Morning trade was to purchase Semb Corp industry.. why demerger cause rise
#1
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Investment thesis is this
1. Each sembcorp shares is entitled to 4.90 sembmarine shares. For every lot of sembcorp you get 4.9 lots of sembmarine.

2. After demerger Temasek will be biggest shareholder of sembmarine with a 30% holding.

3. By sheding Sembmarine., the NTA of sembcorp falls from $4 to $3. About $1 is given out to shareholders as Sembmarine stock. Subtracting this from the current stock price of $2..we are paying $1 for remaining assets worth $3.

4. This pushes up discount to NTA from 50% to 66%.

5. For each share of Senbcorp you get 4.9 shares of sembmarine. ...based on current trading price of 55cts...the post rights price. Is 25cts each ...min is 20 cts implicit on Temasek guarantee to buy all excess rights. That is 94cts to $1.25 worth of sembmarine you get for each share of sembcorp
I, being poor, have only my dreams;
I will do my utmost to keep them alive.
Against tyrants and adversity, I will strive.
Together, a better future, we will realise......
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#2
Laughing
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#3
very chim

so can buy
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#4
9-6-2020 9:58 AM
sgbuffett said:
[Image: Lx9o8Rj.png]

Investment thesis is this
1. Each sembcorp shares is entitled to 4.90 sembmarine shares. For every lot of sembcorp you get 4.9 lots of sembmarine.

2. After demerger Temasek will be biggest shareholder of sembmarine with a 30% holding.

3. By sheding Sembmarine., the NTA of sembcorp falls from $4 to $3. About $1 is given out to shareholders as Sembmarine stock. Subtracting this from the current stock price of $2..we are paying $1 for remaining assets worth $3.

4. This pushes up discount to NTA from 50% to 66%.

Then do wat 127fs4573872
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#5
9-6-2020 10:06 AM
talents said:
very chim

so can buy

Aiyah just remenber if you buy sembcorp now you get back later $1 for each share in the form of sembmarine.

Very simple.
I, being poor, have only my dreams;
I will do my utmost to keep them alive.
Against tyrants and adversity, I will strive.
Together, a better future, we will realise......
Quote
#6
Not very correct. After giving the shares, it will be adjusted.
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#7
9-6-2020 10:16 AM
PekChek said:
Not very correct. After giving the shares, it will be adjusted.
That is where the 2nd part comes in...by right it should be adjusted down to $1..but you are getting better quality assets worth $3.

You also have 4.9 shares of sembmarine whose balance sheet has been scrubbed cleaner after rights issue not to mention a resurgentce in oil rig business. Third factor is Temasek is now direct major shareholder....

Anyway i am just saying i bought based on my analysis.

Everyone should do their own due diligence..

By buying sembcorp marine you are letting Temasek and other shareholders do the balance sheet cleaning while you get Sembmarine for free.
I, being poor, have only my dreams;
I will do my utmost to keep them alive.
Against tyrants and adversity, I will strive.
Together, a better future, we will realise......
Quote
#8
Ah butt is very impressive, everyday can buy so many stocks, some more buy in large quantity and buy for long term holding.

Is he printing money or what? Thinking
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#9
9-6-2020 10:25 AM
AhMoan said:
Ah butt is very impressive, everyday can buy so many stocks, some more buy in large quantity and buy for long term holding.

Is he printing money or what? Thinking

I didnt show the quantity...how you know i bought alot?
I, being poor, have only my dreams;
I will do my utmost to keep them alive.
Against tyrants and adversity, I will strive.
Together, a better future, we will realise......
Quote
#10
Those who bot Sembcorp before the stock trading halt,Big Huat ahhh?
“Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma – which is living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your own inner voice."
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