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(Post 1 of 109) 05/06/1999.09:23:00 |
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Article in BT on 5th of May 99 : THE banking and finance sector has been the focus for a few days now and some of the warrants in this sector have racked up massive gains in that time. One interesting possibility to consider is OCBC Finance 1999 warrant, which has the added spice of a possible lifespan extension to bank on, although it must be said that if this doesn't materialise, then the warrant becomes a highly risky play. Expiry is in October this year. However, the company last month said it was interested in extending the lifespan of this three-year warrant to the five years allowed under the Companies Act. If this does happen, the warrant could perform like the Freight Links warrant, which enjoyed a similar (albeit controversial) extension last month. The OCBC Finance warrant costs 48 cents, which together with an exercise price of $2.18 means that it trades at a decent 18 per cent premium over the shares at $2.26 while offering a good 4.7 times gearing. However, if time becomes an issue, these figures may not come into play. |
| (Post 2 of 109) 05/06/1999.09:26:00 |
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Also, with OCBC owning 90% of the mother shares, there is not many shares in circulation. I frankly do not see much value in listing OCBC Finance separately unless Alex has more grand plans for this counter. Otherwise, a delisting should be the best option. Hence, either way, a good bet. |
| (Post 3 of 109) 05/27/1999.18:14:00 |
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Just bought a lot more of these today. Wish me luck! |
| (Post 4 of 109) 06/30/1999.11:51:00 |
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This company was previously called Focal Finance. It merged with a similiar sized subsidiary of OCBC called OCBC Finance Singapore and the whole entity was then renamed OCBC Finance. This is important for 2 reasons. It is difficult to compare past performance side by side. Secondly, this company is now 2 times larger. Last year it earned 8cts per share due to the crisis and the years before, 32cts per share. Merging the operations will mean that this new company should be more effective and if it returns to former profitability, one should see earnings in the 40cts per share mark. As both are OCBC controlled companies, the enlarged OCBC Finance is now 90% owned by OCBC. Interestingly Ooi Hong Leong of the Hong Leong group is a director of the company and owns another 1.25%. With 112 mil shares in issue, at $2.40, OCBC Finance is worth $268 mil. Its stated NTA is $3.06 per share. They are 2 aspects of the NTA that are interesting. Firstly, the company has $280 mil of Singapore Gov securities. However, the annual report does not state what these are. Given that the stock market has gone up considerably since the 98 annual report, this value must have gone up substantially. Secondly, the book values of its properties appear to be based on old valuations. For example : 49/51/53/55 New Bridge Road - 5 storey buildings, freehold - $6.8 mil 142 East Coast Road - $186K 1st & basement level, Tong Eng Building - $1.3 mil and many other shophouses, the details of which are in the annual report (SES site) To me, the only logical thing for OCBC to do is to absorb OCBC Finance into a holding company as the Finance business is also part of its core business. At that time, to be fair to the minority stockholders, they have to at least value OCBC Finance at NTA value, which must be nearer $4. For me, I continue to buy into the warrants as this gives good exposure at a very nominal premium. With the share price at $2.40, and the exercise price at $2.18, the premium is just 48cts minus 22cts = 26cts. True time is not on the side of the warrant as it expires in Oct but the fact that this is the only warrant left that can be extended makes it even more interesting. The fact that they have not got the green light yet, seems to suggest that the merger with OCBC will happen sooner than the expiry or that SES has not approved the extension. I tend to go for the former and that is why I am still buying the warrant. |
| (Post 5 of 109) 07/21/1999.21:46:00 |
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OCBC Finance 1H profit jumps Singapore, July 21 - Six months to June 30, 1999 (in millions of S$ unless stated) Profit after tax 14.06 vs 4.25 Group shr (cents) 12.50 vs 8.10 Interest income 81.90 vs 45.05 Operating profit 45.08 vs 10.74 OCBC Finance, a unit of OCBC Bank, said the results were the first following the merger of Focal Finance Ltd and OCBC Finance Singapore Ltd late last year. It said the figures for the previous year represented only those of Focal. The firm said the increase in profit was due mainly to higher interest margins because of lower cost of funds and a 21 percent reduction in operating costs attributable to economies of scale and rationalisation of operations arising from the merger. Source: Reuters |
| (Post 6 of 109) 07/22/1999.21:44:00 |
