Back

Latest Forum Topics / Sembcorp Ind    Last:6.1    -0.03

Post Reply

SembCorp Industries Post Reply Rate topic
Morricone Member	11-Jun-2020 09:07        Morricone About Contact  Quote this Post!
x 0   x 0  Alert Admin	The market is always right...when trading dont fall in love with a stock...HKL is the most undervalued stock in STI, I do not see euphoria of buying by anyone of funds... weekaykee      ( Date: 11-Jun-2020 09:01) Posted: Don' t you think SCI after " Ex-D or whatever" at $1 or even $1.20 is grossly undervalued? Almost half of its book value. Morricone      ( Date: 11-Jun-2020 08:50) Posted: Many people got it wrong when they first received the news(kudos to the duelist who got it right immediately). The SMM side is pretty clear cut. However for the SCI side, many thought or is still thinking it is bonus share and not a special dividend in the form of SMM shares. Analysts have confirmed it is indeed special dividend/payout hence it will " ex-d" after the SMM share are credited into one' s CDP. The suggested and safe price to buy SCI now is 180 thereabouts (achievable because Trump is now focus on GF and re-election hence has not attacked China in more than 2 weeks) where after ex d it drops to 100 or slightly below. If it goes back to 120 your profit is only 20 cents, and not $1K.  Do bear in mind the recent upswing of SIA shares after all expiry of rights (20% upswing?) and that SMM may follow this pattern, making the SMM share holder more huat. Also this is business, nobody wants to buy or takeover the SMM shares hence it is being conveniently dumped on SCI shareholders, aka questionable intentions, hence also why many analyst did not call a buy. DYODD.
Useful To Me  Not Useful To Me
danger Supreme	11-Jun-2020 09:06        danger About Contact  Quote this Post! Style: Combined   Mood:
x 0   x 0  Alert Admin	Those shouting $3+ target all missing now
Useful To Me  Not Useful To Me
danger Supreme	11-Jun-2020 09:04        danger About Contact  Quote this Post! Style: Combined   Mood:
x 0   x 0  Alert Admin	Told you guys to sell yesterday 2.15
Useful To Me  Not Useful To Me
weekaykee Master	11-Jun-2020 09:01        weekaykee About Contact  Quote this Post!
x 0   x 0  Alert Admin	Don' t you think SCI after " Ex-D or whatever" at $1 or even $1.20 is grossly undervalued? Almost half of its book value. Morricone      ( Date: 11-Jun-2020 08:50) Posted: Many people got it wrong when they first received the news(kudos to the duelist who got it right immediately). The SMM side is pretty clear cut. However for the SCI side, many thought or is still thinking it is bonus share and not a special dividend in the form of SMM shares. Analysts have confirmed it is indeed special dividend/payout hence it will " ex-d" after the SMM share are credited into one' s CDP. The suggested and safe price to buy SCI now is 180 thereabouts (achievable because Trump is now focus on GF and re-election hence has not attacked China in more than 2 weeks) where after ex d it drops to 100 or slightly below. If it goes back to 120 your profit is only 20 cents, and not $1K.  Do bear in mind the recent upswing of SIA shares after all expiry of rights (20% upswing?) and that SMM may follow this pattern, making the SMM share holder more huat. Also this is business, nobody wants to buy or takeover the SMM shares hence it is being conveniently dumped on SCI shareholders, aka questionable intentions, hence also why many analyst did not call a buy. DYODD.
