Olam Group - f.k.a. Olam International *Official* (SGX: VC2)

[Mecisteus]

I have 2000 OLam shares thru CPF and another 2000 Olam shares thru cash.

If I want to sell my rights, can I combine them as 4 lots of 313 rights? Or must I do them separately as 2 set of 2 lots?

And if I want to purchase the bonds, can I also combine them to purchase at the ATM too? Can I also purchase exceed at the ATM without having to purchase the rights from the stock market? From my understanding, Temasek will only purchase the excess that no one else want right? If so, will the ATM assign the excess to cash and only the CPF rights to CPF payment?

you cannot mix your cash and cpf holdings. they are held separately.

you can try to apply for excess under cash and cpf. and again the allocation will be treated separately.

lets see 2 scenarios:

if number of excess applied > rights abandoned by dumb people, then slim chance for your excess to be filled

if number of excess applied < rights abandoned by dumb people, then good chance for your excess to be filled

so pick which scenarios you will believe in.

 

[Mecisteus]

scenario 1 is most likely because the rights issue is an odd one in entirety. so it will be quite slim to get your excess filled. or if filled, it wont round up.

 

[Unique99]

i urge retail investors not to subscribe to the rights issue of Olam. go and sell away the R.

the rights issue is designed to benefit the BB only. small retailers will end up with odd number of shares. for the BB, they dont need to bother because the odd shares are just a tiny % of their rounded shares.

and there is a good chance that the next major market correction will happen in the next few years. the warrants will most likely expire worthless.

the deal too good to resist..where can you find 8% interest? dbs savings pay you 0.125% interest. it is 64 times more money than putting in savings acct!
and the warrants are free.
and olam could be $5 in 3 yrs time.
can really laff all the way to the bank!

 

[Mecisteus]

the deal too good to resist..where can you find 8% interest? dbs savings pay you 0.125% interest. it is 64 times more money than putting in savings acct!
and the warrants are free.
and olam could be $5 in 3 yrs time.
can really laff all the way to the bank!

you bookmark this page and laugh back at me in 3 years time. dont laugh now.

in the mean time, its anyone guess.

 

[bhwong]

the deal too good to resist..where can you find 8% interest? dbs savings pay you 0.125% interest. it is 64 times more money than putting in savings acct!
and the warrants are free.
and olam could be $5 in 3 yrs time.
can really laff all the way to the bank!

Agreed. Olam is unlikely to go bust with Temasek backing. Thus, the high "guarantee" interest rate is really attractive. The warrant is just an additional bonus if the share price goes up. Just hope that I don't end up with odd shares because of the warrant. But my broker told me that they will have a separate counter for odd shares if there are sufficient demand by then.

 

[Sinkie]

the deal too good to resist..where can you find 8% interest? dbs savings pay you 0.125% interest. it is 64 times more money than putting in savings acct!
and the warrants are free.
and olam could be $5 in 3 yrs time.
can really laff all the way to the bank!

well, the warrants is just the appetiser or like a door gift to thank you for getting the bonds. whether the door gift can make more money will depends on how olam will perform in 5 years time.

but the main dish is still the 5 years 6.75% bonds which is callable in 2 years time

so whether to exercise the rights to get the bonds, will depend on whether you believe olam will still be around in 5 years time or not.. even if olam crashed to become micropenny or non-bluechips, even though your warrant (free) will be as good as waste paper, your bonds will still be there.

just my opinion

 

[Sinkie]

Agreed. Olam is unlikely to go bust with Temasek backing. Thus, the high "guarantee" interest rate is really attractive. The warrant is just an additional bonus if the share price goes up. Just hope that I don't end up with odd shares because of the warrant. But my broker told me that they will have a separate counter for odd shares if there are sufficient demand by then.

well, when olam goes $2 or above, i dont think you will go exercise and turn it into shares but just sell the warrant for profit.

 

[lzydata]

the rights issue is designed to benefit the BB only. small retailers will end up with odd number of shares. for the BB, they dont need to bother because the odd shares are just a tiny % of their rounded shares.

