SC Global Developments

[greengiraffe]

The following is extracted from the SC Global latest announcement. Furthermore, there is also another announcement with respect to the 27th Dec 2012 report by DMG on the possibility of merging SC Global and wheelock. There is also stated that the analyst is a shareholder of both Wheelock and SC Global.

"The Board notes that the writer of the Article was, as of the day before the date of publication, a shareholder of both the Company and Wheelock Properties (S) Limited (“Wheelock Properties”)."

http://info.sgx.com/webcoranncatth.nsf/V...40020D1B8/$file/SCGlobal_Clarification_Statement_on_DMG_Article.pdf?openelement

"The Offeror has no intention of increasing the Offer Price and, accordingly, the Offer Price of S$1.80 for each Offer Share is the final price."

"In the event the Offeror acquires an additional 10.04% of the Shares in issue, the free float will fall below the minimum threshold of 10% required under Rule 723 of the SGX Listing Manual"

http://info.sgx.com/webcoranncatth.nsf/V...4002BD54A/$file/Annc_No_Increase_30_Dec.PDF?openelement

This is checkmate and ultimate move by Simon Cheong in the hope that he can secure the amount that he needs to cross 90% and thus delisting the company to pave way for next level of negotiations.

In any event, SC global will have to pay the extension charges for the Merq due in Jan 13 and hopefully avoid the one due on Hilltops by Apr 13.

[cfa]

SC needs another 1.623 % to cross the 90% delisting requirement.

[CityFarmer]

The strategy of declaring no increase in offer price worked i assume ...

[specuvestor]

Expected. Now to see how each calculates their risk reward for this trade

[AlphaQuant]

SINGAPORE, Jan 16 (Reuters) - Shares of property developer SC Global that are freely traded on the Singapore Exchange have fallen below 10 percent of the firm's issued shares, paving the way for its delisting, a source close to the deal said on Wednesday.
SC Global, which specialises in high-end property projects, has been the subject of a privatisation offer by its chairman and largest shareholder Simon Cheong.
Under Singapore law, the majority shareholder can force the delisting of a firm once the public float dips below 10 percent.
SC Global said on Tuesday the public float had fallen to 11.6 percent.
Cheong has given minority shareholders until Jan 30 to accept his offer. (Reporting by Kevin Lim; editing by Keiron Henderson)

[freedom]

it seems that Wheelock also accpets the offer.

[cfa]

SC has more than 90% now, Wheelock also accepted his offer.

[specuvestor]

This is amazing change of events. The risk/reward to follow Wheelock into SCGD privatization was very good

Yet they suddenly throw in the towel despite buying above 1.80 and saying it is 40% discount to RNAV shows a certain change of heart post the 7th property measure. I'm not sure if Simon Cheong will deem this as a pyrrhic victory.

From another angle: is the new Wheelock management considered smart money and telling us something about Singapore's property market?

[guru]

If Wheelock throwing in the towel, appears that SC is a bao-jiak now for SC. Seems like he'll try and take it private asap. But for S/H who has not accepted the offer, I'm wondering what are the exit routes now.

Believed Wheelock mentioned they made a gain from the disposal. It comes from them MTM the investments. The huge write-down must have occured earlier. Hence, they are "trumpeting" this as a gain to further shareholder value. Oh well...

This is amazing change of events. The risk/reward to follow Wheelock into SCGD privatization was very good

Yet they suddenly throw in the towel despite buying above 1.80 and saying it is 40% discount to RNAV shows a certain change of heart post the 7th property measure. I'm not sure if Simon Cheong will deem this as a pyrrhic victory.

From another angle: is the new Wheelock management considered smart money and telling us something about Singapore's property market?

[specuvestor]

Mandatory GO @1.80 at >90% shareholding under companies act coming