Religare Health Trust *Official* (SGX: RF1U)

BlackIcE84

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Hmm does this mean the acquisition of RHT is on track by End Sep?

hard to say.

1) IHH expects their purchase of up to 57% of Fortis to complete by end-2018. If this is so, then im not sure if the funds can come in by then to buy out RHT

2) Even if funds come in, will shareholders like you and I vote "yes" for the sale? think about it: IHH is a strong parent, and there is little risk of delayed payments henceforth. India's medical needs are still growing, and the future ahead is bright for medical related services.

3) Additionally, is the buy out price of SGD0.82 at current INR exchange rates good enough?

personally, im leaning towards voting "no"
 

ceciltan

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Vote no. This one good cash cow for a good many years more. Take out money thenneed to trouble which other stock to throw the proceed into.
 

havetheveryfun

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Vote no. This one good cash cow for a good many years more. Take out money thenneed to trouble which other stock to throw the proceed into.

retailers vote no also no use. cant even make up 50% of the votes.

but 0.82 is definitely a shitty price
 

BlackIcE84

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retailers vote no also no use. cant even make up 50% of the votes.

but 0.82 is definitely a shitty price


But I'm wondering why institutional investors would vote yes. What's in it for them to exit an investment with the backing of a very strong New parent?
 

BlackIcE84

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hi guys

i did some calculation on whether it is worth it to buy more at current price of 0.77-0.78~ as of 18 July 2018.

my conclusion: at current exchg rate of SGD/INR 1=50.7, it is NOT worth it to buy more. Current unitholders should just sit tight.

Basic calculation below.

Assuming Exchange Rate of 48.5 (original assumption as per term sheet)

Total sum: $948,453,608

Minus repayment of borrowings = -$237,900,000

Minus transaction costs = -$15,800,000

Sum due to unitholders = $694,753,608.00

Sum due to unitholders after retention of 5% net proceeds = $659,825,927.60

Total outstanding units = 807,574,000

Final sum due to unitholders per unit = $659,825,927.60 / 807,574,000 = $0.817047



Assuming Exchange Rate of 50.7 (rate on 18 July 2018)

Total sum: $918,713,800

Minus repayment of borrowings = -$237,900,000

Minus transaction costs = -$15,800,000

Sum due to unitholders = $665,013,000

Sum due to unitholders after retention of 5% net proceeds = $631,762,350

Total outstanding units = 807,574,000

Final sum due to unitholders per unit = $631,762,350 / 807,574,000 = $0.782296
 

OngHuatHuat

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hi guys

i did some calculation on whether it is worth it to buy more at current price of 0.77-0.78~ as of 18 July 2018.

my conclusion: at current exchg rate of SGD/INR 1=50.7, it is NOT worth it to buy more. Current unitholders should just sit tight.

Basic calculation below.

Assuming Exchange Rate of 48.5 (original assumption as per term sheet)

Total sum: $948,453,608

Minus repayment of borrowings = -$237,900,000

Minus transaction costs = -$15,800,000

Sum due to unitholders = $694,753,608.00

Sum due to unitholders after retention of 5% net proceeds = $659,825,927.60

Total outstanding units = 807,574,000

Final sum due to unitholders per unit = $659,825,927.60 / 807,574,000 = $0.817047



Assuming Exchange Rate of 50.7 (rate on 18 July 2018)

Total sum: $918,713,800

Minus repayment of borrowings = -$237,900,000

Minus transaction costs = -$15,800,000

Sum due to unitholders = $665,013,000

Sum due to unitholders after retention of 5% net proceeds = $631,762,350

Total outstanding units = 807,574,000

Final sum due to unitholders per unit = $631,762,350 / 807,574,000 = $0.782296


Just hold tight, dividends still accruing. :D
 

Tooi Kono Machi De

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hi guys

i did some calculation on whether it is worth it to buy more at current price of 0.77-0.78~ as of 18 July 2018.

my conclusion: at current exchg rate of SGD/INR 1=50.7, it is NOT worth it to buy more. Current unitholders should just sit tight.

Basic calculation below.

