Pacific Andes

[dydx]

Intermediate holding company Pacific Andes Resources Development (PARD) (listed on SGX) is raising new capital of approx. $192.3m (net proceeds)(approx. HKD1,153.8m) via an aggressive 4-for-5 rights issue priced at $0.051 per new share (vs. last done share price of $0.108) mainly to reduce the Group's indebtedness including to the affiliates of the Joint Lead Managers (DBS Bank, Maybank Kim Eng Securities, and Stanchart Securities) and Joint Underwriters of the rights issues, and to support subsidiary China Fishery Group Ltd (CFGL) (listed on SGX) to redeem the outstanding USD250.0m Copeinca Notes by 16Mar15…..

http://infopub.sgx.com/FileOpen/PARD-Pro...eID=325905 [rights issue announcement]
http://infopub.sgx.com/FileOpen/PARD-Pre...eID=325906 [press release]
, and PARD's 66.45% controlling shareholder Pacific Andes International Holdings (PAIH) (listed on HKSE) is underwriting its share of the rights issue.

A relevant question: Would this capital raising be enough to calm the nerve of PARD's and CFGL's many bankers/lenders, bond holders, and other creditors, bearing in mind as at 28Sep14, PARD Group's gross and net debts stood at HKD14,577.9m and HKD13,552.3m, respectively?

Sometimes I wonder: How can the bankers allow the combined group of PAIH, PARD and CFGL chalk up so much borrowings from themselves and the markets? Is this fishery (or fishy smell, as all fishes smell fishy) group too big to fail?

[opmi]

Whole day raise money.


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[Jack31]

I would suggest the long suffering shareholder to let go..
4 rights issue in 8 years. 07, 09, 12 and now..
Find me another company in the WHOLE of sgx that does this.
If this is not a red flag, I don't know what is.
Even if it's deem too big a company to do any hanky panky business, would you like to follow such management that always take $ from shareholders? Take 20cent pay back 1cent as dividend. Still have the cheek to say enhance shareholder value.
These are just my own personal opinion/suggestions, I have no interest at all in this company(long or short).
Mod, pls take away my post if deem inappropriate.

[opmi]

I would suggest the long suffering shareholder to let go..
4 rights issue in 8 years. 07, 09, 12 and now..
Find me another company in the WHOLE of sgx that does this.
If this is not a red flag, I don't know what is.
Even if it's deem too big a company to do any hanky panky business, would you like to follow such management that always take $ from shareholders? Take 20cent pay back 1cent as dividend. Still have the cheek to say enhance shareholder value.
These are just my own personal opinion/suggestions, I have no interest at all in this company(long or short).
Mod, pls take away my post if deem inappropriate.

REITs ...hahaha...

for non-REITs, Federal International - more than 5 capital issues if you count warrants issue...

[Jack31]

I would suggest the long suffering shareholder to let go..
4 rights issue in 8 years. 07, 09, 12 and now..
Find me another company in the WHOLE of sgx that does this.
If this is not a red flag, I don't know what is.
Even if it's deem too big a company to do any hanky panky business, would you like to follow such management that always take $ from shareholders? Take 20cent pay back 1cent as dividend. Still have the cheek to say enhance shareholder value.
These are just my own personal opinion/suggestions, I have no interest at all in this company(long or short).
Mod, pls take away my post if deem inappropriate.

REITs ...hahaha...

for non-REITs, Federal International - more than 5 capital issues if you count warrants issue...

Lol, yup. But federal was losing $. P.andes have been making profits every year.
Even for reits not much can claim the "honours" of 4r in 8y. -_-"

[hh488]

Really a sad day for SH despite co making record profit.

Yes, after the rights (if approved), the next exercise probably to consolidate as there are just too many shares floating. And that consolidation exercise also not the first time for PAH.

You call it enhancing value for SH?

Just hope the authority would come in & stop it.

[sgpunter]

A large number of foreign owned companies that make more sense for them to be listed in HKEX based on geography but are instead listed on SGX are not good companies in my humble opinion...SGX is a bit of a dumping ground for these companies I feel...I have been bitten twice. Painful, expensive lessons for sure...

That said, rights issues may not always necessarily be a bad thing. It just depends on what is the purpose of raising funds. In this case, if it is always for the purpose of paying down debts...I have nothing to say...

[lkw175]

Pac Andes just released its FY result few days ago. Profit increased but no div payout was announced already disappointing to its shareholders.. to worsen things, they are issuing rights (a lot more shares). Raising funds to repay borrowings is really disappointing.... in my opinion.

[sgmystique]

Every share has some intrisic value. This value may be $0.00 as well. Of course a negative value is not practically feasible.

I have not studied the financials for Pacific Andes nor have the background to do a valuation (back of the envelope variety) of the company. Would appreciate if some fellow forumers could give some insights on this.

I have just dipped my toes in this counter. Would like to be very sure before going all in

[dydx]

Pac Andes just released its FY result few days ago. Profit increased but no div payout was announced already disappointing to its shareholders.. to worsen things, they are issuing rights (a lot more shares). Raising funds to repay borrowings is really disappointing.... in my opinion.

Does the company PARD - for the matter, the entire group including CFGL and PAIH - have a choice from its bankers?

Another relevant question: Why would a responsible management - the CEO, CFO, and BOD - want to load the entire group of companies with so much debts?