CapitaLand   

CapitaLand: Too early to bottom fish

 

sorry, am a newbie in trading in shares. what should I do now with my present 3000 shares with the price of $2.39? do not quite understand 'Right issue'.

thanks for sharing.

atomicbear      ( Date: 09-Feb-2009 17:00) Posted: I got some information from poems but you can always check reuters. http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSSGC00101320090209 NEWS RELEASE CapitaLand    Raises    Capital    from    a    Position    of    Financial    and    Business    Strength Rights    issue    to    raise    approximately    S$1.84    billion Rights    issue    price    of    S$1.30    per    Share 45%    discount    to    closing    price    of    S$2.36    per    Share Singapore, 9 February 2009 – CapitaLand Limited (“CapitaLand”) today announced a rights issue (“Rights Issue”) to raise gross proceeds of approximately S$1.84 billion. Under the Rights Issue, eligible shareholders will be entitled to subscribe for one new ordinary share (“Rights Share”) for every two existing ordinary shares held as at the books closure date1 for the Rights Issue at an issue price of S$1.30 per Rights Share. The Rights Issue is a strategic initiative that is consistent with CapitaLand’s track record of proactive capital management. The Rights Issue will significantly enhance the Group’s financial flexibility and further enhance its competitive position. The Rights Issue will be underwritten in full by the Joint Lead Managers and Joint Underwriters, namely, DBS Bank Ltd., J.P.Morgan (S.E.A.) Limited and Merrill Lynch (Singapore) Pte Ltd. In support of the Rights Issue, Fullerton (Private) Limited, which is wholly-owned by Temasek Holdings (Private) Limited (“Temasek”), a major shareholder of CapitaLand with a direct interest in approximately 39.68% of CapitaLand’s current issued share capital, has entered into a sub-underwriting agreement with the Joint Lead Managers and Joint Underwriters and has undertaken to subscribe for its pro rata entitlement of Rights Shares. CapitaLand is raising capital from a position of financial and business strength. Despite challenging real estate markets globally, the businesses of CapitaLand and its subsidiaries (the “Group”) continued to deliver strong performance and recorded a PATMI of S$1,260 million for the financial year ended 31 December 2008. CapitaLand continued to successfully realise asset values by monetising S$3.3 billion worth of assets in 2008 at the peak of the cycle. _______________________________________________________________________________ 1 The books closure date for the Rights Issue is on 23 February 2009 at 5.00 p.m., subject to the receipt of the approval of SGX-ST for the listing of and quotation for the Rights Shares. Not for the Rights Issue. The Group has significant financial strength to weather the global economic uncertainties, with a total book equity of S$12.0 billion, a low net debt-to-equity ratio of 0.47, a strong liquidity position with S$4.2 billion of cash on the balance sheet, and a comfortable debt profile of 4.4 years of weighted average term of debt as at 31 December 2008. Dr Richard Hu, Chairman of CapitaLand Group said: “Over the years, in the course of managing through severe crises such as a prolonged one between 2001 and 2003, we have become one of the largest real estate companies in Asia. We have leadership positions in our core markets of Singapore, China and Australia. Our well-diversified multi-sector real estate portfolio and our established “multi-local” operational presence strategy will enable the Group to ride out the global downturn. We have also consistently adopted a proactive stance in strategic capital management.” Mr Liew Mun Leong, President and CEO of CapitaLand Group said: “The Rights Issue is pre-emptive to strategically enhance the Group’s financial flexibility. A strong balance sheet will further differentiate CapitaLand vis-à-vis our competitors. This is especially critical in a capital and liquidity constrained global environment where there is a prevailing “flight to quality” across all industries. The Rights Issue allows the Group to continue to build on its successful long-term strategy and capitalise on this opportunity to significantly improve its competitive position. A stronger balance sheet will also allow us to enhance our strength in our core businesses of residential, retail malls, commercial, serviced residences, integrated developments and real estate financial services. We will also be well-positioned for any mergers and acquisitions opportunities that might arise.” The Rights Issue will provide the Group greater financial capacity to pursue acquisitions and investment opportunities that may arise, allowing us tactical and strategic growth prospects. CapitaLand will not be using any proceeds from the Rights Issue to subscribe and pay for its relevant subsidiaries’ pro rata entitlements of units, or such number of excess units they may apply for under the CapitaMall Trust Rights Issue announced today. Eligible shareholders have the opportunity to subscribe for the Rights Shares at a price of S$1.30 per Rights Share, representing a discount of approximately: 1) 45% to the closing price of S$2.36 per Share on 6 February 2009 (being the last market day before this date), 2) 51% to the volume weighted average price of S$2.66 per Share for the onemonth period immediately preceding this date, 3)    35%    to    the    theoretical    ex-rights    price    (“TERP”)    of    S$2.01    per    Share;    and 4) 54% to CapitaLand’s post-Rights Issue net tangible asset (“NTA”) of S$2.80 per Share. The TERP of S$2.01 per Share is at a discount of approximately 28% to CapitaLand’s post-Rights Issue NTA of S$2.80 per Share. The Board of Directors believes that the Rights Issue is in the best interests of shareholders and the Group as a whole. Based on the current indicative timetable of the Rights Issue, the Rights Shares will be entitled to the dividends for the year ended 31 December 2008 which will be tabled for shareholders’ approval at CapitaLand’s upcoming annual general meeting scheduled to be held in April 2009. As at 31 December 2008, the net debt-to-equity ratio of the Group was 0.47 and the NTA per Share was S$3.57. After adjusting for the estimated net proceeds of the Rights Issue, the proforma net debt-to-equity ratio of the Group is expected to improve to 0.28 and the NTA per Share is expected to decrease to S$2.80. oinkoink1999      ( Date: 09-Feb-2009 16:46) Posted: can any kind souls show me the link to the report? can't find leh..u all very good sia..1st hand information...:D

