Author Topic: The other side of the coin  (Read 23294 times)

Offline zuolun

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Re: The other side of the coin
« Reply #100 on: August 27, 2019, 12:00:35 PM »
李嘉诚撤离砸4000亿给英国,这个香港富豪却携138亿“进军”内地 ~ 24 Aug 2019
http://www.sohu.com/a/336171862_100120495
香港经过几十年的发展,四大家族依旧屹立不倒。根据胡润研究院发布的《2019胡润全球富豪榜》显示,李嘉诚家族身价2057亿元,李兆基家族身价1915亿元,郑裕彤家族身价1205亿,郭炳联家族身价574亿,都处于顶级富豪行列。

China is looking for a quick economic fix in Hong Kong. It’s missing the point ~ 30 Jul 2019
https://www.theguardian.com/commentisfree/2019/jul/30/china-economic-hong-kong-carrie-lam
  • There are signs Beijing intends to work with Hong Kong on issues such as housing.
  • But without democratic reform, protests will intensify. Affairs office spokeswoman Xu Luying, speaking of social problems in Hong Kong, focused on economic issues such as youth opportunity, social mobility and housing affordability.
  • This holds out hope that Beijing intends to work with the Hong Kong government and, perhaps more importantly, Hong Kong’s all-powerful tycoons in addressing housing prices and other business and economic issues.
  • The extradition bill that originally motivated the present protest movement and the livelihood issues Beijing is targeting are merely symptomatic of what Hong Kong’s protesters see as the underlying cause: Hong Kong’s undemocratic system, under which the people are governed by a government beholden to Beijing and accountable to Hong Kong’s tycoon class, and not governing in the interests of the people.
Tycoons: The men who rule Hong Kong ~ 4 Oct 2016
https://www.timeout.com/hong-kong/blog/tycoons-the-men-who-rule-hong-kong-100416



李嘉诚旗下码头罢工续:工人十年未涨薪 ~ 1 Apr 2013
http://finance.ifeng.com/business/gs/20130401/7850145.shtml
据了解,位于葵涌的香港国际货柜码头,隶属和记黄埔港口集团,是世界最大的私营货柜码头。拥有四号、六号、七号、九号(北)泊位,同时与中远太平洋合资经营八号两个泊位。公司最终持有人是华人首富李嘉诚。



20万香港底层的真实生存状态:我还没死,就住进了棺材房 ~ 4 Oct 2017
https://www.sohu.com/a/196241273_313480


Offline zuolun

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Re: The other side of the coin
« Reply #101 on: September 03, 2019, 12:27:00 PM »
SP Setia ~ Trading in a downward sloping channel, TP RM1.17

SP Setia closed with a white marubozu @ RM1.56 (+0.09, +6.1%) with 2.26m shares done on 30 Aug 2019.

Immediate support @ RM1.47, immediate resistance @ RM1.60.



SP Setia ~ Trading in a downward sloping channel, interim TP RM1.55

SP Setia closed with an inverted hammer unchanged @ RM1.84 with 1.17m shares done on 9 Aug 2019.

Immediate support @ RM1.75, immediate resistance @ RM1.87.



Pound to Euro exchange rates: Sterling unstable against the Euro owing to Brexit uncertainty ~ 30 Aug 2019
https://www.poundsterlingforecast.com/2019/08/pound-to-euro-exchange-rates-sterling-unstable-against-the-euro-owing-to-brexit-uncertainty/

The Euro-Dollar charts point lower and a recession in Germany "just moved one step closer" ~ 30 Aug 2019
https://www.poundsterlinglive.com/eurusd/11961-euro-dollar-seen-heading-lower-as-german-domestic-economy-cracks-and-inflation-slides

Battersea project contributions seen for S P Setia from FY21 ~ 16 Aug 2019
https://www.edgeprop.my/content/1574799/battersea-project-contributions-seen-s-p-setia-fy21
CGS-CIMB Research maintained “hold” on S P Setia TP lowered to RM1.90.

Investor sentiment in Battersea project still strong ~ 25 Jun 2019
https://www.youtube.com/watch?v=Ke7QRgaprDM

伦敦巴特西迷雾:一桩自导自演的诡异交易 ~ 2 Feb 2018
http://www.guandian.cn/blogComment/20180202/197262.html
  • 事已至此,项目很大可能将面临亏损,但马来西亚投资方为了保证巴特西发电站项目能够顺利竣工,即便成本严重超支也要继续注资,于是乎便发生了开头所说的用马来政府资金为伦敦城市更新项目兜底的奇观。
  • 另外值得一提的是,马来西亚将在2018年3-4月举行大选,当时极力支持收购巴特西发电站的纳吉布正在寻求连任总理,即便是为了当下的选票和颜面,这个项目也显得不容有失。
  • 总结来说,梳理完巴特西发电站的前世今生,我们看到整件事最大的赢家无疑是“狂褥前殖民地羊毛”的英国人,自己一分钱不出,却能让马来西亚政府心甘情愿用国家资金帮伦敦做历史建筑改建和城市再生,可谓好处占尽,不愧是“空手套白狼”方面的大师!


