(03-05-2017, 06:06 PM)mobo Wrote: Interesting developments. Does anyone know how the distribution in specie of Xinghua shares will work if the shares are listed on HKEX?
As of now, I am not aware that CDP is able to act as a direct custodian of overseas listed shares. There are unique arrangements like Thaibev and Ausnet, but these are different as the shares still retain trading status in SGX. There does not seem to be any intention on PanU's part to replicate a similar arrangement whereby Xinghua shares can be traded in SGX.
How would actual trading of the allocated Xinghua shares be conducted for minority Singaporean shareholders?
We will most probably know about the custodian arrangements for Xinghua Group's SEHK shares in time to come, for OPMIs. Somehow, I tend to believe the Ng Family has an OPMI-friendly method.
If the interest payments are paid up, the Port Business (CXP+CCIP) will be an excellent FCF business, provided it continues to capture growth and fills up the 2nd port CCIP. The Port Business itself is a saving grace for the Parent with the disastrous C&C business in the past few years of overcapacty/intense competition on the local SG market. So when MIIF divested its stake in CXP back to PanUnited in 2013, it looked like a master stroke of great timing (on hindsight).
While PanUnited's gearing are hitting highs and a rights issue was not exactly unexpected, the proposed distribution of the Port Business does look like a surprise to me. Pending the expiry of the 50% tax rate expiry in 2017 (now 12.5%), the Port Operations look to be growing and diversifying their cargo accordingly and so, it doesn't feel like the right time to monetize it. I mean most PanUnited shareholders (and those analysts) are dreaming of the day of REIT-ing it or selling it to another MIIF one day, and then having another special dividend. So, the day the Port Business is spin off via in specie, the company would cease to become as exciting as it had been.
Rights, Capital reduction and proposed listing of Port operations on SEHK: http://infopub.sgx.com/FileOpen/Proposed...eID=451844
Finally, i thought this part is pretty assuring (page 5):
Fractional entitlements to the Rights Shares will be disregarded and will be aggregated with entitlements to the Rights Shares not taken up or allotted for any reason, and shall be used to satisfy applications for excess Rights Shares (if any), or disposed of, or otherwise dealt with in such manner as the Board may, in its absolute discretion, deem fit in the interests of the Company. Excess Rights Shares will be allotted in such manner as the Board may, in its absolute discretion, deem fit in the interests of the Company, subject to applicable laws and the Listing Manual. In the allotment of any excess Rights Shares, preference will be given to Shareholders for the rounding of odd lots. None of the Undertaking Shareholders (as defined below) will be subscribing for excess Rights Shares. In addition, Directors and other substantial Shareholders, if any, who have control or influence in connection with the day-to-day affairs of the Company or the terms of the Proposed Rights Issue, or have representation (direct or through a nominee) on the Board will rank last in priority for the rounding of odd lots and allotment of excess Rights Shares.
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