SembCorp Industries Ltd *Official* (SGX: U96)

[terence2112]

I have 2000 units of SCM that i bought a decade ago at $5.xx and $4.xx.
Now with the 5 rights for every 1 @$0.20, does it mean that I'm entitled to 10000 units for $2000?

I also have 1000 units of SCI, i will get another 4300units of SCM?

This means the total SCM shares after this exercise over is 16300 units?

Can somebody check if i got this right?

 

[arctician]

this is very good news for SCI investors, the new NAV will be reduced from $3.40 to $1.94 post demerger, so assuming a 1x book though global pure play utility peers trade at higher valuation, i think eventually it may coverge to $1.90+ after issuing SMM shares.

if you do some quick calculation the SMM shares is worth 80c-90c for every share of SCI based on a 20c post rights valuation, so i think it may converage to range of $2.50 to $3 soon

 

[xing-heng]

I have 2000 units of SCM that i bought a decade ago at $5.xx and $4.xx.
Now with the 5 rights for every 1 @$0.20, does it mean that I'm entitled to 10000 units for $2000?

I also have 1000 units of SCI, i will get another 4300units of SCM?

This means the total SCM shares after this exercise over is 16300 units?

Can somebody check if i got this right?

Yes, you can buy 10,000 units of SCM for $2000 + free 4300 unit . So total 14300 units for $2000 but their price will be on paper, based on present SCM price, reduced to around 30 cts per unit, when it goes ex-rights.

 

[Jedihan]

I have 2000 units of SCM that i bought a decade ago at $5.xx and $4.xx.
Now with the 5 rights for every 1 @$0.20, does it mean that I'm entitled to 10000 units for $2000?

I also have 1000 units of SCI, i will get another 4300units of SCM?

This means the total SCM shares after this exercise over is 16300 units?

Can somebody check if i got this right?

Wah I hope you have collected enough dividend for SCM. This deal is terrible for SCM shareholders.

For SCM holders, you have to pay for the rights while SCI holders get it free.

 

[terence2112]

Yes, you can buy 10,000 units of SCM for $2000 + free 4300 unit . So total 14300 units for $2000 but their price will be on paper, based on present SCM price, reduced to around 30 cts per unit, when it goes ex-rights.

Ok, thanks.

Im undecided on what to do. Should i just load off the 2000 units of SCM?
Any advice would be greatly appreciated though.

 

[terence2112]

Wah I hope you have collected enough dividend for SCM. This deal is terrible for SCM shareholders.

For SCM holders, you have to pay for the rights while SCI holders get it free.

Actually nope, the dividends from SCM doesn't cover. Bought it a decade ago as my 1st foray into investment. Left it in cold storage.

Got badly affected when oil prices crashed.

Not sure if should just dump SCM and don't participate in the rights. Or can just pay $2000 and get 14300 units (Rights + I'm a SCI holder as well).

Haiz…

 

[bakuten]

Wah I hope you have collected enough dividend for SCM. This deal is terrible for SCM shareholders.

For SCM holders, you have to pay for the rights while SCI holders get it free.

bobian. SCM had been bleeding badly and kept alive by SCI....screwing SCI investors and subsidizing SCM investors.

think of this deal as to make it back up to SCI investors ba.

 

[_death_god]

i got some similar experience with you too bro.

was holding 4000 units of SMM @ $3.1.

unsure whether to get the rights of 1 unit @ $0.2, or just dump this and dont look back.

Really any advice would be much appreciated!!

 

[terence2112]

i got some similar experience with you too bro.

was holding 4000 units of SMM @ $3.1.

unsure whether to get the rights of 1 unit @ $0.2, or just dump this and dont look back.

Really any advice would be much appreciated!!

High 5! brother in arms!
I thought i was the only sucker who held SMM at such ridiculous high price.

 

[terence2112]

i got some similar experience with you too bro.

was holding 4000 units of SMM @ $3.1.

unsure whether to get the rights of 1 unit @ $0.2, or just dump this and dont look back.

Really any advice would be much appreciated!!

Sorry, i don't mean to say you were a sucker as me. Pardon my language. sorry!

 

[_death_god]

Sorry, i don't mean to say you were a sucker as me. Pardon my language. sorry!

no worries bro!

hope the current news will allow us to finally see light after being trap in the dark for so long!

 

[terence2112]

no worries bro!

hope the current news will allow us to finally see light after being trap in the dark for so long!

The TERP for SMM is more then 1/2 of its current price.
If don't subscribe to the rights, your holdings will be massively diluted. Likely, i will just participate in the rights and do National Service, since the company starts with "S" and pray 1 day there's a merger between Kep Corp and SMM.

I calculated and if everything pan through, my avg price of SMM will be $0.71 with 16300 units.

 

[Squaredot]

this is very good news for SCI investors, the new NAV will be reduced from $3.40 to $1.94 post demerger, so assuming a 1x book though global pure play utility peers trade at higher valuation, i think eventually it may coverge to $1.90+ after issuing SMM shares.

if you do some quick calculation the SMM shares is worth 80c-90c for every share of SCI based on a 20c post rights valuation, so i think it may converage to range of $2.50 to $3 soon

bro ask u, 5000 SCI shares will rec 5*4xx SMM shares free? Will SCI share price go up after this?
And SMM merging with Keppel after rights?
Confused.