Useful To Me  Not Useful To Me
ICXGOLD Master	11-Jun-2020 08:55        ICXGOLD About Contact  Quote this Post!
x 0   x 0  Alert Admin	SORT SELL EXECUTED ON 10TH JUNE Sembcorp Ind 1,852,000 SGD 3,879,324
Useful To Me  Not Useful To Me
Luckystrike Veteran	11-Jun-2020 08:55        Luckystrike About Contact  Quote this Post!
x 0   x 0  Alert Admin	Indeed more depth insight, like Chinese said 五 鬼 搬 军 法 。 一 个 萝 卜 一 个 坑 。 巧 妙 不 同 。 。 Morricone      ( Date: 11-Jun-2020 08:50) Posted: Many people got it wrong when they first received the news(kudos to the duelist who got it right immediately). The SMM side is pretty clear cut. However for the SCI side, many thought or is still thinking it is bonus share and not a special dividend in the form of SMM shares. Analysts have confirmed it is indeed special dividend/payout hence it will " ex-d" after the SMM share are credited into one' s CDP. The suggested and safe price to buy SCI now is 180 thereabouts (achievable because Trump is now focus on GF and re-election hence has not attacked China in more than 2 weeks) where after ex d it drops to 100 or slightly below. If it goes back to 120 your profit is only 20 cents, and not $1K.  Do bear in mind the recent upswing of SIA shares after all expiry of rights (20% upswing?) and that SMM may follow this pattern, making the SMM share holder more huat. Also this is business, nobody wants to buy or takeover the SMM shares hence it is being conveniently dumped on SCI shareholders, aka questionable intentions, hence also why many analyst did not call a buy. DYODD.
Useful To Me  Not Useful To Me
Morricone Member	11-Jun-2020 08:50        Morricone About Contact  Quote this Post!
x 0   x 0  Alert Admin	Many people got it wrong when they first received the news(kudos to the duelist who got it right immediately). The SMM side is pretty clear cut. However for the SCI side, many thought or is still thinking it is bonus share and not a special dividend in the form of SMM shares. Analysts have confirmed it is indeed special dividend/payout hence it will " ex-d" after the SMM share are credited into one' s CDP. The suggested and safe price to buy SCI now is 180 thereabouts (achievable because Trump is now focus on GF and re-election hence has not attacked China in more than 2 weeks) where after ex d it drops to 100 or slightly below. If it goes back to 120 your profit is only 20 cents, and not $1K.  Do bear in mind the recent upswing of SIA shares after all expiry of rights (20% upswing?) and that SMM may follow this pattern, making the SMM share holder more huat. Also this is business, nobody wants to buy or takeover the SMM shares hence it is being conveniently dumped on SCI shareholders, aka questionable intentions, hence also why many analyst did not call a buy. DYODD.
Useful To Me  Not Useful To Me
lailai Elite	11-Jun-2020 08:46        lailai About Contact  Quote this Post!
x 0   x 0  Alert Admin	Euphoria seems to have tapered. Possibly those who bought at $2 and below were taking quick profits. Likely to carry on till weekend or early next week. Think thereafter there will be genuine long term buyers, cos the arrangement of ' free' 4.27-4.91 SCM distribution for every SCI share does seem to good to forgo, although many have said no such thing as ' free lunch' . Just opinion.
Useful To Me  Not Useful To Me
msksmsks Supreme	11-Jun-2020 08:25        msksmsks About Contact  Quote this Post!
x 0   x 0  Alert Admin	Guys......if u hv sold, juz looked at things how it pan out or stay sideline and await opportunity to load when it dips. What's the point coming here kbkb and create unnecessary noises... when u come up big fonts rocket to sky, did u know it's annoying too... Juz chill and relax....only time wl tell ... Cheers
Useful To Me  Not Useful To Me
danger Supreme	11-Jun-2020 07:47        danger About Contact  Quote this Post! Style: Combined   Mood:
x 0   x 1  Alert Admin	Time to run guys...  most sold already Those shout $3 or $5 no sell.... already panic sold $2.0x
Useful To Me  Not Useful To Me
wolverine23 Supreme	11-Jun-2020 07:42        wolverine23 About Contact  Quote this Post! Style: Flexible   Mood: Yells: "Medical Bull 2020 !!!!!!!! = Internet Bull 2000 !!!!!!!!"
x 0   x 0  Alert Admin	Price pressed down by broking house, most likely uobkayhian. Very unethical leh. SgTrader17      ( Date: 11-Jun-2020 02:26) Posted: Minimum, there is upside potential to $2.20. At $2.05, definitely underpriced as many still trying to figure out what's the reasonable price while others are taking profits with cheaper purchases made and decided to come in to buy again when prices drop. Even some are shorting during this wild swings of 15 to 20 cents per day. Won't see $2.05 in Aug/Sept when the EGM is near. So we have a safe zone of at least about 8 to 10% at current price. Dyodd.
