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9001-9020 of 9396
the vanguard group, inc 1.4371%, norges bank 0.6887% and past weeks of value investors bought into scm.
desmodeus, if you have sth to say, just say it. else maybe perceive as smokescreen.
desmodeus, if you have sth to say, just say it. else maybe perceive as smokescreen.
desmodeus ( Date: 20-Sep-2020 00:07) Posted:
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Silly? was that my actual question in the first place?
I remove the all statements and leave SJ as it is not healthy here.
I remove the all statements and leave SJ as it is not healthy here.
silly question. SMM issue new shares to redeem loan owing to SCI
desmodeus ( Date: 20-Sep-2020 00:07) Posted:
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SCI shareholders should ask where SCI get the money to buy smm shares to distribute to its shareholders and write off the debt owing by SMM.
Login20 ( Date: 19-Sep-2020 23:59) Posted:
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1.6 bil is very big amount ... Don?t know need how many years to earn back ?
Sir, Is it true that you bought $500k worth of Sembcorp marine at around 60c? Which also mean that you would now be holding more than $1M worth of SM shares after rights issue?
better ( Date: 19-Sep-2020 22:23) Posted:
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Answer desmodeus' s question:
(am I right to say if Temasek buys one share of smm now, it will trigger a GO at $0.20.)
Legally speaking, Temasek can buy from the open market to 50% (from the current 42.6%) before a General offering is triggered. Based on Singapore Security law, 30% and 50% would trigger GO. If a GO is triggered, they can offer anything higher than the last trading price. If the last trading price is 16 cents, they can offer say 17 cents. From past experience, Temasekis very stingy and seldom offer much more than 10% from last trading price. My SMRT shares got bought out at a pretty low ball offer when it was privatised.
90% would trigger GO and delisting. However, privatisation is usually the last resort as the supplementary mandate of Temasek is to enhance the liquidity of the Singapore stock market. Privatisating a listed company is a step back.
Moreover, it is not the working protocol/ style of Temasek to buy from the open market. Because, every purchase and sale decision, even 1 share, likely has to go through a round of board meetings to prevent abuse, front running and corruption.
I would imagine it would be a corporate planning nightmare for them to buy a bit from the open market everyday. For the size of Temasek, they seek out deals or wait for people to approach them for deals. Not unlike Warren Buffet who have dozens of proposals coming to him every month for his consideration.
(am I right to say if Temasek buys one share of smm now, it will trigger a GO at $0.20.)
Legally speaking, Temasek can buy from the open market to 50% (from the current 42.6%) before a General offering is triggered. Based on Singapore Security law, 30% and 50% would trigger GO. If a GO is triggered, they can offer anything higher than the last trading price. If the last trading price is 16 cents, they can offer say 17 cents. From past experience, Temasekis very stingy and seldom offer much more than 10% from last trading price. My SMRT shares got bought out at a pretty low ball offer when it was privatised.
90% would trigger GO and delisting. However, privatisation is usually the last resort as the supplementary mandate of Temasek is to enhance the liquidity of the Singapore stock market. Privatisating a listed company is a step back.
Moreover, it is not the working protocol/ style of Temasek to buy from the open market. Because, every purchase and sale decision, even 1 share, likely has to go through a round of board meetings to prevent abuse, front running and corruption.
I would imagine it would be a corporate planning nightmare for them to buy a bit from the open market everyday. For the size of Temasek, they seek out deals or wait for people to approach them for deals. Not unlike Warren Buffet who have dozens of proposals coming to him every month for his consideration.
Answering Peter88' s question
The stock market is such that the higher the stock goes, most participants would want to hold to wait for it to go higher.
And the lower a stock goes, the more participants would want to sell or even short sell.
It is usually the reverse of going grocery shopping, the more the food item is discounted, the greater the demand. The reverse is true for the stock market.
The higher it goes, more people want it. That is until it crashes big time one day. Think Amazon, Alibaba, Tesla, Top Glove etc
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If the share price of SCI being pushed up , isn' t it normal for the sharehlders of SCI to sell SCI instea of SCM ? |
The stock market is such that the higher the stock goes, most participants would want to hold to wait for it to go higher.
And the lower a stock goes, the more participants would want to sell or even short sell.
It is usually the reverse of going grocery shopping, the more the food item is discounted, the greater the demand. The reverse is true for the stock market.