Assuming Exchange Rate of 48.5 (original assumption as per term sheet)

Total sum: $948,453,608

Minus repayment of borrowings = -$237,900,000

Minus transaction costs = -$15,800,000

Sum due to unitholders = $694,753,608.00

Sum due to unitholders after retention of 5% net proceeds = $659,825,927.60

Total outstanding units = 807,574,000

Final sum due to unitholders per unit = $659,825,927.60 / 807,574,000 = $0.817047



Assuming Exchange Rate of 50.7 (rate on 18 July 2018)

Total sum: $918,713,800

Minus repayment of borrowings = -$237,900,000

Minus transaction costs = -$15,800,000

Sum due to unitholders = $665,013,000

Sum due to unitholders after retention of 5% net proceeds = $631,762,350

Total outstanding units = 807,574,000

Final sum due to unitholders per unit = $631,762,350 / 807,574,000 = $0.782296

Based on your calculations, those who got in above 78 cents gg lor...Assuming interest rates remain.
 

OngHuatHuat

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Based on your calculations, those who got in above 78 cents gg lor...Assuming interest rates remain.




Dividend rate at current price is around 5.3%, not say GG totally also.



Furthermore, they are buying out the assets, not the whole trust, so there will still be some cash left over, don't forget we shareholders have been setting aside some dividend every Q as cash holdings for the company to acquire new asset.


Think you can get fairer picture if you consider cash holdings too.
 

BlackIcE84

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Daiichi Sankyo is behaving like a petulant and vindictive child with what appears to be a frivolous application: see here

One wonders how they expect to succeed? THe Singh brothers have like 0.xx% shareholding in Fortis now, and have resigned their positions.

Am i missing something?
 

OngHuatHuat

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Fortis needs the cash though, perhaps they want Fortis to pay them back? :)

Daiichi Sankyo is behaving like a petulant and vindictive child with what appears to be a frivolous application: see here

One wonders how they expect to succeed? THe Singh brothers have like 0.xx% shareholding in Fortis now, and have resigned their positions.

Am i missing something?
 

Route2Retire

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Hey all, this is my first post after more than 20 years. Last account was set up when HWZ first launched.

Anyway great comprehensive analysis. I used a more simplified ratio to calculate a conservation payout too.

Nice to know that there are others following this stock closely.

I am in this stock for am arbitrage trade. Accumulated a substantial stake so far. What was suppose to be a quick trade, dragged so long.
 

Route2Retire

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In addition, waiting for their Quarter report, I have a conservative expectation of 1 cent for the quarter and 0.3 cents each month Jul, Aug. etc.

I will be attending the AGM as well on the 30th Jul. Whack the board on why the EGM has not been held yet.
 

Route2Retire

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FYI Fortis reply. Pardon the wall of text as I cant post the link yet.

Sub: Update on clarification on news item appearing in “Media/Publication”
Dear Sirs,

This is with reference to your mail dated today and the recent news item which appeared in The Economic Times on July 18, 2018, captioned " Daiichi Sankyo moves Delhi HC to block Fortis IHH deal.”

In this regard, we would like to inform that Daiichi Sankyo (“Daiichi”) had earlier filed an application before Delhi High Court in April, 2018, wherein it had inter-alia prayed for ‘maintaining status quo of the assets of the Company and such other related matters’, thereby seeking injunction on the proposed fund-raising transactions of the Company.

The Company had through its letter Ref. No. FHL/SEC/STEX/RR/2018-19 dated April 5, 2018 and in compliance to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, updated the stock exchanges and the stakeholders about the said matter. Hon’ble High Court of Delhi upon hearing the matter did not pass any interim or any adverse order and further considering the reliefs prayed for in the said application, impleaded the Company as a party therein. Company filed its reply to the said application. The said application has been disposed of by the Hon’ble Court being infructuous vide its order dated 18.7.2018.

Further to the above application, Daiichi has filed another application on July 17, 2018, before Hon’ble High Court of Delhi for seeking directions inter alia that the Company should not proceed with the proposed transaction for fund raising with IHH Healthcare Berhad as approved by the Board of the Company on July 13, 2018, without further approval of Hon'ble High Court of Delhi. The matter was listed for hearing on July 18, 2018. The Hon’ble High
Court, upon hearing, has impleaded the Company as one of the parties to the said application and has asked the Company to submit its reply. Case is now listed for hearing on August 1, 2018.

The copy of the said order has been received today. The detailed disclosure as required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is attached herewith as Annexure A.
 
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