Seatrium    Last:0.091   -

Sembmarine

This rights issue + demerger is a very bad deal for SCM shareholders...

But I don' t get why SCM minority shareholders just band together and vote against this deal... share price should go back up right if the rights issue + demerger does not happen

According to the documents on SGX, SCM shareholders have to approve a whitewash resolution (to waive rights to a mandatory takeover offer from Temasek) for the whole deal to go through. But SCI is abstaining on this whitewash resolution, and Temasek does not own any SCM direct right now, so the whitewash resolution is decided  only by minority shareholders

Why don' t minority shareholders just vote against the whitewas resolution then and stop this whole nonsense?? Am I missing something?

 

RHB Group Research analyst Leng Seng Choon is reiterating a &ldquo buy&rdquo call on Sembcorp Marine (Sembmarine) with a target price of $1.13, representing a 32.9% upside for the stock.     In a Tuesday report, Leng identifies the joint announcement by Sembmarine and Sembcorp Industries for a $2.1 billion recapitalisation and demerger as a &ldquo positive&rdquo for the company, especially in light of a tough business environment.     Under the proposal, Sembmarine will issue rights at 20 cents per rights share, representing a 31% discount to the theoretical ex-rights price based on a five-day volume weighted average price of 74 cents per share.     Notably, Sembcorp Industries has undertaken the subscription of up to $1.5 billion worth of rights by setting off the subordinated loan of $1.5 billion it had previously extended to Sembmarine. Additionally, Temasek has agreed to sub-underwrite the remaining $0.6 billion.   This will strengthen Sembmarine&rsquo s balance sheet and result in Temasek becoming a direct shareholder of Sembmarine,&rdquo says Leng.    &ldquo We view the proposal positively, as this will help Sembmarine better ride through the tough business conditions, although the share price could fall in the short term,&rdquo he adds.     The way Leng sees it, Sembmarine&rsquo s net gearing, which stood at 1.82 times as at end-December 2019, is set to plunge after the rights issue is completed. He notes that the company&rsquo s gearing levels would have fallen to a pro-forma 0.45 times if the transaction had been completed in 2019.     &ldquo Sembmarine&rsquo s net tangible assets was $1.9 billion on Dec 31 2019, and would have risen to $4.0 billion on a proforma basis,&rdquo says Leng.     &ldquo We view the sharply lower gearing a big positive, as this will help Sembmarine better engage potential customers and also to better meet banks&rsquo loan covenants,&rdquo he adds.     Following the rights issue, Sembcorp Industries will distribute its holdings of Sembmarine shares to its own shareholders, who will receive between  427 and 491 Sembmarine shares for every 100 Sembcorp Industries shares, with no cash outlay required.    &ldquo This will allow both companies to focus on their respective industries. Temasek will become a significant direct shareholder of Sembmarine, with a stake of at least 29%,&rdquo says Leng.   Leng also adds that Sembmarine&rsquo s FY2020F book value per share will fall to 33.5 cents from pre-rights value of $2.01 per share.    As at 2.08pm, shares in Sembcorp Marine are changing hands 21.5 cents lower, or 25.3% down, at 63.5 cents. With some 104.1 million shares traded thus far, the counter is also one of the most heavily traded today

 

dow down  300 points, scary, 

 

You sure?
there is at least 3 to 4 months to play this game and nothing is confirmed until shareholders agreed to the deal..
Too early to end game..hahaha

Grubber      ( Date: 09-Jun-2020 16:29) Posted: SCM game over

 

SCM game over

 

.62c broken 😢 😢

 

bb angry

 

even SCI morning turn red liao, better run not worth hang on

 

nasdaq all time high tonight big drop indirectly affect sentiment

 

62 is bb Q

 

Yes, be careful once .62c broken 

 

once 62 broken hell loose

 

Where is .70c target????

 

dont blink 0.62 buy queue will gone soon.

 

bb going full force njow

 

Luckily sold mine at $0.65😁

 

This cruise was leaking profusely last year, in the order of almost 6.6c ps.
Don' t expect the ship to turn around anytime soon just because got money from the rights, 5x more which might overload its worn out engine.
It is in an industry that is quite chialat under current condition, which will likely stretch for some time.
Anyway, more like for punting, not investing, just opinion lah.

 

The Big Boys indeed big boys. They can make the whole market upside down
 

wehuattogether88      ( Date: 09-Jun-2020 16:08) Posted: This one do not really care about US futures as long as BBs come in to play it machidrain      ( Date: 09-Jun-2020 16:04) Posted: futures are red today.

 

62 gone soon

 

5 rights to 1 shares for SCM shares holder.....
what I meant was SCI shares holder.

limcs84      ( Date: 09-Jun-2020 15:56) Posted: It is 5 Rights shares to 1 Ordinary share. 1 Right share is $0.20 astroc      ( Date: 09-Jun-2020 15:52) Posted: Not 1 to 1 right? there must be some ratio let me rephrase... if I' m holding some SCm share now, when can I subscribe to the rights? do i need to wait for letteR