Tans of Hotel Grand Central load up again; Dutech director Brahm-Droege buys steadily

The Edge Singapore
The Edge Singapore6/4/2020 08:16 PM GMT+08  • 4 min read
Tans of Hotel Grand Central load up again; Dutech director Brahm-Droege buys steadily
The controlling Tan family of Hotel Grand Central have yet again bought shares of the company in the open market via their investment vehicle, Tan Chee Hoe and Sons Holdings.
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SINGAPORE (June 5): The controlling Tan family of Hotel Grand Central have yet again bought shares of the company in the open market via their investment vehicle, Tan Chee Hoe and Sons Holdings.

There are three Tan brothers running the company. Eng Teong is the group’s executive chairman and managing director, while Teck Lin and Eng How are its executive directors.

The most recent purchase was made on May 27. The Tans paid an average of 92.47 cents for 42,700 shares, which brought the total number of shares held via Tan Chee Hoe and Sons to nearly 403 million shares. This translates into a stake of 55.46%, based on the company’s total share base of 726.5 million shares.

In addition to the deemed interest via Tan Chee Hoe and Sons, the Tans also hold their shares either directly or via other deemed stakes, including their spouses and other entities. Following the May 27 purchase, Eng Teong has a total stake of 64.676% while Teck Lin and Eng How have total stakes of 61.42% and 58.38% respectively.

On Feb 28, Hotel Grand Central reported revenue for the FY2019 ended Dec 31, 2019, fell 5% y-o-y to $135.5 million. Earnings in the same period was up 1% to $26.4 million. Lower revenue from Hotel Grand Central’s operations in Australia, New Zealand and China was somewhat offset by higher revenue from Malaysia, while its Singapore business remained stable. The company declared a dividend of four cents per share — unchanged from the preceding FY2018.

As at Dec 31, 2019, the company’s net asset value was $1.86 per share, down from $1.90 per share as at Dec 31, 2018. On June 1, the company closed at 93 cents, which gives it a discount of exactly 50% off its book value.

Dutech Holdings

Dr Hedda Juliana im Brahm-Droege, a non-executive director of Dutech Holdings, made a series of purchases on May 29. There was an acquisition of 1,200 shares for $300, or 25 cents each; the other transaction saw 30,500 shares acquired at $7,777.50, or an average of 25.5 cents; yet another acquisition was for 40,000 shares at $10,400, or an average of 26 cents. She now has a total stake of 28.82 million shares, or 8.08%, as she has deemed interest in the stake held by an entity called Droege Group AG, which is controlled by her husband Walter P. J. Droege.

Before the May 29 purchases, Brahm-Droege had also acquired 59,700 shares at 21.5 cents each on April 24; 66,000 shares at 22.7 cents each on April 30 and 88,000 shares at 24 cents each on May 5.

Shanghai-based Dutech is a design and manufacturer of security products. Its products are installed in ATMs and other ticketing machines used by the banking and for commercial purposes.

In the FY2019 ended Dec 31, 2019, Dutech’s revenue increased by 3.2% y-oy to RMB1.89 billion. In addition, Dutech was able to increase its earnings by 48.9% y-o-y to RMB79.1 million, thanks to a better mix of higher-margin products. As at Dec 31, 2019, its net asset value was RMB2.78 (54.86 cents), up from RMB2.59 as at Dec 31 2018. On June 1, Dutech closed at 26 cents.

Reenova Investment

Chen Tong, executive chairman of Reenova Investment Holding, substantially increased his stake in the company. On May 26, he acquired 6.1 million shares at $12,202 on the open market. The following day, he acquired another 165.4 million shares at $496,218. With this purchase, he now owns nearly 736.3 million shares or 16.71% of the company — up from 12.95% previously.

On May 25, Reenova said that its subsidiary Dynamic Return (Singapore) will drop a suit filed against PT Permata Selaras Mandiri, and its guarantor Harun Abidin. The suit was filed back in 2017 to claim back $4.24 million which Dynamic Return had loaned to PT Permata Selaras Mandiri. The decision to drop the suit was made in the interest of saving time and costs after Reenova was told that PT Permata Selaras Mandiri is no longer operating and that Harun has died.

“Nevertheless, Dynamic Return is taking steps in Indonesia to recover the amounts owed from the heirs of the guarantor. The company will make further announcements to update shareholders on this matter as and when appropriate,” says Reenova. The loans were made under Reenova’s previous incarnation, ISR Capital. The company, under Chen, is moving into tantalum mining in Madagascar, and is trying to raise funding for the next stages in commercialising the asset.

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