HmmI agree with the figures (with some differences in cash...

Hmm

I agree with the figures (with some differences in cash figures as realised price per share of UOADB was lower than assumptions used in the proforma statement. However, the proforma is a statement of financial position for UOA including UOADB, not for UOA as a stand alone entity separate to UOADB. Another way of saying that is that UOADB is considered a subsidiary of UOA for the purposes of the statement, so their assets are all lumped in together and then a minority interest figure is given for the value of minority interests such as other shareholders of UOADB. Result is you can't take the asset figures and then just add the value of the UOADB shareholding without subtracting minority interest or you will be double counting assets.

So ? the investment properties on proforma statement at A$443m are there, but I'm not sure how much of this value, if any, is now owned by UOADB.

For example, at least one subsidiary of UOADB (Dynasty Portfolio Sdn Bhd) is shown on the org chart in the 2011 annual report as holding 7.26% of UOA REIT, so presumably that part at least has gone with UOADB. I can't see any indication of which subsidiaries owned the investment properties, so can't determine where the ownership is now. There are some general comments about UOADB being the development arm of UOA but that doesn't give much confidence as to the ownership of assets. Also, a couple of things are confusing me; the same document that contains the proforma statement, in section 1.11(e) states ?UOADB Group does not currently have a significant number of investment properties. However, it has retained various properties in Bangsar South as investment properties for rental...? Which is it? Has or doesn't have? Also, final line of 1.12 states ?In the financial year ended 31 December 2010, the total revenue earned by UOADB and it's subsidiaries was A$126.8 million. This represented approximately 100% of the total revenue of the UOA Group.? If this were true it would mean that all UOA income was from UOADB. Thankfully, I'm pretty sure it's an error, as page 53 of the annual report shows property development revenue of $126,994k, and then a separate revenue item for rental revenue of $30,033k and various other non operational revenue items such as unrealised gains.

In any case, it's a huge point and I'd like to see a balance sheet for UOA Group which doesn't include UOADB. Market price is the best way to value UOADB now that it's listed, and we should be able to clearly see the assets and liabilities of UOA Group, not as proportional holdings in the book value of assets of indirect subsidiaries.

A separate point entirely, announcement to market of 9 June shows that UOA and UOAH in two separate transactions purchased 9,312,800 shares in UOADB on market, which takes UOA direct holding to 66.745% by my calculations.

Also, 7 June announcement says ?The Company will advise the market in due course as to the utilization of the funds raised from the sale of the offer shares?. If they are not doing any developments in their own right, other than buying back shares I can't see they would have much need for the cash. We might see a special dividend.