GEM - G8 Education

IN THE SUPREME COURT OF SINGAPORE
WEDNESDAY TO FRIDAY 19 OCT TO 21 OCT
10:00 AM
PART HEARD
S 211/2011
CHERIE HEARTS GROUP INTERNATIONAL PTE.
LTD. & ORS
(ALLEN & GLEDHILL LLP)
(ANG CHENG HOCK SC/ VINCENT LEOW/
JACQUELINE LEE/ JOEL LIM)
V.
G8 EDUCATION LIMITED
(HARRY ELIAS PARTNERSHIP LLP)
(HARRY ELIAS SC/ PHILIP FONG/ JOANA TEO/
VIKNESWARI MUTHIAH/ LIONEL CHAN)
LAST HEARD FOR 13 DAYS FROM 07 - 28/09/2011
WOS FILED ON 28/03/2011
SET DOWN ON 01/09/2011
FIXED FOR 3 DAYS [19 - 21/10/2011]
NATURE: BREACH OF CONTRACT
[DTS TO BE USED] court 6B

IN THE SUPREME COURT OF THE REPUBLIC OF SINGAPORE PRE-TRIAL CONFERENCE IN THE HIGH COURT BEFORE THE SENIOR ASSISTANT REGISTRAR TEH HWEE HWEE MONDAY, 24 OCT 2011, AT 9:00 AM, CHAMBER 4A

S/N CASE NO. PLAINTIFF/S DEFENDANT/S SUBJECT MATTER

5. S211/2011 CHERIE HEARTS GROUP INTERNATIONAL PTE. LTD. & ORS (ALLEN & GLEDHILL LLP) G8 EDUCATION LIMITED (HARRY ELIAS PARTNERSHIP LLP) CONTRACT - OTHERS
http://app.supremecourt.gov.sg/data/registrarHearing/08_24102011.pdf

Cherie Hearts Group International Pte Ltd
Regional Head Office:
19 Cecil Street
#05-01 Cherie Hearts HQ, Singapore 049704
Tel: (65) 6 271 0080 Fax: (65) 6 271 0090
Website: www.cheriehearts.com.sg Email: care@cheriehearts.com.sg
Co. Reg No.: 200717229H
By Email & Post
2 November 2011
Dear Franchisees, Partners, Associates, Friends & Parents
Updates from the Trial between Cherie Hearts Group International and G8 Education
The trial between Cherie Hearts Group International Pte Ltd (“CHGI”) and G8 Education Limited (“G8”)
commenced at the Singapore Supreme Court on 7th September 2011 and ended on 21st October 2011. The
honourable Justice Judith Prakash is expected to give her verdict sometime in January 2012. In the
meantime, we would like for all of you to kindly to take note of the following:
1. Cherie Hearts Intellectual Property
Please note that CHGI and/or Cherie Hearts Child Development Pte Ltd (“CHCD”) are the sole owners of
all intellectual property belonging to Cherie Hearts and it’s branding. This includes all aspects of the
entire business, from the use of logos, awards, our Curriculum, the name ‘Cherie Hearts’, the
Operations Manual and its systems and processes, internal and external forms, documents, templates,
mascots etc. CHCD is also actually the ® registered owner of all of the above with IPOS Singapore.
2. 16 Wholly Owned Centres
Dr Yap and/or Dr Singh remain the directors of the following 16 wholly owned centres:
• Cherie Hearts @ Limau Pte Ltd (LM)
• Cherie Hearts School House Pte Ltd (KM)
• Cherie Hearts Sunshine Kidz Pte Ltd (TS34)
• Cherie Hearts Discovery School Pte Ltd (TS42)
• Cherie Hearts Edukidz Pte Ltd (JT)
• Cherie Hearts Kids Cottage Pte Ltd (TK)
• Cherie Hearts Childcare (Limbang) Pte Ltd (LB)
• Cherie Hearts Preschool (TP) Pte Ltd (TP)
• Rhymesland Educare Pte Ltd (RL)
• Teeny Tiny Childcare & Development Centre Pte Ltd (TT)
DISCLAIMER: This document, including attachments, is the property of Cherie Hearts Group International Pte Ltd and/or its affiliates. It is meant for the addressee(s) only and contains
information which is confidential and/or legally privileged. Unauthorised communication and/or disclosure of any information contained in this document is an offence. Any unauthorised
distribution, copying, forwarding, disclosure or dissemination of this transmission and its contents or taking any action in reliance on its contents is strictly prohibited. If you have received
this communication in error, please immediately notify the sender and destroy the document.
Cherie Hearts Group International Pte Ltd
Regional Head Office:
19 Cecil Street
#05-01 Cherie Hearts HQ, Singapore 049704
Tel: (65) 6 271 0080 Fax: (65) 6 271 0090
Website: www.cheriehearts.com.sg Email: care@cheriehearts.com.sg
Co. Reg No.: 200717229H
• Loving Child Care Centre Pte Ltd (LCC)
• Loving Development Centre Pte Ltd (LDC)
• Gloryland Learning Centre Pte Ltd (GL@Cashew)
• Gloryland Learning Centre @ Toh Tuck Pte Ltd (GL@Toh Tuck)
• Our Juniors’ Schoolhouse (OJS-WL)
• Our Juniors’ Schoolhouse (OJS-PB)
3. The Children’s Repertoire (TCR) Enrichment Programmes
Thank you all for your continuous support to date. We remain ever grateful despite the fact that a third
party has been trying to influence you otherwise. We are constantly doing R&D and promise you more
quality and exciting enrichment programmes come 2012.
We remain ever confident, more so after being through the court proceedings, and look forward to a very
positive outcome. In view of this, we feel that it is essential that we proactively engage and update you of
the true state of affairs.
We would like to take this opportunity to once again, thank each and every one of your for your kind and
continued support. It is truly appreciated.
Yours faithfully
Cherie Hearts Group International Pte Ltd