Useful To Me  Not Useful To Me
aniki19 Member	11-Jun-2020 06:31        aniki19 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Just to affirm. Ppl who purchased SCI shares are entitled to SCM shares? If so, what would you recommend to do with these SMM shares?
Useful To Me  Not Useful To Me
SgTrader17 Elite	11-Jun-2020 02:26        SgTrader17 About Contact  Quote this Post!
x 0   x 1  Alert Admin	Minimum, there is upside potential to $2.20. At $2.05, definitely underpriced as many still trying to figure out what's the reasonable price while others are taking profits with cheaper purchases made and decided to come in to buy again when prices drop. Even some are shorting during this wild swings of 15 to 20 cents per day. Won't see $2.05 in Aug/Sept when the EGM is near. So we have a safe zone of at least about 8 to 10% at current price. Dyodd.
Useful To Me  Not Useful To Me
beng1102 Elite	11-Jun-2020 00:11        beng1102 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Good illustration!  That mean there is free lunch for SCI a gain of $285/1000 shares. According to no free lunch theory there would be no gain, so should only get $2040 and TP should be $0.915.    915  + FREE SHARE SMM (4500 SHARES @$0.25 = $1125) = $2040 (no free lucnh) .    This can' t be true! So obviously setting a TP for SCI now is unrealistic.   michaeltan      ( Date: 10-Jun-2020 23:21) Posted: Thanks for sharing. The recommendation ask to Hold is based on after the de-merger of the two companies right. SCI - CURRENT PRICE @2.04/SHARE AND 1000SHARES = $2040 BASED ON TP  $1.20/SHARE FOR 1000SHARES = $1200 + FREE SHARE SMM (4500 SHARES @$0.25 = $1125) = $2325 OR $2.32/SHARE SMM - CURRENT PRICE @0.61/SHARE AND 1000SHARES = $610 + RIGHTS SHARES (5000 SHARES @$0.20 = $1000) = $1610 /6000 SHARES = @0.27/SHARE BASED ON TP $0.25/SHARE FOR 6000SHARES = $1500 SCI ON GAIN $2325 - $2040 = $285/1000 SHARES SMM ON LOSS $1610-$1500 = $110/1000 SHARES Octavia      ( Date: 10-Jun-2020 22:12) Posted: STRATEGY &ndash SINGAPORE A Sea Change SCI and SMM announced a significant two-stage transaction yesterday with the latter raising S$2.1b via a 5-for-1 rights issue, followed by a de-merger of the two companies. After repaying a S$1.5b loan to SCI, SMM will end up with S$600m cash which it needs to bridge current difficult industry conditions.  In the short term, both stocks may underperform, however we are hopeful that business conditions will improve for both in the next 6-12 months.  WHAT&rsquo S NEW &bull A major transaction. Sembcorp Marine (SMM) and Sembcorp Industries (SCI) announced they will undertake a two-stage transaction involving:  a) SMM undertaking a rights issue to raise S$2.1b and  2) SMM to de-merge from SCI.  &bull First stage.  In the first stage, SMM will undertake a 5-for-1 rights issue at S$0.20 per rights share, raising gross proceeds of about S$2.1b. SCI will undertake to subscribe for up to S$1.5b of the rights to set off against the S$1.5b principal amount outstanding under its Subordinated Credit Facility with SMM. Temasek has agreed to subscribe for up to S$0.6b of the rights.  &bull Second stage..  In the second stage and post the completion of the rights issue, SCI will distribute in specie and on a pro rata basis its stake of SMM to its shareholders. For every 100 SCI shares, the shareholder will receive 427-491 SMM shares with no payment required. As a result, Temasek will end up being a direct shareholder of SMM instead of an indirect shareholder via SCI.  &bull Use of S$2.1b rights proceeds.  SMM will repay the S$1.5b outstanding principal due to SCI (72% of funds raised) via a set-off agreement. The remaining S$0.6b (28% of funds raised) will be used for working capital and general corporate purposes, including debt servicing. SCI&rsquo s remaining S$0.5b undrawn credit facility to SMM will be terminated. &bull Timetable.  The expected Extraordinary General Meeting (EGM) to vote on the necessary resolutions for this transaction is expected in late-August to early-Sep 20 with a view towards deal completion in 4Q20. Thus, the dates for lodgement of SMM&rsquo s offer information statement, trading of SMM&rsquo s rights and SCI&rsquo s record date for the distribution of its SMM shares are not known at present.  &bull Approvals required.  There are three shareholders&rsquo approvals required at the EGM, all with simple majority (> 50%) present and voting: 1) approval for SCI to distribute its SMM shares in specie (Temasek will abstain),  2) approval for SMM to undertake the rights issue (SCI will be voting in favour of this resolution), and  3) approval from SMM shareholders for a Whitewash Resolution to waive their rights to receive a mandatory takeover offer from Temasek (SCI will abstain on this resolution) as Temasek may end up as a > 30% stake in SMM.  Note that all three of these resolutions are inter-conditional, ie all of them will need to be passed for the transaction to proceed. ACTION &bull   Rationale behind the de-merger.  On both the SCI and SMM&rsquo s analyst calls, the companies emphasised that while there were synergies before (and stated by SCI as recently as Jun 19 when it extended the S$2b loan to SMM), they did not currently see meaningful synergies between them, given the new paradigm of the COVID-19 pandemic and the downturn in the oil & gas cycle.  SCI in particular noted rapidly altered demand patterns in Asia from the effects of rapid industrialisation, electrification and urbanisation and thus want to change tack to focus on these factors without the &lsquo constraints&rsquo of SMM.  On the SMM side, management said the de-merger would create a more focused company that would be able to pursue its own strategy with regard to clean-energy solutions. &bull More plausible explanation for SCI to de-merge, in our view. One of the key benefits of the demerger for SCI is that its more focused strategy on energy and urban developments should enable it to trade at valuation multiples that are comparable to the utilities sector rather than being shouldered with the offshore marine segment.  &bull A lifeline for SMM.  The short-term prospects for SMM to return quickly to profitability are remote, given current industry dynamics coupled with the COVID-19 workplace restrictions, in our view. With a reduced orderbook compared to 3-5 years ago, its financials have suffered, thereby putting pressure on the company&rsquo s liquidity and capital requirements.  SMM has proactively attempted to respond by rightsizing the company and deferring capex, but even then, it needed the rights issue to maintain sufficient liquidity to ride out the current downturn.  RISKS &bull COVID-19.  The obvious risk factor is that of the COVID-19 pandemic weighing negatively on demand for utilities and the offshore marine industry&rsquo s products for a longer-than-expected period.  &bull Oil prices.  While Brent oil prices have rebounded nearly 120% from the lows in late-April, they are nevertheless still down 36% ytd. In our view, oil prices need to sustain at US$45/bbl or more over the medium term for the market to gain confidence, and for new orders to start trickling in.  RECOMMENDATION  &bull SCI.  Maintain HOLD with a lower target price of S$1.20 which strips out the SMM business from SCI on a pro forma basis. We use target P/B multiple of 0.8x for SCI which is in-line with its ex-Marine P/B multiple over the past five years. Relative to its regional utilities peers which trade at around 1x P/B, we believe a discount for SCI is warranted as the company&rsquo s various business units may face weakness for at least the next six months due to our expectation that economic weakness will impact all of the company&rsquo s business units.  Entry price is S$1.10. &bull SMM.  Maintain HOLD and lower our target price to S$0.25 (S$0.81 previously) to take into account the potential 10.46b new shares that will be issued. We kept our target P/B multiple at 0.9x which we believe takes into account the expected lack of new orders in the near to medium term.  Concurrent with the announcement of the transaction, SMM issued a business update which is as bearish as its 1Q20 update released on 13 May 20. Securing new orders remains extremely difficult while its repairs & upgrades business has been affected by disruptions in global shipping and cruises. As a result, we believe that 1H20 results, to be released at the end of July, will be extremely weak.  Entry price is S$0.23.
