I quote below the relevant press report concerning the 2 Japanese investors - "Sumitomo Corporation and Nissin Sugar will invest in a company that has been established by the family of the Kaset Thai founder for the purpose of investing in Kaset Thai. This joint company will acquire shares of Kaset Thai in stages, and after Kaset Thai is listed on the Stock Exchange of Thailand, is planning to hold 25% ownership eventually. The stake of Sumitomo Corporation and Nissin Sugar in the joint company after all their investment process will reach 25% and 5%, respectively. Their total investment amount is expected to be approximately 2.6 billion baht".
This can be considered a a material investment in KTIS and for long term purpose. It should support the share price after listing.
Few people are taking note of 1 other investment of King Wan, which is a bulk carrier. This was purchased by a consortium at a very low price in early 2013. The capital gain on this ship is already significant as the Baltic Dry Index has shot up from 700 points to 2,050 points. The BDI is a reflection of bulk carrier rates which in turn have an impact on bulk carrier values.
I think they have lented the carrier out (contract) and just doing the collection of fee (rental)so ......
sana wrote: Few people are taking note of 1 other investment of King Wan, which is a bulk carrier. This was purchased by a consortium at a very low price in early 2013. The capital gain on this ship is already significant as the Baltic Dry Index has shot up from 700 points to 2,050 points. The BDI is a reflection of freight rates which in turn have an impact on ship values.
I recalled the carrier was contracted out for 3 years and the impact on King Wan's EPS is about incremental 0.6 cent annually. The investment on the bulk carrier is well timed - generating positive cash flow and potential high exceptional investment gain. I have said this before, King Wan in my view is a small cap gem - strong balance sheet, great investing records, current businesses generating strong cash flow and astute management team.
I have invested in some of the great small caps in HongKong Stock Exchange (such as Bonjour, Sa Sa, Goldlion, Pacific Textiles, Suga), making 2 to 3 baggers over 2009 to 2011 and I am confident that King Wan, which I invested 5 months back, will generate similarly strong upside as well.