09-01-2013, 12:16 AM (This post was last modified: 09-01-2013, 12:35 AM by Louhan.)
These people who bought at these high prices have forgotten the days of the property market crash and the high interest rates! They thought they can just borrow to pay for the properties, forgetting that the loans will take 25 to 30 years to repay. When they reach 55, they have no CPF monies to withdraw.
(09-01-2013, 12:09 AM)safetyfirst Wrote:
(08-01-2013, 10:06 PM)ngcheeki Wrote: Wheelock is top bidder for Ang Mo Kio Avenue 2 site, at S$550 million or S$789.89 psf and the breakeven price estimated by Square Foot Research is ($PSF)1,243.4. Hence, the selling price will be around S$1,500 psf.
I am really starting to wonder if prices of $1200-1500psf at sub-urban areas is the new norm for condo prices, are there really so many rich people in singapore to soak up all these supply?
With Wheelock so interested to buy SC Global in the market, is there a likelihood that Wheelock will make a general offer for SC Global to take it private too?
(09-01-2013, 12:16 AM)Louhan Wrote: These people who bought at these high prices have forgotten the days of the property market crash and the high interest rates! They thought they can just borrow to pay for the properties, forgetting that the loans will take 25 to 30 years to repay. When they reach 55, they have no CPF monies to withdraw.
(09-01-2013, 12:09 AM)safetyfirst Wrote:
(08-01-2013, 10:06 PM)ngcheeki Wrote: Wheelock is top bidder for Ang Mo Kio Avenue 2 site, at S$550 million or S$789.89 psf and the breakeven price estimated by Square Foot Research is ($PSF)1,243.4. Hence, the selling price will be around S$1,500 psf.
I am really starting to wonder if prices of $1200-1500psf at sub-urban areas is the new norm for condo prices, are there really so many rich people in singapore to soak up all these supply?
Will be an interesting competition from here between Wheelock and Simon.
Seems like Wheelock is sitting back to buy at 1.805 while Simon is constrain by his offer at 1.80.
However, the outcome will remain the same - Wheelock's open market accumulation and a likely extension of offer period by Simon will eventually reduce the free float in SC Global below 10% leading to a delisting and paving way of the negotiation between Simon and Wheelock.
The main selling points of latest bid of AMK Avenue 2 according to UOB Kay Hian report is
1. "a short three-minute walking distance to the upcoming Mayflower MRT station on the Thomson line"
2. "located opposite to St Nicholas Girls’ School"
Seems like Wheelock is only interested to buy SC Global on the market at about $1.82, and not higher. In the meantime Simon Cheong's offer is $1.80. If more than 10% of SC Global shareholders are not willing to sell between $1.80 to $1.82, it's likely that the privatization may fail.
(09-01-2013, 09:09 PM)greengiraffe Wrote:
(09-01-2013, 08:21 PM)ngcheeki Wrote: Wheelock properties has made another 1,324 lots of SC Global shares between $1.805 to $1.815.
Will be an interesting competition from here between Wheelock and Simon.
Seems like Wheelock is sitting back to buy at 1.805 while Simon is constrain by his offer at 1.80.
However, the outcome will remain the same - Wheelock's open market accumulation and a likely extension of offer period by Simon will eventually reduce the free float in SC Global below 10% leading to a delisting and paving way of the negotiation between Simon and Wheelock.
On a wider note, a plus point for Wheelock (which I think no longer applies now) is that it was a potential privatisation candidate given the wide discount to book value, which is in a substantial net cash position.
With a clear change in strategy, management now thinks that the property cycle is unlikely to turn soon and has returned to market in a big way via the AMK land bid and "disturbing" Simon Cheong's bid for SC Global, presumably to win some concessions either through assets split or better price (my guess is they want the assets since they got cash coming out of their ears).
Still, financial strength continue to differentiate Wheelock vs many other SGX developers.
An issuer must ensure that at least 10% of the total number of issued shares excluding treasury shares (excluding preference shares and convertible equity securities) in a class that is listed is at all times held by the public.
724
(1) If the percentage of securities held in public hands falls below 10%: —
(a) The issuer must, as soon as practicable, announce that fact; and
(b) The Exchange may suspend trading of the class, or all the securities of the issuer.
(2) The Exchange may allow the issuer a period of 3 months, or such longer period as the Exchange may agree, to raise the percentage of securities in public hands to at least 10%. The issuer may be delisted if it fails to restore the percentage of securities in public hands to at least 10% after the period.
What will happen if and when SC gets delisted? Especially minorities, can any deal be struck between Wheelock and Simon Cheong that excludes the minorities?
An old 2009 article that may answer my own question. Basically, it'd appear that the only 'teeth' SGX has in this case, would be to reject a delisting application if the exit offer is not reasonable enough (based on IFA report).
My next Q is if a delisting offer were to be made at a higher price, will those who'd accepted Simon Cheong's current offer of $1.80 get to enjoy the same? I think possibly not. Hmm...
10-01-2013, 09:50 AM (This post was last modified: 10-01-2013, 09:54 AM by freedom.)
even if SC Global is delisted, within a year, SC can't make another offer to the rest of minority shareholders if the current offer closes.
IMO, monitory shareholders who are expecting a higher offer is dreaming. It is unlikely to happen. Simon Cheong offered a reasonable price to the rest of minority shareholders. Of course, if you are wheelock properties, it does not matter whether SC Global is listed or not. It matters great to minority shareholders as there is no way out. It is a totally different picture for the minority shareholders. SC Global can eventually split the assets between all shareholders, what will minority shareholders get?
(10-01-2013, 09:50 AM)freedom Wrote: even if SC Global is delisted, within a year, SC can't make another offer to the rest of minority shareholders if the current offer closes.
Given the stated risks, it's safer to invest in Wheelock than SC Global at this time, as Wheelock has the power to negotiate with Simon Cheong for a better deal than the minority shareholders of SC Global. Am I right?
An issuer must ensure that at least 10% of the total number of issued shares excluding treasury shares (excluding preference shares and convertible equity securities) in a class that is listed is at all times held by the public.
724
(1) If the percentage of securities held in public hands falls below 10%: —
(a) The issuer must, as soon as practicable, announce that fact; and
(b) The Exchange may suspend trading of the class, or all the securities of the issuer.
(2) The Exchange may allow the issuer a period of 3 months, or such longer period as the Exchange may agree, to raise the percentage of securities in public hands to at least 10%. The issuer may be delisted if it fails to restore the percentage of securities in public hands to at least 10% after the period.
What will happen if and when SC gets delisted? Especially minorities, can any deal be struck between Wheelock and Simon Cheong that excludes the minorities?
An old 2009 article that may answer my own question. Basically, it'd appear that the only 'teeth' SGX has in this case, would be to reject a delisting application if the exit offer is not reasonable enough (based on IFA report).
My next Q is if a delisting offer were to be made at a higher price, will those who'd accepted Simon Cheong's current offer of $1.80 get to enjoy the same? I think possibly not. Hmm...
The delisting due to free float needs a exit offer. The exit offer applies to all including minority shareholders.
If exit offer is not accepted, the suspension continue...
Once the previous GO is closed, it is closed and exit offer is another offer. In short, the answer is no.
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