Useful To Me  Not Useful To Me
michaeltan Master	10-Jun-2020 23:21        michaeltan About Contact  Quote this Post! Style: Fundamental   Mood:
x 0   x 0  Alert Admin	Thanks for sharing. The recommendation ask to Hold is based on after the de-merger of the two companies right. SCI - CURRENT PRICE @2.04/SHARE AND 1000SHARES = $2040 BASED ON TP  $1.20/SHARE FOR 1000SHARES = $1200 + FREE SHARE SMM (4500 SHARES @$0.25 = $1125) = $2325 OR $2.32/SHARE SMM - CURRENT PRICE @0.61/SHARE AND 1000SHARES = $610 + RIGHTS SHARES (5000 SHARES @$0.20 = $1000) = $1610 /6000 SHARES = @0.27/SHARE BASED ON TP $0.25/SHARE FOR 6000SHARES = $1500 SCI ON GAIN $2325 - $2040 = $285/1000 SHARES SMM ON LOSS $1610-$1500 = $110/1000 SHARES Octavia      ( Date: 10-Jun-2020 22:12) Posted: STRATEGY &ndash SINGAPORE A Sea Change SCI and SMM announced a significant two-stage transaction yesterday with the latter raising S$2.1b via a 5-for-1 rights issue, followed by a de-merger of the two companies. After repaying a S$1.5b loan to SCI, SMM will end up with S$600m cash which it needs to bridge current difficult industry conditions.  In the short term, both stocks may underperform, however we are hopeful that business conditions will improve for both in the next 6-12 months.  WHAT&rsquo S NEW &bull A major transaction. Sembcorp Marine (SMM) and Sembcorp Industries (SCI) announced they will undertake a two-stage transaction involving:  a) SMM undertaking a rights issue to raise S$2.1b and  2) SMM to de-merge from SCI.  &bull First stage.  In the first stage, SMM will undertake a 5-for-1 rights issue at S$0.20 per rights share, raising gross proceeds of about S$2.1b. SCI will undertake to subscribe for up to S$1.5b of the rights to set off against the S$1.5b principal amount outstanding under its Subordinated Credit Facility with SMM. Temasek has agreed to subscribe for up to S$0.6b of the rights.  &bull Second stage..  In the second stage and post the completion of the rights issue, SCI will distribute in specie and on a pro rata basis its stake of SMM to its shareholders. For every 100 SCI shares, the shareholder will receive 427-491 SMM shares with no payment required. As a result, Temasek will end up being a direct shareholder of SMM instead of an indirect shareholder via SCI.  &bull Use of S$2.1b rights proceeds.  SMM will repay the S$1.5b outstanding principal due to SCI (72% of funds raised) via a set-off agreement. The remaining S$0.6b (28% of funds raised) will be used for working capital and general corporate purposes, including debt servicing. SCI&rsquo s remaining S$0.5b undrawn credit facility to SMM will be terminated. &bull Timetable.  The expected Extraordinary General Meeting (EGM) to vote on the necessary resolutions for this transaction is expected in late-August to early-Sep 20 with a view towards deal completion in 4Q20. Thus, the dates for lodgement of SMM&rsquo s offer information statement, trading of SMM&rsquo s rights and SCI&rsquo s record date for the distribution of its SMM shares are not known at present.  &bull Approvals required.  There are three shareholders&rsquo approvals required at the EGM, all with simple majority (> 50%) present and voting: 1) approval for SCI to distribute its SMM shares in specie (Temasek will abstain),  2) approval for SMM to undertake the rights issue (SCI will be voting in favour of this resolution), and  3) approval from SMM shareholders for a Whitewash Resolution to waive their rights to receive a mandatory takeover offer from Temasek (SCI will abstain on this resolution) as Temasek may end up as a > 30% stake in SMM.  