 

thanks to wongmx6 and atomicbear~ I'm reading it now. Cheers~!

 

Link: http://info.sgx.com/webcorannc.nsf/new+announcement+last+3+months+by+company+name?OpenView&RestrictToCategory=CCAPITALAND%20LIMITED

 

I got some information from poems but you can always check reuters. http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSSGC00101320090209

NEWS RELEASE
CapitaLand    Raises    Capital    from    a    Position    of    Financial    and    Business    Strength
Rights    issue    to    raise    approximately    S$1.84    billion
Rights    issue    price    of    S$1.30    per    Share
45%    discount    to    closing    price    of    S$2.36    per    Share
Singapore, 9 February 2009 – CapitaLand Limited (“CapitaLand”) today announced a rights issue (“Rights Issue”) to raise gross proceeds of approximately S$1.84 billion. Under the Rights Issue, eligible shareholders will be entitled to subscribe for one new ordinary share (“Rights Share”) for every two existing ordinary shares held as at the books closure date1 for the Rights Issue at an issue price of S$1.30 per Rights Share. The Rights Issue is a strategic initiative that is consistent with CapitaLand’s track record of proactive capital management. The Rights Issue will significantly enhance the Group’s financial flexibility and further enhance its competitive position.
The Rights Issue will be underwritten in full by the Joint Lead Managers and Joint Underwriters, namely, DBS Bank Ltd., J.P.Morgan (S.E.A.) Limited and Merrill Lynch (Singapore) Pte Ltd. In support of the Rights Issue, Fullerton (Private) Limited, which is wholly-owned by Temasek Holdings (Private) Limited (“Temasek”), a major shareholder of CapitaLand with a direct interest in approximately 39.68% of CapitaLand’s current issued share capital, has entered into a sub-underwriting agreement with the Joint Lead Managers and Joint Underwriters and has undertaken to subscribe for its pro rata entitlement of Rights Shares.
CapitaLand is raising capital from a position of financial and business strength. Despite challenging real estate markets globally, the businesses of CapitaLand and its subsidiaries (the “Group”) continued to deliver strong performance and recorded a PATMI of S$1,260 million for the financial year ended 31 December 2008.
CapitaLand continued to successfully realise asset values by monetising S$3.3 billion worth of assets in 2008 at the peak of the cycle.
_______________________________________________________________________________
1 The books closure date for the Rights Issue is on 23 February 2009 at 5.00 p.m., subject to the receipt of the approval of SGX-ST for the listing of and quotation for the Rights Shares. Not for the Rights Issue.
The Group has significant financial strength to weather the global economic uncertainties, with a total book equity of S$12.0 billion, a low net debt-to-equity ratio of 0.47, a strong liquidity position with S$4.2 billion of cash on the balance sheet, and a comfortable debt profile of 4.4 years of weighted average term of debt as at 31 December 2008.
Dr Richard Hu, Chairman of CapitaLand Group said: “Over the years, in the course of managing through severe crises such as a prolonged one between 2001 and 2003, we have become one of the largest real estate companies in Asia. We have leadership positions in our core markets of Singapore, China and Australia. Our well-diversified multi-sector real estate portfolio and our established “multi-local” operational presence strategy will enable the Group to ride out the global downturn. We have also consistently adopted a proactive stance in strategic capital management.”
