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Sembcorp Marine overvalued
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lailai
Elite |
07-Sep-2020 11:33
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Looks like there is confusion. Some say tomorrow last day cum distribution, some say tomorrow ex distribution. Think the kongsi maybe confuse also, that' s y words like " expected last date" were not updated. What a joke! ![]() ![]()  
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ysh2006
Supreme |
07-Sep-2020 11:26
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SCI ex distribution of SMM is tomorrow...any idea SCI will drop how much tomorrow ? | ||||
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ysh2006
Supreme |
05-Sep-2020 18:51
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If continue go down...holders loss much money...Temasek can buy cheap from market...
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alleyboy
Veteran |
24-Aug-2020 09:54
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I will just let it pass. Dont make money sense to sell the Rights.
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ADS2200
Veteran |
24-Aug-2020 09:51
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omg how come got 2 threads running? no wonder i cannot find my post. smm chat also got demerger huh??? should consolidate can someone help ?  don' t understand this whole recapitalsation of smm and demerger from parent sci.  smm will undertake a renounceable underwritten rts issue and  sci has plans to subscribe up to $1.5b of rights shares  to set off smm' s $1.5b outstanding loans under the subordinated credit facility provided by sci last year is it  given free  to sci and then sci gives 427 - 491 smm shares to sci sh ? beside this what else sci get ? sci lend money to smm and then take back ... quite wu liao lei  |
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vicloo
Elite |
24-Aug-2020 09:37
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If you dont take up, temasek will sapu all up anyway dont worry it will never underscribed... Is whether you want to follow temasek or not...
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Joelton
Supreme |
24-Aug-2020 09:24
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Sembcorp Marine shareholders must now decide on rights takeup
They have to consider 3 options: do nothing sell their rights or subscribe to the issue
 
THE experience of the Securities and Investor' s Association (Singapore) - or Sias - is that when companies announce complex deals, many small shareholders are often in the dark as to what they have to do and the timeline they have to follow.
 
This came to light recently during a capital raising exercise by Singapore Airlines (SIA) that involved an issue of new shares and mandatory convertible bonds.
 
Some shareholders thought that their responsibility ended once they had voted at the extraordinary general meeting (EGM). They were mistaken - if there is a rights issue involved, and if it has been approved at EGMs, shareholders must then decide whether to subscribe to the rights, or sell their rights, or let the offer lapse.
 
Sias also encountered instances of investors who bought the rights in the open market and then failed to complete the process by actually paying for the rights, ie they did not subscribe to the shares and therefore wasted money buying the rights in the first place.
 
Since the SIA issue in June, another relatively complicated corporate action has been proposed - the recapitalisation of Sembcorp Marine (SMM) and its demerger from parent Sembcorp Industries (SCI).
 
This deal has already been approved but as far as SMM shareholders are concerned, there is still more that needs to be done.
 
It is perhaps timely that Sias helps clarify as simply as possible what is at stake.
 
What do SMM shareholders need to think about now?
 
For each SCM share owned, shareholders are being asked to pay S$0.20 per share to receive five more, new shares. They have to consider three options:
 
a) Do nothing. There is no cash outlay but those who let their rights lapse will then see their stake diluted when the exercise is completed.
 
b) Sell their rights. For those that do not want to pay the total price of S$1 for five shares, they can sell their rights in the market, so this option results in cash inflow. This is possible because the deal is a " renounceable" rights issue, which means shareholders can renounce or surrender their rights as they are under no obligation to take up their entitlements.
 
The rights appear on the Singapore Exchange' s website as " Sembcorp Marine R" and last Friday, after three days of trading, ended the week at S$0.001. Note that SMM' s shares ended the week at S$0.205, which means the rights at most are worth S$0.005 (S$0.205-S$0.20).
 
In other words, the rights are currently trading at a very small discount because anyone buying them now would incur a total cost of S$0.201 per share versus the market price of S$0.205. Note that because of the size of the offer - five shares for every one - the volume done in the rights is very high every day. As the rights have an expiry date, the value of the rights will fall closer to the expiry date.
 
c) Subscribe to the issue. This involves cash outflow and would entail paying SMM S$1 to get five new shares for each share currently held.
 
