LEE HEDGES PLC (SHAW.N0000)

UKboy · 1 LEE HEDGES PLC (SHAW.N0000) Sun Jun 02, 2013 2:32 pm

UKboy

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I just wonder anyone is following this counter? Please note that I’m NOT talking about COCO.

As per their latest report their NAV is 438 and currently trading around Rs 250. An illiquid counter in the market.

Last year Shaw Wallace sold a 264.65 perch land in Kollpiti for Rs 1.85 billion.

They had a plan to build a 30 stories building called Mayfair city but its put on hold at the moment.
They are trying to secure a 53 perch land from UDA on a 99 year lease and this is adjoining to their current property at Kollupitiya.

My question is, If you know please let me know how much more land they have in Kolpitiya (freehold)? I cannot find any details in their annual report.

Some articles shows before sold 265 perch land, they had 542 perch property in Kollupitiya. So now 277. but as per the latest report current valuation of the land is Rs 614 million. So this article cannot be right.
http://www.lankanewspapers.com/news/2005/3/1052.html

Also what’s the progress of this Mayfair city project?

Thanks
Currently I dont have shares.

Last edited by UKboy on Sun Jun 02, 2013 9:19 pm; edited 1 time in total

Jiggysaurus · 2 Re: LEE HEDGES PLC (SHAW.N0000) Sun Jun 02, 2013 5:35 pm

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Damn i was hoping no one will talk about it till later in the year.

your 277 figure is quite accurate, i'll save you some time and show you how to come up with the adjusted NAV
The 614 valuation (actually 625) is for around 87 perches (where the foundation is laid and some building has taken place). The partly built stuff is shown as inventory and valued at around 700+ million.
The other 182 perches is hidden inside an accounting jilmart shown as assets held for sale. Just look at the 2012 AR page 29 note 19. When you bring the hidden land value and adjust NAV actual value is around 600+

Mayfair city is dead, they will need to find a JV partner to do this. Best thing for shareholders is for the company to liquidate the land/partly built stuff and return cash to the shareholders. Lets see if this management does what's good for shareholders or pulls a RENU type and holds on to the cash.

UKboy · 3 Re: LEE HEDGES PLC (SHAW.N0000) Mon Jun 03, 2013 9:00 pm

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Thanks for your comment Jiggy,
Yes you definitely save a lot time of mine.
Don’t you think that they will sell 182 perch land and reinvest it in the land (87 perch) they have? Because as per recent articles they are trying to lease a 53 perch land from UDA adjoining this 87 perch land.

rainmaker · 4 Re: LEE HEDGES PLC (SHAW.N0000) Sat Jun 29, 2013 11:13 am

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These guys got 2 billion on the land sale and immediately paid off the debts. Could have got 200 m as interest per year and used that to slowly pay off debts??

Well might as well sell the rest to Catic

Jiggysaurus · 5 Re: LEE HEDGES PLC (SHAW.N0000) Sat Jun 29, 2013 6:00 pm

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rainmaker wrote:These guys got 2 billion on the land sale and immediately paid off the debts. Could have got 200 m as interest per year and used that to slowly pay off debts??

Well might as well sell the rest to Catic

Ayyo Jamis, why do you keep reading ancient books. Don't you know about spread, interest expenses taken for risky land deals circa 2007 cost 22%+, interest income currently runs around 12-13%.
The safest option was to pay off the high cost debt and release the mortgage on the land (in any case mortgage needed to be cleared to sell the asset).

rainmaker · 6 Re: LEE HEDGES PLC (SHAW.N0000) Sat Jun 29, 2013 7:26 pm

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Jiggysaurus wrote:

rainmaker wrote:These guys got 2 billion on the land sale and immediately paid off the debts. Could have got 200 m as interest per year and used that to slowly pay off debts??

Well might as well sell the rest to Catic

Ayyo Jamis, why do you keep reading ancient books. Don't you know about spread, interest expenses taken for risky land deals circa 2007 cost 22%+, interest income currently runs around 12-13%.
The safest option was to pay off the high cost debt and release the mortgage on the land (in any case mortgage needed to be cleared to sell the asset).

If the loan was against the land there are other options given the size of the transaction.

The loan was paid off from the CATIC payment. The land would have been cleared with the CATIC payment instead of other funds. Instead they could have placed the CATIC payment in a FD taken a loan against the FD (2.5% more than FD rate) and cleared the high interest loan

Gaja · 7 Re: LEE HEDGES PLC (SHAW.N0000) Sat Jun 29, 2013 7:46 pm

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I heard that they are asking considerable amount for pilling work they have done so far, in addition to the land cost, which is one of the reasons as to major property developers not interested in buying it! Is it true?

The above might be possible because in the AR they said the work already done can be continued without major changes to any kind of development projects!