Are mergers and acquisitions always good for investors?

By Royston Yang
31 January 2019

There's nothing which graces the headlines and makes business news more exciting than mergers and acquisition (M&A) announcements.

With the desire to grow larger and get better, more and more companies are on an acquisition spree to turbo-charge their growth and to create more "shareholder value". Investors who are on the receiving end of such announcements from the companies within their portfolio should carefully scrutinise the deals as M&A do not always turn out well. The devil, as they say, is in the details and this article attempts to explain the good and the bad when it comes to M&A.

The Lowdown On M&A
Companies undertake M&A for a variety of reasons, from the need to integrate a new product line or lines (buying instead of building one shortens the process), acquiring a new complementary set of customers, diversifying away from their core business or simply adding on to their existing capabilities. Whatever the reasons, investors should look at several aspects to ascertain if the transactions are good or bad.
  • Price paid and valuation – What was the total amount of money paid for the deal? Did the company over-pay or are they getting a good deal? It’s important to drill down into the valuation paid and not just look at the headline number. For example, if the acquisition costs $100 million and the acquired company generates $10 million in net profit each year, this means the acquisition was made at 10x earnings, which is considered cheap. The rule of thumb is anything above 15x earnings would be considered “expensive”, though of course, this varies according to the industry.
  • Supposed benefits – Look at what management communicates to shareholders regarding the benefits of the M&A. Does it result in better earnings visibility, wider customer base or product portfolio or some other tangible benefit? Be careful of general terms such as “synergies” which do not provide specific details on how the M&A will benefit the acquirer.
  • Funding for the acquisition – How is the acquisition funded? Using the company’s internal resources and based off free cash flow generation, or via a higher level of borrowings? This is important as it demonstrates if management may be biting off more than they can chew. The infamous leveraged buy-outs in the late 1990s, where companies borrowed aggressively to fund expensive acquisitions, turned out to be a grave mistake as many of these M&A subsequently fared poorly.
Assessing And Monitoring M&A
As investors, I believe we should continue to monitor and assess if the M&A performed well over time, to decide on whether the company had made a good or poor acquisition. Study the disclosures made of the new division or acquisition (assuming the company discloses such numbers) to determine if it is performing well or poorly. The time horizon should be anything from one year to three years, so this can be a long-drawn process.

The Foolish Bottom Line
M&A can be complex, and it’s not easy for the investor to assess if an M&A is good or bad unless he monitors it. A company may also have a track record of successful M&A which an investor can rely on for psychological comfort. The bottom line is that M&As are not always beneficial, and the investor should be aware of this.

Offline zuolun

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Re: The other side of the coin
« Reply #102 on: Yesterday at 01:06:05 PM »
The Basics Of Game Theory
https://www.investopedia.com/articles/financial-theory/08/game-theory-basics.asp

所有上市公司掌舵人在股票市场玩数字游戏最先考虑的重点是,他們自己本身的利益:

Chip Eng Seng's rights issue proposal = 大鱼吃小鱼  [供股(rights issue)纯粹为了让大股东吞吃小股东的利益]

Elephant in the room: “Change of control” situations ~ 5 Sep 2019
https://governanceforstakeholders.com/2019/09/05/elephant-in-the-room-change-of-control-situations/
“if the EGM resolutions are passed, the controlling shareholders stand to receive about $1 million to carry out this rights issue that will likely allow them to increase their shareholdings beyond 30% without triggering the mandatory general offer. This seems like a case of having your cake and eating it too.”



Securities watchdog looking into billionaire couple' s purchase of Chip Eng Seng shares

18 Sep 2019

THE Securities Industries Council (SIC), which administers Singapore's takeover code, is looking into the circumstances that saw billionaire couple Celine and Gordon Tang emerge as substantial shareholders of Chip Eng Seng in October last year.

"The SIC is looking into the acquisition of shares in the company in October 2018 by the relevant parties," the council said on Tuesday in response to queries from The Business Times.

"As our enquiry is on-going, we are not able to comment further at this point."

The Tangs forked out S$201 million to become Chip Eng Seng's largest shareholders last October, through married deals with members of Chip Eng Seng's controlling Lim family that were done at a premium to the market price.

However, the Tangs chose not to buy out the Lim family's entire stake. Instead, they bought enough to take their stake to 29.73 per cent.

By keeping their ownership below 30 per cent, the Tangs avoided having to buy out Chip Eng Seng's minority shareholders at the same price that the insiders were bought out.

So when Chip Eng Seng proposed a rights issue last month that will be sub-underwritten by the Tangs, corporate governance advocates raised concerns that the relatively unattractive rights offering could lead to the Tangs raising their stake to as high as 43.43 per cent of the enlarged issued capital, allowing them to strengthen their control over the property and construction group without paying minority shareholders a dime.

The SIC declined to comment on why it is revisiting last year's married deals now.

