What is value?: One view

In Uncategorized on 12/07/2010 at 5:56 am

Is this view of value,  profound, PR banality, or pure BS? If one of the last two, remember the speaker is one ballsy lady: she took on the much, much wealthier OCBC Lees in the fight to control Straits Trading, taking on debt in the process.

She is now the executive chairman of Straits Trading.

STC [Straits Trading]is an investment company and its subsidiaries should be viewed as business investments, she said. Does that mean every business is potentially for sale? ‘If we are true to what we say, that we must realise shareholder value, anything at the right price we must consider it for sale. One should not be so married or so emotionally attached that nothing is for sale,’ she said. ‘But having said that, the considerations are plentiful; it cannot just be today’s price, it cannot just be 10 per cent above today’s price,’ she said. The group is prepared to hold for 20-30 years if that’s what it takes, in order for value to be realised.

Calling STC’s real estate division as the ‘meat’ of the group, she is mulling over what the balance should be in terms of how much should be developed for sale and what to hold for rental income. STC’s real estate assets include its flagship Straits Trading Building, a 28-storey building at Battery Road, 4 developed bungalows and 5 plots of bungalow land…

Part of a BT report in April that I rediscovered while file-cleaning.

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