WATA Community

User avatar
SHARK
Savant
Savant
Posts: 15659
Joined: Sun Jan 11, 2015 10:03 pm
Location: Abu Dhabi
Flag: Sri Lanka
Contact:

Re: WATA Community

Postby SHARK » Fri Jun 30, 2017 12:38 pm

Blue Whale wrote:I think they are restructuring the group. Divestment will not be the intention.
A LT gem.... traders and LT investors should find good re-entry :-B

The SSH should go into real health sector instead handling pharmacies alone..... and be a true diversified.... (*)
Price is what you pay. Value is what you get.”

User avatar
Blue Whale
Equity Analyst
Equity Analyst
Posts: 8814
Joined: Mon Oct 26, 2015 7:14 am
Location: Asia
Flag: Sri Lanka

Re: WATA Community

Postby Blue Whale » Fri Jun 30, 2017 12:40 pm

SHARK wrote:
Blue Whale wrote:I think they are restructuring the group. Divestment will not be the intention.
A LT gem.... traders and LT investors should find good re-entry :-B

The SSH should go into real health sector instead handling pharmacies alone..... and be a true diversified.... (*)


Are you referring to building a hospital?
Value Invest Profit

User avatar
Value
Equity Analyst
Equity Analyst
Posts: 930
Joined: Fri Jan 27, 2017 7:30 pm
Flag: Sri Lanka

Re: WATA Community

Postby Value » Fri Jun 30, 2017 12:49 pm

SHARK wrote:http://lankaequityforum.com/viewtopic.php?p=44566#p44566

Dear Val

Can you tell how you derived these numberz for 2016...
i am unable to cross check same with actuals.


I just reproduced the numbers from the segment report found in the quarterly report for the quarter ended 30th June 2016.

There are two segment reports, Group one in page 7 and the company one in page 8.

I have taken the Group report

User avatar
GB
Top Contributor
Top Contributor
Posts: 1052
Joined: Fri Aug 26, 2016 3:23 pm
Flag: Sri Lanka

Re: WATA Community

Postby GB » Fri Jun 30, 2017 5:38 pm


Once this process complete we can see a first sri Lankan company which having 100% oil Palm. =)) =))

Then we can see a company which trading much higher PE ratio and we all should collect at the right time. :-bd

User avatar
Value
Equity Analyst
Equity Analyst
Posts: 930
Joined: Fri Jan 27, 2017 7:30 pm
Flag: Sri Lanka

Re: WATA Community

Postby Value » Fri Jun 30, 2017 8:04 pm

GB wrote:

Once this process complete we can see a first sri Lankan company which having 100% oil Palm. =)) =))

Then we can see a company which trading much higher PE ratio and we all should collect at the right time. :-bd


Even tea business is separated and brought under a new company, WATA will be the holding company of the said new company right?

So how?

User avatar
GB
Top Contributor
Top Contributor
Posts: 1052
Joined: Fri Aug 26, 2016 3:23 pm
Flag: Sri Lanka

Re: WATA Community

Postby GB » Fri Jun 30, 2017 9:01 pm

No. SUN will be a holding company and there will be two separate listed company.
E.g.. Tea Company and Oil Palm Company.

One company may use the existing watawala name and other one will come with new name. Or else both comes with new names. But under SUN management.

User avatar
Value
Equity Analyst
Equity Analyst
Posts: 930
Joined: Fri Jan 27, 2017 7:30 pm
Flag: Sri Lanka

Re: WATA Community

Postby Value » Fri Jun 30, 2017 9:20 pm

So WATA will sell its tea related assets less liabilities to a new SUN's subsidiary in which WATA will have no shareholding?

Obviously WATAWELA brand name should be with Tea.

They mentioned a term "mirrored shareholding" in their announcement which I am very clear about.

User avatar
GB
Top Contributor
Top Contributor
Posts: 1052
Joined: Fri Aug 26, 2016 3:23 pm
Flag: Sri Lanka

Re: WATA Community

Postby GB » Fri Jun 30, 2017 9:37 pm

Value wrote:So WATA will sell its tea related assets less liabilities to a new SUN's subsidiary in which WATA will have no shareholding?

Obviously WATAWELA brand name should be with Tea.

They mentioned a term "mirrored shareholding" in their announcement which I am very clear about.


Why they want to sell?
They are going to separate the WPL assest in to two entities and allocate to existing share holders either NAS or any other valuation basis.

User avatar
GB
Top Contributor
Top Contributor
Posts: 1052
Joined: Fri Aug 26, 2016 3:23 pm
Flag: Sri Lanka

Re: WATA Community

Postby GB » Fri Jun 30, 2017 9:49 pm

Yep. Both companies would not have any controlling power against each others. But Sun will have a existing control power over both subsidiaries.
Bit complex situation. Is n't It?.

