China Merchants Holdings Pacific

[gzbkel]

Hi Jack31

How does the dividend affect the CB conversion price?
The AR mentions that the conversion price is 84c. I can't find the part that describes how the dividend affect the price.

Also, what is the "dbs guarantee" about?

Thanks!

I think 7c too. Cb conversion price gonna go further down. And with dbs guarantee ending this year, probably most of the cb will be converted by this year. If the holder choose to sell, could see some downward pressure coming..

[Nick]

Hi Jack31

How does the dividend affect the CB conversion price?
The AR mentions that the conversion price is 84c. I can't find the part that describes how the dividend affect the price.

Also, what is the "dbs guarantee" about?

Thanks!

I think 7c too. Cb conversion price gonna go further down. And with dbs guarantee ending this year, probably most of the cb will be converted by this year. If the holder choose to sell, could see some downward pressure coming..

1) Dividend Protection

The conversion price of the Convertible Bonds will be adjusted for, inter alia, the portion of any cumulative dividend payments in excess of S$0.055 per Share for the 12-month period in the same fiscal year.

The conversion price has been reduced to 82.6 cents after accounting for 7.0 cents dividend declared in FY 2013.

2) DBS Letter of Credit

SBLC : The Convertible Bonds will have the benefit of an irrevocable standby letter of credit (the “SBLC”) issued by DBS Bank (in such capacity, the “SBLC Bank”) pursuant to which the Trustee, on behalf of the Bondholders, can make a claim under the SBLC under certain
circumstances.

SBLC Bank : DBS Bank

SBLC Bank Ratings : AA- (stable) by Standard & Poor’s Ratings Group
Aa1 (negative) by Moody’s Investors Service Inc.
AA- (stable) by Fitch Ratings

SBLC Tenor : 3 years and 30 days after the date on which the
Convertible Bonds are issued, which is expected to be on
or about 6 November 2012 (the “Closing Date”).

SBLC Amount : HK$1,175,000,000.

http://infopub.sgx.com/FileOpen/Pricing_...leID=62346

[gzbkel]

^^ Thank you Nick!

[greengiraffe]

CMP share price has consistently stepped up recently notwithstanding regular conversions of the CBs.

Implications - there are likely deep pocket buyers out there in the market while professional arbitragers continued to source for CBs at probably higher prices for conversions to feed the demand.

Vested
GG

Last conversion 30 Jan 15:

http://infopub.sgx.com/FileOpen/Cancella...eID=333319

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$19,000,000 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 30 January 2015 is HK$774,000,000.
Arising from such conversion, 3,630,947 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 1,053,496,771.

Based on outstanding HK$774m worth of CBs, the potential shares to be converted at $0.826 is 147.913m.

[Jack31]

Wow, a 6% run up.
Congrat to vested buddies.
Looking forward to result this coming Friday.

[sykn]

Wow, hit a record of $1.06 today! I'm looking forward to the dividends to be announced when the results come out. (vested)

[greengiraffe]

The road ahead remains long and exciting.

Unlike provincial listed toll operator listed on HKSE and mainland exchanges, CMP has been shaping up to become a Pan-China toll road operator under the control of CM Huajian. CM Huajian is no stranger to Chinese toll road sector given that it already controlled a portfolio of diversified minority stakes in listed toll road operators.

Scheduled results release will provide health of the company's toll roads. What could be even more exciting will be what potential deals that CMP is currently working on now.

Vested

http://www.valuebuddies.com/thread-1756-...l#pid99637

The Growth Of The Dragon

[CityFarmer]

The road ahead remains long and exciting.

Unlike provincial listed toll operator listed on HKSE and mainland exchanges, CMP has been shaping up to become a Pan-China toll road operator under the control of CM Huajian. CM Huajian is no stranger to Chinese toll road sector given that it already controlled a portfolio of diversified minority stakes in listed toll road operators.

Scheduled results release will provide health of the company's toll roads. What could be even more exciting will be what potential deals that CMP is currently working on now.

Vested

http://www.valuebuddies.com/thread-1756-...l#pid99637

The Growth Of The Dragon

Yes, key points to monitor on the stock are, IMO
- future M&A deal(s) for growth, and also the risk
- current traffic statistic and operational efficiency for sustainability of semiannual fat dividends.

(vested)

[greengiraffe]

Record high 108 closing. The rise in share price has also increase CMP's acquisition ability as they have previously been able to issue new shares at premium to prevailing market prices as purchase consideration.

Enclosed big report by CIMB dated Jul 2014.

Report came before Jiurui deal was revived.

However, analysts did well to incorporate scenario analysis. Based case fair value of $1.06 achieved y'day.

There remains a bull case to unfold taking into account potential deals that may unfold - bull case target price $1.52.

Let another new drama serial begin.

Vested

[CityFarmer]

Thank for the sharing. This is a stock where interests of OPMI, management, and SSHs are aligned, at least in the near future

(happily vested)

Record high 108 closing. The rise in share price has also increase CMP's acquisition ability as they have previously been able to issue new shares at premium to prevailing market prices as purchase consideration.

Enclosed big report by CIMB dated Jul 2014.

Report came before Jiurui deal was revived.

However, analysts did well to incorporate scenario analysis. Based case fair value of $1.06 achieved y'day.

There remains a bull case to unfold taking into account potential deals that may unfold - bull case target price $1.52.

Let another new drama serial begin.

Vested