ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

Wah so refreshing... looks like more mega deals are coming to CM Pac...

(12-09-2014, 05:02 PM)Nick Wrote: [ -> ]http://www.cmhp.com.sg/

The corporate website has been revamped significantly. A lot more 'professional' and investor friendly now. Juirui Expressway has been added in.

http://www.cmhp.com.sg/investor-dividends - this page speaks volume on the quality of the Company track record and its cash generating abilities. I understand many retail investors often hunt (and punt) S Chips though I wonder why they don't really consider this haha !

(Vested)

http://infopub.sgx.com/FileOpen/Cancella...eID=314711

The board of directors (the “Board”) of China Merchants Holdings (Pacific) Limited (the “Company”) wishes to announce that HK$17,000,000 in aggregate principal amount of HK$1,163,000,000 1.25 per cent. convertible bonds due 2017 (credit enhanced until 2015) (the “Convertible Bonds”) have been converted and cancelled pursuant to the exercise of conversion rights by the holder thereof (the “Conversion”). Accordingly, following such conversion and cancellation, the aggregate principal amount of the Convertible Bonds remaining outstanding as of 12 September 2014 is HK$959,000,000.
Arising from such conversion, 3,248,742 new ordinary shares in the capital of the Company (“Shares”) have been issued at the conversion price of S$0.826 and the total number of issued and paid-up Shares of the Company has increased to 1,015,832,813.

Based on outstanding HK$959m worth of CBs, the potential shares to be converted at $0.826 is 183.267m.

xd 16 Oct, payable 7 Nov Oct

http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

http://www.cmhp.com.sg/about-milestones

2011
The Group completed the acquisition of a 51.0 per cent. equity interest in Zhejiang Wenzhou Yongtaiwen Expressway Co., Ltd which owns and operates the Wenzhou Yongtaiwen Expressway (Wenzhou Section) from CMG.

2012
The Group completed the acquisition of the entire issued ordinary share capital of Beilun (Hong Kong) Investment Limited (“Beilun HK”) from China Ping An Insurance Overseas (Holdings) Limited. Beilun HK is the holding company of Beilun Port Expressway Co which owns the rights to operate the Ningbo Beilun Port Expressway.

The Company successfully issued an aggregate principal amount of HK$1,163,000,000 1.25 per cent. convertible bonds due 2017 (credit enhanced until 2015).

The Group completed the disposal of the Group’s entire 60.0 per cent. equity interest in the Yuyao Highway.

2014
The Group completed the disposal of 100% interest in China Merchants Pacific (NZ) Limited.

The Group completed the acquisition of the entire issued share capital of Hong Kong Honest Queen International Investment Limited (the "Target") from Liuqiang and Gong Xiaoping. The Target is the holding company of Jiuirui Expressway Co which owns the rights to operate the Jiurui Expressway.

11 Aug 2010 ($0.72) - YTW http://infopub.sgx.com/Apps?A=COW_CorpAn...elease.pdf

19 Aug 2011 ($0.53) - YTW Completion http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

23 Feb 2012 ($0.68) 2011 Final Results and Dividend Policy of at least 5.5 cents DPS for FY12 and FY13 http://infopub.sgx.com/FileOpen/FY2011-P...leID=75416

The Group has paid no less than 50% of its net profit to shareholders since its
transformation into a leading toll road player in 2004. Instead of targeting a dividend
payout ratio of at least 50% of net profit attributable to shareholders, the Directors now
target for an annual dividend payout of at least 5.5 cents a share over the next two
years in view of the increased gearing and the Group’s future development needs.

6 Aug 2012 ($0.70) - Ningbo Beilun http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.PDF

18 Sept 2012 ($0.715) - Proposed issue of CB due 2017 http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

14 Nov 2012 ($0.725) - Completion of Ningbo Beilun http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

12 Dec 2012 ($0.71) - First Attempt at Jiurui http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

15 May 2013 ($0.895) - Non completion of Jiurui http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

27 Sept 2013 ($0.86) - Disposal of NZ Prop to Sister Co http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

27 Feb 2014 ($0.905) - FY13 results and surprised increase of final dividends to 4.25cents totalling 7 cents above 5.5 cents guidance http://infopub.sgx.com/Apps?A=COW_CorpAn...elease.pdf