The higher it goes, more people want it. That is until it crashes big time one day. Think Amazon, Alibaba, Tesla, Top Glove etc
This may be a bit confusing for readers without any accounting background.
SCI' s debt to equity ratio is about 200% before the rights issue. The ratio would have likely worsen to over 250% after the rights issue as the asset/ liability of SMM (including cash) is extracted from SCI' s book. However, the $1.5bil surbordinated loan to SMM is previously classified as an asset in SCI' s book and have to be written off. It is like a bank writing off a bad debt. Not even making a loss provision but actually writing it off.
From an accounting standpoint, it is like SCI making an $1.5 billion extraordinary loss (equivalent of 6-7 years of their net profit).
If you have studied the breakdown of SCI' s H1 results, you would have noticed that they are actually making a net loss even if we exclude SCM' s contribution.
Also, after demerger, the $1.6billion cash in SCM' s book would also be excluded from SCI' s book, worsening its quick ratio.
The main reason of the demerger is because SCI over committed itself to bill out SCM last year by offering them a $2billion surbordinated loan. SCM drew $1.5 billion from it but SCI would likely would be in a cash crunch if SMM draw down the remaining $500million. Therefore, the rights issue is to get SCI off the hook for the remaining $500 million and also to maximise Temasek' s direct holding in SMM.
The rights issue resloved SMM' s liquidity issue but put SCI in a worse financial shape. It is impossible for them to get any further bank loan. That' s why they have to shout from the mountain top that they managed to secure a $40 million to fund the solar contract from PUB. Likely they got it because of some green loan initiative.
SCI' s debt to equity ratio is about 200% before the rights issue. The ratio would have likely worsen to over 250% after the rights issue as the asset/ liability of SMM (including cash) is extracted from SCI' s book. However, the $1.5bil surbordinated loan to SMM is previously classified as an asset in SCI' s book and have to be written off. It is like a bank writing off a bad debt. Not even making a loss provision but actually writing it off.
From an accounting standpoint, it is like SCI making an $1.5 billion extraordinary loss (equivalent of 6-7 years of their net profit).
If you have studied the breakdown of SCI' s H1 results, you would have noticed that they are actually making a net loss even if we exclude SCM' s contribution.
Also, after demerger, the $1.6billion cash in SCM' s book would also be excluded from SCI' s book, worsening its quick ratio.
The main reason of the demerger is because SCI over committed itself to bill out SCM last year by offering them a $2billion surbordinated loan. SCM drew $1.5 billion from it but SCI would likely would be in a cash crunch if SMM draw down the remaining $500million. Therefore, the rights issue is to get SCI off the hook for the remaining $500 million and also to maximise Temasek' s direct holding in SMM.
The rights issue resloved SMM' s liquidity issue but put SCI in a worse financial shape. It is impossible for them to get any further bank loan. That' s why they have to shout from the mountain top that they managed to secure a $40 million to fund the solar contract from PUB. Likely they got it because of some green loan initiative.
To truly unlock the full value of Sembcorp Industries share price, the management must continue its effort in recycle capital through its energy and urban assets. And one of the major catalysts for Sembcorp Industries share price is the listing of the India business unit, Sembcorp Energy India Ltd (SEIL).
imho demerger of sci and scm is moving in the right direction
imho demerger of sci and scm is moving in the right direction
Prior to 2020, SCM had dragged down SCI&rsquo s financial performances for years because of the ailing oil and gas sector. This resulted in SCM borrowing $2 billion of subordinated loan from SCI in June 2019. The latest development should enable Sembcorp Industries share price to see light at end of tunnel as the debt levels will be significantly reduced and the proposed demerger will lead to increase in strategic focus.
temasek has unlocked value and potential of two focused companies. imho
temasek has unlocked value and potential of two focused companies. imho
am I right to say if Temasek buys one share of smm now, it will trigger a GO at $0.20.
better ( Date: 19-Sep-2020 14:26) Posted:
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If the share price of SCI being pushed up , isn' t it normal for the sharehlders of SCI to sell SCI instea of SCM ?
better ( Date: 19-Sep-2020 14:26) Posted:
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your explanation sounds interesting ......... why BB and TH plot to acquire more SMM shares?
better ( Date: 19-Sep-2020 14:26) Posted:
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It is good to see high SCM volumes the last two weeks. It is good for the SCI holders to get rid of their SCM allocation. Once these retailers sell thier SCM shares, SCM will likely go up in the near future
The market action for SMM has been pretty good over the past week. Strong interest by deep pocket investors to accumulate. To convince the SCI retail shareholder to sell their SMM shares at the cheap, the SMM accumulators are likely the same people pushng up SCI share price. SCI shareholders would then be willing to sell their SMM shares when they calculated that 4.9*16.5 + 1.33 = $2.14 is 10+% higher than SCI share price before the distribution.