User avatar
GB
Top Contributor
Top Contributor
Posts: 1052
Joined: Fri Aug 26, 2016 3:23 pm
Flag: Sri Lanka

Re: WATA Community

Postby GB » Fri Jun 30, 2017 9:52 pm

Dear Value. What would be the allocation basic ?

User avatar
Value
Equity Analyst
Equity Analyst
Posts: 930
Joined: Fri Jan 27, 2017 7:30 pm
Flag: Sri Lanka

Re: WATA Community

Postby Value » Fri Jun 30, 2017 9:53 pm

Didn't get it yet.

Will WATA's group accounts include tea performance or not in the future after the announced restructuring take place?

If not, existing shareholders of WATA (specially except SUN) should get a consideration to exit the tea business...

User avatar
Value
Equity Analyst
Equity Analyst
Posts: 930
Joined: Fri Jan 27, 2017 7:30 pm
Flag: Sri Lanka

Re: WATA Community

Postby Value » Fri Jun 30, 2017 10:07 pm

What I understand is, current business of WATA will be carried out by two listed companies in the future.

One Company will look after the tea segment while the other will look after Palm oil, dairy and export businesses.

Existing shareholders of WATA will get identical (mirrored) shareholding in the New company to be formed. So no value leakages to the minority shareholders.

User avatar
GB
Top Contributor
Top Contributor
Posts: 1052
Joined: Fri Aug 26, 2016 3:23 pm
Flag: Sri Lanka

Re: WATA Community

Postby GB » Fri Jun 30, 2017 10:08 pm

What I understood is as follows.

Suppose they have NA of 20 in the balance sheet and then they will separate the assets and liabilities based on Crop.
Lets assume the NA 6 and 14 for Oil and Tea.

Then based on some valuation method they will allocate the shares. ( supposed if it is a NA basis, a share holder in WPL having 20 shares will get 6 no of new shares in Oil Palm company and 14 shares in Tea Company. )

User avatar
GB
Top Contributor
Top Contributor
Posts: 1052
Joined: Fri Aug 26, 2016 3:23 pm
Flag: Sri Lanka

Re: WATA Community

Postby GB » Fri Jun 30, 2017 10:13 pm

Value wrote:What I understand is, current business of WATA will be carried out by two listed companies in the future.

One Company will look after the tea segment while the other will look after Palm oil, dairy and export businesses.

Existing shareholders of WATA will get identical (mirrored) shareholding in the New company to be formed. So no value leakages to the minority shareholders.


Yes Value. What would be the allocation basis?

User avatar
Value
Equity Analyst
Equity Analyst
Posts: 930
Joined: Fri Jan 27, 2017 7:30 pm
Flag: Sri Lanka

Re: WATA Community

Postby Value » Fri Jun 30, 2017 10:19 pm

Appreciate your effort in understanding the scenario.

Actually, there is not a need for a valuation here.

The new company will issue shares (for free) on a 1:1 basis to the WATA shareholders.

So once the new company is formed, the shareholding structure of both the companies will be identical. Mirrored shareholding refers to that.

Hope it is clear now.

User avatar
Shadow walker
Top Contributor
Top Contributor
Posts: 1914
Joined: Tue May 12, 2015 8:59 am
Flag: Sweden

Re: WATA Community

Postby Shadow walker » Fri Jun 30, 2017 10:26 pm

GB wrote:What I understood is as follows.

Suppose they have NA of 20 in the balance sheet and then they will separate the assets and liabilities based on Crop.
Lets assume the NA 6 and 14 for Oil and Tea.

Then based on some valuation method they will allocate the shares. ( supposed if it is a NA basis, a share holder in WPL having 20 shares will get 6 no of new shares in Oil Palm company and 14 shares in Tea Company. )


:-bd
Last edited by Shadow walker on Fri Jun 30, 2017 10:27 pm, edited 1 time in total.
Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time .. ;)


User avatar
Value
Equity Analyst
Equity Analyst
Posts: 930
Joined: Fri Jan 27, 2017 7:30 pm
Flag: Sri Lanka

Re: WATA Community

Postby Value » Fri Jun 30, 2017 10:27 pm

Ideally, value leakages by exiting tea business will be set off by the free ownership given at a new company.

Just after restructuring, total of market vale of the two companies will be equal to WATA's share price prior to restructuring. Theoretically no gains or losses.

User avatar
Value
Equity Analyst
Equity Analyst
Posts: 930
Joined: Fri Jan 27, 2017 7:30 pm
Flag: Sri Lanka

Re: WATA Community

Postby Value » Fri Jun 30, 2017 10:31 pm

Shadow walker wrote:
GB wrote:What I understood is as follows.

Suppose they have NA of 20 in the balance sheet and then they will separate the assets and liabilities based on Crop.
Lets assume the NA 6 and 14 for Oil and Tea.