UKboy · 8 Re: LEE HEDGES PLC (SHAW.N0000) Sun Jun 30, 2013 2:54 pm

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Looks like SHAW has sold additional 50 perch block to CATIC recently. That's potentially a 350 million deal ( 7 million per perch). Should have been announced. Or has it been disappeared in the pockets of owners?

http://www.sundaytimes.lk/130630/business-times/chinese-firm-avic-gets-special-status-for-a-mixed-development-colombo-project-50142.html

I think company called Lee Hedges plc will be disappeared in a few years time. (once they sold all their properties & if not reinvest it somewhere)

Gaja · 9 Re: LEE HEDGES PLC (SHAW.N0000) Sun Jun 30, 2013 5:35 pm

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I think can expect a clarification on the 50 perch sales, as per my understanding if the news item was true then sales should have take place before 07th May and to date no announcement was made to the trading floor

Jiggysaurus · 10 Re: LEE HEDGES PLC (SHAW.N0000) Mon Jul 01, 2013 12:13 am

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Gaja wrote:I think can expect a clarification on the 50 perch sales, as per my understanding if the news item was true then sales should have take place before 07th May and to date no announcement was made to the trading floor

Better no announcements take place. Leads to unneccessary volatilty in the share price (just look at a 2 year price chart to see what happens when announcements are made)

Since this is 50 perches from a part of assets that were already classified as 'Held for Sale" no announcement is neccessary and shareholder approval is not needed. The transaction may appear as a 50-60 EPS profit in either the June statements or Sept statements.

sriranga · 11 12-Jul-2013 Corporate Disclosure - LEE HEDGES Fri Jul 12, 2013 3:50 pm

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http://www.cse.lk/cmt/upload_cse_announcements/5991373621234_.pdf

Gaja · 12 Re: LEE HEDGES PLC (SHAW.N0000) Fri Jul 12, 2013 8:11 pm

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UKB speak about this sometime back

Jiggysaurus · 13 Re: LEE HEDGES PLC (SHAW.N0000) Fri Jul 12, 2013 11:49 pm

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Loos like the 50 perch land was sold and the proceeds re-invested in the lease of the 52 perch UDA land. The UDA land had galle road frontage and seems to be used as a UDA carpark, must go that way on the weekend and see if the car park is closed.

rainmaker · 14 Re: LEE HEDGES PLC (SHAW.N0000) Sat Jul 13, 2013 12:27 pm

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No there was another land that was gazetted for car park facilities given the Krish (Indian movie name?? What's JKH project called Om Shanthi ...)

Second item from the top:
http://documents.gov.lk/Extgzt/2013/jul01.htm

Gaja · 15 Re: LEE HEDGES PLC (SHAW.N0000) Thu Aug 29, 2013 7:04 pm

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http://www.cse.lk/cmt/upload_cse_announcements/3591377776764_.pdf

UKboy · 16 Re: LEE HEDGES PLC (SHAW.N0000) Thu Aug 29, 2013 7:49 pm

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Gaja wrote:http://www.cse.lk/cmt/upload_cse_announcements/3591377776764_.pdf

What are they gonna do with all this money?
Will they restart the Mayfair city project without a partner?

Jiggysaurus · 17 Re: LEE HEDGES PLC (SHAW.N0000) Thu Aug 29, 2013 9:29 pm

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Gaja wrote:http://www.cse.lk/cmt/upload_cse_announcements/3591377776764_.pdf

Holy crap, i'm glad i was able to pick up some of the shares Moorthy was dumping.

There better be a 20 rupee dividend when the annual report is released.

Redbulls · 18 Re: LEE HEDGES PLC (SHAW.N0000) Fri Sep 06, 2013 5:51 pm

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http://www.cse.lk/cmt/upload_cse_announcements/151378466248_.pdf

Gaja · 19 Re: LEE HEDGES PLC (SHAW.N0000) Thu Nov 14, 2013 5:30 pm

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http://www.cse.lk/cmt/upload_report_file/632_1384339763074.pdf

nirowat · 20 Re: LEE HEDGES PLC (SHAW.N0000) Sat Nov 16, 2013 9:33 pm

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problem is cannot trust the management or the directorship to utilise the money well.

likely to siphon it off somewhere and the poor small holder will not see any of it.

As Jiggy mention, best example is RENU, after all the cash reserves accumulated, they cut the dividend payment !

These companies does not act as if they are quoted PLCs, they remain private property of the majority shareholders. Not sure why they listed in the first place.

Jiggysaurus · 21 Re: LEE HEDGES PLC (SHAW.N0000) Sun Nov 17, 2013 3:52 pm

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nirowat wrote:problem is cannot trust the management or the directorship to utilise the money well.

likely to siphon it off somewhere and the poor small holder will not see any of it.

As Jiggy mention, best example is RENU, after all the cash reserves accumulated, they cut the dividend payment !

