Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In response to media feedback calling out the low-balled Offer, the Ong family bumped the Offer Price for <a href="https://www.smartkarma.com/entities/lian-beng-group-ltd" target="_blank" data-smartkarma-citation="entities:17636:1" rel="noopener">Lian Beng (LBG SP)</a> by 9.7% to S$0.68/share and declared terms final.</li>
<li>At 0.43x P/RNAV, and with the bulk of the assets related to investment/development property, the price was still wrong,  </li>
<li>The Circular is now out. The IFA considered terms to be not fair and not reasonable. The same opinion as in the 2021 Offer.</li>
</ul>


In response to media feedback calling out the low-balled Offer, the Ong family bumped the Offer Price for Lian Beng (LBG SP) by 9.7% to S$0.68/share and declared terms final.
At 0.43x P/RNAV, and with the bulk of the assets related to investment/development property, the price was still wrong,  
The Circular is now out. The IFA considered terms to be not fair and not reasonable. The same opinion as in the 2021 Offer.


Lian Beng: Circ Out. IFA (Rightfully) Says Not Fair

<ul>
<li>On the 11th April, construction firm <a href="https://www.smartkarma.com/entities/lian-beng-group-ltd" target="_blank" data-smartkarma-citation="entities:17636:1" rel="noopener">Lian Beng (LBG SP)</a> announced an Offer from the controlling Ong family of S$0.62/share, a 59.7% discount to the November 2022 NAV of S$1.538/share.</li>
<li>After media articles judged the Offer price as being too low - it is - the Ongs have now bumped the Offer Price 9.7% to S$0.68/share and declared terms final.</li>
<li>It's still the wrong price. Yet Lian Beng is illiquid, And the revised price is a lifetime high.</li>
</ul>


On the 11th April, construction firm Lian Beng (LBG SP) announced an Offer from the controlling Ong family of S$0.62/share, a 59.7% discount to the November 2022 NAV of S$1.538/share.
After media articles judged the Offer price as being too low - it is - the Ongs have now bumped the Offer Price 9.7% to S$0.68/share and declared terms final.
It's still the wrong price. Yet Lian Beng is illiquid, And the revised price is a lifetime high.


Lian Beng: The Family Bumps. Still <50% of NAV

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lian-beng-group-ltd" target="_blank" data-smartkarma-citation="entities:17636:1" rel="noopener">Lian Beng (LBG SP)</a>/LBG disclosed a revised final voluntary unconditional offer from the Ong family at S$0.68 per share, a 9.7% premium to the previous offer of S$0.62 per share. </li>
<li>The final offer price remains unattractive in comparison to peer multiples and precedent transactions. The offer is open and closes on 26 May.</li>
<li>The Ong Family aims to privatise LBG. Hitting the 90% compulsory acquisition threshold implies a minority acceptance rate of around 64%, which could prove to be a challenge.</li>
</ul>



Lian Beng (LBG SP)/LBG disclosed a revised final voluntary unconditional offer from the Ong family at S$0.68 per share, a 9.7% premium to the previous offer of S$0.62 per share. 
The final offer price remains unattractive in comparison to peer multiples and precedent transactions. The offer is open and closes on 26 May.
The Ong Family aims to privatise LBG. Hitting the 90% compulsory acquisition threshold implies a minority acceptance rate of around 64%, which could prove to be a challenge.


Lian Beng (LBG SP): Ong Family’s Final, Unconditional and Derisory S$0.68 Offer

Equity Bottom-Up

<ul>
<li>Following an <a href="https://www.straitstimes.com/business/companies-markets/wing-tai-an-under-appreciated-property-play-ripe-for-privatisation" target="_blank" rel="noopener">Staits Times article</a> this week - or perhaps just a coincidence - property play <a href="https://www.smartkarma.com/entities/wing-tai-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19015:1" rel="noopener">Wing Tai Holdings (WINGT SP)</a> popped 8%. </li>
<li>Yesterday's close of S$1.47/share, compares to its book value of S$4.24 (as at 31 Dec 2023). Cash on hand is S$684mn against borrowings of ~S$770mn.</li>
<li>And the Cheng family has been buying up shares, almost every day since last September. That stake is currently 61.45%. Another <a href="https://www.smartkarma.com/entities/wing-tai-malaysia-bhd" target="_blank" data-smartkarma-citation="entities:11882:1" rel="noopener">Wing Tai Malaysia (WING MK)</a> privatisation in the making?</li>
</ul>


