Tuesday, January 09, 2007

Tang Plaza is actually in different parts now!!!

Hi guys,

This is a follow up to my earlier story on CK Tang's 2nd offer to take the company private.

In BT dated Jan 8, 2007, Mr Wong Wei Kong has recommended that the minority shareholders should just take the monies and run. His basis was the gloom n doom about retail business, the track record of its management in the business, blah, blah, blah,...

But are we missing the point?
The sum of whole is worth more than in parts.

The freehold hotel/retail complex - known as Tang Plaza - is a strata titled property. CK Tang owns only its department store space, giving it only about 28 per cent of the total share value in Tang Plaza. The rest of the complex is a Tang family holding, as is Marriott Hotel.

Can you imagine the Tang brothers putting 28% of Tang heirloom at risk? Of course not. Thus the Tang brothers are trying to re-secure their control of that 28% with the 2nd offer.

The sum of whole is worth more than in parts. Think about it!!

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