Back

Latest Forum Topics / Sembcorp Ind    Last:6.13 --

Post Reply

SembCorp Industries Post Reply Rate topic
fatpanda Supreme	10-Jun-2020 22:22        fatpanda About Contact  Quote this Post! Style: Technical   Mood: Yells: "Another wonderful day!"
x 0   x 0  Alert Admin	Bro, Just joking inly. She would not do this as this demerger involves huge capital investment, and also the shareholders from the two companies. Djsoul80      ( Date: 10-Jun-2020 21:56) Posted: Ya if she goes "Errr...".. A lot of people will curse and swear at this old lady left and right! They are investing with our money.. Yes...out money! So who will want this deal to fail??? If fails.. we all jialat!!! fatpanda      ( Date: 10-Jun-2020 21:50) Posted: She probably " Errrrrrrrr...." again. Hahaha....
Useful To Me  Not Useful To Me
beng1102 Elite	10-Jun-2020 22:19        beng1102 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Precisely TH is major sharehold and will only like to see share price of both companies go up. Justice888      ( Date: 10-Jun-2020 22:13) Posted: From the comments on share junction . Some smm shareholders think Temasek and Sembcorp industry is a charity organisation. michaeltan      ( Date: 10-Jun-2020 22:01) Posted: Temasek as investor who also wants a good return on for the investment. It is not a charity organization. To help also got the limit. I wonder how SMM could survive until now without the parent company SCI help in the first place. Unfortunately, our Temasek cannot print money like US federal reserve of trillion of dollars
Useful To Me  Not Useful To Me
raymoon Member	10-Jun-2020 22:18        raymoon About Contact  Quote this Post!
x 0   x 0  Alert Admin	Wonder what will the legendary DBS analyst who say SCI is "too cheap to ignore" which some people might have followed and huat big big will say about SCI now.. 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
Justice888 Supreme	10-Jun-2020 22:13        Justice888 About Contact  Quote this Post!
x 0   x 0  Alert Admin	From the comments on share junction . Some smm shareholders think Temasek and Sembcorp industry is a charity organisation. michaeltan      ( Date: 10-Jun-2020 22:01) Posted: Temasek as investor who also wants a good return on for the investment. It is not a charity organization. To help also got the limit. I wonder how SMM could survive until now without the parent company SCI help in the first place. Unfortunately, our Temasek cannot print money like US federal reserve of trillion of dollars. TheDuellist      ( Date: 10-Jun-2020 21:35) Posted: Yes, that is true......that is why, a concern that they will not vote in favour all the resolutions in the imminent egm. Remember, SCM shares would probably trade in the region of 20+ cent after the Rights shares are listed in the market. Basically flooding the market. Therefore...SCM holders may not want Temasek to be absolved into making a general offer for SCM. Study the resolution of the forthcoming EGM and we will all realise it is not to be taken for granted
Useful To Me  Not Useful To Me
Octavia Supreme	10-Jun-2020 22:12        Octavia About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	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
tritonyeah666 Elite	10-Jun-2020 22:04        tritonyeah666 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Okay after EGM approval on whitewash resolution: SCI price collapse back to 1.3-1.5 (albeit with ' free' SMM shares) and SMM price become 0.20. Essentially they are bailing out the 1.5 billion debt using money from the man on the street.
Useful To Me  Not Useful To Me
michaeltan Master	10-Jun-2020 22:01        michaeltan About Contact  Quote this Post! Style: Fundamental   Mood:
x 0   x 0  Alert Admin	Temasek as investor who also wants a good return on for the investment. It is not a charity organization. To help also got the limit. I wonder how SMM could survive until now without the parent company SCI help in the first place. Unfortunately, our Temasek cannot print money like US federal reserve of trillion of dollars. TheDuellist      ( Date: 10-Jun-2020 21:35) Posted: Yes, that is true......that is why, a concern that they will not vote in favour all the resolutions in the imminent egm. Remember, SCM shares would probably trade in the region of 20+ cent after the Rights shares are listed in the market. Basically flooding the market. Therefore...SCM holders may not want Temasek to be absolved into making a general offer for SCM. Study the resolution of the forthcoming EGM and we will all realise it is not to be taken for granted. 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
Djsoul80 Master	10-Jun-2020 21:56        Djsoul80 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Ya if she goes "Errr...".. A lot of people will curse and swear at this old lady left and right! They are investing with our money.. Yes...out money! So who will want this deal to fail??? If fails.. we all jialat!!! fatpanda      ( Date: 10-Jun-2020 21:50) Posted: She probably " Errrrrrrrr...." again. Hahaha....
