*Official* Lian Beng (SGX: L03)

[Jupiter2017]

http://www.businesstimes.com.sg/com...0-stake-in-hebei-real-estate-jv-for-100m-yuan
Oxley, Lian Beng, Heeton buy 50% stake in Hebei real estate JV for 100m yuan
TUE, JAN 23, 2018 - 8:49 PM MARISSA LEE marilee@sph.com.sg

KAP Holdings (China), a joint venture company that mixes the interests of Oxley Holdings, Lian Beng Group and Heeton Holdings, has invested 100 million yuan (S$20.6 million) to subscribe for a 50 per cent stake in Hebei Yue Zhi Real Estate Development Co, which is incorporated in China.
Subject to the receipt of approvals from the relevant authorities, Yue Zhi intends to carry out real estate development and management for a development project in Gaobeidian, Hebei.
Lian Beng owns 20 per cent of KAP and will invest 20 million yuan in the acquisition, it said in a bourse filing on Tuesday.
Heeton owns 15 per cent and will invest 15 million yuan, it said in a separate filing, while Oxley owns 55 per cent.
Prior to the acquisition, the registered capital of Yue Zhi was 55 million yuan, held by Beijing Jia Hua Hong Yuan Investment Co (82 per cent) and Gaobeidian City Lei Hua Yi Wei Sport Development Co (18 per cent).
KSH International Investment is also adding 45 million yuan to the registered capital of Yue Zhi.
After the acquisition, the registered capital of Yue Zhi will be increased to 200 million yuan.
Yue Zhi had negative net tangible assets of about 148,608 yuan as at Nov 30, 2017.

Price link:
http://www.shareinvestor.com/fundamental/factsheet.html?counter=5UX.SI
http://www.shareinvestor.com/fundamental/factsheet.html?counter=L03.SI
http://www.shareinvestor.com/fundamental/factsheet.html?counter=5DP.SI

 

[ordinaryguy1978]

https://www.theedgesingapore.com/tags/lian-beng-group

Any thoughts on this? Will there be any shares offered to existing shareholders?

 

[Shion]

Lian Beng Group unit bags S$131m contract to build flats in Sembawang

Lian Beng Group unit bags S$131m contract to build flats in Sembawang

https://www.businesstimes.com.sg/co...gs-s131m-contract-to-build-flats-in-sembawang

LIAN Beng Group has obtained a S$131 million contract through a subsidiary, to develop a residential project with communal facilities in Sembawang - and the project is big enough to make a positive financial impact on the group's financials.

United Tec Construction, 60-per-cent owned by mainboard-listed Lian Beng, clinched the deal from United Venture Development (2020) for the proposed development of 16 five-storey blocks of flats, totalling 448 units, in Canberra Drive. Amenities in the development include a childcare centre, a basement carpark, a swimming pool and communal facilities.

Lian Beng, in a regulatory statement on Friday, said the project is expected to have a positive financial impact on the net tangible assets and earnings per share of the group for the financial year to May.

Currently, its order book, at S$1.6 billion, will provide a sustainable flow of activity through FY2025, Lian Beng said.

Lian Beng shares ended the trading day one Singapore cent or 2.13 per cent higher at S$0.48 on Friday, before this deal was announced.

 

[Shion]

Lian Beng's Ong family makes 50 cents per share offer as required under takeover code​

https://www.theedgesingapore.com/ne...ents-share-offer-required-under-takeover-code
The Ong family controlling construction firm Lian Beng Group is making a conditional offer at 50 cents per share, following the acquisition of additional shares via a married deal, which triggers a mandatory offer as required by Singapore company rules.

Earlier today, via the vehicle Ong Sek Chong & Sons Pte Ltd, the Ongs bought 5.85 million shares, or 1.17% of the company, via a married deal.

Lian Beng last traded at 48.5 cents before a trading halt was called and this announcement was released.

The Ongs, together with its concert parties, holds approximately 43.55% of Lian Beng shares.

Under Singapore Code on Take-overs and Mergers, any person who, together with any of its concert parties, holds not less than 30% but not more than 50% of the voting rights and such person, or any of its concert parties, acquires in any period of 6 months additional shares carrying more than 1% of the voting rights, such person must extend a mandatory offer in accordance with the code.

The Ongs, led by chairman Ong Pang Aik (picture) intend to keep the listing status of Lian Beng and has no plans to exercise any rights of compulsory acquisition even if such right arises.

The Ongs have also confirmed with the Securities Industry Council of Singapore that there’s no need to make a chain offer of SLB Developments, which is 77.56%-held by Lian Beng.

 

[eflash]

Lian Beng's Ong family makes 50 cents per share offer as required under takeover code​

https://www.theedgesingapore.com/ne...ents-share-offer-required-under-takeover-code
The Ong family controlling construction firm Lian Beng Group is making a conditional offer at 50 cents per share, following the acquisition of additional shares via a married deal, which triggers a mandatory offer as required by Singapore company rules.

