Flying
High On A Merger: Lum Par In JV With TWA
reported by: Lau Cheow
In a news conference held yesterday, construction giant Lum Par Holdings
announced that it had entered into a joint venture with
Trans-World Airlines (TWA) to form a global cargo handling conglomerate.
"We bring you TWA Lum Par," announced Lum Par's Chairman Ho
Seng Lee proudly.
"This is BIG, BOLD and BALLSY," said Chin Boh Chee, analyst at
local stockbroking firm Geh Kiang Goh Pte Ltd, capitalising his
words carefully.
Shares of Lum Par (itself the product of
a merger between the Lum Chang and Haw Par corporations) sagged over the
last few weeks as investors pummeled the company for its poor
earnings.
However, news of a deal in China (see
related story) followed by this stunning announcement with TWA
caught investors with their pants down.
Chairman of Lum Par Holdings, Mr. Ho Seng Lee said that TWA Lum Par would expand
to fill the needs of global logistics companies who had problems measuring
up to competition from larger US companies.
"Singapore has unique capabilities to offer the world, "
explained Mr. Ho. He said that the company's business stood on
three legs: carrying capacity, expert hand-holding and, with
TWA's contribution, fly-by-night operations.
"Lum Par is definitely going to go into this with a big bang,"
said Mr. Ho confidently.
Analysts, however, were mixed on the prospect of Lum Par stock price over the
long term.
Kia & Soo maintained that Lum Par's share price will fluctuate with demand and
selling pressure, and advised investors to adopt a wait and see attitude.
However, Hardas Singh, an analyst at Biggers Ballas was skeptical of Lum Par's
long term growth prospect, especially in light of previous failed ventures
in China.
"Investors long on Lum Par are going
to see their assets shrink," he quipped. "We don't
own any Lum Par and we don't intend to acquire any," he
declared firmly.
Lum Par Hits Bottom But Bounces Back With China Deal
by Lau Cheow
Lum Par Holdings shares have had a rough time lately as they were hammered by short sellers believing that they were overextended in China.
A year ago, it announced plans to set up an Industrial Park in the Chinese city of
Lanchou, called Lum Par Parc Lanchou, an exclusive condo, business unit and Internet incubator development. It would provide
residential, work and R&D facilities for high-tech companies in the Industrial Park.
The poor economy prompted a big selloff in Lum Par late last year as it struggled with increasing debt.
Investors who bought shares anticipating a split were short-changed as a reverse split to prop prices up occurred.
Instead of two for the price of one, they received only one for two. Many unhappy investors unloaded their Lum Par in disgust.
But yesterday, a new deal was inked between Lum Par and Lee Rubber Company. Lum Par's share price soared, lifted by heavy institutional support as executives dangled the prospect of improved earnings this quarter. From a low of two cents, it went as high as twenty cents when the
markets closed.
"Lee Lum Par!" pronounced Chairman Ho Seng Lee yesterday referring to the name of the joint venture. Lee Lum Par will acquire a license to operate in the lucrative rubber business in China. Lee Lum Par will also be the first company to be based in the LPPL Industrial Park.
"Lee Lum Par - that's what I have to say to all the people who doubted our venture in China," reiterated Mr. Ho.
At a press briefing, CEO of Lee Lum Par, Mr. Teo Gu Lan, declined to reveal the nature of their first line of products, preferring to keep this a secret until the launch, but intimated that it came in three sizes, small,
medium and large.
However, a source close to Lum Par leaked the news that the new venture will be
involved in contraceptives and property development. He told us that the motto for the new company would be "Lee Lum Par,
specialists from condoms to condominiums -- all sizes sold."
Another source also hinted that byproducts from the rubber factory will be shipped to Thailand for the manufacture of chewing gum.
While the prospects look good for Lee Lum Par, analysts have cautioned that
although the market for contraceptives is fairly elastic, it is also small and
fragile."
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2001. All rights reserved.