Note that all three of these resolutions are inter-conditional, ie all of them will need to be passed for the transaction to proceed. ACTION &bull   Rationale behind the de-merger.  On both the SCI and SMM&rsquo s analyst calls, the companies emphasised that while there were synergies before (and stated by SCI as recently as Jun 19 when it extended the S$2b loan to SMM), they did not currently see meaningful synergies between them, given the new paradigm of the COVID-19 pandemic and the downturn in the oil & gas cycle.  SCI in particular noted rapidly altered demand patterns in Asia from the effects of rapid industrialisation, electrification and urbanisation and thus want to change tack to focus on these factors without the &lsquo constraints&rsquo of SMM.  On the SMM side, management said the de-merger would create a more focused company that would be able to pursue its own strategy with regard to clean-energy solutions. &bull More plausible explanation for SCI to de-merge, in our view. One of the key benefits of the demerger for SCI is that its more focused strategy on energy and urban developments should enable it to trade at valuation multiples that are comparable to the utilities sector rather than being shouldered with the offshore marine segment.  &bull A lifeline for SMM.  The short-term prospects for SMM to return quickly to profitability are remote, given current industry dynamics coupled with the COVID-19 workplace restrictions, in our view. With a reduced orderbook compared to 3-5 years ago, its financials have suffered, thereby putting pressure on the company&rsquo s liquidity and capital requirements.  SMM has proactively attempted to respond by rightsizing the company and deferring capex, but even then, it needed the rights issue to maintain sufficient liquidity to ride out the current downturn.  RISKS &bull COVID-19.  The obvious risk factor is that of the COVID-19 pandemic weighing negatively on demand for utilities and the offshore marine industry&rsquo s products for a longer-than-expected period.  &bull Oil prices.  While Brent oil prices have rebounded nearly 120% from the lows in late-April, they are nevertheless still down 36% ytd. In our view, oil prices need to sustain at US$45/bbl or more over the medium term for the market to gain confidence, and for new orders to start trickling in.  RECOMMENDATION  &bull SCI.  Maintain HOLD with a lower target price of S$1.20 which strips out the SMM business from SCI on a pro forma basis. We use target P/B multiple of 0.8x for SCI which is in-line with its ex-Marine P/B multiple over the past five years. Relative to its regional utilities peers which trade at around 1x P/B, we believe a discount for SCI is warranted as the company&rsquo s various business units may face weakness for at least the next six months due to our expectation that economic weakness will impact all of the company&rsquo s business units.  Entry price is S$1.10. &bull SMM.  Maintain HOLD and lower our target price to S$0.25 (S$0.81 previously) to take into account the potential 10.46b new shares that will be issued. We kept our target P/B multiple at 0.9x which we believe takes into account the expected lack of new orders in the near to medium term.  Concurrent with the announcement of the transaction, SMM issued a business update which is as bearish as its 1Q20 update released on 13 May 20. Securing new orders remains extremely difficult while its repairs & upgrades business has been affected by disruptions in global shipping and cruises. As a result, we believe that 1H20 results, to be released at the end of July, will be extremely weak.  Entry price is S$0.23.
Useful To Me  Not Useful To Me
Djsoul80 Master	10-Jun-2020 22:46        Djsoul80 About Contact  Quote this Post!
