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alvinlsm Veteran	04-Oct-2022 15:33        alvinlsm About Contact  Quote this Post!
x 0   x 0  Alert Admin	Correct me if i am wrong . Right issue at $2.79 does not means that the market price will goes down to match it . i rmb SIA issue rights to those holding their shares at $3.00 and the market price was around $4+ before they goes down . For me I feel it is a good business plan , but it might take years or months for the market to goes up . For right issue , i will defintely buy it . More shares means we will earn more if it flies .
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Adrianinsing Elite	04-Oct-2022 15:19        Adrianinsing About Contact  Quote this Post!
x 0   x 0  Alert Admin	I found this comment from icy_rock on another forum worth reading - not that I agree with everything Sats-WFS deal: Lack of clarity on funding plan diverts investor focus from merits of acquisition Some Sats shareholders may wonder if the deal is in their best interests after watching the stock dive this past week THE board of Sats could not have been unaware that its proposed acquisition of Worldwide Flight Services (WFS) would be met with hostility in the market. On Sep 21, the inflight caterer and ground handler confirmed a news report that it was indeed discussing a potential acquisition of WFS. The following day ? despite some analysts extolling the strategic benefits of such a deal ? its shares fell more than 5 per cent. As it happened, Sep 21 was also the day the United States Federal Open Market Committee hiked interest rates by 75 basis points for a third consecutive time and slashed its estimates of US growth for 2022 and 2023 ? which sparked a big sell-off around the globe. So, when Sats announced this past week that it will acquire WFS at a total cost of 1.3 billion euros (or approximately S$1.8 billion), its board and paid advisers should not have been surprised by the market?s seeming lack of appetite for the deal. Sats closed Friday (Sep 30) at S$3.01 ? down more than 22 per cent since the acquisition was announced on Sep 28 and down more than 26 per cent since the company confirmed media reports about the deal. Given the skittishness in the market, it seems strange to me that Sats did not state upfront how it will finance the acquisition of WFS. Instead, Sats said last week that it has secured an ?acquisition bridge facility?, but is still evaluating its options on a final funding structure. The company added that its ?base funding plan? involves raising equity capital from its shareholders and new strategic investors. This might include a placement of new shares, hybrid securities or convertible instruments. Yet, the pro forma financial effects of the acquisition provided by Sats last week are based on the assumption that the company raises S$1.7 billion through a renounceable rights issue of 609 million new shares at S$2.79 each. This hint that a big, deeply-discounted rights issue is in the offing has very likely added to the downward pressure on the stock, and made it less likely that Sats will now be able to tap strategic investors for equity capital on attractive terms. Thanks to the lack of clarity on how Sats will fund the acquisition of WFS in a tough market, investors are not focusing on the value the world?s biggest air cargo handler will add to Sats but on how much further Sats? share price might fall. Immediate EPS accretion? Some Sats shareholders may now be wondering if the acquisition of WFS is really in their best interests, and are second-guessing the stated merits of the deal. In particular, the claim by Sats and its paid advisers that the acquisition of WFS and the deeply-discounted rights issue will immediately result in significant earnings per share (EPS) accretion is being closely scrutinised by some investors. On a pro forma basis, Sats? EPS for its financial year (FY) to Mar 31, 2022 would have been 3.2 cents including amortisation of intangible assets or 5.4 cents excluding amortisation of intangible assets. Sats? actual reported EPS for FY2022 was 1.8 cents. On the face of it, Sats is suggesting the acquisition of WFS will immediately boost its EPS by some 78 per cent after amortisation, and 200 per cent before amortisation. But some market watchers figure the pandemic might have boosted the air cargo handling business at WFS during the 12 months to Mar 31 even as it weighed on Sats? overall performance ? thus amplifying the pro forma improvement in EPS. For its FY2022 to Mar 31, Sats reported revenue of S$1.18 billion and earnings before interest, taxes, depreciation and amortisation (Ebitda) of S$94.2 million. This was still well below its FY2020 revenue of S$1.94 billion and Ebitda of S$355.6 million. By contrast, WFS achieved revenue of 1.72 billion euros and Ebitda of 232 million euros for the 12 months to Mar 31, 2022. This was significantly above the revenue of 1.43 billion euros and Ebitda of 75 million euros it earned in 2019, before the pandemic started. As the pandemic wanes and profitability at Sats and WFS normalise, the actual EPS uplift from the deal ? which is expected to be completed by the end of March 2023 ? might turn out to be much lower. In any case, the acquisition and rights issue will leave Sats with significantly higher gearing. On a pro forma basis, its debt-to-equity ratio as at Mar 31, 2022 would have risen to 71 per cent from 46 per cent. Its net debt-to-Ebitda ratio would have been 3.4 times instead of 0.5 times. Conceptually compelling Still, the acquisition of WFS seems conceptually compelling for Sats. The company said last week that the ?transformational opportunity? will give it a network of more than 200 cargo and ground handling stations in over 20 countries. The combined group?s network will cover trade routes responsible for more than half of global air cargo volumes. Sats will also be better positioned to benefit from the growth of e-commerce as well as increasing demand for specialised cargo handling for pharmaceuticals and perishable products. Sats said it expects the increased scale and geographical diversification of its air cargo business to make its earnings more resilient. It also sees opportunities to harness synergies that could add S$100 million to the combined group?s Ebitda over the medium term. More to the point, it seems unlikely that the slump in Sats? share price will derail its acquisition of WFS. Temasek owns 39.7 per cent of Sats and has provided an irrevocable undertaking to vote in favour of the deal when an extraordinary general meeting is convened. Until the deeply discounted rights issue everyone seems to be expecting is done and dusted, however, it seems unlikely to me that shares in Sats will recover much. Credit: icy_rock
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Adrianinsing Elite	04-Oct-2022 15:12        Adrianinsing About Contact  Quote this Post!