Useful To Me  Not Useful To Me
arctician1982 Senior	10-Jun-2020 21:53        arctician1982 About Contact  Quote this Post!
x 0   x 0  Alert Admin	i am sure all the SMM CEO, board of directors or senior management have shares, their vote alone enough to swing the decision in favour.  Djsoul80      ( Date: 10-Jun-2020 21:43) Posted: --- Post Removed by User ---
Useful To Me  Not Useful To Me
fatpanda Supreme	10-Jun-2020 21:50        fatpanda About Contact  Quote this Post! Style: Technical   Mood: Yells: "Another wonderful day!"
x 0   x 0  Alert Admin	She probably " Errrrrrrrr...." again. Hahaha....
Useful To Me  Not Useful To Me
Djsoul80 Master	10-Jun-2020 21:47        Djsoul80 About Contact  Quote this Post!
x 0   x 0  Alert Admin	If they fail big this time with th is restructuring when they themselves are the major shareholders... Their portfolio will looks very bad and xia suay! So you think Ho Ching will let it happen? Djsoul80      ( Date: 10-Jun-2020 21:45) Posted: Bear in mind.. Temasek can be stupid at times.. But they can't afford to be stupid anymore.. They've lost enough on foreign projects. They can't fail locally. Justice888      ( Date: 10-Jun-2020 21:42) Posted: Smm got about 1.5 billion loan due in 1 years time and another $1.5 billion due in another year ... where to find money to pay ha? By then Temasek step in. Will the offer be better or worse
Useful To Me  Not Useful To Me
raymoon Member	10-Jun-2020 21:47        raymoon About Contact  Quote this Post!
x 0   x 0  Alert Admin	Wow.. Didnt know about this. It is an interesting insight. Thank you! beng1102      ( Date: 10-Jun-2020 21:03) Posted: SGX web portal cannot see the last transaction price but included the last transacted volume.  In your broker web application you should be able to see the detailed transaction price and volume. raymoon      ( Date: 10-Jun-2020 20:59) Posted: Anyway sorry to ask a noob question as im still learning, how do you derive or saee these details for the closing?
Useful To Me  Not Useful To Me
Djsoul80 Master	10-Jun-2020 21:45        Djsoul80 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Bear in mind.. Temasek can be stupid at times.. But they can't afford to be stupid anymore.. They've lost enough on foreign projects. They can't fail locally. Justice888      ( Date: 10-Jun-2020 21:42) Posted: Smm got about 1.5 billion loan due in 1 years time and another $1.5 billion due in another year ... where to find money to pay ha? By then Temasek step in. Will the offer be better or worse ? TheDuellist      ( Date: 10-Jun-2020 21:35) Posted: Yes, that is true......that is why, a concern that they will not vote in favour all the resolutions in the imminent egm. Remember, SCM shares would probably trade in the region of 20+ cent after the Rights shares are listed in the market. Basically flooding the market. Therefore...SCM holders may not want Temasek to be absolved into making a general offer for SCM. Study the resolution of the forthcoming EGM and we will all realise it is not to be taken for granted
Useful To Me  Not Useful To Me
Justice888 Supreme	10-Jun-2020 21:42        Justice888 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Smm got about 1.5 billion loan due in 1 years time and another $1.5 billion due in another year ... where to find money to pay ha? By then Temasek step in. Will the offer be better or worse ? TheDuellist      ( Date: 10-Jun-2020 21:35) Posted: Yes, that is true......that is why, a concern that they will not vote in favour all the resolutions in the imminent egm. Remember, SCM shares would probably trade in the region of 20+ cent after the Rights shares are listed in the market. Basically flooding the market. Therefore...SCM holders may not want Temasek to be absolved into making a general offer for SCM. Study the resolution of the forthcoming EGM and we will all realise it is not to be taken for granted. 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
Justice888 Supreme	10-Jun-2020 21:39        Justice888 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Eventually the share price will also drop to $0.20.. less contract less income more losses... when drop $0.20 then do rights issue ? I think if I am smm shareholders I will just sell TheDuellist      ( Date: 10-Jun-2020 21:35) Posted: Yes, that is true......that is why, a concern that they will not vote in favour all the resolutions in the imminent egm. Remember, SCM shares would probably trade in the region of 20+ cent after the Rights shares are listed in the market. Basically flooding the market. Therefore...SCM holders may not want Temasek to be absolved into making a general offer for SCM. Study the resolution of the forthcoming EGM and we will all realise it is not to be taken for granted. 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
TheDuellist Senior	10-Jun-2020 21:35        TheDuellist About Contact  Quote this Post!
