Overseas Chinese Banking Corporation (OCBC Bank)

[felixleong]

I dont think will extend any more as both sides also
scard to "lose face", shareholders on both sides also getting nervous and want a final details asap

[Temperament]

Also if u buying before the announcement, do note that there's a high possibility of rights issue to pay for Wing Hang, need deep pockets too. Also if your pocket is really deep if rights issue, can apply for excess to take advantage of others who are cash strapped.

Thanks for the reminder/info. i actually sold my 2.++ lot at an average price of $10.4, sometimes ago.
Rights issue is always an opportunity for people to consider buying if the issue is "NIL Paid Rights". If you think the "NPR" is yield accreditive or at least not yield diluting, you may consider to buy. But that's my style. Maybe not yours.

[CityFarmer]

by end of march should see OCBC's detailed announcement on Wing Hang
but if OCBC rallies to $10 by then, u would had missed the boat

when it was selling at 9.10-9.20 it was really cheap for 11 times earnings, a solid well managed blue chip with good long term track record

however if they gonna pay too much of wing hang, everything falls apart. A well balanced approach is key.

The average PE of Singapore banking sector, is around 11-12. The PE of 11 for OCBC is fair at best, not cheap IMO. It is more so, with the likelihood of dilution from the Wing Hang deal.

OCBC is my prefer bank. I do agree it is well-managed blue chip, with long term track record.

(not vested)

[felixleong]

Ya there are many ways to play around the situation and make a profit. One can also wait for after the announcement and if there is a "shock" due to difference in expectations, one may purchase the NPRs cheaply from the open market to build a position in OCBC too.

[DP28]

Felix, given your experience. You think will raise capital via rights more so than bonds ?

[Temperament]

Felix, given your experience. You think will raise capital via rights more so than bonds ?

May i have my say also:
If bonds and not available to the public but also shares dilutive, then it will be remembered for a long time by the public. If it is not shares dilutive, thank you very much. but i think fat hope.

[felixleong]

Bonds i do not think so, as the acquisition will eat into their tier one capital. Also if u look at
Ocbc ncps 4.2% its already redeemable and trading above par, yet ocbc still has not called it back. I also do not think they will issue pref shares, could be but low probability. Most analyst are saying equity raising is more possible, either via rights or placement. Rights would be more fair to existing shareholder. Personally i would prefer they fund this deal using some pref shares, since rates are low also eventually they need to renew their pref shares to meet the basel III standards

[felixleong]

However in reality anything can happen, who knows they might fund it with a bridge loan first and then raise capital 6 or 12 months later. Thats also possible.

[Temperament]

However in reality anything can happen, who knows they might fund it with a bridge loan first and then raise capital 6 or 12 months later. Thats also possible.

Yea! i think anytime retail investors like NPR the best.

[specuvestor]

OCBC is my prefer bank. I do agree it is well-managed blue chip, with long term track record.

(not vested)

OCBC is good while David Conner was at the helm. He is one of the few banking FT that I personally respect.

Rewind back 10 years and very few people would say what you quoted It was for sure my vote for the sleepiest bank