I see an announcement on the ASX states G8 education has appointed 2 new non executive directors. Ms Susan Forrester and Mathew Reynolds, a partner of HWL Ebsworth.
Interesitingly Rachel Weeks of McClean Legal working from the same office as Wellington Capital was previously employed by Home Wilkinson Lowry where Mathew Reynolds was a partner which later merged with Ebsworths to become HWL Ebsworths Lawyers.
http://docs.google.com/viewer?a=v&q...bSUkB_&sig=AHIEtbQTVlrK8WgOkqcJvGnzmRgTdSNV3w

IN THE SUPREME COURT OF SINGAPORE
LAW NOTICE FOR THE WEEK MONDAY 9 JANUARY TO FRIDAY 13 JANUARY 2012
BEFORE THE HONOURABLE JUSTICE JUDITH PRAKASH
DAY DATE TIME CASE VENUE
WEDNESDAY 11 JAN 10:00 AM
2:30 PM

S 211/2011(SUM4490/2011) ½ DAY SPECIAL
CHERIE HEARTS GROUP INTERNATIONAL
PTE. LTD. & ORS
(ALLEN & GLEDHILL LLP)
(ANG CHENG HOCK SC/ VINCENT LEOW/
JACQUELINE LEE)
V.
G8 EDUCATION LIMITED
(HARRY ELIAS PARTNERSHIP LLP)
(PHILIP FONG/ JOANA TEO/ VIKNESWARI
MUTHIAH)
NATURE: FOR SUSPENSION OF OBLIGATION

Any updates people?

MFS/Octaviar, basically, borrowed a bucket load of money, overpaid for a truck load of assets and then promptly went bust.

So when deciding if the S8 team can replicate their success with G8 you'll need to consider the chances of another MFS coming along. (Didn't Kerry Packer say something like: you only get one Bondy in your life.) Or write down the purported success of S8 somewhat.

Then again, companies that are really good at shooting themselves in the foot are great for shorting aren't they? A short trader could do worse than following Hutson around. Her track record for looking after share holders 'aint good. MFS/Octaviar, PIF (NSX code PIN) and now G8 have all comprehensively smashed shareholder value haven't they?

Duped said:

MFS/Octaviar, basically, borrowed a bucket load of money, overpaid for a truck load of assets and then promptly went bust.