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Singapore Hotelier Grabs Extra Lum Par Thanks
To Biggers Ballas
by Michael Bloombird
Singapore hotelier Pang Keng Seng managed to
increase his stake in Lum Par Holdings yesterday. This was thanks to a
bequest by the late founder of stockbroking firm Biggers Ballas, who had also
acquired Lum Par's securities division earlier this year.
Mr. Hugh G. Ballas, who passed away last month,
had apparently bequeathed Mr. Pang all his stock in Lum Par
Holdings.
Apparently, Mr. Ballas had been a longtime patron
of the luxury hotels in Mr. Pang's Hotels Potentates Prefer Limited (HPPL) chain
and wanted to show his appreciation.
"Yes," said Miss Foo Rah Ma, HPPL's
public relations manager. "He was one of our preferred customers. He would
always house his extended family here when they visited Singapore. We went
out of our way to make them comfortable, by taking them wherever they went on
palanquins, borne on the shoulders of our staff. We are very proud to say
that we carried his Ballas."
Mr. Pang, who already had a stake of his own in
Lum Par, has now become the majority shareholder, thanks to the bequest.
"It's true," said Lum Par CEO Ho Seng
Lee. "Mr. Pang is now the most tua liap here at Lum Par."
Mr. Pang has big plans for Lum Par. For
instance, he has floated the idea of merging Lum Par together with HPPL to form
LPPL.
"We see a lot of synergy in such a
move," said Lum Par's Mr. Ho. "We believe Mr. Pang's experience in the
hospitality trade as being very valuable in developing our much-awaited luxury
condo project, Lum Par ParcLands."
© http://www.TalkingCock.com
2001. All rights reserved.
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Lum Par Securities Acquired By Biggers Ballas
by Michael Bloombird
The recently deregulated Singapore brokerage
scene was abuzz yesterday as Lum Par Holdings announced that it would be selling
its securities division to listed brokerage Biggers Ballas.
Said Biggers Ballas Securities chairman Mr. Moh
Khoo Cheow, "This merger will ensure that we are the most tua kee firm on
the market."
Indeed, the combined entity, to be named Biggers
Lum Par, has increased its market share to match nearest competitor OUB Kay
Kiang, but far outstripping it in terms of assets.
Said Mr. Moh, "As befits the most tua kee
firm on the market, our combined assets are also si beh tua liap."
However, Kay Kiang deputy vice president Mr. Kiew
Chin Tang dismissed Mr. Moh's comments as "bollocks".
Mr. Kiew also sounded a note of caution about
this rush to lead the pack: "This sort of growth is not very organic, and a
rapid ascent led solely by profit squeezes can only lead to too early a
peak. We believe firms should move in steady strokes rather than
unsustainable bursts."
Mr. Moh disagreed, saying, "We believe
having Lum Par in our pocket definitely enables us to swell our forces in order
to achieve greater market penetration."
"Size isn't everything," retorted Mr.
Kiew on hearing Mr. Moh's statement.
Mr. Moh in turn accused Mr. Kiew of
"business envy".
In the meantime, Lum Par CEO Ho Seng Lee has
expressed satisfaction with the divestiture of its stockbroking business.
"We're sticking to our core
competencies," said Mr. Ho. "Lum Par is well known for erecting high
rise structures, and we intend to focus on our new Lum Par ParcLands luxury
development."
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2001. All rights reserved.
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attribution. It's only polite, leh!)
Lum Par Injects Seed into Tigershow
by K.K. Cheow
Lum Par Capital announced yesterday that it would be injecting seed funding
into local startup Tigershow.org
Lum Par Capital is the newly formed venture capital arm of Lum Par
Holdings,
the entity formed by the merger between Lum Chang and Haw Par last year.
And the first company it has chosen to invest in is Geylang-based multimedia
service provider Tigershow.org. (See previous
reports below)
"We feel that it is only natural that Lum Par takes an interest in
whatever goes on at Tigershow," said Lum Par Capital Chairman Kah Quee Kwee.
