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Can LippoMallsT and Standard Chartered justify how they take
into pricing of 0.405 into dilution of existing unitholder ?distribution-dilution-1Oct-29Nov??
Please share an example of how no-advance-distribution will not
dilute unitholder instead of hollow statement.
My example:
Using previous
quarter of 0.89c distribution, lets say every month is 0.3 cent distribution
before private placement.
with no private
placement, we should expect a 0.9c dividend for Oct-Dec.
Let's say that private placement happen on 1-Dec
for the sake of simplicity and diluted distribution per month becomes 0.27c. (10% dilution as per Lippo?s latest announcement
http://infopub.sgx.com/FileOpen/Receipt_of_AIP_Announcement_28_November_2013.ashx?App=Announcement& FileID=266046
)
Advance Distribution case
Existing unitholder
Oct-Dec dividend = 0.3c (Oct)+ 0.3c (Nov) + 0.27c(Dec) = 0.87c
New unitholder Dec
Dividend only = 0.27c as new unitholder own from 1-Dec
No Advance Distribution case:
Existing unitholder
Oct-Dec distribution = 0.27c (Oct)+ 0.27c (Nov) + 0.27c(Dec) = 0.81c (a
reduction of 0.06c)
New unitholder
Oct-Dec distribution = = 0.27c (Oct)+ 0.27c (Nov) + 0.27c(Dec) = 0.81c (an
increase of 0.54c)
Is LippoMapleT
implying that an increase of 0.54c is priced in the private placement (ie:
higher price)?
Private placement is done at 40.5c (5% discount)
compared to market price average of 43c
So the new unitholder get a 5% discount in owning
a share, and they are in-the-money of 0.54c right away for Oct and Nov distribution.
Talk about fairness to existing unitholder here.
Please note that I haven?t talked away of 5% humongous
placement fee that will be shared by all unitholder. Why is Lippo paying so
much for placement fee? A recent REIT placement of SGD 40 million is charged 2%
(ie: SGD 0.8 million), while Lippo paying much more (ie: 5% or SGD 5 million)
LMRT has a cheek to justify " no-distribution" that it is imbued in the pricing of 0.405
.... The Manager and Standard Chartered Securities (Singapore) Pte. Limited, the sole bookrunner for the Placement, are of the view that this arrangement is not prejudicial to existing unitholders of LMIR Trust (?Existing Unitholders?), as compared to the situation where an ?advanced? or ?clean-up? distribution is made to Existing Unitholders for the period from 1 October 2013 to the day prior to the date of issue of the New Units............
But later on, they claim that our distribution from 1 October will be diluted up to 10%....
.....LMIR Trust?s distributable income for the period starting from 1 October 2013 until the day immediately before the date of issue of the New Units, the Issue Price will not be at a discount of more than 10.0%....
Source: http://infopub.sgx.com/FileOpen/Receipt_of_AIP_Announcement_28_November_2013.ashx?App=Announcement& FileID=266046
Wait and see on 29 November. Will buy and keep if anything below 0.405. Buy slowly, bit by bit.
reliever ( Date: 28-Nov-2013 18:56) Posted:
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Will it be beaten down further? Let's see.
Sgx approved the listing of new share.
Actually on this year AGM in April, shareholder already give them the mandate to list new share for fund raising.
(Of course management will pick the right time "low price") to attract the placement investors.
More importantly is how they use the $$ to enhance the DPU after this dilution .
Good opportunity in a beaten down stock.
Vested
Actually on this year AGM in April, shareholder already give them the mandate to list new share for fund raising.
(Of course management will pick the right time "low price") to attract the placement investors.
More importantly is how they use the $$ to enhance the DPU after this dilution .
Good opportunity in a beaten down stock.
Vested
sentosaubin ( Date: 28-Nov-2013 15:45) Posted:
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make a lot of noise.. write email to Investor Relations, write email to SGX
Lippo IR email: ir@lmir-trust.com
SGX contact page:http://www.sgx.com/contact_us
rudiultraman ( Date: 28-Nov-2013 13:11) Posted:
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I would also love to know whether there is any recourse that ordinary retail investors can seek for this kind of unilateral management decision. Wipe out so much value from the stock. Any legal experts here?