5 Mar 2014 ($0.96) - Extension of long-stop for NZ prop disposal http://infopub.sgx.com/Apps?A=COW_CorpAn...of_LSD.pdf

16 Apr 2014 ($0.955) - Completion of disposal of NZ Prop http://infopub.sgx.com/Apps?A=COW_CorpAn..._CMPNZ.pdf

21 Jul 2014 ($0.925) - 2nd attempt at Jiurui http://infopub.sgx.com/Apps?A=COW_CorpAn...elease.pdf

9 Sept 2014 ($0.945) - Completion Jiurui http://infopub.sgx.com/Apps?A=COW_CorpAn...essway.pdf

9 Sept 2014 - Conversion of RCCPS by Huajian http://infopub.sgx.com/Apps?A=COW_CorpAn...ersion.pdf

15 Sept 2014 - Jiang Yan Fei converts 1.2m share options @ $0.789 http://infopub.sgx.com/FileOpen/eFORM1V2...eID=314942

Vested GG

http://infopub.sgx.com/FileOpen/Cancella...eID=315232

The board of directors (the “Board”) of China Merchants Holdings (Pacific) Limited (the “Company”) wishes to announce that HK$7,000,000 in aggregate principal amount of HK$1,163,000,000 1.25 per cent. convertible bonds due 2017 (credit enhanced until 2015) (the “Convertible Bonds”) have been converted and cancelled pursuant to the exercise of conversion rights by the holder thereof (the “Conversion”). Accordingly, following such conversion and cancellation, the aggregate principal amount of the Convertible Bonds remaining outstanding as of 18 September 2014 is HK$952,000,000.
Arising from such conversion, 1,337,717 new ordinary shares in the capital of the Company (“Shares”) have been issued at the conversion price of S$0.826 and the total number of issued and paid-up Shares of the Company has increased to 1,018,590,530.

Based on outstanding HK$952m worth of CBs, the potential shares to be converted at $0.826 is 181.93m.

On further review of my original posting, I will add the following comments:

i) seems like CMP is a hurry since 1st acquiring YTW from CMG only to be set back by regulatory on YTW since its the first major acquisition for CMP since 2004 back in 2010

ii) of course jiurui... probably due to deterioration in mkt conditions and they want to squeeze vendors

iii) investors must not be surprised that another accretive deal is in the offing otherwise Huajian would not have converted the RCCPS which they would have done in the many years since it was first issued in 2004.

Vested
Core Position
GG

(17-09-2014, 09:28 PM)greengiraffe Wrote: [ -> ]http://www.cmhp.com.sg/about-milestones

2011
The Group completed the acquisition of a 51.0 per cent. equity interest in Zhejiang Wenzhou Yongtaiwen Expressway Co., Ltd which owns and operates the Wenzhou Yongtaiwen Expressway (Wenzhou Section) from CMG.

2012
The Group completed the acquisition of the entire issued ordinary share capital of Beilun (Hong Kong) Investment Limited (“Beilun HK”) from China Ping An Insurance Overseas (Holdings) Limited. Beilun HK is the holding company of Beilun Port Expressway Co which owns the rights to operate the Ningbo Beilun Port Expressway.

The Company successfully issued an aggregate principal amount of HK$1,163,000,000 1.25 per cent. convertible bonds due 2017 (credit enhanced until 2015).

The Group completed the disposal of the Group’s entire 60.0 per cent. equity interest in the Yuyao Highway.

2014
The Group completed the disposal of 100% interest in China Merchants Pacific (NZ) Limited.

The Group completed the acquisition of the entire issued share capital of Hong Kong Honest Queen International Investment Limited (the "Target") from Liuqiang and Gong Xiaoping. The Target is the holding company of Jiuirui Expressway Co which owns the rights to operate the Jiurui Expressway.

11 Aug 2010 ($0.72) - YTW http://infopub.sgx.com/Apps?A=COW_CorpAn...elease.pdf

19 Aug 2011 ($0.53) - YTW Completion http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

23 Feb 2012 ($0.68) 2011 Final Results and Dividend Policy of at least 5.5 cents DPS for FY12 and FY13 http://infopub.sgx.com/FileOpen/FY2011-P...leID=75416

The Group has paid no less than 50% of its net profit to shareholders since its
transformation into a leading toll road player in 2004. Instead of targeting a dividend
payout ratio of at least 50% of net profit attributable to shareholders, the Directors now
target for an annual dividend payout of at least 5.5 cents a share over the next two
years in view of the increased gearing and the Group’s future development needs.