 

[terence2112]

bro ask u, 5000 SCI shares will rec 5*4xx SMM shares free? Will SCI share price go up after this?

Yes... roughly will get 20000+ units of SMM.
SCI sure go up once trading halted is lifted. It’s free money.

 

[Squaredot]

Yes... roughly will get 20000+ units of SMM.
SCI sure go up once trading halted is lifted. It’s free money.

happy man

 

[arctician]

bro ask u, 5000 SCI shares will rec 5*4xx SMM shares free? Will SCI share price go up after this?
And SMM merging with Keppel after rights?
Confused.

you can read the announcement its 400+ share for every 100, so its 50 x 400+ which is around 20k SMM shares at 20c (conservation XR price)

I am quite sure SCI will go up tom, in fact premarket already trading around $1.77 an hour ago

it depends on how u want to trade both, i think long term SCI have more catalysts eg SCI can trade at higher valuation as pure play utility, potential india IPO, windfall from privatization of SMM if keppel and SMM merge

For SMM i think fundamentals are very bad, only have merger to look forward to but at 20c, OK lah

dont forget both SCI and SMM will be temasek owned after this, so SMM at 20c probably not too bad

 

[Squaredot]

you can read the announcement its 400+ share for every 100, so its 50 x 400+ which is around 20k SMM shares at 20c (conservation XR price)

I am quite sure SCI will go up tom, in fact premarket already trading around $1.77 an hour ago

it depends on how u want to trade both, i think long term SCI have more catalysts eg SCI can trade at higher valuation as pure play utility, potential india IPO, windfall from privatization of SMM if keppel and SMM merge

For SMM i think fundamentals are very bad, only have merger to look forward to but at 20c, OK lah

dont forget both SCI and SMM will be temasek owned after this, so SMM at 20c probably not too bad

Good deal for SCI shareholders!
Was it 1.53 before halt?
Think SCI will take centre stage tmr!

 

[arctician]

Good deal for SCI shareholders!
Was it 1.53 before halt?
Think SCI will take centre stage tmr!

yea it was bad since the halt last thu, at least no need to follow on into suspension. I think SCI shareholders gg to unlock alot value but SMM shareholders need to come up with alot funds, every 1lot is extra $1K of funds for SMM rights

 

[siloti]

news out ..read first line heart drop, but read 2nd line think everyone happy

Right issue
SEMBCORP INDUSTRIES AND SEMBCORP MARINE PROPOSE S$2.1 BILLION RECAPITALISATION OF SEMBCORP MARINE, AND DEMERGER TO FOCUS COMPANIES ON THEIR GROWTH SEGMENTS
-
S$2.1 billion renounceable Rights Issue by Sembcorp Marine will strengthen its cash position and balance sheet
o Sembcorp Marine will undertake a 5-for-1 Rights Issue (5 Rights Shares
for every 1 Sembcorp Marine share held) at a Rights Issue Price of
S$0.20 per share
o Rights Price represents a 31.0% discount to the TERP1 based on 5-day2
VWAP3 of S$0.74
o Sembcorp Industries has undertaken to subscribe for up to S$1.5 billion
of Rights Shares by setting off the S$1.5 billion outstanding under its Subordinated Loan extended to Sembcorp Marine. Temasek has agreed to sub-underwrite the remaining S$0.6 billion
Proposed demerger of Sembcorp Industries and Sembcorp Marine via a distribution in specie of Sembcorp Industries&rsquo stake in the recapitalised Sembcorp Marine to Sembcorp Industries shareholders as dividends
o Sembcorp Industries shareholders to receive between 427 and 491 Sembcorp Marine shares for every 100 Sembcorp Industries shares owned, with no cash outlay required
-
Singapore, 8 June, 2020 &ndash Sembcorp Industries and Sembcorp Marine are today proposing the recapitalisation of Sembcorp Marine through a S$2.1 billion renounceable rights issue (the &ldquo Rights Issue&rdquo ), followed by a proposed demerger of the two companies via a distribution in specie (the &ldquo Proposed Distribution&rdquo ) of Sembcorp Industries&rsquo stake in the recapitalised Sembcorp Marine to Sembcorp Industries shareholders.

https://links.sgx.com/FileOpen/SCI%20AND%20SCM%20PROPOSE%20SGD2.1BN%20SCM%20RECAPITALISATION%20AND%20DEMERGER%20TO%20FOCUS%20COMPANIES%20ON%20GROWTH%20SEGMENTS.ashx?App=Announcement&FileID=616790

Good news for SembCorp Industry shareholders, but what about SembCorp Marines share-holders? They will be forced to fork out money???

 

[siloti]

That's why last week SCM shoot up

Sent from Xiaomi MI 9 using GAGT

Shoot up to trap SCM investors....

How much would SCM price fall???