x 0   x 0  Alert Admin	Those reasons are why I would hold the shares I have eagleeyes1989      ( Date: 04-Oct-2022 13:38) Posted: --- Post Removed by User ---
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Adrianinsing Elite	04-Oct-2022 15:10        Adrianinsing About Contact  Quote this Post!
x 0   x 0  Alert Admin	You are correct While I hold what I have - there is NO RUSH to buy SATS - the price is not going anywhere any time soon TikTalk      ( Date: 04-Oct-2022 14:19) Posted: If the right issue is sometime in Mar 2023 and the price is 2.79, is there any hurry to buy this stock? Was surprise there were two rebound above 3+ after 2.98. Slowly slowly see first imho.
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TikTalk Supreme	04-Oct-2022 14:19        TikTalk About Contact  Quote this Post! Style: Combined   Mood: Yells: "Anyone miss me?"
x 1   x 0  Alert Admin	If the right issue is sometime in Mar 2023 and the price is 2.79, is there any hurry to buy this stock? Was surprise there were two rebound above 3+ after 2.98. Slowly slowly see first imho.
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uiop1223 Supreme	04-Oct-2022 14:15        uiop1223 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Okok.. buy buy! 😉 😉 eagleeyes1989      ( Date: 04-Oct-2022 13:17) Posted: --- Post Removed by User ---
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investshare Supreme	04-Oct-2022 13:51        investshare About Contact  Quote this Post!
x 0   x 0  Alert Admin	So there is repayment date right? Why issue misleading statements that SATS has flexibility? Tryla888      ( Date: 04-Oct-2022 11:30) Posted: Sats has acquired a bridging facility upto euro 1.2B. This does provide a certainty and the timing flexibility to facilitate the acquisition. investshare      ( Date: 04-Oct-2022 09:55) Posted: This is confusing to me. How much flexibility it has? It has to pay the seller right at some point right
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investshare Supreme	04-Oct-2022 13:48        investshare About Contact  Quote this Post!
x 0   x 0  Alert Admin	I find it hard to believe that 10x EV is fair. EV already reflect market cap, why 10x? Enterprise value is relatively easy to calculate if you know where to find the variables. The formula for calculating EV is as follows: Enterprise Value (EV) = Market Capitalization + Total Debt ? Cash and Cash Equivalents
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uiop1223 Supreme	04-Oct-2022 13:11        uiop1223 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Merger is not straightforward. Many classic cases of failures. Its unlike reits where buy real estate and add on to portfolio. Quite standalone. Buy over biz Have to integrate culture and so on..
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jackass Member	04-Oct-2022 12:29        jackass About Contact  Quote this Post!
x 0   x 0  Alert Admin	this takeover exercise is so fishy that it suggests that SATS was involved in " creative accounting" and cooking the books for many many years  the steep drop (20%) in share price at market open is not possible without a major big player behind the scenes either dumping or outright engaging in an equity debt swap behind the scenes with the bank creditors the music is slowing and retailers will be holding big bags of odorous excrement
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Tryla888 Member	04-Oct-2022 11:30        Tryla888 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Sats has acquired a bridging facility upto euro 1.2B. This does provide a certainty and the timing flexibility to facilitate the acquisition. investshare      ( Date: 04-Oct-2022 09:55) Posted: This is confusing to me. How much flexibility it has? It has to pay the seller right at some point right? Tryla888      ( Date: 04-Oct-2022 08:31) Posted: Sat's annocement :SATS has flexibility on the timing and structure of the proposed Equity Fund Raising, which will be launched at the appropriate time in conducive market conditions. The catch word here is, "in conducive market conditions". Nice good statement!! Your interpretation is skewed towards that Sat's will raise fund regardlessly at any market worst condition. Why would anyone do that. Intriguingly mind boggoling. IMO, Yr opinion is not properly thought out.