So when deciding if the S8 team can replicate their success with G8 you'll need to consider the chances of another MFS coming along. (Didn't Kerry Packer say something like: you only get one Bondy in your life.) Or write down the purported success of S8 somewhat.

Then again, companies that are really good at shooting themselves in the foot are great for shorting aren't they? A short trader could do worse than following Hutson around. Her track record for looking after share holders 'aint good.

Click to expand...

I hear you, but certainly after going through financials and with the recent announcement for profit guidance, IMHO these guys seem on track. Good business model.

Will be interesting times ahead

dynami said:

I hear you, but certainly after going through financials and with the recent announcement for profit guidance, IMHO these guys seem on track. Good business model.

Will be interesting times ahead

Click to expand...

Beware the IDES of MARCH!

dynami said:

I hear you, but certainly after going through financials and with the recent announcement for profit guidance, IMHO these guys seem on track. Good business model.

Will be interesting times ahead

Click to expand...

Hasn't the business model now been smashed by FWA's decision last week?

Hutson's WC's reasons for PIF's poor performance is always along the lines of: tough trading conditions. Whatever that's supposed to mean.

Watch out for the same sort of excuses from GEM stemming from the FWA decision.

Duped said:

Hasn't the business model now been smashed by FWA's decision last week?

Hutson's WC's reasons for PIF's poor performance is always along the lines of: tough trading conditions. Whatever that's supposed to mean.

Watch out for the same sort of excuses from GEM stemming from the FWA decision.

Click to expand...

Thanks Duped
It's certainly going to have an impact on profit. Are the increases spread over 9 years? Still not a victory, the company will have to run a tight ship. I'll definitely be watching my position closely.

Marcom, you keep posting the same useless posts in every forum regarding this stock?? I've been doing as much research as possible regarding my investment, but keep coming across your posts, which do not indicate anything other than you running down the company...I appreciate responses similar to Duped's, but yours are continually weird and have little value...Sorry mate but it's annoying.

It seems that G8 won the court case in Singapore. Will Seamisty and her followers now apologise for the defamatory nonsense they posted on this site some time ago?? If not, why not?

Chart looks like a winner at the moment, no brainer really although as always it would have been nice to see it earlier.

( To reword heart2hearts post- I think she/he was trying to say "winners are grinners" : )

sp just dropped (with asx generally) & two directors have purchased some more shares so I suppose that's a good sign (even though we never like to see sp down it's what us optimists call a "buying opportunity" )

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01426527
Nice rise today after ann, wish I was a long term investor though, if I'd been holding since last November grin would be ear to ear

Technically, GEM has been showing support 2.356 and resistance in the 2.800 price range. It is rated a buy at au.stoxline website with the 3.270 target price in six months.

Trading halt with purchase of 29 more centres.
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01447737
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01447774
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01447775

GEM has had a pretty phenomenal run in the last 18 months.

They have just done a placement to buy 29 centres for $42.6m, with the purchase price representing 4x EBIT (~$10.65m).

On the other hand, GEM's own EBIT was only ~$17m at the half year. So assuming a full year EBIT ~$40m, GEM itself trades at ~24x EV/EBIT.

It boggles my mind that the market is somehow willing to pay 24x for something that GEM itself just bought for 4x.

I have the same question re: GXL - the vet clinic consolidater.

But I don't have any answers.

Yes, you see this a lot with these sort of companies and also building engineers providers e.g. Cardno.

The advantage GEM has got is that it can boost its bottom line by making takeovers but if profits start dropping then the market will rerate savagely. it also doesn't have to win contracts.

I'm along for the ride.

Hi,

As at 19 November 2013, GEM has 202 centres owned in Australia, 18 centres owned in Singapore and 48 franchised centres in Singapore. Currently, there are additional 23 centres contracted but not yet settled in Australia.

Brands: Currently, GEM has 10 brands in Australia. Its brands include Early Learning Services, World of Learning, Community Kids, Casa Bambini, Holiday Club, Kindy Patch, Headstar, KinderHaven, Little Einsteins, and Pacific Childcare.

For more details - click on the link provided:- http://markets.theaustralian.com.au/Equities/Company/Summary.aspx?SecId=GEM

Yesterdays action saw it breakout of a triangle - to the upside on increased volume.