Another update: Acquisition by GIT passed shareholders' approval, awaiting exchange's approval and thereafter, trading will resume. Another 2 buy calls analysis.
http://www.hupogu.com/S/SZ300465/view-post
On a side note, Chinese Research report seems to be lacking in specifics, I have not seen the breakdown in customers and segments yet of GIT
(Vested interest)
It seems that GIT has started trading again. Now at 75? Which is already 50% more than the placement price of 50?
If SLA really want to dispose, now is the good time!! Let's wait and see.
(30-06-2016, 02:02 PM)ksir Wrote: [ -> ]It seems that GIT has started trading again. Now at 75? Which is already 50% more than the placement price of 50?
If SLA really want to dispose, now is the good time!! Let's wait and see.
Has SLA disposed all their GIT?
Sale of Shares in Global Infortech co. Ltd ("GIT")
Silverlake Axis Ltd. wishes to announce that the Company has sold 3,800,000 GIT Shares and 3,000,000 GIT Shares on 6 December 2016 and 7 December 2016 respectively, amounting to an aggregate of 6,800,000 GIT Shares, by block trade on ChiNext of the Shenzhen Stock Exchange ("Disposal") for an aggregate cash consideration of RMB144.44 million, comprising the price of RMB21.48 and RMB20.94 per Sale Share on 6 December 2016 and 7 December 2016 respectively, which represents a 2.8% discount to the market price of GIT’s shares of RMB22.10 and RMB21.54 on 6 December 2016 and 7 December 2016 respectively, at the time of the Disposal.
3.8 million x RMB21.48 = RMB 81.624 million
3.0 million x RMB20.94 = RMB 62.820 million
Total 6.8 million shares for a consideration of RMB 144.44 million
(or approximately RM92.44 million, applying an exchange rate of RMB1:RM0.64)
Following the sale of the Sale Shares, the Company’s interest in GIT has been reduced from 13.99% to 12.43%.
More details in
http://infopub.sgx.com/FileOpen/SAL%20An...eID=432198
Unless GIT turns out to be the alibaba of fintech (I won't hold my breath), the sales at the sky high valuation should be a good initiative. Hoping them to clear the remaining 54M shares next year. With current GIT price, the remaining shares are about 15% of current silverlake's market cap (at s$0.575).
The gain of already sold shares are about 7% of silverlake's market cap.
Which is to say, if u expect extra dividend, that could be what you may get.
<vested>
Dividend is great, and the profit generated should certainly be considered when valuing Silverlake.
But the shrewd business acumen to invest in GIT early, to gain access to the Chinese market, and the ability to recognize that it is overpriced, and reduce position correspondingly while it is overpriced, speaks volumes on the quality of management.
That coupled with the consistent increase in recurring income base, kept me vested.
(10-12-2016, 02:18 AM)Wildreamz Wrote: [ -> ]Dividend is great, and the profit generated should certainly be considered when valuing Silverlake.
But the shrewd business acumen to invest in GIT early, to gain access to the Chinese market, and the ability to recognize that it is overpriced, and reduce position correspondingly while it is overpriced, speaks volumes on the quality of management.
That coupled with the consistent increase in recurring income base, kept me vested.
I share your optimism in this Company. Hopefully the recent winning of 2 contracts in Thailand & the expansion of Merimen in Hong Kong will restore the shine to the silver in Silverlake axis
http://infopub.sgx.com/Apps?A=COW_CorpAn...7aa384c11d
http://infopub.sgx.com/FileOpen/SAL%20Gr...eID=439063
http://infopub.sgx.com/FileOpen/Silverla...eID=439064
Recurring revenue (Core Banking, Insurance SaaS) strengthens, non-recurring revenues at a cyclical low as Financial Institutions cut capital spending.
Next quarter may see their y-o-y revenue stabilizes as recent project wins get recognize. Long term demand for digitization of Financial Services should be growing at a healthy clip.
What worries me is competition (management doesn't seem to mention that often) from new technology such as Blockchain and AI and startups in Fintech. Offerings from larger, more established tech companies (Infosys etc) seems more attractive. Silverlake's strength is their willingness to acquire new capabilities through M&A, and their established market position in South East Asia.
Potential Catalyst is new contract announcements and announcements on how they intend to use their large cash position.
(vested in Silverlake and Infosys)
(07-12-2016, 06:50 PM)cyclone Wrote: [ -> ]Sale of Shares in Global Infortech co. Ltd ("GIT")
Silverlake Axis Ltd. wishes to announce that the Company has sold 3,800,000 GIT Shares and 3,000,000 GIT Shares on 6 December 2016 and 7 December 2016 respectively, amounting to an aggregate of 6,800,000 GIT Shares, by block trade on ChiNext of the Shenzhen Stock Exchange ("Disposal") for an aggregate cash consideration of RMB144.44 million, comprising the price of RMB21.48 and RMB20.94 per Sale Share on 6 December 2016 and 7 December 2016 respectively, which represents a 2.8% discount to the market price of GIT’s shares of RMB22.10 and RMB21.54 on 6 December 2016 and 7 December 2016 respectively, at the time of the Disposal.
3.8 million x RMB21.48 = RMB 81.624 million
3.0 million x RMB20.94 = RMB 62.820 million
Total 6.8 million shares for a consideration of RMB 144.44 million (or approximately RM92.44 million, applying an exchange rate of RMB1:RM0.64)
Following the sale of the Sale Shares, the Company’s interest in GIT has been reduced from 13.99% to 12.43%.
More details in http://infopub.sgx.com/FileOpen/SAL%20An...eID=432198
Silverlake Axis Ltd. has today sold a further 3,400,000 GIT Shares by block trade on ChiNext of the Shenzhen Stock Exchange.
3.4 million x RMB14.6 = RMB 49.64 million
Following the sale of the Sale Shares, the Company’s interest in GIT has been reduced from 9.93% to 9.18%.