China Merchants Holdings Pacific

Toll road operator is more or less a monopoly business, until somebody build another highway running next to it and in parallel... this is probably single most important risk of a toll road biz. In most of the other world the chance of this happening is quite slim as majority of the government will have great difficulties relocation the locals. But in china...this is a little bit different..they could build anything virtually anywhere.

U are quite right... historically though.

If we are betting on Hopewell or Mac Bankers in China, the risks is real... However, if we are riding with our Communist Comrades, then the experience will be quite different.

If you bother to look back on CMP's track record, they have constantly restructured their portfolio of roads or received compensation as a result of relocation of booths or detolling...

This is not the experience of MIIF though...

Hence the choice of investee for exposure to Centrally planned type of capitalism is very important.

GG

(20-04-2015, 11:02 PM)boochap Wrote: Toll road operator is more or less a monopoly business, until somebody build another highway running next to it and in parallel... this is probably single most important risk of a toll road biz. In most of the other world the chance of this happening is quite slim as majority of the government will have great difficulties relocation the locals. But in china...this is a little bit different..they could build anything virtually anywhere.

I concur. The experience is totally different from CMHP shareholders, than shareholder of newly acquired Honest Queen. The quality of the asset, and accessible to cheap funding count...

(vested)

(20-04-2015, 11:20 PM)greengiraffe Wrote: U are quite right... historically though.

If we are betting on Hopewell or Mac Bankers in China, the risks is real... However, if we are riding with our Communist Comrades, then the experience will be quite different.

If you bother to look back on CMP's track record, they have constantly restructured their portfolio of roads or received compensation as a result of relocation of booths or detolling...

This is not the experience of MIIF though...

Hence the choice of investee for exposure to Centrally planned type of capitalism is very important.

GG

(20-04-2015, 11:02 PM)boochap Wrote: Toll road operator is more or less a monopoly business, until somebody build another highway running next to it and in parallel... this is probably single most important risk of a toll road biz. In most of the other world the chance of this happening is quite slim as majority of the government will have great difficulties relocation the locals. But in china...this is a little bit different..they could build anything virtually anywhere.

http://infopub.sgx.com/Apps?A=COW_CorpAn...AR2014.pdf

A review of CMP annual report 2014 revealed for the first time that there are more details on the contributions of YTW and JV roads as noted in notes 17 and 18.

Could be indicative that company value transparency.

On the CB conversions, so far HK$490m out of total HK$1163m (42%) has already been converted into shares in 45 conversions, averaging HK$11.888m per conversion. Assuming HK$15m are being converted per conversion, the outstanding CBs will be fully converted into equity shares in less than 45 conversions.

Vested
GG

http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

CHINA MERCHANTS HOLDINGS (PACIFIC) LIMITED
(Incorporated in the Republic of Singapore)
Company Registration No. 198101278D
ANNOUNCEMENT
CONVERTIBLE BONDS DUE 2017 -
CANCELLATION OF BONDS DUE TO CONVERSION
The board of directors (the “Board”) of China Merchants Holdings (Pacific) Limited (the “Company”) wishes to announce that HK$4,000,000 in aggregate principal amount of HK$1,163,000,000 1.25 per cent. convertible bonds due 2017 (credit enhanced until 2015) (the “Convertible Bonds”) have been converted and cancelled pursuant to the exercise of conversion rights by the holder thereof (the “Conversion”). Accordingly, following such conversion and cancellation, the aggregate principal amount of the Convertible Bonds remaining outstanding as of 23 April 2015 is HK$669,000,000.
Arising from such conversion, 764,410 new ordinary shares in the capital of the Company (“Shares”) have been issued at the conversion price of S$0.826 and the total number of issued and paid-up Shares of the Company has increased to 1,074,362,529.
BY ORDER OF THE BOARD
Lim Lay Hoon
Company Secretary
Singapore, 23 April 2015

Based on outstanding HK$669m worth of CBs, the potential shares to be converted at $0.826 is 127.848m.

http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

This is the 47th conversion of CBs and is the largest single conversion on record - HK$52m. Month-to-date conversion total HK$102m.

Will be interesting to see if there is going to be overhang in the immediate term resulting from this latest conversion and conversion ahead of XB XD on 12 May 15.

CHINA MERCHANTS HOLDINGS (PACIFIC) LIMITED
(Incorporated in the Republic of Singapore)
Company Registration No. 198101278D
ANNOUNCEMENT
CONVERTIBLE BONDS DUE 2017 -
CANCELLATION OF BONDS DUE TO CONVERSION
The board of directors (the “Board”) of China Merchants Holdings (Pacific) Limited (the “Company”) wishes to announce that HK$52,000,000 in aggregate principal amount of HK$1,163,000,000 1.25 per cent. convertible bonds due 2017 (credit enhanced until 2015) (the “Convertible Bonds”) have been converted and cancelled pursuant to the exercise of conversion rights by the holder thereof (the “Conversion”). Accordingly, following such conversion and cancellation, the aggregate principal amount of the Convertible Bonds remaining outstanding as of 24 April 2015 is HK$617,000,000.
Arising from such conversion, 9,937,331 new ordinary shares in the capital of the Company (“Shares”) have been issued at the conversion price of S$0.826 and the total number of issued and paid-up Shares of the Company has increased to 1,084,299,860.
BY ORDER OF THE BOARD
Lim Lay Hoon
Company Secretary
Singapore, 24 April 2015

Based on outstanding HK$617m worth of CBs, the potential shares to be converted at $0.826 is 117.91m.

Has there been any S Chip which had their convertible bonds being successfully converted to common stock so far in SGX history ? Just curious.

(24-04-2015, 10:14 PM)Nick Wrote: Has there been any S Chip which had their convertible bonds being successfully converted to common stock so far in SGX history ? Just curious.

How about Sound Global, before it shifted to HKSE

http://infopub.sgx.com/FileOpen/SGL-Ann_...eID=291829

(24-04-2015, 10:14 PM)Nick Wrote: Has there been any S Chip which had their convertible bonds being successfully converted to common stock so far in SGX history ? Just curious.

lol, nice question. I'm surprise I can't think of 1. Main reason I think we can't find any is because most of them do not care about share price. Who would want to convert if share price keep going down? And most of the s-chip's cb have high yield (no takers maybe?) mostly ranging from 4-7%. If I was the bond holder, I would just sit to collect the yield, instead of converting them to share and earn less dividend (most of them don't pay high dividend as well) and see your share price go down. im pretty sure you won't find another convertible bond yielding just 1.5% for s-chip. Even s-chip big boys like yanlord if iirc last issue cb yield was around 5% or so.

I see that CMHP is currently trading above book value

if i were to make a purchase, does it mean I would have little margin of safety?