Tiger Airways

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#21
PCCS, to buy or not to buy.

Suppose the VWAP is 70 cents, so the conversion price is set at 80.5 cents. If you have 4000 Tiger shares, you can buy 1000 Tiger PCCS at $1070. After you do that, for 5 years you get 2% x 1070 = $21.40 distributions per year, plus the equivalent of any dividends that are paid to ordinary shares, as if you were holding ordinary shares. (Note that Tiger has yet to pay any dividend.) After the 5 years are up, Tiger does not give you any more distributions. Tiger can choose to redeem the PCCS earliest at 7 years after the issue date.

The following assumes conversion price 80.5c and no future changes to it:

Scenario 1: Tiger shares are at $1 after 5 years and you convert. You will get 1070/0.805 = 1329 ordinary shares, for which you can sell at $1 each to get $1329. Your return is $1329 + $21.40x5 - $1070 = $366 over 5 years; annualized it is about 6%.

Scenario 2: Tiger shares are at 90 cents after 7 years and you convert. Your return is $(0.90x1329) + $21.40x5 - $1070 = $233.10 over 7 years; annualized 3%.

Scenario 3: This is the basic case. Tiger shares never reach 80.5 cents so you never convert. You get all your 5 ordinary distributions on time, no special distributions, and Tiger redeems after 7 years. Your return is $107 over 7 years; annualized 1.4%.

Scenario 4: Tiger shares never reach 80.5 cents again so you never convert. Due to financial difficulties Tiger has chosen to defer all its 5 ordinary PCCS distributions. Needless to say there are also no special PCCS distributions (i.e. dividends payable to ordinary shareholders). After 10 years it finds the money to pay you your distributions and put the PCCS out of its misery. Then your return is $21.40x5 = $107 10 years later; annualized 0.96%.

It seems to me like PCCS has little pricing effects during XA date this week. Or perhaps ZERO effect due to the difficulty in forecasting its pricing like a warrant.


The day before XA, it closed at $0.70. The theoretical open during XA should have been $0.662, but it opened at $0.67. Looking good huh.

I've decided to opt for RIGHTS AND EXCESS RIGHTS (the last time they did give me excess).

Wish me good luck.
Reply
#22
Huh asking for money again....

-----------------------------------

Tiger Airways is asking for S$1.07 Convertible Security at 1:4 basis.

I had read the Summary of the Preferential Offering..... and would like to seek some knowledgable help to understand this better.

It is the Convertible Securities that are perpetual securities with no fixed redemption date, with just 2.0% rate of Ordinary PCCS Distribution; with Step Down date 5 years from issue, which seemed to say with zero % rate of Ordinary PCCS Distribution. If my understand is correct, it does not sound very inviting at all. If any of you have understand it better, pls correct me or enlightened me on it. Time is of essence as I need to decide now and submit latest by Mon morning. Thanks in advance. : )
Reply
#23
(06-04-2013, 06:02 PM)roundpia Wrote: Huh asking for money again....

-----------------------------------

Tiger Airways is asking for S$1.07 Convertible Security at 1:4 basis.

I had read the Summary of the Preferential Offering..... and would like to seek some knowledgable help to understand this better.

It is the Convertible Securities that are perpetual securities with no fixed redemption date, with just 2.0% rate of Ordinary PCCS Distribution; with Step Down date 5 years from issue, which seemed to say with zero % rate of Ordinary PCCS Distribution. If my understand is correct, it does not sound very inviting at all. If any of you have understand it better, pls correct me or enlightened me on it. Time is of essence as I need to decide now and submit latest by Mon morning. Thanks in advance. : )

I will only subscribe to the RIGHTS.
PCCS valuation shouldnt affect the mother share by much - akin to companies issuing bonds.

http://203.116.47.65/UI/Liveprice/StockA...130306.pdf

http://www.sharesinv.com/articles/2013/0...-the-pack/

why latest monday?

18th april ma!!!