R
Hopefully, this one wont go down to 0.395
I tried contacting SIAS, but they only serve paid-member's complaint.
Anyone SIAS member here?
nareshg ( Date: 27-Nov-2013 14:30) Posted:
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Lippo is giving away these shares when price too low due to depreciation of Indonesian currency.Ideally they should try to place these shares around 52 Cents.
I fully support your views. I think SGX should investigate this case.
sentosaubin ( Date: 27-Nov-2013 12:42) Posted:
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No Advance Distribution is what pissed me off.
Email to Investor Relations is ignored.
Should SGX investigate if LippoMalls is defrauding existing unitholders? List of Fraud:
1. Not compensating existing unitholder by declaring advance distribution
2. Paying exorbitant 5% placement fee. Sabana REIT only pays 2% for $40million placement. Why would Lippo pay 5% for much larger size of $100million placement?
$100m. Had it been a rights issue, I am still not so pissed off.
With that 1 email stroke, it wiped out almost 5% of the stock prices. Thats almost 3Q of div income !
No choice, I had to grab some @ $0.415 to avg down.
I am long term unit holder in Lippo Malls Trust. With the current placement of between 243,902,000 and 246,913,000 New Units at an issue price range of between S$0.405 - S$0.410 per New Unit, I feel management is defrauding the existing unit holders. Feel very sad and grieved by management's action.
In term of long term investment, I am confident with it as it is baced my the largest developer in Indonesia. Short term price fluctuation is just noise.
may be placement to lippo group? is this legal? it will dilute the existing holder right?
private placement is done without any advance distribution to existing unitholder...
I guess Lippo Management just can't be trusted
bobochacha ( Date: 22-Nov-2013 12:00) Posted:
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Latest update, place of 246,913,000 new units done at $0.405.
" The Issue Price has been fixed at S$0.405 per New Unit, as agreed between the Manager and the Sole Bookrunner, following an accelerated book building process and the total number of New Units to be issued pursuant to the Placement is 246,913,000 New Units.
The Issue Price of S$0.405 per New Unit represents a discount of 5.8% to the volume weighted average price of S$0.4298 per unit in LMIR Trust (?Unit?) for trades in the Units done on Singapore Exchange Securities Trading Limited (the ?SGX-ST?) on 20 November 2013 (being the full Market Day1 immediately preceding the date on which the placement agreement was entered into between the Manager and the Sole Bookrunner in connection with the Placement (the ?Placement Agreement?)) up to 12.45 p.m. today (being the time at which the trading halt was called earlier today).
Based on the Issue Price, the gross proceeds from the Placement (the ?Gross Proceeds?) amount to approximately S$100.0 million. The net proceeds from the Placement amount to approximately S$95.0 million, after deducting the underwriting and selling commission and other estimated fees and expenses (including professional fees and expenses) incurred in connection with the Placement."
Is it possible that some level of manipulation has happened?
The placement of new unit price is " between S$0.405 and S$0.410 per New Unit represents a discount of between 4.6% and 5.8% to the volume weighted average price of S$0.4298 per unit in LMIR Trust (?Unit?) for trades in the Units done on Singapore Exchange Securities Trading Limited (the ?SGX-ST?) on 20 November 2013"
As they want to place the new unit around 40.5 and 41, so they need to drag down the price first, so it will not be perceived so much discount. So will not see much down side?
Is it possible?
ya placement of new units
http://lmir.listedcompany.com/newsroom/20131121_135945_D5IU_8C11FC0D7A7064BF48257C2A0004EF87.1.pdf
Look like price going to fall. ... but don't think will fall too much since the price now already 0.43. think will fall to around 0.405
refinancing may not be a bad things depend how they use the $$. so far lippomall, good at requesting more $$ but also good at return on $$ in dividend.
The previous refinancing in 2011 saw the price drop to 0.405 back then the price of right is 0.31 (around there). But At that time the objective is to rise $$ to buy malls. So I am very curious what they are buying now?
lingua101 ( Date: 21-Nov-2013 18:38) Posted:
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