(14-06-2013, 01:42 PM)valuehunter Wrote: [ -> ]My 2 cents:
Though the absolute quantum is the same at $1500 per lot owned, $1.50 per right share looks cheaper compared to $2.50. Hence may be more attractive.
Secondly, this helps avoid odd lots, notwithstanding the fact that shareholders can always apply for excess rights shares.
valuehunter, thanks for sharing your thoughts. Yes, attractive pricing is important. But we need to bear in mind that the total $ paid is the same. For that matter, if they issue 2 for 1 at $0.75 it will appear even cheaper than $1.50. So I believe liquidity may be another consideration here. Wondering if there are other considerations.
The 1 for 1 ratio penalise shareholders who do not take up the rights issue more than say, 3 for 5, due to the dilution.
I guess whatever the ratio have to be acceptable to certain substantial SHs, which leads to their irrevocably undertaking to subscribe in full. For the same amount paid, they may increase their shareholdings at the expense of those who do not subscribe.
For $2.5 using 3 for 5 there is a chance that UE shares will trade below this price. When that happens it would be cheaper to buy the shares directly than to subscribe.
By pricing $1.5 based on 1 for 1 they are confident that UE price will not trade lower and therefore shareholders are forced to subscribe if they do not want their holdings get diluted.
ue divesting something heavy today..something is brewing?
(04-07-2013, 10:42 PM)pianist Wrote: [ -> ]ue divesting something heavy today..something is brewing?
It's expected as UE needs to pay for WBL shares.
(05-07-2013, 10:06 AM)Tiggerbee Wrote: [ -> ] (04-07-2013, 10:42 PM)pianist Wrote: [ -> ]ue divesting something heavy today..something is brewing?
It's expected as UE needs to pay for WBL shares.
huh? how come? i tot they gg to fund WBL purchase using the right issue?
Looks like unlocking value via REIT IPO ?
Quote:SINGAPORE, 4 July 2013 – United Engineers Limited (the “Group”) today announced proposed plans to divest mixed-used development UE BizHub EAST in Changi Business Park for $518 million. United Engineers Developments Pte Ltd (“UED”), a wholly owned subsidiary of the Group, has entered into a conditional put and call option agreement with Viva Industrial Trust Management Pte. Ltd. (“VITM”) in its capacity as the manager of the proposed Viva Industrial Real Estate Investment Trust (“REIT”), for the sale of UE BizHub EAST by UED to, and the purchase of UE BizHub EAST from UED by, the trustee of the REIT.
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UED will also have the opportunity to invest in an enlarged diversified industrial property portfolio through the subscription of 5% of the stapled securities of a stapled group comprising the REIT and a business trust proposed to be issued and listed on the Singapore Exchange Seccurities Trading Limited (“SGX-ST”). In addition, the Group is also granted the right to subscribe for a 10% stake in each of VITM and Viva Asset Management Pte. Ltd., being the trustee-manager of the business trust.
http://infopub.sgx.com/Apps?A=COW_Corpor...040713.pdf [Press Release]
(Not Vested)
Looks similar to what Boustead is planning to do recently. They also granted the right of first refusal to Viva to divest UE BizHub Central.
SO MAny reits or reits to be acting as vacuum cleaners....these days
Lol another one to add to the reit bubble