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Does not look promising that the warrants will be extended. Part of the annual report announced yesterday : In conjunction with the issue of $70,000,000 2 1/4 per cent unsecured bonds due 2001, the company had on 18 October 1996 issued 15,636,922 warrants on a renounceable preferential basis at the price of $0.60 each payable in full on acceptance and application ("Warrants"). Each Warrant entitles the holder to subscribe for one (1) new ordinary share at an exercise price of $2.18 per new ordinary share (subject to adjustments under certain circumstances). The Warrants may be exercised at any time on or before 5.00 p.m., 18 October 1999. |
| (Post 7 of 109) 07/31/1999.11:25:00 |
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Hi Oldman, What is your opinion on this counter? Do you think that Alex Au will place OCBC Fin under a group holding structure like HSBC or the proposed DBSH? With the bid-ask spread is so wide, does that mean that the market is undecided/unsure of the direction of OCBC Fin? What are you action and recommendationon this counter? Thanks in advance. Regards. Have a nice weekend ahead! |
| (Post 8 of 109) 07/31/1999.13:06:00 |
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Yes, I am keeping an eye on this warrant. Waiting for it to fall to the 20's. May start punting from there. Only concern is that so far, there has not been any activity around the mother and with time an issue, this will be a high risk play. But I won't play this until the warrant falls further. |
| (Post 9 of 109) 09/06/1999.11:56:00 |
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This play is starting to look interesting though I am staying on the side lines for the time being. Early this am, someone intentionally forced the price down to 1ct by selling just 1 lot. No one fell for that trick and the next lots were done at 8cts. Now there is someone polling 100 lots at 8.5cts. OK. What is a fair value for this? I used to play share options in the UK and a 3-6 months option cost about 10% of the value of the mother. One month options are not highly valued there and anything between 2-3% is OK...especially when the mother is close to its exercise price. Hence, I am sitting and waiting first. |
| (Post 10 of 109) 09/06/1999.12:07:00 |
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I noticed that too, but it was probably a typing mistake rather than some monkey business. Or a panic seller like I sometimes am. |
| (Post 11 of 109) 09/06/1999.13:11:00 |
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Oldman or Kind Doc could be right. No reason to sell just 1 lot. What's the brokerage fee ? This is a highly speculative play only 15.6 mil. in circulation, Expiry Date due on 18.10.99 and a superb Gearing above 20 times. Do note the mother is thinly traded. Still monitoring situation before going in for the punt. A crucial high risk vs returns warrant, do take care and time your entry for the best leverage. |
| (Post 12 of 109) 09/06/1999.13:26:00 |
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The transaction was actually done. When I saw this, I polled for quite a number of lots only to find that someone sold 1 lot and bought just one lot. Now, this is highly suspicious isn't it ? Yes, the intention is to push the price down and start the ball rolling. Actually, I want to thank this person whoever he / she is ! |
| (Post 13 of 109) 10/20/1999.17:54:00 |
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Interesting. OCBC Finance must have converted all the warrants it own, meaning that they should have more % of the company now then before.... The Directors of OCBC Finance Limited (the "Company") wish to announce that as at the close of trading on 18 October 1999 13,713,619 out of 15,636,922 of the Company's Warrants 1999 were exercised and 1,923,303 Warrants 1999 which were not exercised had expired. The issued share capital of the Company as at the close of trading on 18 October 1999 was S$125,984,842 comprising of 125,984,842 ordinary shares of S$1.00 each in the capital of the Company. |
| (Post 14 of 109) 10/20/1999.18:23:00 |
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Unfortunately, I feel this latest announcement is both "good" and "bad" news for holders of OCBC Finance mother shares. Good news because it shows faith on part of parent bank towards its smaller listed finance unit (it pump in more money). That also suggests very strongly that the "privatisation" of OCBC Finance is on the cards. The bad news is, OCBC bank has the upper hand. They will now surely own over 90% of the enlarged capital and can ask for mandatory de-listing of the finance unit from the SES. While a cash exit for minorities will surely be required, the bank need only pay whatever was the highest price it paid to acquire more OCBC Finance shares over a 12-mth period. We have no way of knowing what that is, but it looks like a minimum of $2.18 (strike price of the warrants) Hopefully, that $2.18 is not the maximum the bank has paid or that the SIC will insist on either a higher price closer to the units' NTA value, or least a scrip issue of parent stock in lieu of cash. Hopefully, OCBC will play fairdinkum with minorities and give everyone a just deal? My 2.5 cent worth. |
| (Post 15 of 109) 10/21/1999.16:53:00 |
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OCBC-Finance Warrants had expired on the 18-oct-1999, below is share holdings before and after warrants excercise.
