Seatrium Limited (formerly SembCorp Marine and KOM)
19-09-2021, 07:06 AM
With 31.39 billion shares after the just completed 3-for-2 rights issue at $0.08/share, probably SembCorp Marine is now the largest counter on SGX in terms of number of outstanding issued shares. When compared with the world population of 7.9 billion, there are now more than enough SembCorp shares for the whole world! Unfortunately, not many investors like a business that bleeds lots of cash..
SembMarine@8.2
Similar to SQ, SembMarine 2020 Rights Issue - balance ZERO https://links.sgx.com/FileOpen/Announcem...eID=684061 https://drive.google.com/open?id=1o56pNX...htSQFKQRD2 Stay home and stay safe, everyone. 
SembMarine@8.4
Temasek announced MGO@8 https://links.sgx.com/FileOpen/Offer%20A...eID=684187 Stay home and stay safe, everyone.
22-09-2021, 08:58 AM
So much wayang by following the Rules! Did Temasek expect to have to do a MGO? Probably not. Wasted fees to be paid to Morgan Stanley and other professionals (IFA, lawyers on both sides, etc.), who are having a field day doing work that doesn't add real value to the underlying business..
(22-09-2021, 08:58 AM)dydx Wrote: So much wayang by following the Rules! Did Temasek expect to have to do a MGO? Probably not. Wasted fees to be paid to Morgan Stanley and other professionals (IFA, lawyers on both sides, etc.), who are having a field day doing work that doesn't add real value to the underlying business..Hi dydx, I don't understand why they did not seek a waiver to this MGO for this rights issue, just like they did the last year when they did the rights issue at 20cts per share. Temasek didn't expect this MGO? I don't think so. They are advised by external parties and also they have an experience of seeking a wavier for the rights issue they did last year. Now, they have been put into this situation to do this MGO at 8cts, with minimum acceptance condition of 50%. Since the shares are trading in the market at above the MGO offer price currently, I don't think they could even achieve 50% acceptance, rendering this exercise almost a waste of time. Shareholders should be mindful that if Temasek did not secure 50% to reach unconditional acceptance level, this MGO will lapse and those shares you tendered for acceptance will be returned back to you. And the MGO offer price at 8cts is final. There will not be any revision to the offer price. There will also be no extension to the closing date of the offer, even if the offer turns unconditional before or on the closing date. The above have shown that the offeror has no intention of even hitting 50% acceptance rate, let alone 90%. Previous suggestions by fellow buddies here is that Temasek might be using this MGO to mop up as many shares as possible in order to privatise Sembcorp Marine or merge with Keppel O&M. Looking at the actions of Temasek with regards to this MGO, I don't think their intention is to secure as many shares as possible. In fact, my guess is that their intention is not to secure any shares beyond what they have currently. And with the MGO offer price at a discount from 1 month, 3 month and 6 month VWAP and below NTA, it will most likely to attract a "not fair and not reasonable" opinion from the IFA.
SCM is now trading at the 7.9/8.0 level.
Will be interesting to see if temasek does swoop in to buy up the 35 million shares that are waiting at the 8 cents level. My guess is that unlikely temasek will do a buy up. Probably because SCM is in a bad business shape. Transocean utilization rate for its deepwater rigs is at 50% while South East Asia region rig utilization is only at 76.8%, excluding those on cold stacked. No new orders are coming in for rigs given how oversupplied the market is in. However, once activities in oil rig picks up due to high crude price, it may time to review SCM value propostion. (22-10-2021, 01:37 PM)CY09 Wrote: SCM is now trading at the 7.9/8.0 level. I personally also don't think so. Remember that Temasek only undertake to take up not more than 67% of the rights shares at 8cts per share, with DBS Bank underwriting the remaining shares not taken up. If the original intention is to mop up as much shares as possible at 8cts per share, then Temasek should undertake up to 100% of the rights issue. Why take up at most 67% of the rights issue at 8cts per share and now buying from the market at the same price? Doesn't make sense at all. As for SCM value proposition, maybe you could refer to the IFA report. SCM have commissioned a Valuer to carry out an independent valuation of their 2 main cash generating units, namely the Singapore Cash Generating Unit and Brazil Cash Generating Unit; and the non-current trade receivables from Borr and contract assets with Transocean. Estimated RNAV after those valuation comes out to approximately S$0.17 to S$0.20 per share.
SembCorp@204
SembMarine@8 SembCorp renewal Solar project in Indonesia - 1 GWP - for local and export to Singapore. https://drive.google.com/file/d/1Nl8ZFh7...sp=sharing Is SembCorp competing with SembMarine? Will a consolidated SembMarine and KOM be more competitive than SembCorp? Stay home and stay safe, everyone.
26-10-2021, 10:44 AM
Seriously doubt that Sembcorp Marine is competing in the Solar Energy arena. Those solar panels installed at the roofs of Sembcorp Marine's workshops are more for the "green" effort in their ESG initiatives.
|
|
« Next Oldest | Next Newest »
|
Homepage
PR Newswire