6 Aug 2012 ($0.70) - Ningbo Beilun http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.PDF

18 Sept 2012 ($0.715) - Proposed issue of CB due 2017 http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

14 Nov 2012 ($0.725) - Completion of Ningbo Beilun http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

12 Dec 2012 ($0.71) - First Attempt at Jiurui http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

15 May 2013 ($0.895) - Non completion of Jiurui http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

27 Sept 2013 ($0.86) - Disposal of NZ Prop to Sister Co http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

27 Feb 2014 ($0.905) - FY13 results and surprised increase of final dividends to 4.25cents totalling 7 cents above 5.5 cents guidance http://infopub.sgx.com/Apps?A=COW_CorpAn...elease.pdf

5 Mar 2014 ($0.96) - Extension of long-stop for NZ prop disposal http://infopub.sgx.com/Apps?A=COW_CorpAn...of_LSD.pdf

16 Apr 2014 ($0.955) - Completion of disposal of NZ Prop http://infopub.sgx.com/Apps?A=COW_CorpAn..._CMPNZ.pdf

21 Jul 2014 ($0.925) - 2nd attempt at Jiurui http://infopub.sgx.com/Apps?A=COW_CorpAn...elease.pdf

9 Sept 2014 ($0.945) - Completion Jiurui http://infopub.sgx.com/Apps?A=COW_CorpAn...essway.pdf

9 Sept 2014 - Conversion of RCCPS by Huajian http://infopub.sgx.com/Apps?A=COW_CorpAn...ersion.pdf

15 Sept 2014 - Jiang Yan Fei converts 1.2m share options @ $0.789 http://infopub.sgx.com/FileOpen/eFORM1V2...eID=314942

Vested GG

Term Loan Facility

http://infopub.sgx.com/FileOpen/Term_Loa...eID=315383 [SGX Announcement]

CM Pacific has secured US$220 million loan facility with 5 year maturity. This facility will likely be used to repay Jiurui's existing debt (6.4% effective interest) thereby reducing the effective interest cost. I suspect this will be done by shareholder's loans from the holding company to the asset company in China. Currently, based on the Circular, Jiurui has HK$1.6 billion debt so this facility of US$220 million or HK$1.7 billion will be more than sufficient to refinance it. We will need to wait for the upcoming Annual Report to see the interest costs and debt repayment terms.

The previous US$150 million loan facility to refinance Beilun debts had these terms:

Quote:Bank loan G is a United States dollar facility of US$150,000,000. 1st repayment shall be 40% of the
loan principal which falls on June 2017 while the repayment for the balance loan principal is in June
2018. The interest rate is charged at BBA LIBOR plus a margin of 1.95% per annum. The average
effective interest rate of the loan is 2.62% per annum

[2013 Annual Report]

The speed of the RCPS conversion, issue of Vendor shares and debt refinancing surprised me. It might even be possible for Jiurui to break even this year.

(Vested)

Its all according to the script... they have readied their machinery to restructured the high costs debt with little time to lose...

Once Jiurui is wrapped up, there appears to be a good chance that another road is in the offing...

Noted that all new shares issued to Liu Qiang are entitled to 3.5c interim dividends alongside the shares from converting RCCPS... they are absolutely confident that absolute dividend payments going forward are no worries.

Mgt has openly stated that they rather keep dividends growing on a sustainable basis to support a higher share price in order to facilitate issuing of new shares to part pay for future acquisitions.

Compared to the pre 2013 days where share price is below book NAV and the ability to issue shares is impaired, CMP acquisitive ability is alive and kicking...

Vested
Core Position
GG

(19-09-2014, 06:01 PM)Nick Wrote: [ -> ]Term Loan Facility

http://infopub.sgx.com/FileOpen/Term_Loa...eID=315383 [SGX Announcement]

CM Pacific has secured US$220 million loan facility with 5 year maturity. This facility will likely be used to repay Jiurui's existing debt (6.4% effective interest) thereby reducing the effective interest cost. I suspect this will be done by shareholder's loans from the holding company to the asset company in China. Currently, based on the Circular, Jiurui has HK$1.6 billion debt so this facility of US$220 million or HK$1.7 billion will be more than sufficient to refinance it. We will need to wait for the upcoming Annual Report to see the interest costs and debt repayment terms.

The previous US$150 million loan facility to refinance Beilun debts had these terms:

Quote:Bank loan G is a United States dollar facility of US$150,000,000. 1st repayment shall be 40% of the
loan principal which falls on June 2017 while the repayment for the balance loan principal is in June
2018. The interest rate is charged at BBA LIBOR plus a margin of 1.95% per annum. The average
effective interest rate of the loan is 2.62% per annum

[2013 Annual Report]

The speed of the RCPS conversion, issue of Vendor shares and debt refinancing surprised me. It might even be possible for Jiurui to break even this year.

(Vested)

Another possibility is to prepare for another deal.

vested

That's super fast refinacing. Pleasant surprise. Looking at rate of cb conversion, eps shd easily hit 9cents this year. Much will depend on how much jiurui grow to further increase their eps going forward. The report seems to predict quite an exponential growth, let's hope it turn out true.