Felix.
I think ur entry price for ocbc is pretty low.
I also like dbs a lot. Used to buy dbs. But never intend to hold. Because dbs too expensive for me.
Saw ocbc drop quite a lot recently. So I just buy .
Now I think I have to be long term investor
Thanks, Felix. Much to learn as I've just started investing.
Trading halted.
hmm..
Wonder why there is no announcement or whatsoever ?
They still cannot have a final agreement going into the eleventh hour of the deadline ?
Ocbc management are generallly very conservative. No confirm
Plus chop plus double stamp they will not say anything. But looking at wing hang's spike in price, insiders are saying its a done deal.
Good morning everyone.
Singapore's OCBC offers $4.95 bln for Wing Hang bank
SINGAPORE, April 1 (Reuters) - Oversea-Chinese Banking Corp Ltd , Singapore's second-biggest lender, made a formal offer to buy Hong Kong's Wing Hang Bank Ltd <0302.HK> for a slightly lower than expected HK$38.428 billion ($4.95 billion).
It is offering HK$125 a share to buy all shares of Wing Hang, according to a joint announcement, after having reached a deal with the bank's biggest shareholder to purchase a nearly 45 percent stake.
The offer price is below earlier expectations, with sources previously estimating the deal could be worth $5.3 billion.
The offer price translates to a book value of 1.77 times for Wing Hang Bank based on its book as of Dec. 31.
The deal will give OCBC a much sought-after gateway to China and help bridge the gap with bigger Singapore rival DBS Group Holdings , which operates Hong Kong's fifth-biggest bank. [ID:nL3N0KD1PT] OCBC will purchase the stake from members of Wing Hang's founding Fung family, their affiliates and related family trusts, and BNY International Financing Corp.
https://sg.uobkayhian.com/page/SLQG_News...D=20604024
http://infopub.sgx.com/FileOpen/OCBC_Ann...eID=289225
http://infopub.sgx.com/FileOpen/OCBC_Med...eID=289226
<vested-oldpot><not a call to buy or sell>
1.77 is below market's expectation of 1.9 times
I think market was previously tooo negative, I expect OCBC to open higher.
Congrats to those vested ^_^ *winks*
maybe a fair buy for long term strategic benefits, but to raise funds for the purchase via rights/placement = dilutions or top-up cash from SH = further drop in price .... well...
still Look see look see for me...
Report from L&T this morning on OCBC..
OCBC
S$9.51-OCBC SP
OCBC will offer HK$125 per share for Wing
Hang Bank (WHB), valuing the company at
HK$38.428mln (S$6.234mln).
This is at a 1.6% premium to WHB’s last traded
price, but 51% premium to WHB’s price of HK$83
in Sept last year when news first broke of OCBC’s
interest in acquiring the bank.
OCBC has received irrevocable undertaking from
50.66% of WHB’s shareholders to vote in favor of
the deal.
The proposed acquisition values WHB at 1.77x price
to book (Dec’13 book value), below recent market
expectations of about 1.9-2x.
The offer is still subject to certain pre-conditions
being satisfied, including the obtaining of regulatory
approvals.
OCBC plans to use a mix of internal resources,
new debt as well as equity capital to fund the
acquisition and maintain capital adequacy ratios post
acquisition.
Before taking into account any external funding
sources, the acquisition is expected to reduce
OCBC’s common equity tier 1 CAR and tier 1 CAR
from 14.5% to 11% and total CAR from 16.3% to
12.5%.
Management expects the acquisition to become
accretive to OCBC’s earnings per share and ROE
by 2017.
As widely documented, the acquisition is strategic
to OCBC’s target expansion into the Greater China
region and post acquisition, its exposure would be
boosted from about 5% to between 15-20%.
And as expected, the acquisition would not come
cheap as evident from the 1.77x price to book that
OCBC is paying for WHB which is at a premium to
the 1x average price to book of HK-listed banks
such as HSBC and Standard Chartered.
While OCBC could benefit from a short term relief
rally given that it has already declined from the
$10.46 level (in Sept’13) since news broke of its
potential acquisition of WHB, the 1.77x book is
below market expectations of 1.9-2x and that it
has underperformed the sector, we would still stick
with our preference of UOB and DBS given the
absence of overhang concerns from the need to
raise new debt and equity capital as well as relatively
cheaper valuations (1.2-1.4x price to book versus
OCBC’s 1.44x and PE of 10-11x versus OCBC’s
12x)
Not vested
OCBC didn drop much today? surprised...
ocbc need to break resistance 9.69 , then can climb higher.