Home Capital Sector Focus

Spotlight on Wheelock Properties as Fuyang site looks set to yield good margins

Goola Warden
Goola Warden9/3/2018 07:30 AM GMT+08  • 7 min read
Spotlight on Wheelock Properties as Fuyang site looks set to yield good margins
SINGAPORE (Sept 3): PrimePartners Group, the independent financial adviser (IFA) to minority shareholders of Wheelock Properties (S), recommended in its offer document on Aug 24 that shareholders accept the $2.10 offer from Wheelock and Co unless they are
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Sept 3): PrimePartners Group, the independent financial adviser (IFA) to minority shareholders of Wheelock Properties (S), recommended in its offer document on Aug 24 that shareholders accept the $2.10 offer from Wheelock and Co unless they are able to obtain a higher price on the market. Wheelock and Co own 911.92 million shares, or 76.21%, of Wheelock Properties. It is likely to cost Wheelock and Co $597.7 million to acquire the 284.63 million shares in Wheelock Properties it does not already own. As at June 30, Wheelock Properties had $853 million in cash, and its net asset value (NAV) stood at $2.60.

In the offer document, PrimePartners used certain assumptions to lower the revalued NAV of Wheelock Properties from $2.60 to $2.50. That translates into a 16% discount to RNAV of the offer price (see Table 1), the IFA says. Is that a fair valuation? In general, property stocks trade at discounts to RNAV of 15% to 30%. The RNAV calculation by the IFA implies that the offer is reasonable. But property companies have been privatised at higher price-to-book ratios than the 0.8 times Wheelock and Co is offering (see Table 2).

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now