x 0   x 0  Alert Admin	I would see it as a mega merger of the century? At least for Singapore's history? Temasek needs to built up their portfolios. desmodeus      ( Date: 10-Jun-2020 22:41) Posted: What happen to the " subscribed shares of company m" in company i' s hands then. They will be given to the latter' s shareholders to sweeten the deal, if not there will be an uproar over the loan forgiveness. After the whole exercise, the market will be flooded with company m shares  It will be very interesting to see the details of the " company m and company k merger"   would be. A case study for future MBA merger and acquisition class. desmodeus      ( Date: 10-Jun-2020 22:28) Posted: company m raised $2.1b by issuing shares to repay $1.5b owed to company i and $0.6b for working capital. $1.6b is underwritten by company i meaning i will take up whatever other shareholders did not take up ($x ). Theoreticlly company i could fork up $1.6b if none take up which is very unlikely because of the issue price of $0.2 per share. That being the case, the loan of $1.5b by company m is written off from company i' s books with no actual money changed hands (just accounting entries akin to intercompany loan offsets). If the public subscribed $y, then company i would be effectively paid by same amount as partial settlement of the loan. Who is the real winner? Company i' s balance sheet is cleaned up without the loan owing by company m. On the business side, it shed off the loss-making liability company m. This is achieved by minimal damage to bottom line if the loan will to be written off from profits.  Company m' s balance is also cleaned up with the loan liability and additional cash injection of $0.6 by grampa.  No. of shares ballooned, however, on the denominator side for eps and nta. Danger of becoming penny stock is nothng happen with company k, the big brother. Shareholders of both companies can win or lose depending on their entry prices and face shareholding dilution, for company m' s) if they do not subscribe.  Is the above correct?
Useful To Me  Not Useful To Me
desmodeus Veteran	10-Jun-2020 22:41        desmodeus About Contact  Quote this Post!
x 0   x 0  Alert Admin	What happen to the " subscribed shares of company m" in company i' s hands then. They will be given to the latter' s shareholders to sweeten the deal, if not there will be an uproar over the loan forgiveness. After the whole exercise, the market will be flooded with company m shares  It will be very interesting to see the details of the " company m and company k merger"   would be. A case study for future MBA merger and acquisition class. desmodeus      ( Date: 10-Jun-2020 22:28) Posted: company m raised $2.1b by issuing shares to repay $1.5b owed to company i and $0.6b for working capital. $1.6b is underwritten by company i meaning i will take up whatever other shareholders did not take up ($x ). Theoreticlly company i could fork up $1.6b if none take up which is very unlikely because of the issue price of $0.2 per share. That being the case, the loan of $1.5b by company m is written off from company i' s books with no actual money changed hands (just accounting entries akin to intercompany loan offsets). If the public subscribed $y, then company i would be effectively paid by same amount as partial settlement of the loan. Who is the real winner? Company i' s balance sheet is cleaned up without the loan owing by company m. On the business side, it shed off the loss-making liability company m. This is achieved by minimal damage to bottom line if the loan will to be written off from profits.  Company m' s balance is also cleaned up with the loan liability and additional cash injection of $0.6 by grampa.  No. of shares ballooned, however, on the denominator side for eps and nta. Danger of becoming penny stock is nothng happen with company k, the big brother. Shareholders of both companies can win or lose depending on their entry prices and face shareholding dilution, for company m' s) if they do not subscribe.  Is the above correct?
Useful To Me  Not Useful To Me
Djsoul80 Master	10-Jun-2020 22:31        Djsoul80 About Contact  Quote this Post!