Mr Liew Mun Leong, President and CEO of CapitaLand Group said: “The Rights Issue is pre-emptive to strategically enhance the Group’s financial flexibility. A strong balance sheet will further differentiate CapitaLand vis-à-vis our competitors. This is especially critical in a capital and liquidity constrained global environment where there is a prevailing “flight to quality” across all industries. The Rights Issue allows the Group to continue to build on its successful long-term strategy and capitalise on this opportunity to significantly improve its competitive position. A stronger balance sheet will also allow us to enhance our strength in our core businesses of residential, retail malls, commercial, serviced residences, integrated developments and real estate financial services. We will also be well-positioned for any mergers and acquisitions opportunities that might arise.”
The Rights Issue will provide the Group greater financial capacity to pursue acquisitions and investment opportunities that may arise, allowing us tactical and strategic growth prospects. CapitaLand will not be using any proceeds from the Rights Issue to subscribe and pay for its relevant subsidiaries’ pro rata entitlements of units, or such number of excess units they may apply for under the CapitaMall Trust Rights Issue announced today.
Eligible shareholders have the opportunity to subscribe for the Rights Shares at a price of S$1.30 per Rights Share, representing a discount of approximately:
1) 45% to the closing price of S$2.36 per Share on 6 February 2009 (being the last market day before this date),
2) 51% to the volume weighted average price of S$2.66 per Share for the onemonth period immediately preceding this date,
3)    35%    to    the    theoretical    ex-rights    price    (“TERP”)    of    S$2.01    per    Share;    and
4) 54% to CapitaLand’s post-Rights Issue net tangible asset (“NTA”) of S$2.80 per Share. The TERP of S$2.01 per Share is at a discount of approximately 28% to CapitaLand’s post-Rights Issue NTA of S$2.80 per Share.
The Board of Directors believes that the Rights Issue is in the best interests of shareholders and the Group as a whole. Based on the current indicative timetable of the Rights Issue, the Rights Shares will be entitled to the dividends for the year ended 31 December 2008 which will be tabled for shareholders’ approval at CapitaLand’s upcoming annual general meeting scheduled to be held in April 2009.
As at 31 December 2008, the net debt-to-equity ratio of the Group was 0.47 and the NTA per Share was S$3.57. After adjusting for the estimated net proceeds of the Rights Issue, the proforma net debt-to-equity ratio of the Group is expected to improve to 0.28 and the NTA per Share is expected to decrease to S$2.80.

oinkoink1999      ( Date: 09-Feb-2009 16:46) Posted: can any kind souls show me the link to the report? can't find leh..u all very good sia..1st hand information...:D

 

can any kind souls show me the link to the report? can't find leh..u all very good sia..1st hand information...:D

 

thank you very much, DnApeh!

DnApeh      ( Date: 09-Feb-2009 16:04) Posted: 5 lots is confirmed you will get. U wan to apply for 100 lots excess also can, provided somebody else never take up. In this case, better to have odd number of lots, becos they usually try to round up for you. anfield_76      ( Date: 09-Feb-2009 15:59) Posted: can apply for excess?? as in i have 10 lots, does it mean i can apply for 5 lots only since the announcement says "one Rights Share for every two existing Shares"? if can, i can apply for like 10 lots of Rights Share

 

haha..ya lah juz kidding u ard :P anyway up or dn tomor...oni BBs will know...ikan bilis like me only PLAY around them ! :D

DnApeh      ( Date: 09-Feb-2009 15:55) Posted: Use ATM. Can apply for excess. Make sure got enough cash in the bank. nickyng only joking with you. anfield_76      ( Date: 09-Feb-2009 15:53) Posted: :) i am not worried cos bought it low, not at high. and intend to hold for long term. so even if tua pek kong dun help me tomorrow, i am fine with it. my main concern is how to buy the 5 rights issue i am entitled to leh?

