Sneak preview into FY13 results. k1 Ventures will report its financial results for the 12 months ended June later this week. For 9MFY13, the group reported PBT of SGD35.8m (+477%), primarily driven by a SGD25m cash distribution from its investment in Knowledge Universe Holdings, a global pre-school education operator. We expect 4QFY13 earnings to be boosted by the sale of its stake in McMoran Exploration (MMR) to Freeport-McMoRan Copper & Gold, which generated cash proceeds of some SGD37m. The group had paid an interim dividend of 1ct/share. With the latest gain from the sale of MMR, we are projecting a final dividend of 1.0-1.5 ct/share.

Moving ahead on the divestment track. Following an unsuccessful management buyout by major k1 shareholders Keppel Corp, Steven Green and BV Group last year (offer price: SGD0.135/share), management has committed to managing its existing investments for eventual exits and returning the excess cash back to shareholders. It has since made two portfolio exits (EmbanetCompass, via KUH and MMR). Meanwhile, KUH is reportedly marketing Busy Bees, its pre-school education chain in the United Kingdom for over GBP200m. Helm Financial, the railcar leasing business in the United States, has substantially deleveraged its balance sheet and is now re-investing in its railcar fleet to ride the recovery in the U.S housing market.

Source: OSK