NTA (before wrts exercise) = $3.18 per share as at 30Jun99 NTA on enlarge Capital (after exercise of wrts)will now reduce to $3.07 per share.
For the 3-days of (05-07oct99) before warrant cease tradings, a total of 2.33m wrts and 620k OCBC-Fin shares were traded, compare to average daily volumn of 10-20k only. I believe these higher volumn of trades arise because of the news on 05-oct that UOB is taking UOF private and NOT because of additional purchases by OCBC group. And ASSUMING that OCBC indeed DID NOT purchased any additional warrants from the market, then:- After exercise the 12.27m wrts that it held, OCBC will now has interest in 112.921m OCBC-Fin shares which is 89.63% of enlarged share capital. Thus OCBC only need to acquire around another 466,000 shares to breach the 90% mark, >>> and thereby enabling it to enforce a compulsory acquisition of minority interests and delist. So unlike the UOB-UOF & DBS-ICS case, OCBC do not need to pay a high premium inorder to collect enough for 90%. >>> any premium offer by OCBC in a effecting a 100% takeover of OCBC-Fin will be more out of goodwill only..and while should be higher than current market price...it is NOT likely to be much higher than fully diluted NTA of $3.07 per share. The GOOD NEWS is :- OCBC Finance was formed via the merger of Focal Finance with OCBC Finance Singapore from OCBC bank This merger was completed on 18Dec99, and as consideration, some 60.1m New OCBC Finance shares(valued at $3.039 each) was issued to OCBC bank Thus I will expect that in event of OCBC triggering the 90% mark and enforcing a compulsory takeover on minority holders, the takeover price should be at least be around $3.03 level which is a good premium from present market price of around $2.18. If OCBC has the intention to privatise OCBC-Finance, now is the logical time to do so, >>> as with warrants out of the way, the NTA, EPS and exact number of shares involved can now be determine with certainty. At $2.18, OCBC-Fin is trading at Prospective 1999 PE multiple of about 9x-10x only, so an attractive buy in its own rights. THE BAD NEWS is :- We still DO NOT know for sure whether OCBC has intention to privatise OCBC-Finance and if so,WHEN ? |
| (Post 16 of 109) 10/21/1999.18:04:00 |
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Fun$, you are good. Taking your arguments further, if I understand the rules correctly, if they delist OCBC Finance within the next 12 months, they have to pay at least $3.03 per share. That will be too close to NTA after all UOB is trying to take out UOF at a significant discount to NTA. Hence, OCBC is unlikely to act within the next 12 months. Just announced : NOTICE OF CHANGES IN SUBSTANTIAL SHAREHOLDER'S INTEREST Name of substantial shareholder : Oversea-Chinese Banking Corporation Limited Date of notice to company : 20.10.1999 Date of change of interest : 20.10.1999 Name of registered holder: 1) Oversea-Chinese Banking Corporation Limited - 11,850,501 Ordinary Shares 2) Oversea-Chinese Bank Nominees Private Limited - 300,000 Ordinary Shares Circumstance giving rise to the change: Conversion of 12,150,501 OCBC Finance Limited Warrants 1999 to Ordinary Shares No. of shares of the change : 12,150,501 (direct interest)% of issued share capital (*) : 9.65%Amount of consideration per share(excluding brokerage & stamp duties) : S$2.18 Direct Deemed No. of shares held before change: 47,919,285 52,730,535% of issued share capital (*) : 38.03% 41.85% No. of shares held after change : 60,069,786 52,730,535% of issued share capital (*) 47.68% 41.85% Oversea-Chinese Banking Corporation Ltd direct interest under own name is 58,769,786 shares (46.65%) and under registered holder, Oversea-Chinese Bank Nominees Pte Ltd is 1,300,000 shares (1.03%) and deemed interest under registered holder, Eastern Realty Company Limited is 50,951,565 shares (40.44%) and deemed interest under registered holder Bank of Singapore Nominees Private Limited is 1,778,970 shares (1.41%). Total interest after change is 89.53%. *Based on the new paid up capital. |
| (Post 17 of 109) 10/21/1999.19:08:00 |
