Pan United Corporation

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#41
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?
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#41
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?
Reply
#42
(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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#42
(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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#43
Cannot seem to find any information on time line for the EGM or rights issue.
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#43
Cannot seem to find any information on time line for the EGM or rights issue.
Reply
#44
how to view this spin-off? Mr Market seems very upset....
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#44
how to view this spin-off? Mr Market seems very upset....
Reply
#45
(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?

the circular dated 21sep would have been self-explanatory.
like to ask which of the three options would you choose? option 3 the default option seems stone-age..
anyone knows if any sg-based brokerage can facilitate option 1 most cost effective? or is it wise to opt for option 2?
Reply
#45
(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?

the circular dated 21sep would have been self-explanatory.
like to ask which of the three options would you choose? option 3 the default option seems stone-age..
anyone knows if any sg-based brokerage can facilitate option 1 most cost effective? or is it wise to opt for option 2?
Reply
#46
Anyone attended the EGM?
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#46
Anyone attended the EGM?
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#47
Request for Trading Halt : Pending release of announcement(s).
Specuvestor: Asset - Business - Structure.
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#47
Request for Trading Halt : Pending release of announcement(s).
Specuvestor: Asset - Business - Structure.
Reply
#48
Capital reduction is completed and Xinghua Port (1990) starts trading today.

Anyone received the Xinghua shares already?
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#48
Capital reduction is completed and Xinghua Port (1990) starts trading today.

Anyone received the Xinghua shares already?
Reply
#49
(12-02-2018, 09:27 AM)cif5000 Wrote: Capital reduction is completed and Xinghua Port (1990) starts trading today.

Anyone received the Xinghua shares already?

I chose Option 1 and CIMB Securities. Don't see the shares under custody.
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#49
(12-02-2018, 09:27 AM)cif5000 Wrote: Capital reduction is completed and Xinghua Port (1990) starts trading today.

Anyone received the Xinghua shares already?

I chose Option 1 and CIMB Securities. Don't see the shares under custody.
Reply
#50
(12-02-2018, 10:38 AM)kichialo Wrote:
(12-02-2018, 09:27 AM)cif5000 Wrote: Capital reduction is completed and Xinghua Port (1990) starts trading today.

Anyone received the Xinghua shares already?

I chose Option 1 and CIMB Securities. Don't see the shares under custody.

Thanks for sharing the info. I also chose Option 1 but with DBSV. Nothing in my account yet.

CIMB is the "preferred" broker, so there shouldn't be any issue.
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#50
(12-02-2018, 10:38 AM)kichialo Wrote:
(12-02-2018, 09:27 AM)cif5000 Wrote: Capital reduction is completed and Xinghua Port (1990) starts trading today.

Anyone received the Xinghua shares already?

I chose Option 1 and CIMB Securities. Don't see the shares under custody.

Thanks for sharing the info. I also chose Option 1 but with DBSV. Nothing in my account yet.

CIMB is the "preferred" broker, so there shouldn't be any issue.
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