Guocoleisure

Guocoleisure: CIMB features the Co. it its small cap weekly. Note that the markets will likely want to believe that major shareholder Quek Leng Chan will eventually want to take GuocoLeisure private. History supports this view as the Guoco Group did make an offer of $1.25 ($1.20 initially) per share for shares in GuocoLeisure in 2005. Mr Quek (through GuoLine) has also been buying shares from the open market. The last reported transaction was on 16 Oct 12 when 667,000 shares were purchased at $0.65 per piece. At the same time, no major shareholder per se seems to have enough holdings to thwart any privatisation attempt. House believe Guoco’s current privatisation is likely to keep GuoLine busy. Privatisation of GuocoLeisure, if at all, will have to wait till the Guoco deal comes to a conclusion. Even then, one should not read too much into the 2005 offer as the key objective then (on hindsight) seems to be the importance of Guoco having a controlling stake in GuocoLeisure