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Allow me to take this discussion one step further. If we assume that 1.4 mil warrants were exercised in the last few weeks (that were not owned by OCBC), all these folks will be sitting on paper losses as today's price of $2.15 is lower than the combined exercise price of $2.18 and whatever amount they paid for the warrants. Again assume that they bought into this share hoping that OCBC will make its move sooner than later following UOB's move on UOF. Well, if this does not happen, some of these folks will unfortunately be under pressure as $2.18 exercise price per share is quite a lot of money. OCBC will certainly want the share to move southwards and cannot buy any significant amount anyway. In fact, it can sell to push the price lower and at the same time, give a mixed signal to the marketplace. From the argument above, I think we should have time to accumulate this at a lower price. |
| (Post 18 of 109) 10/22/1999.16:29:00 |
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I have wrote in the earlier article that:- The GOOD NEWS is :- OCBC Finance was formed via the merger of Focal Finance with OCBC Finance Singapore from OCBC bank This merger was completed on 18Dec99, and as consideration, some 60.1m New OCBC Finance shares(valued at $3.039 each) was issued to OCBC bank Thus I will expect that in event of OCBC triggering the 90% mark and enforcing a compulsory takeover on minority holders, the takeover price should be at least be around $3.03 level which is a good premium from present market price of around $2.18. Sorry, typo error, above merger was completed on 18-Dec-1998 (NOT 18Dec99), so the "12-months-period" during which any takeover price by OCBC group must match the "$3.03" price will lapse by this coming 18-Dec. However I believe that actual timing of "taking OCBC-Fin private" will be determine by genuine business reasons. Even if this takes place beyond 18-Dec-99 (and so beyond the "12-months-period"), I trust that OCBC group will still paid at least $3.03 for compulsory-takeover-price inorder to maintain a "morale high ground" since some 60.1m NEW OCBC-Fin shares have been issued before at $3.03, and the sum involved is not that big ==> as minority interests amounted to only a maximum of 13.18m shares left, and there are no more uncertainty of more shares arising from warrant excercise. Fully agrees with oldman that no need to chase the shares. When buying for "Situational events", it's always possible that event may not happen,so never wise to get too anxious & chase share price, better to miss one (always others around) than to climb into the wrong bed, like some of you did with TIBs :). |
| (Post 19 of 109) 10/22/1999.16:51:00 |
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Fun$, thanks for the correction. Yes, I fully agree with your assessment. OCBC has been the kindest of the major banks for the foreign tranche mergers. However, unfortunately, they seem to be a lot more careful in that they do not rush acquisitions or divestments. Hence, I too think that they will do their due diligence and will do what is necessary within the 3 year plan that Alex has set out. Still, a good buy. Matter of when to get in. I think next year will be a good time to relook at this when the excitment over the finance shares settle down. |
| (Post 20 of 109) 10/22/1999.19:01:00 |
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Hi Fundollar The date of the merger 18Dec99 is it correct. we are still in Oct99. Have a Great weekend |
| (Post 21 of 109) 10/22/1999.20:47:00 |
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Oldtimer, you're right...merger of Focal Finance with OCBC Finance Spore was completed on 18-Dec-1998, and NOT 1999, sorry for typo error. |
| (Post 22 of 109) 01/11/2000.00:16:00 |
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Picked up 2lots @ 2.22 after buying into Oldman and Fun$ arguments. Very illiquid, keeping my fingers crossed that she will eventually follow UOF/ICS way. Hope for better goodwill from JO than Wee. Worse, collect the dividends. Are you with me , Oldman or "Stock Holmes" Fun$. Cheers!!! |
| (Post 23 of 109) 01/11/2000.06:26:00 |