In July, it greenlighted the Tangs' request to waive their obligation to buy out everyone if their ownership crosses 30 per cent as part of the rights issue.

The council's statement on Tuesday came after BT asked it to explain its rationale for the waiver.

Rule 14(6) of the takeover code requires the Tangs to make a takeover offer for Chip Eng Seng if the council judges that the couple have "a significant degree of control" over the voting rights of those insiders who sold them only part of their shares.

Corporate governance activists Mak Yuen Teen and Chew Yi Hong had argued in the pages of BT last week that the Tangs do indeed have effective control over the company, which they believe puts the rationale for the rights issue into question.

Even if the Tangs keep their ownership below 30 per cent, the code states that "the payment of a very high price for the voting rights would tend to suggest that control over the entire holding (of the sellers) was being secured", among other things.

The Tangs paid the Lims a premium of 26.5 cents (or about 33 per cent) to the average undisturbed price of 81.5 cents for their shares last year, wrote Prof Mak and Mr Chew, which works out to a control premium of about S$49 million.

Prof Mak said on Tuesday: "I think the issues of concert parties, partial sales, payment of a high price, independence of directors and corporate actions like the rights issue we saw in Chip Eng Seng need to be scrutinised. It's good if the SIC is looking at it."

When BT approached Chip Eng Seng's board of directors for comment on Tuesday, independent director Abdul Jabbar said: "As the acquisition of shares is a shareholder issue which does not involve the company and there is an enquiry by the SIC on going, it would not be appropriate for the board of CES (Chip Eng Seng) to comment on this.

"From CES' perspective, our corporate strategic growth plans and need for funding remain in place, and, barring any unforeseen developments, we intend to proceed with the rights issue as planned."

The SIC follows due process in its enquiries. It cannot halt a company's corporate actions without the backing of its findings.

Celine Tang, who is a non-executive and non-independent chairman of Chip Eng Seng, did not comment.

Gordon and Celine Tang reside in Singapore, and are reportedly close to the Bush family and Thailand's former prime minister Yingluck Shinawatra.

Mrs Tang is managing director of Singapore-listed SingHaiyi. Neil Bush, the brother of Jeb and former US president George W. Bush, chairs SingHaiyi.

The Tangs also own stakes in Singapore-listed Suntec Reit, ARA US Hospitality Trust, Eagle Hospitality Trust, Cromwell European Reit, OUE Commercial Reit and OKH Global.

Chip Eng Seng proposes rights issue to raise S$96m for expansion

22 Aug 2019

MAINBOARD-LISTED developer  Chip Eng Seng on Thursday said that it plans to  do a renounceable underwritten rights issue of about 156.5 million new  shares at  S$0.63 each, to raise  net proceeds of about  S$96.3 million for its expansion plans.

This will be done on the basis of one rights share for  every four existing shares in the company held by shareholders.

Proceeds will be used  to finance the possible expansion of its property development business in Singapore and overseas, as well as to fund  possible strategic investments and acquisitions in the  education segment of its business, which is in line with the group' s recent diversification into the education sector.

Some money will also be used for  the growth and operations of the group' s hospitality segment, as well as for  general and working capital.

In support of the rights issue, controlling shareholder Celine Tang (also the company' s chairman), her husband Gordon Tang, as well as group CEO Chia Lee Meng Raymond,  have given irrevocable undertakings to subscribe for their portion of shares, which constitute about 31.51 per  cent of the total number of rights shares.

Mr and Mrs Tang have been granted approval by the  Securities Industry Council of Singapore not to have to  make a  mandatory general offer, should  their shareholding in the company rise above 30 per cent.

Ms Tang has a direct and deemed interest of  29.73 per cent in the company.

The price carries a 7.35 per cent discount to the closing price of S$0.68 per share on  Aug 22, and a  5.97 per cent discount to the theoretical ex-rights price of S$0.67, assuming the completion of the rights issue, calculated based on the Aug 22 closing price.

Chip Eng Seng said it has considered other fundraising options, including further bank borrowings  and debt instruments from financial institutions or debt issuances under its S$750  million Multicurrency Debt Issuance Programme, but found a rights issue to be the most " suitable" .

This is because its  net debt-to-equity ratio is already about 1.8 times as at end-June 2019, and  based on the three-year fixed rate notes issued in March 2019 under the programme, the cost of borrowing was 6 per  cent per annum.

"The cost of borrowing depends on market conditions and may be higher for borrowings of a longer tenor," it said.

It has also calculated based on its last paid dividends and Aug 22 closing price, that the cost of equity would be cheaper at about 5.88 per cent per  annum.

Therefore, a rights issue would strengthen the group' s financial position by improving its  balance sheet and capital base, while reducing its net gearing, the firm added.

At the same time, it will give the group greater financial capacity  and flexibility to capitalise on investment and expansion opportunities and allow it to respond  to such opportunities quickly, it said.

Chip Eng Seng will be seeking approval from shareholders in  an extraordinary general meeting to be convened to vote on the issuance, among other things.

United Overseas Bank has been appointed the manager and underwriter for the rights issue.