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TANPK123 Elite	04-Oct-2022 11:20        TANPK123 About Contact  Quote this Post!
x 0   x 0  Alert Admin	I see the price will hit $.0.200 with current situation. ICXGOLD      ( Date: 04-Oct-2022 11:18) Posted: Mildly put, I think the rights price wont be $2.79 , citing the example and the uncertainty they have now forced the price to hover around this level till there is clarity. Investors won' t jump in at $2.79 with a 10% discount on current market price. Atleast I wont. Knowing the book value of SATS is far lower and anything can happen from now till final announcements. They are taking on a huge debt. If the Ukraine situation continues or worsen. A huge  possibility would be a very low ball rights, ( $1 - $ 1.50 ) with TH agreeing to scoop up surplus. This would ensure they get fully funded, would interest TH, would also draw in investors, and bring the valuations close to book value. From where it can rise and without killing a path to paying dividends.
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ICXGOLD Master	04-Oct-2022 11:18        ICXGOLD About Contact  Quote this Post!
x 0   x 0  Alert Admin	Mildly put, I think the rights price wont be $2.79 , citing the example and the uncertainty they have now forced the price to hover around this level till there is clarity. Investors won' t jump in at $2.79 with a 10% discount on current market price. Atleast I wont. Knowing the book value of SATS is far lower and anything can happen from now till final announcements. They are taking on a huge debt. If the Ukraine situation continues or worsen. A huge  possibility would be a very low ball rights, ( $1 - $ 1.50 ) with TH agreeing to scoop up surplus. This would ensure they get fully funded, would interest TH, would also draw in investors, and bring the valuations close to book value. From where it can rise and without killing a path to paying dividends.
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RL16EGG Veteran	04-Oct-2022 11:16        RL16EGG About Contact  Quote this Post!
x 0   x 0  Alert Admin	Pls do not ignore the big picture. Many bad news now. No stocks will be safe and plenty chance to buy low. Best to stay on sidelines for the perfect storm to slacken.
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FATABA Supreme	04-Oct-2022 10:45        FATABA About Contact  Quote this Post! Style: Combined   Mood:
x 0   x 0  Alert Admin	Read the press release statement extract below 1. The Acquisition Announcement presented an illustrative funding requirement of S$1.7 billion via a Rights Issue of 609 million New Shares at a price of S$2.79 per Share. This illustrative example was provided as part of our disclosure requirements and does not represent the final funding structure or proposed terms of any Rights Issue. 2. SATS wishes to reiterate that no decision has been made on the actual funding structure to be implemented. Subject to market conditions, SATS intends to fund the Proposed Acquisition through a combination of equity, hybrid securities, debt and/or cash. 3. SATS has flexibility on the timing and structure of the proposed Equity Fund Raising, which will be launched at the appropriate time in conducive market conditions It is most unfortunate in my view, that the above was annouced ...it make the situation worst as an investor  1. No investor like UNcertainty . ...point 2 tell you they go ahead with NO decision on the funding structure yet ? Hmm sign of strong mgt ?  2. whatever , debt you take up is at a high interest rate (timing and even worst next year ) ......going down the road, this would be eating into the profit and DIVIDEND  3. SATS is not making profit so far...depending on recovery , on countires opening ( esp Chinese tourist )  and the merger integration going well ( do you really think the French cant manage and SATS can do it immediately? I really hope so .....even giving them the benefit of doubt ...how long would it take ....2 years )  Not forgetting WFS is global w many operations in different countries and culture / making the integration plan harder and longer From the point of an investor ....would you invest at this time on SATS ( knowing you will have to come up w right issue ...whatever even $2.50 / DILUTION )  Am you going to wait out for another 2 yrs for it to return to good dividend payout ? ( knowing SATS have a $1.7B debt to service at RISING interest rate. )  Dyodd .
