Ellipsiz

[GenS70]

My thesis too that Lum is financial investor taking advantage of their financial capital to  consolidate Ellipsiz's fragmented shareholdings, and will look to do a trade sale unlocking value

Signs of Lum unlocking value:

1. Sale of Kita
2. High dividend payment

Glad my thesis of a trade sale has turned out well, reaping good returns!

Where to go from here for this company? Investors have to be mindful that whatever businesses that remain may be burdened with all the headoffice cost, that was previously shared with the probe card business, plus some of the cash will only be available in 1-2 years time. And any investment into another business will come with a lot of uncertainty! The best outcome will be to sell the log stock and barrel to a buyer who wants a shell flushed with cash.

[weijian]

In recent years, Ellipsiz has "diversified" out of its semiconductor equip/services provider roots and ventured into property development (Bintan) and golf simulators. Now, it is doing national service to help Spore reduce its reliance on imported food products. The total development cost of this 4th egg farm is ~110mil, more than double its current market cap. Curiously, market cap is below than of its cash.

Nonetheless, taping gov subsidies may not be a bad model after all. ISE Foods Holdings (IFH), the company carrying out the farm ops also have other shareholders, although Ellipsiz still holds the majority stake. So the 110mil burden will be shared among institutions (eg. Temasek) and also their technology partner (Jap egg producer).

Construction begins for Singapore’s long-delayed fourth egg farm

Mr Ho said that the layer farm is expected to cost about S$110 million (US$86 million) to develop.

The development is partially financed by Maybank through a term loan facility of up to S$65 million, with the bank serving as the farm’s sole financing partner. Unicore Agri and Vertex Exploratory Fund are co-investors.

Ms Fu said that DoMo is one of the local farms to have tapped SFA’s Agri-Food Cluster Transformation Fund 2. SFA launched a new tranche of S$70 million under the fund earlier this year.

https://www.channelnewsasia.com/singapor...on-6416146