Thank you for all the work you do and for writing about Boustead Singapore. I am an individual investor holding Boustead Projects shares. Having read the announcements over the past 2 or 3 months since shares have stopped trading on the SGX since Boustead Singapore's Voluntary Unconditional Offer, I am seeking clarity on what potential action(s), if any, I need to take going forward:
a) if Boustead Singapore's Voluntary Unconditional Offer succeeds
b) if Boustead Singapore's Voluntary Unconditional Offer does not succeed
For a), do you know whether my Boustead Projects position would be automatically closed out with the cash value of my shares deposited to my account ? Or will I need to take action to ensure this happens (so I don't end up with zero shares and zero cash) ?
For b), I assume that I would retain ownership of my shares in my brokerage account. Is this correct?
I would be most grateful for your advice on the above since I felt that the announcements were not easy to understand. I look forward to your reply.
If the offer succeeds then you'll up with the cash received for your shares at the acquisition price. Usually, if the majority of the shareholders accept the offer, then the remaining shareholders will be forced to accept the offer as well. I don't know what the limit on SGX is, perhaps 90%. This article suggests that the full takeover of Boustead Projects will go ahead: https://www.mingtiandi.com/real-estate/finance/boustead-projects-to-delist-in-latest-singapore-buyout/
This suggests that you do not need to take any action, you will simply receive the cash.
I think the business will probably be fine. My first reaction was that it will be challenged by the likes of Google Maps and Google Earth.
But the reason why ESRI's software has staying power is that the data comes from companies and the governments themselves. The software is customised, confidential data is being used to populate the maps, all to achieve specific objectives for each customer.
Have a look at some of the reviews of ESRI's ArcGIS software product. I think the reviews are generally positive, explaining why they have a 43% market share, compared to about 10% for the second-largest company in the industry. Google, by the way, quit the market in the mid-2010s. https://www.g2.com/products/esri-arcgis/reviews#reviews
I may not have answered your question completely with regards to digital AI. To be clear, I think the answer is that 1) ESRI is certainly at the forefront of the industry and 2) The fact that they're targeting governments who are careful sharing their data, and relatively slow moving, makes me think that the threat from machine learning tech is probably small.
Michael, thank you for the informative presentation on a company and founder I've always liked. For the last column on p41 of the ppt - need to check that exchange rate perhaps? Doesnt change the big picture, esp if they do manage to take out BPL at discount - thanks for flagging
Hi ursawarrior! Yes, you are absolutely right. The numbers in the last column of slide 41 are all in SG$m. I've now corrected the name of the column to "Value (SG$m)". Thanks!
Dear Michael
Thank you for all the work you do and for writing about Boustead Singapore. I am an individual investor holding Boustead Projects shares. Having read the announcements over the past 2 or 3 months since shares have stopped trading on the SGX since Boustead Singapore's Voluntary Unconditional Offer, I am seeking clarity on what potential action(s), if any, I need to take going forward:
a) if Boustead Singapore's Voluntary Unconditional Offer succeeds
b) if Boustead Singapore's Voluntary Unconditional Offer does not succeed
For a), do you know whether my Boustead Projects position would be automatically closed out with the cash value of my shares deposited to my account ? Or will I need to take action to ensure this happens (so I don't end up with zero shares and zero cash) ?
For b), I assume that I would retain ownership of my shares in my brokerage account. Is this correct?
I would be most grateful for your advice on the above since I felt that the announcements were not easy to understand. I look forward to your reply.
Best regards
Michael
If the offer succeeds then you'll up with the cash received for your shares at the acquisition price. Usually, if the majority of the shareholders accept the offer, then the remaining shareholders will be forced to accept the offer as well. I don't know what the limit on SGX is, perhaps 90%. This article suggests that the full takeover of Boustead Projects will go ahead: https://www.mingtiandi.com/real-estate/finance/boustead-projects-to-delist-in-latest-singapore-buyout/
This suggests that you do not need to take any action, you will simply receive the cash.
great take, thank you!
Do you think with the rise of digital AI , the geospatial business will be challenged?
I think the business will probably be fine. My first reaction was that it will be challenged by the likes of Google Maps and Google Earth.
But the reason why ESRI's software has staying power is that the data comes from companies and the governments themselves. The software is customised, confidential data is being used to populate the maps, all to achieve specific objectives for each customer.
Have a look at some of the reviews of ESRI's ArcGIS software product. I think the reviews are generally positive, explaining why they have a 43% market share, compared to about 10% for the second-largest company in the industry. Google, by the way, quit the market in the mid-2010s. https://www.g2.com/products/esri-arcgis/reviews#reviews
I may not have answered your question completely with regards to digital AI. To be clear, I think the answer is that 1) ESRI is certainly at the forefront of the industry and 2) The fact that they're targeting governments who are careful sharing their data, and relatively slow moving, makes me think that the threat from machine learning tech is probably small.
Michael, thank you for the informative presentation on a company and founder I've always liked. For the last column on p41 of the ppt - need to check that exchange rate perhaps? Doesnt change the big picture, esp if they do manage to take out BPL at discount - thanks for flagging
Hi ursawarrior! Yes, you are absolutely right. The numbers in the last column of slide 41 are all in SG$m. I've now corrected the name of the column to "Value (SG$m)". Thanks!