Exactly, minority shareholders are at the mercy of stingy managers/directors.

In the case of SHAW, they will end up showing an EPS of around 200 for the quarter ended December (since the land sale went through in October), realistically they will need to pay a dividend of 50 to 100 during 2014 otherwise this will be a lost case just like RENU. The bigger shareholders like Elgin, Gulamhusein, pierre lanka and rosewood will need to push the directors and unlock the value.

The good thing with SHAW is that an NAV of 650 can be brought for around 250 which is a safer deal than RENU (NAV of480 going for 250)

The Alchemist · 22 Re: LEE HEDGES PLC (SHAW.N0000) Tue Nov 19, 2013 12:09 pm

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Jiggysaurus wrote: The bigger shareholders like Elgin, Gulamhusein, pierre lanka and rosewood will need to push the directors and unlock the value.

We have 10213 registered users
The newest registered user is sagulamhusein

UKboy · 23 Re: LEE HEDGES PLC (SHAW.N0000) Wed Feb 05, 2014 12:25 pm

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Who will pocket the money? Owners? Will they give at least a small portian to mini stake holders? Whats gonna happen with Mayfair city?
Will they dissolve the company? Hmmmm.......

Gaja · 24 Re: LEE HEDGES PLC (SHAW.N0000) Wed Feb 05, 2014 12:41 pm

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Two Sell orders in total for 133,720 shares

Slstock · 25 Re: LEE HEDGES PLC (SHAW.N0000) Wed Feb 05, 2014 12:46 pm

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Are they genuine is a question?

Gaja wrote:Two Sell orders in total for 133,720 shares

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LEE HEDGES PLC (SHAW.N0000)

1 LEE HEDGES PLC (SHAW.N0000) Sun Jun 02, 2013 2:32 pm

UKboy

2 Re: LEE HEDGES PLC (SHAW.N0000) Sun Jun 02, 2013 5:35 pm

Jiggysaurus

3 Re: LEE HEDGES PLC (SHAW.N0000) Mon Jun 03, 2013 9:00 pm

UKboy

4 Re: LEE HEDGES PLC (SHAW.N0000) Sat Jun 29, 2013 11:13 am

rainmaker

5 Re: LEE HEDGES PLC (SHAW.N0000) Sat Jun 29, 2013 6:00 pm

Jiggysaurus

6 Re: LEE HEDGES PLC (SHAW.N0000) Sat Jun 29, 2013 7:26 pm

rainmaker

7 Re: LEE HEDGES PLC (SHAW.N0000) Sat Jun 29, 2013 7:46 pm

Gaja

8 Re: LEE HEDGES PLC (SHAW.N0000) Sun Jun 30, 2013 2:54 pm

UKboy

9 Re: LEE HEDGES PLC (SHAW.N0000) Sun Jun 30, 2013 5:35 pm

Gaja

10 Re: LEE HEDGES PLC (SHAW.N0000) Mon Jul 01, 2013 12:13 am

Jiggysaurus

11 12-Jul-2013 Corporate Disclosure - LEE HEDGES Fri Jul 12, 2013 3:50 pm

sriranga

12 Re: LEE HEDGES PLC (SHAW.N0000) Fri Jul 12, 2013 8:11 pm

Gaja

13 Re: LEE HEDGES PLC (SHAW.N0000) Fri Jul 12, 2013 11:49 pm

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14 Re: LEE HEDGES PLC (SHAW.N0000) Sat Jul 13, 2013 12:27 pm

rainmaker

15 Re: LEE HEDGES PLC (SHAW.N0000) Thu Aug 29, 2013 7:04 pm

Gaja

16 Re: LEE HEDGES PLC (SHAW.N0000) Thu Aug 29, 2013 7:49 pm

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17 Re: LEE HEDGES PLC (SHAW.N0000) Thu Aug 29, 2013 9:29 pm

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18 Re: LEE HEDGES PLC (SHAW.N0000) Fri Sep 06, 2013 5:51 pm

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19 Re: LEE HEDGES PLC (SHAW.N0000) Thu Nov 14, 2013 5:30 pm

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20 Re: LEE HEDGES PLC (SHAW.N0000) Sat Nov 16, 2013 9:33 pm

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21 Re: LEE HEDGES PLC (SHAW.N0000) Sun Nov 17, 2013 3:52 pm

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22 Re: LEE HEDGES PLC (SHAW.N0000) Tue Nov 19, 2013 12:09 pm

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23 Re: LEE HEDGES PLC (SHAW.N0000) Wed Feb 05, 2014 12:25 pm

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24 Re: LEE HEDGES PLC (SHAW.N0000) Wed Feb 05, 2014 12:41 pm

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25 Re: LEE HEDGES PLC (SHAW.N0000) Wed Feb 05, 2014 12:46 pm

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26 Re: LEE HEDGES PLC (SHAW.N0000)

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