Earlier today, via the vehicle Ong Sek Chong & Sons Pte Ltd, the Ongs bought 5.85 million shares, or 1.17% of the company, via a married deal.

Lian Beng last traded at 48.5 cents before a trading halt was called and this announcement was released.

The Ongs, together with its concert parties, holds approximately 43.55% of Lian Beng shares.

Under Singapore Code on Take-overs and Mergers, any person who, together with any of its concert parties, holds not less than 30% but not more than 50% of the voting rights and such person, or any of its concert parties, acquires in any period of 6 months additional shares carrying more than 1% of the voting rights, such person must extend a mandatory offer in accordance with the code.

The Ongs, led by chairman Ong Pang Aik (picture) intend to keep the listing status of Lian Beng and has no plans to exercise any rights of compulsory acquisition even if such right arises.

The Ongs have also confirmed with the Securities Industry Council of Singapore that there’s no need to make a chain offer of SLB Developments, which is 77.56%-held by Lian Beng.

does this mean that shareholders need not take up the offer to sell @ 50 cents per share?
The mandatory part is just the offer?

 

[Jacky2000]

Anyone can shed some light if we do not take up the offer, what will happen?

 

[lzydata]

Anyone can shed some light if we do not take up the offer, what will happen?

Normally if the offeror acquires at least 90% of the shares, they have the right to compulsorily acquire the rest of the shares they don't own, and then delist the company from SGX. However, in this case, the offeror stated that:

it is the Offeror's intention to maintain the listing status of the Company and the Offeror does not intend to exercise any rights of compulsory acquisition even if such right arises under Section 215(1) of the Companies Act.

So my interpretation is either (1) they do not expect so many people to take up the offer, as it is not at a substantial premium to market price, or (2) even if 90% or more take up the offer, they will find a way to maintain the minimum 10% free float in order to maintain the listing status of the company.

Hence, nothing very bad will happen to the company if you do not take up the offer, and it will continue to be listed. You can evaluate and see whether the offer price is reasonable compared to what you paid for it and what you expect the company to perform in future. However I see that its latest reported NAV is $1.46 so it is a huge discount to book value, even for a property developer.

 

[Jacky2000]

Normally if the offeror acquires at least 90% of the shares, they have the right to compulsorily acquire the rest of the shares they don't own, and then delist the company from SGX. However, in this case, the offeror stated that:

it is the Offeror's intention to maintain the listing status of the Company and the Offeror does not intend to exercise any rights of compulsory acquisition even if such right arises under Section 215(1) of the Companies Act.

So my interpretation is either (1) they do not expect so many people to take up the offer, as it is not at a substantial premium to market price, or (2) even if 90% or more take up the offer, they will find a way to maintain the minimum 10% free float in order to maintain the listing status of the company.

Hence, nothing very bad will happen to the company if you do not take up the offer, and it will continue to be listed. You can evaluate and see whether the offer price is reasonable compared to what you paid for it and what you expect the company to perform in future. However I see that its latest reported NAV is $1.46 so it is a huge discount to book value, even for a property developer.

Thanks for the kind reply.

The company is performing quite well from what i see so far.

But when you mention the latest reported NAV is $1.46 so it is a huge discount to book value, even for a property developer, may i know what do you mean?

pardon me for asking. thanks

 

[lzydata]

Thanks for the kind reply.

The company is performing quite well from what i see so far.

But when you mention the latest reported NAV is $1.46 so it is a huge discount to book value, even for a property developer, may i know what do you mean?

pardon me for asking. thanks

Just that locally-listed real estate developers generally trade at a discount to book value. But I guess Lian Beng is more a construction company than a developer.

 

[lzydata]

The IFA's opinion of the offer: not fair and not reasonable, reject.

Based on an asset approach, they have a theoretical valuation of 74 to 81c.

https://links.sgx.com/FileOpen/Offeree Circular.ashx?App=Announcement&FileID=674403

 

[Perisher]

Didn't read much on this company but something interesting here,

Lian Beng's AR 2020 shows ever increasing revenue since 2017 at 281m to 2020 at 556m
but the net profit goes from 62m in 2017 to 95m in 2018 and then falling all the way to 33m in 2020.
Not to mention, the dividends has been cut in 2020 even while revenue is double of 2017. And now, they completely removed it in 2021, citing cash conservation. Seems funny.

What's the reason?

 

[Shion]

https://www.theedgesingapore.com/ca...s-lian-beng-despite-tough-construction-sector

 

[lzydata]

Offer at 62 cents!

https://links.sgx.com/FileOpen/Offer_Announcement.ashx?App=Announcement&FileID=753716