Last date and time for acceptance of and payment for : Thursday, 18 April 2013 (5:00 p.m. for the 5 Rights Shares ARE for the Rights Shares / the PAL for the Rights Shares and 9:30 p.m. for Electronic Applications through ATMs of Participating Banks)

Last date and time for application and payment for excess Rights Shares: Thursday, 18 April 2013 (5:00 p.m. for the ARE for the Rights Shares / the PAL for the Rights Shares and 9:30 p.m. for Electronic Applications through ATMs of Participating Banks)
Reply
#24
when will the rights result be out?

divestment in aussie means good news!
Reply
#25
DJ Australia Regulator Won't Block Virgin Australia's Tiger Buy
23 Apr 2013 08:14
*DJ ACCC: Not Opposed to Virgin Australia's 60% Acquisition of Tiger Airways

(END) Dow Jones Newswires

April 22, 2013 19:25 ET (23:25 GMT)

DJ Australia Regulator Won't Block Virgin Australia's Tiger Buy


By Robb M. Stewart

MELBOURNE--Australia's antitrust regulator won't block Virgin Australia Holdings Ltd.'s (VAH.AU) 35 million Australian dollars (US$36 million) acquisition of a 60% stake in low-cost carrier Tiger Airways Australia, a move that will allow it to go head-to-head against rival Qantas Airways Ltd.'s (QAN.AU) no-frills Jetstar unit.

In deciding not to oppose the deal, the Australian Competition and Consumer Commission, or ACCC, said that without a takeover Tiger--which hasn't made an operating profit in six years operating in the country--was "highly unlikely" to remain in the local market.

"The ACCC would always prefer to see a greater number of independent airlines competing in the domestic market," it said in a statement Tuesday. "However, our investigations showed that Tiger Australia had been unable to establish itself as a viable competitor despite substantial investment and numerous changes of management and strategy over the years."

Virgin Australia is the second-largest domestic airline operator in Australia, behind Qantas. It counts among its largest shareholders entrepreneur Richard Branson's Virgin Group, Air New Zealand Ltd. (AIR.NZ) and Singapore Airlines Ltd. (C6L.SG).

Singapore Airlines has an almost 33% stake in Tiger Airways Holdings Ltd. (J7X.SG), which will retain a 40% stake in Tiger Airways Australia.


Write to Robb M. Stewart at robb.stewart@wsj.com


Subscribe to WSJ: http://online.wsj.com?mod=djnwires


(END) Dow Jones Newswires

April 22, 2013 20:14 ET (00:14 GMT)

Copyright © 2013 Dow Jones & Company, Inc.

Source: Dow Jones
Reply
#26
Tiger Airways rises on regulator approval

Shares of Singapore’s Tiger Airways Holdings rose to their highest in more than three months after Australia’s competition regulator approved a deal between the budget carrier’s Australian unit and Virgin Australia Holdings.

Tiger Airways shares jumped as much as 12% to $0.735 on Tuesday, their highest since Jan. 18. Some 10.7 million shares were traded, 7.4 times the average full-day volume over the past 30 days.

http://www.theedgesingapore.com/the-dail...roval.html
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#27
Are insiders buying this counter?
Reply
#28
A following-up action by SIA on Tiger+Virgin JV...

SIA increases stake in Virgin Australia to 19.9%

SYDNEY — Singapore Airlines (SIA) has increased its stake in Virgin Australia to 19.9 per cent, buying an additional 9.9 per cent of Australia’s No 2 carrier for A$122.6 million (S$156.1 million) from Richard Branson’s Virgin Group.

The move comes a day after Virgin received competition regulator approval to buy a controlling stake in Tiger Australia from SIA’s budget associate, Tiger Airways.

http://www.todayonline.com/business/sia-...tralia-199
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#29
CIMB report, rating UNDERPERFORM, with TP of $0.63

The above developments have strengthened Tiger’s balance sheet and should limit the drag on its cash by associates. A stronger partner in Australia should also give Tiger Australia a much-needed boost to compete with the incumbent giant, Jetstar. We had earlier estimated breakeven for Tiger Australia by FY14. However, we remain wary of the cash burn by associates in Indonesia and
the Philippines, which in the most optimistic case should only break even in three years’ time. This means that the capital raised would still need to be ploughed into loss-making operations.

http://remisiers.org/cms_images/research...13cimb.pdf
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#30
applied 3 lots of excess and got 1 lot! free $200+ at current price. Ha! Smile
Reply


Forum Jump:


Users browsing this thread: 6 Guest(s)