Author Topic: TRE - Treasure ASA  (Read 15819 times)

alwaysinvert

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Re: TRE - Treasure ASA
« Reply #30 on: April 17, 2018, 12:33:14 PM »
My understanding is that there are no locked in gains in the shares atm, Wilhelmsen took care of that in 2014 and 2015 (check note 5 in WWASA's 2014 AR) by changing the ownership structure. The prices "paid" in the current holding company are still quite a bit higher than today's stock price. I don't know exactly how this works legally, but I remember it costing them a fair bit of money to do. They commented on those costs at the time but I haven't managed to chase down exactly what they said again.

However, as I understand it they will have to pay additional taxes on dividends after the ownership goes below 10%.

Otherwise I have pretty much reasoned completely the same as perpatetic. It makes the block of shares way more liquid too. if nothing else, they could probably just sell it over the market now.


peripatetic

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Re: TRE - Treasure ASA
« Reply #31 on: April 17, 2018, 09:00:59 PM »
Thanks for pointing that out, alwaysinvert. It makes sense that their tax cost basis would be based on the market value at the time of the 2014 transaction, meaning Glovis still has quite a bit to catch up before we are back in capital gains territory.  (I got sidetracked by the fact that NAL carried the Glovis shares at a cost of USD 300m, before reclassifying these as "available for sale financial assets" in 2016. )

So I guess that means Treasure is in less of a hurry to dispose of the Glovis stake. Still, the dilution to below the 10% threshold will certainly make dividends subject to taxation in Norway. (I think you're too optimistic, JJ, that having been above the threshold in the past will provide lasting relief.) Taxes aside, the key point remains that with the stake diluted, the SHA voided and the board seat gone, there's simply no reason to hold on much longer.

writser

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alwaysinvert

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Re: TRE - Treasure ASA
« Reply #33 on: May 22, 2018, 04:04:15 AM »
I assumed that the family had already lined up support from NPS (and possibly other institutions) before they announced the merger. The Samsung/Elliott case should have been instructive. I was 100% wrong in that assumption. It's hard to understand what they were really thinking. Maybe they always just saw it as an opening bid.

It will be interesting to see if they come back with some tweaks soon or if it will turn into a dragged out story.

writser

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Re: TRE - Treasure ASA
« Reply #34 on: December 06, 2018, 04:31:37 PM »
Discount now at ~45% by my quick calculations. Glovis itself also beaten down from ~180k to ~125k KRW after the proposed transaction was cancelled. If Glovis management successfully implements another reorganisation you are potentially looking at a double whammy. For example if Glovis is bought out at a small premium (not that I think that that will happen) Treasure ASA shares could easily be worth 100% more than the current market price.

Might be an interesting entry point. Hard to handicap the underlying Korea/Chaebol situation though.
« Last Edit: December 07, 2018, 04:39:21 AM by writser »
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alwaysinvert

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Re: TRE - Treasure ASA
« Reply #35 on: December 19, 2018, 08:48:34 AM »
Discount now at ~45% by my quick calculations. Glovis itself also beaten down from ~180k to ~125k KRW after the proposed transaction was cancelled. If Glovis management successfully implements another reorganisation you are potentially looking at a double whammy. For example if Glovis is bought out at a small premium (not that I think that that will happen) Treasure ASA shares could easily be worth 100% more than the current market price.

Might be an interesting entry point. Hard to handicap the underlying Korea/Chaebol situation though.

Your timing seems to have been fairly good

https://newsweb.oslobors.no/message/466252

Not a large repurchase but they are pretty restricted by their available funds. Apparently there was not enough shareholders willing to part with their stock to reach the maximum of 2m shares at 12 offered by the company.

alwaysinvert

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Re: TRE - Treasure ASA
« Reply #36 on: February 06, 2019, 03:11:44 PM »
Another repurchase recently: https://newsweb.oslobors.no/message/468259

Can hopefully continue buying back at big discounts as funds become available to them.

writser

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Re: TRE - Treasure ASA
« Reply #37 on: February 08, 2019, 11:49:21 AM »
Your timing seems to have been fairly good

Only in theory.. Didn't actually pull the trigger.
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writser

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Re: TRE - Treasure ASA
« Reply #38 on: July 03, 2019, 01:53:12 AM »
Quote
Reference is made to the notice issued on 30 April 2019, where Treasure ASA ("the Company") launched an offer to buy back up to 1.000.000 shares in Treasure ASA. The company did not receive any offers to purchase shares.

Treasure ASA has been trying to buy back shares but nobody is selling. Discount to NAV is 40%+ again, larger than the average of the past few years. On-exchange volume is minimal. Glovis might be a cyclical business with some (corporate governance) hair but had an average ROE of 20+% the past ten years, is conservatively leveraged, growing, pays out a smallish dividend and is not diluting shareholders.

Through treasure ASA you are buying Glovis at ~0.8x book and ~6.5x average last 5y earnings. I agree with Packer that there should be a holding discount due to double taxation (Glovis dividend taxed in South Korea and Treasure ASA dividend taxed in Norway) and overhead costs. However, both dividends are smallish and Treasure ASA has been trying to buy back shares instead which is more tax-efficient. And overhead is minimal, ~$300k p.a. on a $550m asset base. As a major holder Treasure ASA has no tax liabilities when they monetize their stake (which I believe is the endgame). I believe a smaller discount is warranted.

Multiple ways to win here. Treasure ASA getting more aggressive in closing the discount and/or monetizing this vehicle, a sudden jump in Treasure ASA stock price due to illiquidity and low free float, a resolution of the Hyundai conglomerate mess, Elliott getting involved again, etc. In the meantime Glovis is compounding at a nice rate.

Last time I posted something optimistic in this thread I actually didn't pull the trigger and shares shot up 30% in a few weeks .. At that time you could buy Glovis at even more attractive 'look through'-multiples. But as of now it still looks cheap and boring to me, which I like. I bought a small starter position.
« Last Edit: July 03, 2019, 01:56:19 AM by writser »
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.