Yesterday announced proposed sale of subsidiary and distribution of special dividend payments amounting to 25 cents per share. The NTA of the remaining business after the sale is about 11.6 cents per share according to one local brokerage. However, market price only goes up by 2 cents today. Not many investors aware of this good deal?
Fully agree with your comments. I am also vested in Sunvic where the situation is similar except Longcheer's deal is just proposed whereas Sunvic's deal has already got the shareholder's approval. This is typical of singapore market's reaction to any deals from a S-chip company, just like those previous cases involving China Animal Healthcare, Sound Global, etc.
The reason why Sunvic is trading at a huge discount is because the cash from the sales proceeds will be used to repay loans and set up new businesses. There is no mention of any special dividend for the shareholders. Given that Sunvic is an s-chips, investors typically are more wary of such companies that does not share the gains with the shareholders.
All these gains from the sales are meaningless to the shareholders if they are not going to receive a single cent.