Agreed. Semi-related: This reminds me of an interview with Michael Dee in the Edge Singapore a few issues back, where he elaborated on what he meant by his advice to retail investors to be careful and not assume Temasek's interests = their interests.

Temasek's entire stake in Olam - stock, bonds and warrants - will still be well under 1% of their portfolio (around S$200b) once this exercise is over. Even if Olam is a total loss it will be a bad day for Temasek, but not fatal. If you have more than 1% of your investment capital in Olam, you already have more riding on Olam than Temasek does.

 

[remy3413]

It's hard to go bust if you have temasek as a major shareholder which further gives Olam access to cheap credit in an low interest rate environment.

Olam can easily roll over their debt if people have confidence and willing to lend to Olam

Temasek will always act as anchor investor in any scenario unless temasek goes belly up

It's like no matter what credit agencies rank any credit rating, there are still people who will listen to them

 

[ah_mah]

well, the warrants is just the appetiser or like a door gift to thank you for getting the bonds. whether the door gift can make more money will depends on how olam will perform in 5 years time.

but the main dish is still the 5 years 6.75% bonds which is callable in 2 years time

so whether to exercise the rights to get the bonds, will depend on whether you believe olam will still be around in 5 years time or not.. even if olam crashed to become micropenny or non-bluechips, even though your warrant (free) will be as good as waste paper, your bonds will still be there.

just my opinion

Olam bonds are callable in 2 years time? Then may i know what will happen to the rest of my 6.75% coupons if it is indeed recalled in 2 years?

Thanks in advance.

 

[Smartsnake]

Olam is climbing 5 - 10 cents for the past few days, anybody know what is the reason? Is it due to the CD? Is it the good stocks to buy?

 

[Mecisteus]

sector rotation? even noble has climbed from the recent lows. i think wilmar too. and STI has been underperforming the US market partly due to the 3 big commodity stocks that are lagging.

 

[coldedplay]

Just need a little help for my father please.

1) If my dad have 1063 warrant shares, how do I convert them to mother share? What do I have to do?

2) Current warrant price is 0.280 and exercise price is USD1.291. So I pay the difference so as to get the mother share?

3) How do I know the exercise price in SGD? Issit fluctuated with the daily currency or issit fixed back at the day when the warrants are released?

Much appreciated and apologies for digging this tread.

 

[Milo-Dino]

Just need a little help for my father please.

1) If my dad have 1063 warrant shares, how do I convert them to mother share? What do I have to do?

2) Current warrant price is 0.280 and exercise price is USD1.291. So I pay the difference so as to get the mother share?

3) How do I know the exercise price in SGD? Issit fluctuated with the daily currency or issit fixed back at the day when the warrants are released?

Much appreciated and apologies for digging this tread.

1) I believe u can only convert the warrants 2 years later. If you so want to get rid of the warrants, just sell them in the market.

2) you pay the exercise price

3) based on your brokerage daily conversion rate

 

[skyskysky]

looks like up trend!
staying above 1.72 looks good. may get more share when pull back

 

[Sinkie]

i still hoding at 1.62 gg.

olam closed 1.995

gxgx brave heart

 

[OngHuatHuat]

olam closed 1.995

gxgx brave heart

any reason for the strong run? BBs are buying? What will happen to those short positions?

 

[SpeedingBullet]

any reason for the strong run? BBs are buying? What will happen to those short positions?

PO producers as a sector rose, simply cos CPO prices rose. No BB no nth. And long ago when Temasek stepped in, the mkt essentially screwed Carson Block.

 

[lee_tired_sheep]

any reason for the strong run? BBs are buying? What will happen to those short positions?

Short position kena squeeze lor. What is outstanding short interest in olam? We could find some juice on the squeeze soon.

 

[OngHuatHuat]

Short position kena squeeze lor. What is outstanding short interest in olam? We could find some juice on the squeeze soon.

I only know cdp lending pool = 0 currently. Many trading houses raise finance charge for short position on Olam