 

How do I sell the rights, if I am overseas. When will the rights be listed on the stock exchange?If I have 9 lots and the ratio is 2:1, how to sell the odd lots

thanks

 

5 lots is confirmed you will get. U wan to apply for 100 lots excess also can, provided somebody else never take up.

In this case, better to have odd number of lots, becos they usually try to round up for you.

anfield_76      ( Date: 09-Feb-2009 15:59) Posted: can apply for excess?? as in i have 10 lots, does it mean i can apply for 5 lots only since the announcement says "one Rights Share for every two existing Shares"? if can, i can apply for like 10 lots of Rights Share? DnApeh      ( Date: 09-Feb-2009 15:55) Posted: Use ATM. Can apply for excess. Make sure got enough cash in the bank. nickyng only joking with you

 

can apply for excess?? as in i have 10 lots, does it mean i can apply for 5 lots only since the announcement says "one Rights Share for every two existing Shares"? if can, i can apply for like 10 lots of Rights Share?

DnApeh      ( Date: 09-Feb-2009 15:55) Posted: Use ATM. Can apply for excess. Make sure got enough cash in the bank. nickyng only joking with you. anfield_76      ( Date: 09-Feb-2009 15:53) Posted: :) i am not worried cos bought it low, not at high. and intend to hold for long term. so even if tua pek kong dun help me tomorrow, i am fine with it. my main concern is how to buy the 5 rights issue i am entitled to leh?

 

i m not tat worried too.. but just thinking if i shld sell rights and buy later or not..  look at DBS, not necc. it will go down a lot.. I think situation for capland and DBS a bit different, capland is not really short of cash isn't it?

 

Use ATM. Can apply for excess. Make sure got enough cash in the bank. nickyng only joking with you.

anfield_76      ( Date: 09-Feb-2009 15:53) Posted: :) i am not worried cos bought it low, not at high. and intend to hold for long term. so even if tua pek kong dun help me tomorrow, i am fine with it. my main concern is how to buy the 5 rights issue i am entitled to leh?

 

:) i am not worried cos bought it low, not at high. and intend to hold for long term. so even if tua pek kong dun help me tomorrow, i am fine with it. my main concern is how to buy the 5 rights issue i am entitled to leh?

 

so u suggest to sell off everything on hand for capitaland and capitalmall tmr?

cheongwee      ( Date: 09-Feb-2009 15:36) Posted: I suggest hand off anything that relate to properties...save that for 2010...no vested.

 

my god...10lots ?! wah...tomor i thk ubetter pray tua-peh-gong and seek for sympathies...for SHORTISTs has no empathy towards u leh :P 

anfield_76      ( Date: 09-Feb-2009 15:23) Posted: new here... how do i exercise my options to buy the rights? i have 10 lots so it means i can get 5 lots of rights issued? how do i go about buying it then?

 

I suggest hand off anything that relate to properties...save that for 2010...no vested.

 

You cal wrongly again, the correct px is anyhing higher than 2.006 is overprice.

 

I think a reasonable px of 2..will be for the moment...but with the crises drag on,...and property report to be bad for the next 2 years...i think i again got chance to buy at 1.7...or maybe even cheaper...just report 88% and 87% down in profit fior capitaland and kepland...look like going forward...the next quater maybe in the red!!!

So i think to sell to strenght ..buy cheaper later...DYODD

 

My calculation is 2.006666 leh.

nickyng      ( Date: 09-Feb-2009 15:15) Posted: corrections...haha..calculator press too quickly...shld be any price >2.06 SHORT ! :D nickyng      ( Date: 09-Feb-2009 15:05) Posted: ok...from tomor..can SHORT until u happie as long as price > 1.83 !! :D