This option would be suitable for a shareholder who has faith in SMM' s long-term future.
 
What is the outlook for SMM?
 
After the rights issue and the distribution of SMM shares to SCI shareholders is completed, Temasek Holdings (currently the single largest shareholder of SCI) will become a direct and significant shareholder of SMM with a stake of more than 30 per cent and up to 58 per cent. Temasek is sub-underwriting up to S$600 million of the rights issue, and SMM said it sees Temasek as a strong shareholder that will support SMM' s strategy and future growth. As at June 30, 2020, SMM had a net order book of about S$2.2 billion. It has had no cancellations since. The company has listed three strategies towards sustainable, long-term growth: diversification and expansion into new and existing markets strengthening of its yard capabilities and innovation development through investment in intellectual property, technology and solutions.
 
But all this hinges on a recovery in the offshore and marine sector. And no one knows how long the Covid-19 pandemic will last, or when the sector, which has been in the doldrums for several years, will recover.
 
The downturn, which stretches back five to six years, has hit many companies, and several have already been wound up.
 
For the sector' s fortunes to improve, a recovery in oil prices is needed. But increased global supply of oil and reduced demand because of the virus pandemic has helped keep a lid on oil prices for several years now. How soon or when it will turn around for the better is difficult to predict.
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TigerPlay
Master |
24-Aug-2020 09:21
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Sad thing, the rts now become worthless.. | ||||
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uiop1223
Supreme |
24-Aug-2020 09:08
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Well.. u need to pay commission to broker and trading fees tk sgx. U probably incur a loss. Btw, now no one bid even at $0.001
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alleyboy
Veteran |
24-Aug-2020 08:58
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OK. I understand wat Octavia info. Now if i decide not to subscribe the Rights, i therefore would have to sell my 5000 Rights in open mkt. But last trading was 0.001. Tat means after selling the Rights i only get S$5.00???
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vicloo
Elite |
23-Aug-2020 16:54
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Oh yeah... Better dont sell... Just leave it... If you dont want to pick up. Alternatively, Poems has this cash plus acc, fee only 10 per transaction up to 29k trasaction. Another option to consider.
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uiop1223
Supreme |
23-Aug-2020 16:22
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So what did CNA say on outlook if O&G? | ||||
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Juzztrade
Master |
23-Aug-2020 15:51
![]() Yells: "Techincal and long term investor" |
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What I meant is shareholder who sell the renouncebale rights in open  market.
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vicloo
Elite |
23-Aug-2020 14:51
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Shouldnt be, buying right just pay directly to local bank like IPO. Only fee is 2 dollars.
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vicloo
Elite |
23-Aug-2020 14:48
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I think 18-19c likely xR
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mercuryellow
Member |
23-Aug-2020 12:25
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Will it go below 0.20 after XR? | ||||
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TA_Expert
Supreme |
23-Aug-2020 02:26
Yells: "The World has changed" |
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Many small shareholders will let the their rights vaporise in the thin air eventually. They can' t even sell due to brokerage fees, they still have to to up the differences. It means that they are technically forced to subscribe the rights at $0.20 a piece. The question is now is do you want to pay $0.20 for a piece? Many retails are influence by market rumours such as: 1) Temasek will merge Keppel Marine and SMM or 2) Privatise SMM Even with either 2 senario, do you think that Temasek will give a good price to SMM minority shareholders?
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Juzztrade
Master |
23-Aug-2020 00:02
![]() Yells: "Techincal and long term investor" |
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Let say a person is holding 5000 shares in Sembmarine and he is entitled to 25,000 renounceable rights. Selling the rights at 0.001 cent based on last Friday price is only $25.00 and still have to pay brokerage charges. ![]()
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Jeanny
Member |
22-Aug-2020 22:04
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alleyboy, please refer to the post by Octavia.   Last trading day for R on 27/08.  Last day to apply for SM rights shares @20cts - 2/09
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alleyboy
Veteran |
22-Aug-2020 21:11
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Thanks. So will this Semb Marine R be permanently listed/traded in SGX? If not, when will this counter be absorbed into the mother share i.e.sembmarine ltd?
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