x 0   x 0  Alert Admin	Yes, that is true......that is why, a concern that they will not vote in favour all the resolutions in the imminent egm. Remember, SCM shares would probably trade in the region of 20+ cent after the Rights shares are listed in the market. Basically flooding the market. Therefore...SCM holders may not want Temasek to be absolved into making a general offer for SCM. Study the resolution of the forthcoming EGM and we will all realise it is not to be taken for granted. Justice888      ( Date: 10-Jun-2020 21:07) Posted: Smm shareholders not happy . They expect a direct buy out by Temasek or Sembcorp I believe michaeltan      ( Date: 10-Jun-2020 21:02) Posted: Right now SCI holders should be cheers of getting back $1.5billion. SCI has declared to award SCI holders with specie dividend in form of SMM shares. Furthermore, it is better future prospect for SCI to focus it core busines.  SCI was able to pay 6 cents dividend even thought the profit was dragged down by the loss making SMM.    SCI NAV $3.85 and Cash & cash equipvalent $1740 million as at 31/12/2020
Useful To Me  Not Useful To Me
michaeltan Master	10-Jun-2020 21:29        michaeltan About Contact  Quote this Post! Style: Fundamental   Mood:
x 0   x 0  Alert Admin	Not really, both parties are in deep study the option and agreed this will be good for both. Can SMM obtain loan to pay SCI the money $1.5billion + interests? Now you don' t need to come out a cent to pay out the loan and get 600million cash injection at least. Justice888      ( Date: 10-Jun-2020 21:07) Posted: Smm shareholders not happy . They expect a direct buy out by Temasek or Sembcorp I believe michaeltan      ( Date: 10-Jun-2020 21:02) Posted: Right now SCI holders should be cheers of getting back $1.5billion. SCI has declared to award SCI holders with specie dividend in form of SMM shares. Furthermore, it is better future prospect for SCI to focus it core busines.  SCI was able to pay 6 cents dividend even thought the profit was dragged down by the loss making SMM.    SCI NAV $3.85 and Cash & cash equipvalent $1740 million as at 31/12/2020
Useful To Me  Not Useful To Me
FATABA Supreme	10-Jun-2020 21:22        FATABA About Contact  Quote this Post! Style: Combined   Mood:
x 0   x 0  Alert Admin	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 michaeltan      ( Date: 10-Jun-2020 21:02) Posted: Right now SCI holders should be cheers of getting back $1.5billion. SCI has declared to award SCI holders with specie dividend in form of SMM shares. Furthermore, it is better future prospect for SCI to focus it core busines.  SCI was able to pay 6 cents dividend even thought the profit was dragged down by the loss making SMM.    SCI NAV $3.85 and Cash & cash equipvalent $1740 million as at 31/12/2020
Useful To Me  Not Useful To Me
TheDuellist Senior	10-Jun-2020 21:20        TheDuellist About Contact  Quote this Post!
x 0   x 0  Alert Admin	I have more than less agree with you. Although the party to come up with this demerger tried hard to benefit all 3 parties, making it win-win-win situation, it is quite obvious SCI will benefit the most. Next comes Temasek. And apparently SCM has nothing much to cheer about other than the prospect of merging with Keppel O& M (which may not necessarily be a positive move). Reality check: It is extremely unlikely all 3 parties will emerge as winners. Somebody will be designated as the fall-guy. No points for guessing who. michaeltan      ( Date: 10-Jun-2020 21:02) Posted: Right now SCI holders should be cheers of getting back $1.5billion. SCI has declared to award SCI holders with specie dividend in form of SMM shares. Furthermore, it is better future prospect for SCI to focus it core busines.  SCI was able to pay 6 cents dividend even thought the profit was dragged down by the loss making SMM.    SCI NAV $3.85 and Cash & cash equipvalent $1740 million as at 31/12/2020. beng1102      ( Date: 10-Jun-2020 20:37) Posted: Why people think that at current market price the loan of 1.5b  is not already written-off?    It has been treated by the market as bad debt anyway and discounted for
Useful To Me  Not Useful To Me
MangoTango Member	10-Jun-2020 21:17        MangoTango About Contact  Quote this Post!
x 0   x 0  Alert Admin	It is not a write off. Out of the $2.1B raised, $1.5B will be used to repay the loan.  The money used to subscribe for the rights can be considered as capital injection by SCI, and the shares will be distributed to the shareholders.  Djsoul80      ( Date: 10-Jun-2020 20:40) Posted: --- Post Removed by User ---
Useful To Me  Not Useful To Me

                                                         First   < Newer   11241-11260 of 16278   Older>   Last