The result was final, Kep Corp on the deadline 31st March 2015 acquired 95.1% of Kepland share, 0.4% fall short of the 95.5% target to make it compulsory and reward Kepland shareholder the higher offering price of $4.60. At an offer price of $4.38/share has probably made part of Kepland shareholders in particular the minority to being feel of short change for it given that independent adviser already pointed out that the $4.38 price is "unfair but reasonable".
For me, the price of $4.38 has given me a return of 25.50% (holding price $3.49) in less than 3 months. Not a bad return given the fact that I wasn't a "long-term" investor in Kepland that have hold it for years. However, I do have mixed reaction to the outcome of the privatization.
As a Kepland minority shareholder, there is definitely a feeling of being short change for the offer. The $4.38 offer price happens to include the dividend of 14 cents/share also. Given the fact that should I not accept the offer and sold it off in open market, I could fetch a price of $4.55, which is another 4.87% of return I could get. The failing to achieve the 95.5% level is quite a mystery as Kep Corp already signaled it has no intention to continue listing of Kepland even if it fails to hit the 95.5% compulsory level and yet shareholders still holding out for what ?
On the other hand, also being a Kep Corp shareholder, I'm more than happy of the outcome. Failing to hit the 95.5% level means Kep Corp has literally save something like S$155m in privatized Kepland. The benefits of Kep Corp privatizing Kepland (mentioned before) will go ahead.
A chapter has closed for Kepland investment though was a rather short one (less than 3 months) with a gain of 25.50%. Now my focus will be on the next property stock. Reasons on why picking on property stock already specified in my previous analysis. What I am looking for at the next property stock should have the same basic fundamental to Kepland like regional exposure, diversify projects in residential and commercials and the financial strength in the short-term to ride over the bearish property market. In fact I have short-listed a few of them and just waiting for the right time and price to invest in it. My immediate target is of mid-term time frame (few months to 3 years) but will review then when the time is right whether to convert to a long-term basis (meaning prepare to ride through the next down turn of economy cycle).
