Last Year, an attempt to privatize K1 Venture at 13.5cts, vs 10cts( before the announcement was published) was failed.
A 35% premium over last done price definitely is an attractive figure, but why do the privatization plan failed?
Let's look at the assets K1 Venture is holding.
1) Helm Financial (Railcar Leasing)
2) Knowledge Universe Holdings (Private Education)
3) Guggenheim Capital (Financial Services)
4) China Grand Auto (Car Dealer)
5) McMoRan Exploration (Oil & Gas)
Lighthouse Adviser has a valuation of the followings at most likely scenario
For Helm Financial, Lighthouse Adviser has a valuation target of $193m, Knowledge Universe Holdings ( $164m), $124million for Guggenheim Capital, $76 million for China Grand Auto and $47 million for MMR Exploration. Thats a value of $0.285 per share.
Now with MMR sold away for S$37 million and 2 million shares of a Royalty Trust.
I will expect K1 to distribute $0.017 per share or S$37 million from MMR sales.
A 35% premium over last done price definitely is an attractive figure, but why do the privatization plan failed?
Let's look at the assets K1 Venture is holding.
1) Helm Financial (Railcar Leasing)
2) Knowledge Universe Holdings (Private Education)
3) Guggenheim Capital (Financial Services)
4) China Grand Auto (Car Dealer)
5) McMoRan Exploration (Oil & Gas)
Lighthouse Adviser has a valuation of the followings at most likely scenario
For Helm Financial, Lighthouse Adviser has a valuation target of $193m, Knowledge Universe Holdings ( $164m), $124million for Guggenheim Capital, $76 million for China Grand Auto and $47 million for MMR Exploration. Thats a value of $0.285 per share.
Now with MMR sold away for S$37 million and 2 million shares of a Royalty Trust.
I will expect K1 to distribute $0.017 per share or S$37 million from MMR sales.
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