Tiger Airway: rights and preferential offering of perpetual convertible capital securities

Sinkie

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So the question
How much SIA going to offer to buy back?
Next I saw news SIA claim present tiger air share holder can also in return buy SIA in exchange so how much can more present tiger air stock holder going to top up ?

Sia offering $0.41 for all tiger shares and also rights to subscribe Sia shares at $11.1043 lahh

So u can either take the $0.41 cash per tiger share and put in bank or take the money to buy Sia shares at $11.1043 lahh

my interpretation is
1) every 1000 tiger shares will get $410 and option to buy 36 shares of SIA at $11.1043
2) every 10,000 tiger shares will get $4100 and option to buy 369 shares of SIA at $11.1043

effectively you will get SIA shares at $11.1043

currently SIA holds 55% of tiger, and will need 90% for the deal to go through by 28/12
 

Sinkie

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Assuming u holding 10,000 tigerair at ipo price $1.50 = $15,000

u will get back 0.41 per share =$4100 + option to 369 shares of sia at $11.1043


total loss if u accept the offer= ($1.50-$0.41) x 10,000 =-$10,902

if you decided to take this $4100 n subscribe SIA to breakeven your tigerair investment, in order for you to breakeven, sia must go $40.64 :s22:

($40.64-$11.104) x 369 = $10,900 profit

possible?? when historical high of sia was $20.80 nia
 

lzydata

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Hi, if I reject the PCCS offer, what happens? I can't find any literature on this and I do not think the original OIS contemplated this scenario, or did it?

The OIS had scenarios for redemption, but Tiger is not redeeming here. SIA is offering to buy over your PCCS, then they will convert them into Tiger shares. Same as if you sold to someone on SGX.
 

chopra

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Assuming u holding 10,000 tigerair at ipo price $1.50 = $15,000

u will get back 0.41 per share =$4100 + option to 369 shares of sia at $11.1043


total loss if u accept the offer= ($1.50-$0.41) x 10,000 =-$10,902

if you decided to take this $4100 n subscribe SIA to breakeven your tigerair investment, in order for you to breakeven, sia must go $40.64 :s22:

($40.64-$11.104) x 369 = $10,900 profit

possible?? when historical high of sia was $20.80 nia
U haven account for rights. Either subscribe or sell rights

Sent from ew line is so sloooow using GAGT
 
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Assuming u holding 10,000 tigerair at ipo price $1.50 = $15,000

u will get back 0.41 per share =$4100 + option to 369 shares of sia at $11.1043


total loss if u accept the offer= ($1.50-$0.41) x 10,000 =-$10,902

if you decided to take this $4100 n subscribe SIA to breakeven your tigerair investment, in order for you to breakeven, sia must go $40.64 :s22:

($40.64-$11.104) x 369 = $10,900 profit

possible?? when historical high of sia was $20.80 nia

:eek:

because SIA price is quite high original ....let see Monday how it go but " usually monday very quiet always low " Some more Tue holiday .
 

Sinkie

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:eek:

because SIA price is quite high original ....let see Monday how it go but " usually monday very quiet always low " Some more Tue holiday .

Eh tiger already started trading from 3.45pm le leh
 

chopra

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It's offerer shares, not rights lehh.. Don't think there's any rights to sell like the usual right issue

I mean those who held since I posted days would have gone thru several rights exercise
 

Viera90

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Anyone knows if i am holding tiger via custodian trading account (SCB) how will this works? Will SCB send us a letter regarding this? And if we do accept the offer to let it go to SIA, are we still required to pay the commission fees?
 

Asphodeli

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Anyone knows if i am holding tiger via custodian trading account (SCB) how will this works? Will SCB send us a letter regarding this? And if we do accept the offer to let it go to SIA, are we still required to pay the commission fees?

Yes will send letter. No corporate action fees, no cash/dividend handling fees.
 

Vincent_G

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Actually those long term investors who invested few years ago at 1 dollar plus, all suffer great loss at this price.

Only those who speculate this year earn money. The price difference is so big.
OKTJhIA.jpg
I look at this graph and can see what SIA tries to do. Buying it at historically low with bit of premium.. As investor, I am not that happy either, but it's a premium price after all at this price. I wish SIA can offer higher at .6 range though..
 

edwinttt1978

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Tigerair's bumpy flight from the start

When Tiger Airways launched its initial public offering (IPO) in January 2010, investors took to it enthusiastically. Priced at $1.50 a share, the public tranche of the IPO was oversubscribed by 21 times.
...

For the first day at least, things looked good. It started trading on Jan 22 and closed at a high of $1.58, eight cents above its listing price.

But after five years of sputtering, the reality is that Tigerair never really took off. What went wrong?

The signs of trouble were there from the very beginning, if investors had cared to look.

1) First was the company's weak financials.
Tigerair had racked up losses of more than $50 million in the 12 months to March 31, 2009, and reported a further net loss of $8.3 million in the six months to Sept 30, 2010. At the time of listing, Tigerair had accumulated losses of $127 million, holding just $13 million in cash while its net liabilities stood at more than $109.5 million.

It was unusual for a company looking for a listing to report such weak balance sheets. When asked about the worrying numbers back then, Tigerair chief executive Tony Davis brushed the concerns aside, saying it was the normal start-up costs associated with its Australian business that began in 2007.

2) Second, the company's backers could have lulled investors into a false sense of security...

...But less than a year after the listing, other key shareholders started to bail out and alarm bells should have started ringing.

3) The third alarm bell was the number of cash calls the company made over the years.
In its five years on the stock market, Tigerair rolled out three rights issues, raising more than $680 million from shareholders...

...investors who had bought during the IPO at $1.50 would be staring at a staggering loss of over 70 per cent. If they had subscribed to all the rights issues, excluding the convertible bonds that were also offered, the loss would be about 50 per cent.


Straits Times
For complete story, visit:
http://www.straitstimes.com/business/companies-markets/tigerairs-bumpy-flight-from-the-start
 

chopra

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on the letter offers.

shareholders are supposed to receive no earlier than 14days and no later than 21days. Correct?
 
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