First published in Business Times on 14 October 2021 Based on feedback received by the Securities Investors Association (Singapore) or Sias, there is confusion and misunderstanding within some segments of the retail investing public over Temasek Holdings’ mandatory conditional general offer to acquire all the issued and paid-up ordinary shares in Sembcorp Marine (Sembmarine). Some retail investors think that whenever a takeover offer is tabled, it must be at a premium to the share price at the time in order to make sense. Since Sembmarine’s shares traded just above S$0.08 on Sep 22 when the offer was announced, they are wondering why Temasek has been allowed to offer only S$0.08. Others have asked if the word “mandatory” means that they are compelled by law to accep

LIFETIME MEMBERSHIP What a devastating train-wreck for Medtecs share price (SGX: 546)! After reaching an incredible record high of $1.80 on 21 August 2020, Medtecs share price (SGX: 546) collapsed 78% to reach the current low of $0.40. What the hell has happened to this healthcare product provider? The meteoric rise of Medtecs share price (SGX: 546) on the back of an unprecedented health crisis created one of the amazing fairy-tales in Singapore stock market. Prior to COVID-19, Medtecs share price (SGX: 546) was trading at merely $0.08 (similar to current Sembcorp Marine share price). With the onset of COVID-19, Medtecs share price (SGX: 546) turbocharged to high heavens. Those who exited at the highest price would have laughed their way to the bank. On the other hand, those who entered at

Corporate actions are often difficult for retail investors to comprehend because they are a fusion ... Read more >> The post Sembcorp Marine Mandatory Cash Offer – What must I do? first appeared on .

LIFETIME MEMBERSHIP It turns out that the mandatory offer by Temasek Holdings is a “non-event” for Sembcorp Marine share price (SGX: S51). Following the controversial $1.5 billion rights issue, Temasek Holdings’ stake in Sembcorp Marine increased to 46.6%. Consequently, this triggered the mandatory general offer in accordance with Rule 14 of the Singapore Code on Takeovers and Mergers. True to its words, the offer price from Temasek Holdings remains at $0.08 per share. Given that the current Sembcorp Marine share price (SGX: S51) is higher than the offer price, the chance of privatisation is extremely remote. There has been so many twists and turns for Sembcorp Marine share price (SGX: S51) that investors must feel like the past two years had been a terrifying nightmare. Question no

LIFETIME MEMBERSHIP Will SIA share price (SGX: C6L) do a Sembcorp Marine? The latter recently concluded a second billion dollars rights issue that took place less than a year, causing the share price to bomb out to less than $0.10. On 16 September 2021, SIA updated “that the remaining S$0.6 billion of the gross proceeds of S$8.8 billion raised from the 2020 Rights Issue has been applied towards aircraft and aircraft-related payments between 1 July 2021 and 1 September 2021”. Against this backdrop, investors must be wondering if another cash call is on the way. In one year, SIA burnt through $9.3 billion of cash (including $500 million which had been used for the redemption of SIA’s 10-year Fixed Rate Notes on 9 July 2020). While there is more than sufficient cash for the airline to s

That was 11 years ago for Round 41!Monday, 2 August 2010Read? SML - Sold $4.05, ROC 5.5%Read? Sembcorp Ind + 4.9 SML in specie Is Greater Than Sum of parts for Semcorp Ind with 61% SML holding ??? (2)CW8888: Temasek to take SML private and merge with Keppel O&M?TEMASEK Holdings will take up 49.3 per cent of Sembcorp Marine (Sembmarine)'s rights issue, which means it will need to make a compliance offer for all shares of Sembmarine that it does not already own.In a statement late on Friday night, Sembmarine Sembcorp Marine: S51 +1.2% announced its rights issue had closed on Sept 14 with valid acceptances for 15.9 billion or 84.2 per cent of the rights shares on offer. Excess applications were made for 6.3 billion rights shares, or 33.5 per cent of the total rights shares avail

LIFETIME MEMBERSHIP For Sembcorp Marine share price (SGX: S51), is it a case of light at end of tunnel or light from an on-coming train? Given the devastating meltdown of Sembcorp Marine share price (SGX: S51), investors can ill-afford to ignore this rhetoric. The $1.5 billion announced on 24 June 2021 had erased more than 50% from Sembcorp Marine share price, causing the counter to plunge from $0.17 to $0.08. Question now: is there any value left in Sembcorp Marine share price? Make no mistake, sometimes cheap does not mean value. Investors who had subscribed to the 2020 and 2021 rights issues should be betting on the recovery of Sembcorp Marine share price (SGX: S51). While that day may eventually come, it could be a long wait. To put things into perspective, the oil and gas industry su

