Straco

Straco: According to the Business Times, Straco could be getting ready to announce its acquisition of the Singapore Flyer. Does not come as a surprise, as Straco has been guiding that it was on the look out in recent years for an acquisition, given its growing net-cash position, which currently stands at $100m. Both revenue and earnings growth have also been very strong over the last few years, with share price surging abt 157% from a year ago. As a brief background, Straco operates 2 aquariums in China, the first being Shanghai’s popular Ocean aquarium and xiamen’s aquarium. The acquisition would reduce their concentration risk in China, although it remains to be seen on how Straco will be able to turn around the Singapore flyer. The company behind the flyer was placed under receivership in 2013 after failing to meet its financial obligations. General sentiment is that most locals find the price of $33 for a half-hour ride to be too expensive.