business.
www.sharesinv.com/articles/2009/09/04/elite-ksb/
Elite was spotted in 2009. They just announced that they have completed disposing their core meat processing and distribution business as as mentioned many times, will be a investment holding company.
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