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Skysobig, yes, I am eyeing this share as well. No holdings currently as I need to liquidate more CPF stocks before I am 'allowed' to invest again. I agree that this stock has a rather low daily volume or none at all. Hence, I will pick up slowly. |
| (Post 24 of 109) 01/11/2000.10:52:00 |
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SO glad to see people has started their shopping in this counter. Yes. I am in since the last few days. Pick up a few when someone sold at such a low price. Even without the news, it's growth should be able to sustain and provide a good result. Hang on tight. |
| (Post 25 of 109) 01/12/2000.02:19:00 |
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Skysobig, yes also have some interests, my average price is $2.18 accumulated towards end of Oct99 - waiting,waiting for something to happen. This is NOT my core holdings. |
| (Post 26 of 109) 01/18/2000.13:07:00 |
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OCBC FINANCE LIMITED OCBC Finance Limited (Incorporated in Singapore) A Member of OCBC Group ANNOUNCEMENT Pursuant to Article 32(4) of the Articles of Association of the Company, it is hereby announced that from declarations received by the Company as at the end of the fourth quarter of 1999, beneficial ownership of the issued capital of the Company by foreign persons constituted 3.41% thereof. By Order of the Board Henry Tan Soo Leong Secretary 18 January 2000 Submitted by Henry Tan, Secretary on 18 January 2000 to the SES |
| (Post 27 of 109) 02/16/2000.01:37:00 |
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Long waited result is out. Looks pretty good. Let's see how the market react to sure a illiquid counter now ... Good luck to all shareholders(including myself) .. |
| (Post 28 of 109) 02/16/2000.09:25:00 |
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For financial year ending Dec-1999:- > NTA per share risen to $3.19, up from $3.06 for FY1998 > EPS rocket to 29c per share, up from just 8c for FY1998 At current price of around $2.18 for OCBC-Fin, it is trading at a mere 7.5x PE !!! |
| (Post 29 of 109) 04/08/2000.08:34:00 |
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Query from Hoopoe: ---------------------------------------------------------- By Hoopoe on Saturday, April 8, 2000 - 08:08 am: Did anyone attend the AGM and was any insight given to increasing the liquidity or a general offer form the parent to take out the minorities |
| (Post 30 of 109) 04/08/2000.09:08:00 |
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Mccool Thanks for the education, my first posting and I made a bit of a fool of my self. Regrets... |
| (Post 31 of 109) 04/08/2000.09:14:00 |
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Hoopoe Don't worry. All of us would not have tried out new stuff if we're afraid of making a fool of ourselves. (See how well the dot.com look and sound? If you don't believe, just say that again: "Welcome to ShareInvestor.com".) McCool |
| (Post 32 of 109) 04/08/2000.10:23:00 |
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Hoopoe, Pls don't feel awkward. I am just glad that you have joined us. We are living in the internet age and engaging in the knowledge economy. We need to have as many people join and share their lessons with us. We can only learn from one another. Hope you will stick around and contribute. Leverage off our common knowledge pool. The more heads, the better. Welcome to SI. |
| (Post 33 of 109) 07/13/2000.03:13:00 |
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FOREIGN OWNERSHIP ANNOUNCEMENT (Incorporated in Singapore) A Member of OCBC Group Pursuant to Article 32(4) of the Articles of Association of the Company, it is hereby announced that from declarations received by the Company as at the end of the second quarter of 2000, beneficial ownership of the issued capital of the Company by foreign persons constituted 3.35% thereof. By Order of the Board Henry Tan Soo Leong Secretary 13 July 2000 Submitted by Henry Tan Soo Leong, Secretary on 13/7/2000 to the SGX |
| (Post 34 of 109) 07/22/2000.03:18:00 |
