TQ flysummer. Are you related to Sumer, the property guru?
Ok, the IPO is NOT in time for King Wan to recognise gain on disposal of the Thai associates for FY2014 as the FY ended in March 2014. The final dividend would still be 1 cent, I guess.
However, there is nothing to prevent King Wan to declare a special dividend of ? cent.
By the time, it finalises its FY14 results & releases it, it would be late May and the Thai IPO would have been completed (ie, late April).
My guess is it would incorporate a special dividend. 1.5 cent special pls!
It's been a long time coming for all shareholders, no thanks to the Thai rioters.
Thailand is looking to a record sugar production from the current 2013/14 harvest season, at 11.2 million tonnes, as a result of the improved quality of the cane being delivered to the mills, according to the research unit of Siam Commercial Bank.
Published: 04/04/2014 at 02:51 PM
Writer: Online Reporters
SCB Economic Intelligence Center's economists Chotika Chummee and Kiattisak Kumse said in an analysis that Thailand had already produced 10.9 million tonnes of sugar this harvest season, as of April 1.
They projected another 3.5 million tonnes of cane will be crushed before the end of season in May, resulting in total sugar production of 11.2 million tonnes, or 11.8% more than the previous harvest year.
It was expected the total amount of sugarcane entering the crushing process for the 2013/14 crop year would be similar to the previous year, around 100 million tonnes.
The record production was the result of an improvement in the yield from the cane, at 12.5 CCS (Commercial Cane Sugar, a measure of recoverable sugar in the cane), which is 8.7% higher than the previous crop.
One reason for this incresed yield is that farmers deliver fresh cane to the crushing mills, instead of burning off first. Farmers are using more of harvesting machines, instead of harvesting by hand, which results in a better quality of raw material for the factories.
The longer period of cool weather than usual has also contributed to the improved yield.
Thailand was the world's second-biggest sugar exporter last year, behind Brazil.
Special dividends: For FY13 (ended March 2013), for the second year running, King Wan will be paying 1.5 cents a share as ordinary dividend.
The disposal of KTIS shares would place the company in a position to reward shareholders further.
Asked to comment on analyst reports by SIAS Research and OSK-DMG about King Wan being able to pay special dividends for several years, management said the analysts had studied King Wan's cashflows and track record of rewarding shareholders with special dividends.
"We don't think their assumptions are wrong."
OSK-DMG analyst Lee Yue Jer has noted in a report that the M&E business currently contributes S$5m-7m of cash, which easily pays for the 1.5 cent ordinary dividend totaling S$5.2m.
The analyst said if King Wan wanted to, it could sell the KTIS shares gradually and be able to pay 1.5 cent a share as special dividend annually over 10 years -- assuming the sale price is S$48 million in aggregate.
"This doubles the dividend to a juicy 9.7% yield sustainable for the next 10 years," according to the analyst.
KTIS : Kaset Thai International Sugar Corporation Public Company Limited
Type of Business The company is sugar producer and distributor. The company also has other business related to sugar production process, such as producer and distributor paper pulp, ethanol plant and power plant.
Secondary Market The Stock Exchange of Thailand (SET)
Industry Group / Sector Agro & Food Industry / Food and Beverage
Status Approved Filing
No.of IPO
Not more than 957,827,000 shares(Not more than 585,427,000 new shares and Not more than 372,400,000 existing shares)
IPO Period
21 - 23 April 2014
IPO Price:
10.00 Baht
Par Value 1.00 Baht
First Day of Trading
28 April 2014
Financial Advisor Kasikorn Securities Public Company Limited
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