Sing Holdings

[Vseeker]

fact of the matter is SingHldg simply cannot afford to do any meaningful share buybacks, or even a script dividends, without risks of triggering a Takeover.

for ease of discussion, we just look at the shares of FH LEE Holdings (136,110,746 shares or a 33.94%) and ignore the rest of the LEEs family members.
Below is valid coz the LEEs aggregate stake in SingHldg is greater than 30% BUT less than 50%.

just a mere 3% buyback = that's only 12,029,840 shares only, will reduces issued shares to 388,964,812 shares

then FH LEE Holdings 136,110,746 shares (currently at 33.94%) will jump to 34.99%.
==> if this happen (> 1% change for the LEEs) within a 6-month period, a mandatory takeover is trigger !!.
==> the LEE's may NOT be keen at all in seeing SingHldg getting delisted.

for that matter, even a script dividend could easily trigger a mandatory takeover
eg. just a 2c script div, with script priced at 25c per share (just a small discount)
ASSUMPTIONs => total takeup rate for scripts at 60% (inclusive of the LEEs who opt for script in full)
=> will again see FH LEE Holdings stake alone, rising from 33.94% to 34.98%
==> again trigger a mandatory takeover.


NB: not vested in SingHldg,
for those who follow my thinkings, it should be obvious to you that I always believe there are much more attractive alternatives out there.