The ace, veteran journalist from MediaCorp’s freesheet praises CapitaLand for the US$2.2 billion ($3.09 billion) purchase of Orient Overseas Development Ltd’s (OODL’s) assets comprising seven sites totalling 1.48 million square metres in Shanghai, Kunshan and Tianjin. OODL is the Chinese property arm of HK-listed OOIL, controlled by the family of former Hong Kong chief executive Tung Chee Hwa.
We are told of why it is a gd deal despite the subsequent curbs on property speculation by Chinese authorities (“a blessing in disguise”) and how CapLand’s CEO won a high stakes poker game by refusing to bid higher.
Gee wiz, the CEO sounds like some super hero in action.
The problem with this analysis is the share price of CapLand, down 13% from its high when the deal was announced and close to its October lows in last year. Meanwhile OODL’s parent is trading a lot higher than its October 2009 price, and the fall in HK, has affected it slightly.
Conclusion: mkt thinks CapLand got its timing wrong http://atans1.wordpress.com/2010/01/21/capland-but-is-he-lucky/
On a more serious note, the ace journalist had to concede that “ despite CapitaLand’s connections in China, it doesn’t wield the same clout as the Tung family in that country … The Orient land bank was acquired over some time, noted a China property source. He pointed out that on its own, CapitaLand wouldn’t probably have been able to accumulate this prime parcel on its own.”
Waz this? I tot we had MM Lee, the adviser to Chinese leaders? And didn’t S’pore Inc pay a treasure in Suzchou etc to be an “old friend of China”? Or is all these nothing but spin from our MSM? Or the fantasy of the S’pore government?