OKH Global *Official* (SGX:S3N)

Dix

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OKH Global, which was established in 1998, had debuted on the SGX mainboard in 2013 after undertaking a reverse takeover of Chinese technology firm Sinobest.
OKH Global had reported a net loss of $2.1 million for the second quarter ended Dec 31, compared with a net profit of $34.8 million a year before, while revenue fell 98.6 per cent to $3.3 million.
OKH Global posted a net loss of $7.8 million for the first six months of the year on revenue of $5.9 million.
It attributed the sharp fall in turnover to "an absence of any income from property development and a reduction in third party construction contracts".
In January, OKH Global said Chairman Thomas Bon Ween Foong had an Interpol "red notice" issued against him.
It stated he was wanted by Indonesian authorities in connection with a charge of "providing false statement for official document".
The company stated then that Mr Bon told OKH Global that the notice relates to a commercial dispute that started in 2012 between himself in a personal capacity and a former business partner in Indonesia in connection with a company known as PT Alliancz Asia Pacific. OKH said it has no interest in PT Alliancz Asia Pacific and is not involved in that dispute.
Bon told the company he denied the charge referred to in the red notice, which is issued when a person is wanted by national jurisdictions for prosecution or to serve a sentence based on an arrest warrant or court decision.
The international police organisation's website lists Bon on its wanted list.
As at September 2015, Bon had pledged 175 million shares, or about 28 per cent of the company, to three private banks: UBS, Julius Baer and Credit Agricole Suisse.
On 16 March, OKH fell by a third to 35 cents on 548,000 shares traded. OKH was queried for the 33% or 17.5 cts fall in its share price. OKH suspended on the same day for 3 days.
On 18 March night, OKH announced that it was in discussions with Zana Investor, the holders of redeemable convertible preference shares, on a "potential disposal of certain assets which is expected to be a disclosable transaction", and also to vary the terms of the preference shares.
NRA Capital research director Liu Jinshu said that the preference shares likely matured early this month, "with payment due around now. The risk of heftier redemption terms or even a potential default is higher," Mr Liu noted.
On 21 March, when trading resumed, it dropped a further 79.7% or 27.9 cts to close at 7.1 cts, with 247 million shares traded.
OKH said in a SGX filing that this was due to forced selling of shares pledged by Chairman Bon Ween Foong by financial institutions. The transactions reduced his stake to 43.2% from 62.2%. Some 120 million shares out of the 175 million were forcibly sold by UBS and Julius Baer.
Shares are usually pledged as collateral so the pledger can borrow money. When share prices fall below a certain threshold, the collateral is not worth as much, and needs to be topped up. Shares might then be automatically sold to meet this requirement.
On 22 March, the counter closed at 8.5 Singapore cents, up 19.7 per cent from the day before.
On 23 March, OKH further rebounded to 13 cts.
OKH chief financial officer Francis Lee told The Business Times: "The forced sale was at the banks' discretion, it is very much a personal issue of the chairman.
"As far as the company is concerned it is still operating. I don't see any liquidity issues at this point in time."
Asked about the ongoing discussions with the holders of its S$8 million redeemable convertible preference shares (RCPS), as well as the potential disposal of certain assets, Mr Lee said he was unable to comment as negotiations are still ongoing.
"We were doing the negotiations when suddenly this forced sale came about. It's unfortunate," he said.
According to its latest balance sheet at end-2015, OKH had S$251 million of current liabilities and S$385 million of current assets - which included S$38 million in cash and properties under development valued at S$277 million. Net asset value was 18.7 cents per share.
Cash generated from operations for the six months ended Dec 31, 2015, was S$10.8 million, while interest paid was S$2.5 million.
The company said its Loyang Enterprise property got its Temporary Occupation Permit (TOP) in January. Another project, Ace@Buroh, is expected to receive TOP by June 2016. Even as the property market continues to slow, sales from both projects are expected to contribute positively to full-year performance, OKH said.
 

Aneosx

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who has punted on this counter? i nibble 7k @ 7.7 cents as a small gamble :s12:
 

Unique99

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who has punted on this counter? i nibble 7k @ 7.7 cents as a small gamble :s12:

It was trading between 50 cents to 72 cents for the past 12 months before this happened. Taking the low of 50 cents and halving it...ie 25 cents...minimum fair value?
 

Litmuss

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Punted 1st round at 9 cents and let go at 10+ cents.

Went in 2nd round at 13.3 cents. Waiting to see Monday how.
 

OngHuatHuat

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Pe is 13 and pb is 0.6 at current price.

Not that low also. :)

Maybe can try 2 k to gamble a bit. Haha.
 

Asphodeli

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are u serious? haha

:s13::s13:

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Money where my mouth is at.
 
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