Monday, June 27, 2011
Update on Hanny Holdings
Hanny just announced the sale of 49% equity interest in the Guangzhou Jixiang, which controls 100% interest in the Yuexiu Project. Hanny paid 1064M for the project. Prosperous global, a local real estate developer, paid 746.7M HKD for the 49% interest. So the deal is a positive for Hanny. It not only confirmed the value of Hanny's real estate holdings but also reduces the future capital investment. Prosperous global has developed several commercial real estate projects in Guangzhou. So the deal will also give Hanny more local connections and expertise to ensure the success of this project.
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2 comments:
hi,
what do you think about hanny's results?
If i'm not wrong, it has by far less cash than you thought it will have.
What is Hanny's net cash?
Asa.
Hi, Asa
I modeled about 500M cash after their equity raising in my original post.By 3/31/2011, Hanny has 443.8M HKD cash in their bank account. They received 300M cash after April.6 from their equity raising. That has not yet shown up on their balance sheet. Their prepayment account also increased 180M due to the cost of real estate development. This is also not included in my original model. Hence, their cash position is actually better than my original model, as I was trying to be conservative in the first place. Hope it helps.
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