Then based on some valuation method they will allocate the shares. ( supposed if it is a NA basis, a share holder in WPL having 20 shares will get 6 no of new shares in Oil Palm company and 14 shares in Tea Company. )


:-bd


Nope...if you have 10,000 shares of WATA before the restructuring, then you will be given 10,000 shares in a new listed company to which WATA's tea business will be transferred.

After the restructuring, market value of original WATA will fall and this will be set off by the market value of the new company.

User avatar
Shadow walker
Top Contributor
Top Contributor
Posts: 1914
Joined: Tue May 12, 2015 8:59 am
Flag: Sweden

Re: WATA Community

Postby Shadow walker » Fri Jun 30, 2017 10:38 pm

Value wrote:
Shadow walker wrote:
GB wrote:What I understood is as follows.

Suppose they have NA of 20 in the balance sheet and then they will separate the assets and liabilities based on Crop.
Lets assume the NA 6 and 14 for Oil and Tea.

Then based on some valuation method they will allocate the shares. ( supposed if it is a NA basis, a share holder in WPL having 20 shares will get 6 no of new shares in Oil Palm company and 14 shares in Tea Company. )


:-bd


Nope...if you have 10,000 shares of WATA before the restructuring, then you will be given 10,000 shares in a new listed company to which WATA's tea business will be transferred.

After the restructuring, market value of original WATA will fall and this will be set off by the market value of the new company.


So the new company will be a subsidiary of SUN and dont have any consolidation with WATA.. :-bd
Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time .. ;)


User avatar
GB
Top Contributor
Top Contributor
Posts: 1052
Joined: Fri Aug 26, 2016 3:23 pm
Flag: Sri Lanka

Re: WATA Community

Postby GB » Fri Jun 30, 2017 10:40 pm

Thank you value. Cleared everything :-bd

User avatar
Value
Equity Analyst
Equity Analyst
Posts: 930
Joined: Fri Jan 27, 2017 7:30 pm
Flag: Sri Lanka

Re: WATA Community

Postby Value » Fri Jun 30, 2017 10:44 pm

Shadow walker wrote:
Value wrote:
Shadow walker wrote:
GB wrote:What I understood is as follows.

Suppose they have NA of 20 in the balance sheet and then they will separate the assets and liabilities based on Crop.
Lets assume the NA 6 and 14 for Oil and Tea.

Then based on some valuation method they will allocate the shares. ( supposed if it is a NA basis, a share holder in WPL having 20 shares will get 6 no of new shares in Oil Palm company and 14 shares in Tea Company. )


:-bd


Nope...if you have 10,000 shares of WATA before the restructuring, then you will be given 10,000 shares in a new listed company to which WATA's tea business will be transferred.

After the restructuring, market value of original WATA will fall and this will be set off by the market value of the new company.


So the new company will be a subsidiary of SUN and dont have any consolidation with WATA.. :-bd


Yesss!

User avatar
GB
Top Contributor
Top Contributor
Posts: 1052
Joined: Fri Aug 26, 2016 3:23 pm
Flag: Sri Lanka

Re: WATA Community

Postby GB » Tue Jul 04, 2017 11:50 pm

Interesting to enter for WATA and wating to collect at 30. But seem that it will come not coming to rs 30. Should I wait little more or jump to current price.?

User avatar
Blue Whale
Equity Analyst
Equity Analyst
Posts: 8814
Joined: Mon Oct 26, 2015 7:14 am
Location: Asia
Flag: Sri Lanka

Re: WATA Community

Postby Blue Whale » Wed Jul 05, 2017 12:55 pm

GB wrote:Interesting to enter for WATA and wating to collect at 30. But seem that it will come not coming to rs 30. Should I wait little more or jump to current price.?


Better to wait for some more times.
Value Invest Profit

User avatar
Blue Whale
Equity Analyst
Equity Analyst
Posts: 8814
Joined: Mon Oct 26, 2015 7:14 am
Location: Asia
Flag: Sri Lanka

Re: WATA Community

Postby Blue Whale » Wed Jul 05, 2017 1:14 pm

GB wrote:Interesting to enter for WATA and wating to collect at 30. But seem that it will come not coming to rs 30. Should I wait little more or jump to current price.?


Available @ 30.70 :-bd
Value Invest Profit

User avatar
GB
Top Contributor
Top Contributor
Posts: 1052
Joined: Fri Aug 26, 2016 3:23 pm
Flag: Sri Lanka

Re: WATA Community

Postby GB » Wed Jul 05, 2017 2:20 pm

Blue Whale wrote:
GB wrote:Interesting to enter for WATA and wating to collect at 30. But seem that it will come not coming to rs 30. Should I wait little more or jump to current price.?


Available @ 30.70 :-bd


තව පොඩ්ඩක් බලන් ඉන්න හිතෙනවා :-?? :-??


Return to “Communities”

Who is online

Users browsing this forum: No registered users and 2 guests