Yoma announced that it would raise S$92.8m (net) through a private placement of 135m new shares at 70 S-cents. These new shares will make up ~10.45% of the enlarged issued and paid-up capital, and Yoma intends to use the proceeds to help fund the growth and expansions of the group’s various businesses. The group has also recently been offered the right to acquire a 70% stake in 10.8m sq ft of land in Pun Hlaing Golf Estate (PHGE), comprising 9.6m sq ft of golf course and country club and 1.2m sq ft of land development rights (LDR). Assuming that this proposed acquisition is approved by shareholders, the recently proposed rights of 1 for every 8 shares at S$0.38 would likely be revised to 1 for every 3 shares. Note that the new placement shares will also eligible for the proposed rights issue ahead. Maintain BUY on Yoma; our fair value dips slightly to S$0.82, from S$0.85 previously, from the effect of dilution after the recent placement.
Private placement of 135m shares at 70 S-cents
Yoma announced that it would raise S$92.8m (net) through a private placement of 135m new shares at 70 S-cents. These new shares will make up ~10.45% of the enlarged issued and paid-up capital, and Yoma intends to use the proceeds to help fund the growth and expansions of the group’s various businesses in real estate, telecommunications, automotive, agriculture and logistics. The price of 70 S-cents represents an 8.4% discount to the VWAP of 76.42 S-cents on 25 Jun 2014. Note that these new placement shares will also eligible for the proposed rights issue ahead.
Right of first refusal to acquire 70% of Pun Hlaing Golf and Land
The group has also recently been offered the right to acquire a 70% stake in 10.8m sq ft of land in Pun Hlaing Golf Estate (PHGE). This comprises 9.6m sq ft of golf course and country club and also 1.2m sq ft of land development rights (LDR). Note that this is separate from the 7.7m sq ft of LDR in PHGE that Yoma acquired in 2006, of which 4.6m sq ft is still unsold. Yoma estimates that the offered land is worth US$100m (100% basis), and will have 30 days to indicate interest and a further 30 days to confirm acceptance. Assuming that this proposed acquisition is approved by shareholders, the recently proposed rights of 1 for every 8 shares at S$0.38 would likely be revised to 1 for every 3 shares.
Fair value dips to S$0.82 from dilution effect of placement
We were not overly surprised by the placement due to the need for capex on the Landmark site and various businesses ahead, especially since raising cash through presales of Landmark’s residential component will be challenging without a lease extension to a 50+10+10 structure. Maintain BUY on Yoma; our fair value dips slightly to S$0.82, from S$0.85 previously, from the effect of dilution after the recent placement.
Yoma announced that it would raise S$92.8m (net) through a private placement of 135m new shares at 70 S-cents. These new shares will make up ~10.45% of the enlarged issued and paid-up capital, and Yoma intends to use the proceeds to help fund the growth and expansions of the group’s various businesses in real estate, telecommunications, automotive, agriculture and logistics. The price of 70 S-cents represents an 8.4% discount to the VWAP of 76.42 S-cents on 25 Jun 2014. Note that these new placement shares will also eligible for the proposed rights issue ahead.
Right of first refusal to acquire 70% of Pun Hlaing Golf and Land
The group has also recently been offered the right to acquire a 70% stake in 10.8m sq ft of land in Pun Hlaing Golf Estate (PHGE). This comprises 9.6m sq ft of golf course and country club and also 1.2m sq ft of land development rights (LDR). Note that this is separate from the 7.7m sq ft of LDR in PHGE that Yoma acquired in 2006, of which 4.6m sq ft is still unsold. Yoma estimates that the offered land is worth US$100m (100% basis), and will have 30 days to indicate interest and a further 30 days to confirm acceptance. Assuming that this proposed acquisition is approved by shareholders, the recently proposed rights of 1 for every 8 shares at S$0.38 would likely be revised to 1 for every 3 shares.
Fair value dips to S$0.82 from dilution effect of placement
We were not overly surprised by the placement due to the need for capex on the Landmark site and various businesses ahead, especially since raising cash through presales of Landmark’s residential component will be challenging without a lease extension to a 50+10+10 structure. Maintain BUY on Yoma; our fair value dips slightly to S$0.82, from S$0.85 previously, from the effect of dilution after the recent placement.
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