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SCS Trading Halted

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katak88
    25-Aug-2008 15:05  
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LIM & TAN

Daily Review

SINGAPORE COMPUTER SYSTEMS

Realistically Speaking

�� Sing Tel has, through 100%-owned National Computer Systems (NCS), emerged as the buyer of Temasek / Green Dot’s entire 60% stake (93,144,501 shares) in SCS, at $1.50 per share.  Rationale of the acquisition: “it accelerates the overseas expansion plans of NCS by providing operational scale and an enlarged regional footprint”.

�� NCS will make a mandatory conditional offer for the remaining 61,899,110 shares (39.9%), at $1.50 each. The only condition of the offer is that the “Competition Commission of Singapore will not (i) refer the proposed acquisition to a more detailed assessment pursuant to the CCS Guidelines on Merger Procedures, or (ii) issue a direction that will prohibit the offeror from acquiring voting rights of SCS. (The offer will not be conditional on a minimum number of acceptances being received by the offeror.)

�� Sing Tel will exercise its right of compulsory acquisition in the event it becomes entitled to do so (ie crossing the 90% acceptances), and de-list SCS from the SGX.

�� Green Dot had on July 30th said it was evaluating its 60% stake in SCS, as it had with its 54% stake in SNP on Apr 18th, and which resulted in a bid 7 weeks later. SCS closed at 96 cents on July 29th. By Aug 22nd, prior to the above news, SCS had risen to $1.31.

��

COMMENTSNCS has said it “does not intend to revise the offer price”.

1. That the buyer of Temasek’s stake turns out to be Sing Tel / NCS is not a great surprise, given that SCS does a fair bit of government business and best to be acquired by a local company.

2. The Offer price is “disappointing” when compared to the valuation for

3. While the offer documents are still in the works, we are however inclined to accept Sing Tel / NCS’ $1.50 offer for the following reasons:

- the Offeror has already indicated it

- with 60% now in Sing Tel’s hands, there will not be a competing offer;

- the sector has long lost its luster after the bursting of dotcom bubble.Frontline, when it was acquired by British Telecom in Dec ’07. (See Exhibit 1)will not be revising the offer price;

 

 

 

 

 


25 August 2008
SECURITIES PTE LTD

 
 
hopinj
    25-Aug-2008 12:19  
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wonder why GDC sold at a loss...thot scs been reporting good profits?

will scs continue to be a listed co after ncs takes over? worth investing?
 
 
AK_Francis
    25-Aug-2008 12:11  
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wah, dead cheap loh. few of my former colleagues are working in SCS. no lobang from them.
 

 
katak88
    25-Aug-2008 12:06  
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In May 2000, GDC bought over 40.5% of Singapore Computer Systems (SCS) at $3.72 and the other 20% in Apr 2002 at $1.73, or about $3.00 average each.

Today it was sold at $1.50 to NCS.  Good deal for NCS indeed.

 

BTW, GDC acquired the 60.5% stake from SCI.

19 April 2002
The proposed sale by SemCorp Industries of its remaining 20 per cent shareholding in Singapore for Singapore Computer Systems Ltd

http://www.sembcorp.com.sg/Sembcorp/news_corporate_detail.aspx?NewsID=350

29 February 2000
Proposed sale of 40.55 per cent shareholding in Singapore Computer Systems Limited
http://www.sembcorp.com.sg/Sembcorp/news_corporate_detail.aspx?NewsID=464


 

 
 
 
katak88
    25-Aug-2008 08:51  
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NEWS RELEASE

SingTel’s subsidiary acquires stake

in Singapore Computer Systems from Green Dot

NCS’s wholly-owned subsidiary to make mandatory general offer

 

Singapore, 25 Aug 2008 -- Singapore Telecommunications Limited (SingTel) today announced

that NCS Pte. Ltd. (NCS) has through its wholly-owned subsidiary, Computer Systems Holdings

Pte. Ltd. (CSH), acquired approximately a 60 per cent stake in Singapore Computer Systems

Limited (SCS).

 

CSH acquired 93,144,501 shares from Green Dot Capital Pte Ltd for S$1.50 per share in SCS for a total consideration of approximately S$140 million in cash.

 

Following the acquisition, CSH will make a mandatory general offer for the remaining shares

of SCS for S$1.50 a share in cash.

 

CSH, is a wholly-owned subsidiary of NCS, which is in turn, 100 per cent-owned by SingTel.

Mr Allen Lew, SingTel Singapore Chief Executive Officer, said “This move is part of SingTel’s

strategy to be a significant solution provider to business customers in the Asia Pacific region. The

combined IT capabilities and capacity of SCS and NCS will extend SingTel’s ability to deepen its

relationships with its customers in Singapore and overseas.”

 

Mr Lim Eng, NCS Chief Executive Officer, said “This accelerates the overseas expansion plans

of NCS by providing operational scale and an enlarged regional footprint. The IT services market

is a high growth area and the potential for growth is enormous.”

 

Both SCS and NCS are leading information and communications technology solutions service

providers with operations in Asia Pacific.

 

CSH is making the mandatory general offer with a view to exercising its rights of compulsory

acquisition under Section 215(1) of the Companies Act, Chapter 50 of Singapore, in the event

that it becomes entitled to do so, and delisting of SCS from the SGX-ST thereafter.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Any inquiries relating to this press release or the Offer should be directed to:

ANZ Singapore Limited SingTel

Bill Foo, Managing Director Michele Batchelor

Glenn Porritt, Executive Director Corporate Communications

Loy H Chia, Director Tel: 6838-2203

Tel
: 6539 6180

 

 

 
 
katak88
    23-Aug-2008 22:07  
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Business Times - 23 Aug 2008


SCS halts share trading while parent mulls stake

(SINGAPORE) Singapore Computer Systems yesterday halted trading in its shares as its biggest shareholder, Green Dot Capital, a unit of Singapore investment company Temasek Holdings, evaluates its stake.

Temasek owns about 65 per cent of SCS, whose businesses include the provision of information technology infrastructure, systems integration and business continuity management services.

SCS earlier this month reported an 86 per cent rise in second-quarter net profit to $4.3 million on revenues of $96.5 million. The company also said that its order book stood at a record high of $720.1 million. Shares of SCS rose 3.9 per cent to $1.34 before trading was halted\. \-- Reuters
 

 
katak88
    22-Aug-2008 09:14  
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Date of Trading Halt *
22-08-2008  
Time of Trading Halt * 0910 hours  
Reasons for Trading Halt *
Green Dot Capital evaluating its stake in SCS  


Hope that it is good news for shareholders.  

 
 
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