Once the selling by SCI retail shareholders dry up in the next few weeks, SCI shares would likely drop below $1. The interest of the big boys including Temasek has always been to buy more SMM shares at the cheap. SCI is in a very matured business. It can be argued that almost anyone can run a power plant nowadays. You can only get the contract only when you are willing undercut your competitors substantially and agree to take on a huge debt to finance or fund the project. SCI has over $11 billion debt and make only $200-300 million on a good year. $2.6 billion of its debt is due in the next 12mths. The probability of a Temasek led rights issue to recapitalise SCI is high based on its current trajectory. That' s why SCI need to do an India IPO at the cheap urgently to avert an impending cash crunch.
You know how bad SCI' s cashflow is when they have to announce to the world recently that they managed to secure a meagre $40 million loan to fund their solar contract. Bear in mind that Hyflux went under when they try to get into the highly competitive and volatile " electricity" business.
I am vested in SMM, having subsribed to their rights and excess rights. Bought a bit more over the past week.
Once the selling by SCI retail shareholders dry up in the next few weeks, SCI shares would likely drop below $1. The interest of the big boys including Temasek has always been to buy more SMM shares at the cheap. SCI is in a very matured business. It can be argued that almost anyone can run a power plant nowadays. You can only get the contract only when you are willing undercut your competitors substantially and agree to take on a huge debt to finance or fund the project. SCI has over $11 billion debt and make only $200-300 million on a good year. $2.6 billion of its debt is due in the next 12mths. The probability of a Temasek led rights issue to recapitalise SCI is high based on its current trajectory. That' s why SCI need to do an India IPO at the cheap urgently to avert an impending cash crunch.
You know how bad SCI' s cashflow is when they have to announce to the world recently that they managed to secure a meagre $40 million loan to fund their solar contract. Bear in mind that Hyflux went under when they try to get into the highly competitive and volatile " electricity" business.
I am vested in SMM, having subsribed to their rights and excess rights. Bought a bit more over the past week.
Petrobras is preparing to launch a tender to build Brazil' s largest-ever oil platform, according to two people with knowledge of the matter, as the state-controlled oil firm pushes ahead with ambitious plans to boost deepwater production.
Petroleo Brasileiro SA, as the Rio de Janeiro-based producer is formally known, plans to launch the leasing tender for the floating platform, known as an FPSO, by the end of August, the people said.
Equivalent vessels for deepwater production have cost between $2.5 billion and $3 billion to build. Winners build and own the platforms, and lease them to Petrobras in contracts with daily rates of up to $1 million that often last longer than 15 years.
An FPSO, or a floating production storage and offloading unit, is effectively a massive ship that is vital for deep water production in some offshore basins.
It will be the seventh FPSO in Buzios, Brazil' s second most productive field and one of the biggest deepwater discoveries this century, the people said.
IMHO, it is much an easier exercise to sell KC O& M business than the demerger of SCI/SM exercise....
Moreover, KC one shot write off...$900M of asset.,,,which is crazy...
SCI took a couple of quarters to clear instead.,..
So maybe the merger might happen...
Friday KC has a block deal of 2.2M shares at 4.28...
So we shall see....
Moreover, KC one shot write off...$900M of asset.,,,which is crazy...
SCI took a couple of quarters to clear instead.,..
So maybe the merger might happen...
Friday KC has a block deal of 2.2M shares at 4.28...
So we shall see....
i would agree friday is a significant day which start of new year (someone told me). sell short volume is not significant 14,277,900 with a value $2,303,420.60 as compared to the last minute volume 80,606,000 matched with a strong takeup volume. it is a good exchange. pretty awesome
waiting can be just as interesting as scm is taking shape. since the announcement of demerger has been all the noises. ultimately temasek is doing their best to unlock value in all the companies.
wait more news are in the pipeline. imho.
waiting can be just as interesting as scm is taking shape. since the announcement of demerger has been all the noises. ultimately temasek is doing their best to unlock value in all the companies.
wait more news are in the pipeline. imho.
simpleguy123 ( Date: 18-Sep-2020 17:57) Posted:
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