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uiop1223 Supreme	04-Oct-2022 10:36        uiop1223 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Agree. There shld be a definitive date for the deal to go through. investshare      ( Date: 04-Oct-2022 09:55) Posted: This is confusing to me. How much flexibility it has? It has to pay the seller right at some point right? Tryla888      ( Date: 04-Oct-2022 08:31) Posted: Sat's annocement :SATS has flexibility on the timing and structure of the proposed Equity Fund Raising, which will be launched at the appropriate time in conducive market conditions. The catch word here is, "in conducive market conditions". Nice good statement!! Your interpretation is skewed towards that Sat's will raise fund regardlessly at any market worst condition. Why would anyone do that. Intriguingly mind boggoling. IMO, Yr opinion is not properly thought out.
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investshare Supreme	04-Oct-2022 09:55        investshare About Contact  Quote this Post!
x 0   x 0  Alert Admin	This is confusing to me. How much flexibility it has? It has to pay the seller right at some point right? Tryla888      ( Date: 04-Oct-2022 08:31) Posted: Sat's annocement :SATS has flexibility on the timing and structure of the proposed Equity Fund Raising, which will be launched at the appropriate time in conducive market conditions. The catch word here is, "in conducive market conditions". Nice good statement!! Your interpretation is skewed towards that Sat's will raise fund regardlessly at any market worst condition. Why would anyone do that. Intriguingly mind boggoling. IMO, Yr opinion is not properly thought out. Adrianinsing      ( Date: 03-Oct-2022 21:21) Posted: Only real risk for SATS holders and buyers ( which I do not see as material ) is that the SATS latest press release says that the rights price is not confirmed and can fluctuate according to market conditions - which technically allows them to price it at say $2.50 or even $2.30 or hopefully not $2.10 or lower if the market conditions deteriorate - this means that $2.79 is NOT a floor Read the press release statement extract below 1. The Acquisition Announcement presented an illustrative funding requirement of S$1.7 billion via a Rights Issue of 609 million New Shares at a price of S$2.79 per Share. This illustrative example was provided as part of our disclosure requirements and does not represent the final funding structure or proposed terms of any Rights Issue. 2. SATS wishes to reiterate that no decision has been made on the actual funding structure to be implemented. Subject to market conditions, SATS intends to fund the Proposed Acquisition through a combination of equity, hybrid securities, debt and/or cash. 3. SATS has flexibility on the timing and structure of the proposed Equity Fund Raising, which will be launched at the appropriate time in conducive market conditions
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uiop1223 Supreme	04-Oct-2022 09:03        uiop1223 About Contact  Quote this Post!
x 0   x 0  Alert Admin	SATS is not reits. Its common for reits to issue rights to ask funding from sh as it distribute most income to sh. As a company, you will ask if SATS is biting more than it can chew. Its a huge outlay and the dilution of rights / debts may negate the contribution from this acquisition. Its more acceptable if SATS has internal funding but it doesnt. Moreover, not all acquisitions are smooth. Look at STE, Singpost etc.
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TANPK123 Elite	04-Oct-2022 08:33        TANPK123 About Contact  Quote this Post!
x 0   x 0  Alert Admin	SATA expanding their business. Real SATS investor will be grateful happy and good news. We should trust the direction of management handling. Why so worry about black sheep to bring down the price. When we got chance to see Sata before $3? Definitely this is a good buy for real investors.
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Tryla888 Member	04-Oct-2022 08:31        Tryla888 About Contact  Quote this Post!
x 1   x 0  Alert Admin	Sat's annocement :SATS has flexibility on the timing and structure of the proposed Equity Fund Raising, which will be launched at the appropriate time in conducive market conditions. The catch word here is, "in conducive market conditions". Nice good statement!! Your interpretation is skewed towards that Sat's will raise fund regardlessly at any market worst condition. Why would anyone do that. Intriguingly mind boggoling. IMO, Yr opinion is not properly thought out. Adrianinsing      ( Date: 03-Oct-2022 21:21) Posted: Only real risk for SATS holders and buyers ( which I do not see as material ) is that the SATS latest press release says that the rights price is not confirmed and can fluctuate according to market conditions - which technically allows them to price it at say $2.50 or even $2.30 or hopefully not $2.10 or lower if the market conditions deteriorate - this means that $2.79 is NOT a floor Read the press release statement extract below 1. The Acquisition Announcement presented an illustrative funding requirement of S$1.7 billion via a Rights Issue of 609 million New Shares at a price of S$2.79 per Share. This illustrative example was provided as part of our disclosure requirements and does not represent the final funding structure or proposed terms of any Rights Issue. 2. SATS wishes to reiterate that no decision has been made on the actual funding structure to be implemented. Subject to market conditions, SATS intends to fund the Proposed Acquisition through a combination of equity, hybrid securities, debt and/or cash. 3. SATS has flexibility on the timing and structure of the proposed Equity Fund Raising, which will be launched at the appropriate time in conducive market conditions
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