Wall Street’s all-time highs had little impact here; The STI ended the week 22 points or 0.7% down at 3,080.77; There was some caution ahead of the US Fed’s Jackson Hole meeting; That caution appeared unwarranted after Fed chief’s reassurances; Stocks in play included Nanofilm, Yangzijiang, SGX and ComfortDelgro; Manufacturing looks set to slow in months ahead Has the local market decoupled from Wall St? Conventional wisdom is that Wall Street plays a major role in influencing sentiment and determining daily market direction in most global markets, including Singapore’s – at least most of the time. Over the past 2-3 weeks, that belief has been challenged as the Straits Times Index has turned in an unremarkable performance, struggling to stay above the 3,100 level even as U

Read? Owning Singapore stocks has been a poor bet even for investors with long horizonsAlamak!Another one from BT laughing at Panda and Koala retail investors in local market! Chun bo?Hmm .. then we can look at Temasek's investment performance supported by an army of professionals and invest globally and privately.Read? Temasek’s net portfolio value rebounds to record highCW8888 One-man gang vs Temasek's Army of Professionals22 yrs at 5.9% as of today market closing  vs 8% 20 rolling yrs at FY 21Did Panda perform so badly meh?----------------------------------------------------WEALTH management experts often advise investors not to put any funds they might immediately need in the stock market.To maximise the benefit of traditionally high returns from owning stocks, an

This is the original commentary by SIAS, unedited version from The Business Times publication on 18 August 2021 By Friday 20 Aug, Sembcorp Marine’s (SCM) shareholders have to lodge their proxy forms for voting on the company’s recently proposed rights issue to raise S$1.5b. Time is therefore of the essence. In order to everyone to make an informed decision when casting their votes, it is imperative they familiarise themselves with the issues surrounding this capital raising exercise, one which it has to be said, is not without its critics, coming just over a year after SCM had already raised S$2.1b in order to demerge from its parent, Sembcorp Industries. For that first rights issue in June 2020, the company said the money was needed to strengthen its liquidity position and balance she

Singapore has one of the world’s busiest ports. Unsurprisingly, many marine and shipping companies, big and small, have made Singapore their home harbour. Aside from the large offshore and marine conglomerates such Sembcorp Marine and Keppel O&M, there are many smaller marine companies that call Singapore their home harbour. Today, we bring to your attention Kim Heng Limited (SGX: 5G2), an integrated marine and offshore company in Singapore. Listed on the SGX Catalist since 2014, Kim Heng Limited’s key revenue segments are renewable energy support services, vessel chartering, heavy equipment sales and rental and marine offshore support services in FY2020. The company also has 2 shipyards, fabrication facilities, 15 cranes as well as a vessel fleet of 11 tugs, 25 barges, 3 (Offshore

Earlier in June this year, Sembcorp Marine (or SMM) proposes a S$1.5 billion rights issue to meet immediate funding needs, strengthen its balance sheet and liquidity position amidst the continuing disruptions posed by COVID-19. SIAS has previously reached out to SMM with a set of questions on this proposed rights issue. In their written response, the unprecedented business conditions and challenges posed by COVID have given rise to the need for this capital call; and that these concerns were also reflected in their latest performance – having recorded a net loss of S$647 million for the first-half of 2021, including provisions of S$472 million. On 6th August 2021, SIAS organised a virtual dialogue session with Sembcorp Marine to allow its shareholders to understand more on the rights iss

On 02 August 2021, before the start of the trading day, four companies requested a trading halt. These stocks were Keppel Corporation, Keppel REIT, Singapore Press Holdings (SPH), and SPH REIT. Soon after, both SPH and Keppel released a joint statement for a proposed acquisition offer from Keppel at $2.2 billion for SPH non-media assets. SPH then followed up with a proposed $3.4 billion privatisation plan which involved the payment of cash, Keppel REIT and SPH REIT units to shareholders. In this week’s edition of 4 Stocks This Week, we look at these four stocks that are related to SPH proposed privatisation. Read Also: 5 Things To Know About Keppel Corp Privatisation Offer For SPH Keppel Corporation (SGX: BN4) Keppel Corporation (SGX: BN4) is a Singapore conglomerate that provides offsh

The post SIAS – Sembcorp Marine Virtual Dialogue Session appeared first on Securities Investors Association (Singapore).