x 0   x 0  Alert Admin	In fact SMM should either leverage their price now and get more rights entitlements for subscription..at least it's a guaranteed at 20cts per share. 20cts it's too cheap not to buy. MikeL2009      ( Date: 10-Jun-2020 22:27) Posted: Agree with all points. As SCM shareholder myself, status quo is simply untenable. Debt, protracted low oil price, no new contract wins, zero dividend, etc This is its best chance for survival. Voting no is suicidal FATABA      ( Date: 10-Jun-2020 21:22) Posted: Firstly taking out ALL the financial number s....  there are various advantage for SCI n SM ( will input why they WILL accept this ONLY offer )  1. SCI after demerger will b a ENERGY n URBAN company which is profitable  2. Reduce loan by 2.9B .....in SGX website u can SEE all the advantages in slide presentation  3. More so ......SCI has another catalyst listing of its India energy .etc etc  SM shareholders really dont have ANY other offer  ( if T n SCI wanted direct buy ....they WOULD NOT HV COME OUT THIS SCHEME LOL  1. SM is bleeding every mth ( no one know how many yrs more ) ....n continue having to pay its loan .......can it continue ?  2. Continue NO dividend n U can expect its share price to drop day by day .....NOW if this offer is rejected ( omg ...what will its share price /below 0.20 ?  Do its share holder want to be another Hyflux ?  On the other hand  1. U have a MAJOR TEMASEK behind u after demerger  2. Yes share diluted but now still offer a chance to conentrate on its business with much debt REMOVED . ( interest payment better etc ) 3. Potential merging with Kep Offshore forming the best rig builder in the world ( still one of the best deep sea rig builder now)  Just the above ....I guess SM shareholders know which route to take .....honestly simple decision at current situation /  Gd Luck
Useful To Me  Not Useful To Me
desmodeus Veteran	10-Jun-2020 22:28        desmodeus About Contact  Quote this Post!
x 0   x 0  Alert Admin	company m raised $2.1b by issuing shares to repay $1.5b owed to company i and $0.6b for working capital. $1.6b is underwritten by company i meaning i will take up whatever other shareholders did not take up ($x ). Theoreticlly company i could fork up $1.6b if none take up which is very unlikely because of the issue price of $0.2 per share. That being the case, the loan of $1.5b by company m is written off from company i' s books with no actual money changed hands (just accounting entries akin to intercompany loan offsets). If the public subscribed $y, then company i would be effectively paid by same amount as partial settlement of the loan. Who is the real winner? Company i' s balance sheet is cleaned up without the loan owing by company m. On the business side, it shed off the loss-making liability company m. This is achieved by minimal damage to bottom line if the loan will to be written off from profits.  Company m' s balance is also cleaned up with the loan liability and additional cash injection of $0.6 by grampa.  No. of shares ballooned, however, on the denominator side for eps and nta. Danger of becoming penny stock is nothng happen with company k, the big brother. Shareholders of both companies can win or lose depending on their entry prices and face shareholding dilution, for company m' s) if they do not subscribe.  Is the above correct?
Useful To Me  Not Useful To Me
MikeL2009 Senior	10-Jun-2020 22:27        MikeL2009 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Agree with all points. As SCM shareholder myself, status quo is simply untenable. Debt, protracted low oil price, no new contract wins, zero dividend, etc This is its best chance for survival. Voting no is suicidal FATABA      ( Date: 10-Jun-2020 21:22) Posted: Firstly taking out ALL the financial number s....  there are various advantage for SCI n SM ( will input why they WILL accept this ONLY offer )  1. SCI after demerger will b a ENERGY n URBAN company which is profitable  2. Reduce loan by 2.9B .....in SGX website u can SEE all the advantages in slide presentation  3. More so ......SCI has another catalyst listing of its India energy .etc etc  SM shareholders really dont have ANY other offer  ( if T n SCI wanted direct buy ....they WOULD NOT HV COME OUT THIS SCHEME LOL  1. SM is bleeding every mth ( no one know how many yrs more ) ....n continue having to pay its loan .......can it continue ?  2. Continue NO dividend n U can expect its share price to drop day by day .....NOW if this offer is rejected ( omg ...what will its share price /below 0.20 ?  Do its share holder want to be another Hyflux ?  On the other hand  1. U have a MAJOR TEMASEK behind u after demerger  2. Yes share diluted but now still offer a chance to conentrate on its business with much debt REMOVED . ( interest payment better etc ) 3. Potential merging with Kep Offshore forming the best rig builder in the world ( still one of the best deep sea rig builder now)  Just the above ....I guess SM shareholders know which route to take .....honestly simple decision at current situation /  Gd Luck    Justice888      ( Date: 10-Jun-2020 21:07) Posted: Smm shareholders not happy . They expect a direct buy out by Temasek or Sembcorp I believe
Useful To Me  Not Useful To Me

                                                         First   < Newer   11221-11240 of 16278   Older>   Last