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OCBC Finance H1 net profit 28.423 mln sgd vs 14.056 SINGAPORE (AFX-ASIA) - OCBC Finance Ltd first half results: Net profit - 28.423 mln sgd vs 14.056 mln Pretax profit - 38.973 mln sgd vs 20.956 mln Net interest income - 38.037 mln sgd vs 48.817 mln EPS - 0.23 sgd vs 0.13 Div - nil, unchanged In a statement, OCBC Finance said the strong earnings growth was partly driven by its decision to write back 5.323 mln sgd of its reserves for potential loan losses. Provision for bad debts totaled 23.671 mln sgd a year earlier. Loans, however, fell 18.9 pct year-on-year to 1.648 bln sgd due to the company's "conscious effort to strengthen its loan portfolio by de-emphasizing the concentration in certain industry segments to improve loan quality and achieve better balance of business risks." As a result, its non-performing loans fell 7.2 pct to 328.1 mln sgd at end-June from 353.4 mln at end-December. Barring any extraordinary circumstances, OCBC Finance said its second half results should "match" the first half data. OCBC Finance closed unchanged at 2.10 sgd on 1,000 shares. mbe/tr |
| (Post 35 of 109) 11/14/2000.17:31:27 |
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Folks,
I've noticed that OCBC Finance has been quietly inching up recently, helped in part by the recent positive news for Hong Leong Finance, but more the trend of parent banks (DBS for DBS Finance, UOB for UOF, Keppel Tat Lee for KTFinance) absorbing back their smaller finance units. Parent bank OCBC owns almost 90% of OCBC Finance, such that there are limited shares in circulation. Also, there does not seem much value in a separate listing for OCBC Finance as their activities can easily be done under umbrella bank. For a quick history of the unit see Oldman's commentary at: <Oldman 30/06/99 11:51am> and the useful analysis by Fundollar at <Fundollar 21/10/99 4:53pm> Further, the company turned in spectacular set of results for the 6 mths to end-June 2000, where net profits of $28.4 million, an increase of 102.2% over similar first half of 1999. EPS came in at 23c vs 13c, and directors expect 2nd half results should match, yield a PE of just 4.74x at current share price of $2.18. The key question is: will OCBC deal fairly with its minority shareholders? Will they share equally with all and offer to buy out rest at least at OCBC Finance's net tangible asset backing of S$3.41? The jury is still out on that one. Meanwhile, I've vested interest and plan on holding/buying on greater weakness. Warren |
| (Post 36 of 109) 11/14/2000.17:47:28 |
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warren,
i took a look at the chart. geez, the counter is incredibly illiquid like all finance counters. the inching ahead is accomplished in very thin volume. most of these counters are trading below the NTA if i remember correctly. absorption into OCBC is surely the way to go. as for fairness in dealing with minority shareholders, i m not so sure :-) i personally thought if a better play of a different mode will be natelec. at least, one will be sure the takeover will be accomplished in 2 months time - a sure 'win' with the risk in foreign exchange with gains around something like 30% annualised. over here, the uncertainty is the time frame. the counter can stay dead for a long time. still them, if there is ample cash reserves, it is still a possible punt however, must wait 'dunno how long'.... amidst the uncertainty. my views. regards. |
| (Post 37 of 109) 11/20/2000.09:39:30 |
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Zinc,
Thanks for your input. Yes illiquidity is always a problem with stock that appeal, except for their limited float. My issue is not so much the limited trading (after all, there are just 12.5 shares NOT in OCBC's hand and majority of these are awaiting a buyout from parent bank), but whether minorities will get a fair exit price. Unlike NatElec, where the arbitrage spread has narrowed from 8% to 4% currently, OCBC Finance offers a HUGE upside between current market price $2.21 and its NTA of $3.41. Adding to the attraction is the very low PE of just 4x that OCBC Finance trades at. If OCBC parent is as fair as DBS parent was when it privatised ICS, DBS Fiance etc, then there is value to be had in buying now & waiting for the buyout. That is what I plan to do in any case. After all, in today's turbulent markets, OCBC Finance offers tempting returns, and prices have limited downside (lowest price was $2.03 in last 6 mths!) Vested interest. Just my 2.5c worth. Warren |