"Tigershow has managed to weather the dot-com fallout extremely well due
to its focus on fundamentals," said Mr. Kah. "Like its dedication to
servicing customers. I mean, customer service. I mean,... whatever."
Tigershow CEO Madam Lao Hiao affirmed Mr. Kah's sentiments.
"At Tigershow, we also emphasise transparent business practices,"
she said. "Especially when we use our special fishtanks."
Mr. Kah agreed, saying, "We took a long, hard look at Tigershow's
assets, which Madam Lao had bared for us to inspect. And our, uh, interest
was certainly aroused."
Lum Par will be investing about $4m in Tigershow, a much needed infusion, by
all accounts.
Said Madam Lao, "Conditions had led Tigershow's performance to plateau.
But with this investment, we feel we can aim to reach a new climax."
Mr. Kah also confirmed that Lum Par would not just be passive investors.
"Oh no," he chuckled. "Lum Par intends to participate very
actively in all of Tigershow's affairs. We're a very hands-on
organization."
Lum Par soars on news of split but bad news
exposes downside risk
by Lau Cheow
Lum Par shares were trading a little soft today
in the aftermath of an unusual week of events that led to its stock doubling in
price and then falling.
Earlier this week, Lum Par announced a split in
its stock and the news sent bargain hunters on a spree as they snapped up Lum
Par eagerly. The bullish sentiment drove Lum Par from 50 cents to well above one
dollar. Investors who shorted Lum Par were squeezed and they dumped Lum Par in
panic as the price went through the roof.
"When Lum Par split, everybody who owns one
will now have two," explained Mr.B C Chee, an analyst at Crotch and Scrutum
Securities. "Investors in Lum Par are essentially getting the best deal -
Buy one get one free."
"People who were short on Lum Par were
now heavily exposed as the price shot up. They dropped their Lum Par as it was
rising, and paid the price," said Mr.P J Khoo, analyst at Vickers Bollas.
Kia & Soo Securities, who underwrote Lum
Par's IPO, urged investors to buy as it was cheap as you can get two for the
price of one.
As Lum Par enjoyed a runup, Lum Par chairman,
Mr.Ho Seng Lee announced that its Tuas Lum Par Development unit had secured a
plot of land in Tuas for the first of its many condo/mall/entertainment complex
developments.
"The first of the Lum Par ParcLands will be
built in the Tuas area, and it will be a $100M megadevelopment comprising a
theme park, food courts, market, town square and condo units. Envisaged to be a
self-contained town, it will have a maximum population of 20,000. 2,000 units of
the condos have already been snapped up," disclosed Mr.Ho at a press
conference announcing the new project.
Later in the week however, rumours were leaking
everywhere that Lum Par ParcLand was in trouble. The site was right next to a
sewage plant and two km downwind from a rubbish disposal unit.
Lum Par officials did not return phone calls,
except to say that a Board Meeting was called and a press release will
follow.
The speculation turned into a torrent the next
day as everybody who had held on nervously to their Lum Par dropped them in a
panic. The result was a bloodbath on the exchange as the counter went into
freefall. The most heavily traded stock was Lum Par, which fell below $1, but
then bounced back when investors who were previously short, covered their
positions.
Still, Lum Par was avoided everywhere and the
weak support allowed it to drop still further in feverish afternoon trading.
Lum Par firmed up later in the afternoon, but weak
support among nervous investors failed to prop it up as it tumbled to new lows of the week.
By
the end of the day, Lum Par punished the speculators with the rumours of the
Tuas Lum Par ParcLand fiasco as it closed at 48 cents, just below its IPO
price.
Mr Hardas Singh, an analyst at Geh Kiang
Securities urged investors to drop Lum Par or face exposure to downside risk.
"The stock is something I would avoid at the moment. All the rumours about
the sewage plant has just about hit the fan," he said. For those who had no
Lum Par but were thinking of grabbing a few, he warned, "Just wait. It's
better to have nothing to lose."
Market analysts were mixed on the prospects of
Lum Par.
