Tee International

Tee International: Counter up 5.4% today, after the Group obtained its eligibility-to-list its real-estate business (Tee Land) from SGX, , upon conditions as follows- 1) at least $20m raised in total from public/ private investors from its listing; 2) the price/share of Tee Land, has to be at least $0.50, with a market cap of at least $150m; Upon a spinoff, Tee International will be able to realize the value of their properties, which the Group intends to fund its Myanmar cement business, as well as a special dividend for the remaining proceeds. Tee Int'l has intentions to hold at least 70% stake in Tee Land, which it sees as a valuable source of future earnings. Tee International's historical dps of 2.35¢ (including special div which Tee has been giving the past 2 years) gives an implied yield of 6.0% dividend (using the current price of $0.390), relative to its engineering/ construction peers (average yield of ~2%), or property developer peer Sim Lian with a historical yield 5.8%. On its Myanmar cement business, Tee Int'l last signed an MOU (9 Nov 2012) with Ayeyarwaddy Cement- a subsidiary of A1 Group, to set up a JV-company to develop and operate a fully integrated cement plant to manufacture portland cement for sale in Myanmar. Expected completion of the JV to be formed by 31 Jul 2013.