Singapore Medical Group

Just sold @42. Hold for 2 years already.

(11-10-2016, 04:05 PM)shubin88 Wrote: Just sold @42. Hold for 2 years already.

Congrats!!

any thoughts after holding/making money? what made you invest it it? fundamentals or just plain guts?

Do share your thoughts?

(11-10-2016, 05:38 PM)brattzz Wrote:

(11-10-2016, 04:05 PM)shubin88 Wrote: Just sold @42. Hold for 2 years already.

Congrats!!

any thoughts after holding/making money? what made you invest it it? fundamentals or just plain guts?

Do share your thoughts?

It is a medical share, the other medical share I invested is HMI 2 years before. Do you remember Raffles Medical group?

I thought this is a good move. Take care of your clients, whom are coincidentally yhe regulator's bosses (ie. voters) and in turn, the regulator will take care of you.

No profit guarantee in deals but SMG chief exec unfazed

Clinic operator Singapore Medical Group (SMG) is on an acquisition spree, and compliance with fresh guidelines that frown upon profit guarantees will not dent the group's earnings growth, its chief executive, Dr Beng Teck Liang, said yesterday. Profit guarantees, in which the target of an acquisition guarantees the buyer a certain profit over a fixed period, are a common feature in corporate deals here, and have been popular among other acquisitive companies like Q&M Dental Group.

But guidelines on medical ethics updated by the Singapore Medical Council last September discourage the practice. The guidelines are not law, but Catalist-listed SMG has chosen to comply.

http://www.straitstimes.com/business/no-...ec-unfazed

Is mgmt taking the opportunity to cash out ?

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SINGAPORE MEDICAL GROUP: No.1 shareholder will soon be Korean medical group
Published: 23 February 2019

.... It was announced that CHS would increase its stake in SMG to 24.13% through a $50m purchase of partial stakes of 4 key SMG management staff and one substantial shareholder......

In addition, CHS will extend a $10 million convertible loan to SMG for M&A (80%) and working capital (20%).

If the loan is converted in full on maturity one year later, CHS's stake in SMG will rise to 27.69%.

That translates into an average price of 55 cents. (see table; CHS's initial stake was purchased two years ago at 50 cents apiece)

..........


More details at https://www.nextinsight.net/story-archiv...ical-group

SGX Announcement at https://links.sgx.com/FileOpen/SMG_Press...eID=544217

The case for owning some Sing Medical may be that the CHA, the recent major shareholder, bought 83 million shares from the original main shareholders for $50m, translating into about 60.24ct per share. However, they have a convertible loan which they can later change for 23.64m shares at 43.3ct. This means their average price for the enlarged figure of 106.64m shares in total would still be about 56.23ct. This is still 10ct higher than the current share price of about 46ct, meaning that we will be buying at a price lower than CHA’s average price.

The convertible loan gives CHA the right to convert shares at 42.3 ct, which is 6% discount to the last done price when the announcement was made. CHA has the option not to convert the loan into shares after one year if it's out of the money.
Besides, the convertible loan has a coupon rate of 3.5%.

Who stands to benefit is self-evident.

smg@32
1HFY2021 Result 
https://links.sgx.com/FileOpen/SMG_1H%20...eID=677081
Extract:

https://drive.google.com/open?id=1ADCn5l...g8R4jdR0fu

Stay home and stay safe, everyone.

Another privatisation ..... either all cash or all new share .... tough for shareholders who prefers a combination ....

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Press Release
Private consortium seeks to privatise SMG at S$0.37 per offer share in cash or one new share in the Offeror per offer share
https://links.sgx.com/FileOpen/Offeror%2...eID=731496

Offer Doc
https://links.sgx.com/FileOpen/Offer%20A...eID=731497
"...Each Shareholder of the Company have the right to elect to receive either the Cash Consideration or the Share Consideration, but not a combination of both..."

new unlisted share is not an option for me, difficult to exit. Cash offer seems too low. Probably just remain with SMG. To cross 90% is tough, Beng & Co only barely above 50%.