Following an Staits Times article this week - or perhaps just a coincidence - property play Wing Tai Holdings (WINGT SP) popped 8%. 
Yesterday's close of S$1.47/share, compares to its book value of S$4.24 (as at 31 Dec 2023). Cash on hand is S$684mn against borrowings of ~S$770mn.
And the Cheng family has been buying up shares, almost every day since last September. That stake is currently 61.45%. Another Wing Tai Malaysia (WING MK) privatisation in the making?


<ul>
<li>Back in December 2022, agri-food play <a href="https://www.smartkarma.com/entities/japfa-ltd" target="_blank" data-smartkarma-citation="entities:15597:1" rel="noopener">Japfa Ltd (JAP SP)</a> spun-off its 62.5% stake in <a href="https://www.smartkarma.com/entities/austasia-group-ltd" target="_blank" data-smartkarma-citation="entities:36655:1" rel="noopener">AustAsia Group (2425 HK)</a>, as discussed in <a href="https://skr.ma/qAzLD" target="_blank" rel="noopener">Japfa Ltd: Trading Cheap After AustAsia In-Specie Distribution</a> 
</li>
<li>Last Friday, Bloomberg reported its key shareholder, Renaldo Santosa and his family, who collectively control ~75.5%, are considering taking Japfa private.</li>
<li>The family <a href="https://links.sgx.com/FileOpen/20240311%20Japfa%20Ltd%20Holding%20announcement.ashx?App=Announcement&amp;FileID=791556" target="_blank" rel="noopener">acknowledges</a> it has been approached by various financiers, investment banks, but nothing definitive has emerged. Still, Japfa is worth a revisit.</li>
</ul>


Back in December 2022, agri-food play Japfa Ltd (JAP SP) spun-off its 62.5% stake in AustAsia Group (2425 HK), as discussed in Japfa Ltd: Trading Cheap After AustAsia In-Specie Distribution 

Last Friday, Bloomberg reported its key shareholder, Renaldo Santosa and his family, who collectively control ~75.5%, are considering taking Japfa private.
The family acknowledges it has been approached by various financiers, investment banks, but nothing definitive has emerged. Still, Japfa is worth a revisit.


Japfa (JAP SP): Impressive Gain. But No Firm Offer

Singapore

Lian Beng Group Limited provides building construction and civil engineering services for both the private and public sectors. The Group also sells, leases, and maintains construction machinery and equipment, and develops and invests in properties.

Lian Beng (LBG SP)

Lian Beng: Circ Out. IFA (Rightfully) Says Not Fair

This deal is unconditional. If already in for the arb, sell in the market. If this were to dip below terms, get involved. Otherwise, this is an avoid.

David Blennerhassett

Lian Beng: The Family Bumps. Still <50% of NAV

Optically, and taking into account Lian Beng's illiquid volume, this should get up. Buy here at S$0.65 or below. This deal is unconditional. You...

David Blennerhassett

Lian Beng (LBG SP): Ong Family’s Final, Unconditional and Derisory S$0.68 Offer

The token bump is unlikely to appeal to minorities. Hitting the 90% compulsory acquisition threshold implies a minority acceptance rate of around...

Arun George

Wing Tai Holdings: Privatisation Chatter

The Chengs may be content to chip away at minorities. Or are setting themselves up to make an Offer for WTH. In any event, WTH is inexpensive....

David Blennerhassett

Japfa (JAP SP): Impressive Gain. But No Firm Offer

Quite an impressive share price gain without anything substantive to hang your hat on. I would not chase it here. I'd only get involved if there...

David Blennerhassett