| (Post 38 of 109) 11/29/2000.16:25:51 |
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Zinc,
Since your posting #35 on Tuesday, 14-Nov-00, OCBC Finance has crept up another 15c to hit $2.35 today. Wow! Compare that to the local market which has been langushing quite a bit lately, OCBC Finance has turned out to be a winner?! Volume is still quite low, but this is more a function of lack of supply (read: sellers) rather than a shortage of buyers (that is why prices are going up lately). The scarcity of scrip is because OCBC parent owns over 89% of the finance unit and judging by the eagerness of buyers to mop up stock, some sort of corporate announcement must be round the corner? This could be another privisation exercise like Sime Spore, where parent Sime Darby got frustrated by market's low attitude towards the stock, and decided to take it private by offering to buy 100% control. OCBC Finance is slightly different, where regulatory changes and industry trends dictate that banks no longer need to operate a separate finance arm, rather that they operate as a subset of the bank. Sad really. In OCBC Finance's case, after over 15 years of listing, the unit share price is still not much higher than when the company first went public! What that effectively means is that over 15 years of accumulated profits (which exceeds the unit's current market cap) is being bought back for practically nothing? It also means the market funded the parent bank's growth for free?! Well, such are the ways of the market. I am just glad to have spotted this play and hanging on to my 14 lots till there is an takeover offer on the table. I have also already earmarked where I would be redeploying the funds raised from this exercise.... Wonder if anyone else did take advantage of this and made some $$$? Warren |
| (Post 39 of 109) 11/30/2000.10:46:07 |
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Warren,
I had followed your recommendation & bot 2,000 OCBC Finance at $2.18. Really glad I did because it is up again today to $2.41. Any idea at what price to sell, or should just sit & wait? Thanks |
| (Post 40 of 109) 11/30/2000.12:26:54 |
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Hey it is now at $2.43...and volume is picking up? Still can go in?  |
| (Post 41 of 109) 11/30/2000.13:02:32 |
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Folks,
Gathered the following from the Wrights Info service (see link: http://profiles.wisi.com/profiles/scripts/shareinv.asp?CUSIP=C70259380&B1=Submit) Total Shares Outstanding: 125,984,842 Closely Held Shares: 105,721,351 That means there are 20,263,491 shares supposedly in loose hands. However, I believe that IH has been quietly mopping up stock over the last several months, and judging from SI's historical chart service, we can clearly see the accumulation that happened around the $2.10/20 level (see chart at http://graph.shareinvestor.com/sg/historical/historicalcharts.cgi?O02:1y ). Also, judging from the trading history of OCBC Finance, today's daily volumes are in the moderate to heavy range, indicative that buyers are stepping up their activity and the only way to get stock is to pay up. Indeed, at the noon close of $2.43, OCBC Finance share price is back to the historical highs of June 99 where the stock peaked at $2.47. The question is why? I can only refer you back to my postings #34,36 & 37, where I drew the conclusion that a privitisation of the finance unit is not only inevitable, but comes cheap for parent bank OCBC. The NTA at half time stood at $3.41, but if one adds the anticipated 23c eps for 2H 2000 (mangament said as much in their interim report, see posting #33), we get a figure close to $3.64. Seems to me like there is lots more meat here for the taking? Also helps explain why buyers are now suddenly so anxious to pay up for the stock, especially in our current listless market! I have vested interest, no inducement to buy. Just my 2.5c worth Warren |
| (Post 42 of 109) 11/30/2000.14:10:31 |
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Warren - your info. is stone-age history. 
