KLW Holdings Ltd (504:SES)



KLW Holdings Limited is an investment holding company. The Company’s businesses include door manufacturing and distribution, and property investments and

Recent History

On December 26, 2016, KLW announced the sale of its Melbourne investment property for S$36.5 million, with an estimated after-tax gain of S$6 million.

On March 1, 2017, KLW announced plans to form a JV in Indonesia for land development and will control 65% of the JV through its wholly owned subsidiary, Ambertree Indonesia Ventures Pte Ltd (AIV).  35% of the JV will be controlled by PT Codefin (PTKBU), a real-estate developer based in Jakarta.

On August 24, 2017, KLW announced the JV would be called PT Ambertree Development Jakarta (PTADJ).  43,500 shares were issued at US$21.75 million par (S$29.60) but were as-yet unpaid.  KLW announced the share capital in PTADJ attributable to KLW (65%) will be funded through internal resources.

On September 27, 2017, KLW announced the project would be located at Jalan R.A. Kartini No. 18, Jakarta, Indonesia.  It was also announced the land is owned by PT Codefin and that the terms of the sale have not been finalized.

On November 2, 2017, KLW announced a sales agreement had been reached for S$24.8M and that the land will be used for mixed-use development.  The capital contributions by AIV and PTKBU amounting to US$14.1M and US$7.6M respectively have been paid to PTADJ.

On December 29, 2017, KLW announced the purchase of the remaining shares (30%) of its subsidiary, KLW Resources Sdn. Bhd., for S$8.21 million. [Company estimates book-value at S$8.28]  KLW is funding the Proposed Acquisition through its internal resources and also from the balance proceeds of S$1.62 million raised from the rights cum warrants issue undertaken by the Company in 2014.  As of its most recent filing, KLW lists the 30% un-owned shares as a current liability of S$4.83 million.

For the period ending September 30, 2017, KLW trades below NCAV of S$0.012.  However, this number does not account for the recent JV or the repurchase of the remaining shares. In addition, current assets show development property of S$14 million, which I can only assume to be the Melbourne property.  This is confounded by the cash from the sale of the said property being recorded.

I’ll wait for the next earnings release.

Disclosure:  We do not currently own shares in KLW Holdings.



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