Temasek Holdings is a private investment company headquartered in Singapore. It invests in private and public-listed assets spanning a broad spectrum of geographies and industries. As of 31 March 2021, its portfolio value stands at S$381 billion. While Temasek is not a listed company that investors like us can buy into, it owns a significant stake in some of Singapore’s largest companies and its moves are closely watched by the investment community. Temasek Review is an annual event where key executives present the company’s fund performance, portfolio allocation, and investment decisions taken over the year. Leading the presentation was Managing Director Fock Wai Hoong. This was followed by a Q&A session for Temasek’s panel of executives to address questions from the

LIFETIME MEMBERSHIP Sembcorp Marine share price became the talk of the town. And for all the wrong reasons. The $1.5 billion rights issue had led to a devastating meltdown in Sembcorp Marine share price, which plunged from $0.19 to the current low of $0.11. The correction amounted to about 42% across the span of nearly a month. Given the horrendous train-wreck of Sembcorp Marine share price, shareholders have every right to be angry with the management. From a blue chip among the prestigious Straits Times Index (STI) in 2016 to a cheap penny stock in 2021, Sembcorp Marine share price has become one of the biggest falling stars in SGX. How this counter managed to land in such a dismay state is beyond my understanding. But I reckon what riled shareholders the most is that the previous rights

Singapore is internationally recognized as one of the world’s top maritime ports, accorded as the world’s Top Maritime Centre for 8 consecutive years by the Xinhua-Baltic International Shipping Centre Development (ISDC) Index and the world’s Top Leading Maritime Capital Of The World for 4 consecutive years by Menon Economic’s Leading Maritime Capitals Of the World report. With such accolades, Singapore is home to many marine and shipping companies. While most Singaporeans are familiar with Sembcorp Marine and Keppel O&M, Singapore is also host to many smaller players in the marine industry that all play a part in our bustling port. One of these marine companies is Marco Polo Marine (SGX: 5LY) which has been listed on the SGX Mainboard since 2007. Macro Polo Marine operates regi

To Sembcorp Marine Ltd Attn: Mr Wong Weng Sun, President & CEO There is great concern amongst Sembcorp Marine’s (SCM’s) minority shareholders. With the previous major S$2.1 billion rights issuance in 2020 barely reached its first-year mark, SCM is reaching out to its shareholders for funds again. This will come as a surprise to SCM’s shareholders, especially when the Group CEO has alluded to some optimism in his FY2020 speech, as it was mentioned that the completion of the Group’s rights issue in 2020 has strengthened its liquidity position and balance sheet. Rationale for 2021 Rights Issuance Some shareholders are perplexed by (i) the rationale given, where this proposed rights issue endeavours to again “strengthen balance sheet and liquidity position”, and (ii) the signif

China’s attack on its US-listed companies drove early selling; Economic concerns prompted US bond rally – until Friday; STI recorded large daily swings with net 3 points gain at 3,131.40; US 10-year Treasury yield fell to 1.25% but ended at 1.36%; Sembmarine’s rights issue was in focus; Banks were strong first half performers: SGX; Companies bought back S$94m in shares in June China’s regulators attacked US-listed China companies It a fairly volatile trading week for the local stock market, with the Straits Times Index jumping almost 50 points on Tuesday as a delayed reaction to the US market’s all-time highs the previous week but then promptly losing a total of 83 points on Wednesday and Thursday. A Friday rebound of about 24 points ensured that the index moved into the blac

LIFETIME MEMBERSHIP It is a battle that Sembcorp Marine can ill-afford to lose. On 24 June, the announcement of the bombshell $1.5 billion rights issue led Sembcorp Marine share price to yet another dark chapter. Over the course of two weeks, Sembcorp Marine share price plunged by a staggering of nearly 35%. Given that the latest rights issue price is at an abysmal $0.08, it is reasonable to expect Sembcorp Marine to continue its disastrous run in the coming weeks. The sentiments for Sembcorp Marine share price are so toxic that not even the news of the merger with Keppel Offshore Marine (KOM) can halt the stock slump. The news of the $230 million contract win from Brazilian shipyard, for modification work to be completed on the Floating Production Storage and Offloading (FPSO) P-71 oil an