BusinessWeek, 24 Oct 2010
Oct. 24 (Bloomberg) -- Singapore Exchange Ltd. plans to offer about A$8.4 billion ($8.2 billion) in cash and stock to buy ASX Ltd., which runs the Australian stock exchange, said two people familiar with the matter.
The operator of Singapore’s exchange will bid A$48 per ASX share and pay 55 percent of the deal in stock and the remainder in cash, said the people, who asked not to be identified before an announcement scheduled for tomorrow. ASX shareholders will receive A$22 cash for each share they hold, they said.
The offer price represents about a 37 percent premium to the last closing price of ASX in Sydney. Trading in shares of both companies was halted on Friday
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leoleo
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24-Oct-2010 23:55
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I bet sgx sure up. Friday share drop due to investor do not have clear picture for this deal. Now everything was digested and if successful this counter sure have brilliant bright future. Congrat who still holding , If share px drop, I sure grab more. | ||||
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Noob79
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24-Oct-2010 23:38
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My feeling tell me sure fall... |
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Jackpot2010
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24-Oct-2010 23:05
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Deal favours ASX - too expensive! SGX may fall to S$8 on Tuesday (26 Oct) open!ASX 52 week HI/Low = A$37/A$28; Fri close = A$35.SGX offer price = A$48 (37% premium), payable roughly half in cash, half via share swap. Aus$/SGD = 1.28.Sunday, October 24, 2010 |
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joshlai86
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24-Oct-2010 22:45
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It won't be cum rights, unless there is rights issue. Finance by shares, meaning company will place out shares to ASX shareholders, not us. Thus, if acquisition proceeds, of course the market will react la, why would it wait till the deal is completed? Market is FORWARD LOOKING. your analogy using CD and XD doesnt apply, firstly there is no rights issue, so no Cum Rights, thus no XR. if the market thinks that the deal is good, why does SGX price fall while ASX price rise before announcement? As mentioned earlier in my post, aquirer has to buy premium to buy the acquiree. SGX has to pay premium, by issuing lots of shares. Thus market will discount this news and correct the price, no need wait until deal is completed. |
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jamesng
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24-Oct-2010 21:45
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wow. so many of you interested in getting sgx shares??? oshlai86, based on your post, the drop in price will only effect when XR (if there is a right issue). How can it drops like what you calculate as below when the halt is lifted..... When a stock is CD, it will only drop after XD right? Are you sure you know what you are talking? But it will be good if what you say come true because I am also waiting to buy....but I doubt it........ |
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commando
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24-Oct-2010 21:34
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down down down |
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fun_trader
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24-Oct-2010 20:52
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Thanks for sharing guys. I really appreciate your valuable informations. 
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Richman
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24-Oct-2010 20:48
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Naked Short is the best! I am holding 10 lots so just nice for me to sell and short another 10 lots to make more money. |
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HLJHLJ
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24-Oct-2010 19:11
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Time to short?? Anyone can teach me how to short. I'm new. CFD ok? or SBL? |
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joshlai86
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24-Oct-2010 18:56
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Assuming the facts listed in my earlier post: 55% of US8b= US$4.4b of SGX stocks issued for takeover. Market cap of SGX= US10b. Roughly need to issue 44% of current outstanding shares to finance the takeover. HUGE DILUTION! I won't be surprised if the stock falls to $6-7 range after halt is lifted. |
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joshlai86
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24-Oct-2010 18:52
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SGX plans to offer about A$8.4 billion ($8.2 billion) in cash and stock to buy ASX Ltd., which runs the Australian stock exchange, two people familiar with the matter said. The operator of Singapore’s exchange will bid A$48 per ASX share and pay 55 percent of the deal in stock and the remainder in cash, the people said, asking not to be identified before an announcement scheduled for Monday. Shareholders of ASX will receive A$22 cash for each share they hold, they said. The combination would be the first between two exchange operators in the Asia-Pacific region and will create the area’s first pan-regional stock exchange. The takeover would bolster the global competitiveness of the Singaporean and Australian bourses by lowering costs, allowing new products and increasing the scale of their operations, one of the people said. After the transaction, the new holding company’s shares will be primarily listed in Singapore with its depository receipts listed in Australia, the people said. Investors will receive 3 1/2 Singapore Exchange shares for each ASX share, one of the people said. The offer price represents about a 37 percent premium to the last closing price of ASX in Sydney. Trading in shares of both companies was halted on Friday. http://www.bloomberg.com/news/2010-10-24/singapore-exchange-said-to-plan-an-8-2-billion-cash-stock-offer-for-asx.html |
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iknownothing
Senior |
24-Oct-2010 18:26
Yells: "INCOMING!!!!!" |
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this is my guess muahaha.. Cheers!
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soloman
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24-Oct-2010 18:24
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What u see - a drop of 27 cts is already a testament of people, funds unloading ................... How far it goes is anybody's guess .......................
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Richman
Veteran |
24-Oct-2010 18:18
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I will observe monday morning trades and act accordingly. Cheers!
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soloman
Master |
24-Oct-2010 18:10
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I CAN ONLY TELL U THE NORMAL SITUATION : FUNDS AND INVESTORS WILL TEND TO UNLOAD FIRST BECAUSE THEY DO NOT WANT/HAVE THE CASH TO DO THE RIGHTS AS SUCH, THERE IS NORMALLY AN INITIAL DROP IN THE PRICE ......... LATER IF THE DEAL IS GOOD, THE PRICE WILL STABILISE .......AND THE RIGHTS TAKEN UP. IF THE DEAL IS REASONABLY GOOD TO SGX, THE PRICE MIGHT LATER RISE ONLY A LITLLE BIT DUE TO THE BIG ISSUE ONLY IN REASONABLE FUTURE CAN THE PRICE GO MUCH HIGHER ......
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fun_trader
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24-Oct-2010 14:08
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Hmmmm, better have a hole in the pocket then lost a pant. Thanks for the advise. What ever the outcome, rather play it safe. Will wait for dust to settle then go in for a long ride. Cheers. 
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bofbof
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24-Oct-2010 13:56
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soloman, i shd sell my holdings now and wait for opportunity to enter again, rite? | ||||
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iknownothing
Senior |
24-Oct-2010 13:54
Yells: "INCOMING!!!!!" |
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buddy, u gotto decide for urself, need to prepare cut loss price for every trade u do..unless u are long term just collecting div and doesnt bother with the price. may be able to see $9.35 or $9.40, critical support around $8.90 on monday if upward $9.70 & 9.80 can be seen? thats my chart not yours! so better do ur homework! u can use it for reference haha..i may be wrong..am almost everytime wrong.. i dont know how to do a printshot to show u. anyway Cheers! All the best!
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fun_trader
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24-Oct-2010 13:33
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In that case, should I cut lost first then buy back when thing stable? |
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candle
Member |
24-Oct-2010 11:13
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it would gd for overall sg market. | ||||
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