Here's more recent history - valid as at Oct-1999 and still valid today. Those NOT already held by OCBC-group amount to only 13m shares, but once we consider those already "corner" by your gang and mine... that figure I cannot disclose... |
| (Post 43 of 109) 11/30/2000.14:33:23 |
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Fun$,
Thanks for the more up-to-date record of shareholding history. (I am embarrased to have been compared to the dinosaur  but I guess I deserve that  ?!)
Yes, your figures show clearly that there is just a small step away for parent OCBC to mop up 586,037 shares to hit 90% level for mandatory privatisation & delisting. That represents just 4.4% of the 13,184,521 free float shares that OCBC does not control (yet?!) Hmm..there have been 543,000 shares traded todate since July 2000 (would you believe nothing traded at all during June?) between $2.03-to-$2.43, or an average of $2.23. One can assume that IH has been quietly mopping up stock ahead of some announcement, and I'd venture to say OCBC Finance will not drop below $2.20 in the near future. As regards your claim that "once we consider those already "corner" by your gang and mine..." Well I wish I was in the big leagues and did indeed 'corner' the float, but alas I hold just 14,000 shares. Wanted to buy more, but held back because of the poor state of the market, and the waning performance of the rest of my portfolio. Still, I'm very encouraged that my analysis of the situation has been borne out, and that my patience to hold through thick and thin is now paying dividends (don't believe in contra, rather use the money earned for 'cut-loss' and pick up stock slowly instead!) Hey Fundollar, have you indentified the next target? |
| (Post 44 of 109) 11/30/2000.14:40:48 |
| Author : |
OCBC Finance should logically, merged with the parent OCBC-bank - for all the synergies of:- a wider distribution networks, product range, large capital base, cost economies of infrastructures/IT system investments, staffings, management resources etc.
Another major motivation for a merger is that OCBC Finance would save itself all the troubles that a non-merger would result in:- have to call itself "NOT OCBC" Finance, imagine changing all company logos, letterheads, branch-outlets display, passbook+ATMcard+cheque books ??? etc and also may have to design a new "container-ship" to replace that tradictional "sailing-boat" logo. However OCBC-bank does seem to have all the time in the world to do so, it can still delay this activity for (a worse case scenario) another 30-months, ofcourse it could also easily trigger the merger next week. (just another 500 lots of OCBC Finance - very easy to accum) You may just get a quick windfall, but it may also turn out to be a much longer haul than you think. |
| (Post 45 of 109) 11/30/2000.14:52:44 |
| Author : |
Hi Warren...
regard that "once we consider those already "corner" by your gang and mine..." Just joking, you and I - we are both just VALUE-investor with a longer time horizon... too long for the liking of most peoples, but for value-investing, time+waiting are essential success components, both to hunt and to harvest. Huh? identify next target ? well I give several more targets... shoot OCBC-fin, OUT, OUE, Harimau, OUS, UIS (again, 30-months is key) and there are still others... cheers! |
| (Post 46 of 109) 12/01/2000.00:51:44 |
| Author : |
Investors Hope OCBC Fin Will Go Pvt
Source : Dow Jones 30/11/2000 16:19 [Dow Jones] SINGAPORE: Shares of OCBC Finance (O02) up 0.8% at S$2.40 on vague hopes parent OCBC (O04) will take it private as shares widely viewed as undervalued.(AXH) |
| (Post 47 of 109) 12/01/2000.12:01:56 |
| Author : |
while everyone is hoping that OCBC is taking OCBC finance private, I dont think so.
1. A year ago ( forgot the date ) OCBC finance merge with Focal Finance. Then OCBC finance was private and Focal Finance is a subsidary listed on the SES. So why take OCBC finance private now when it was already private before ? 2. I remember an old friend told me. There are 2 type of customers in OCBC. Those who walk in with suites and those who walk in in shorts and slipper. I am refering to the old generations of OCBC die hards - the first generation of SMEs. 3. 3 years to diversified non-core assets. FN, Robinson, Straits Trading, will be first compared to OCBC finance. Does OCBC need to take OCBC finance private ? As someone pointed out, OCBC has already controlled more then 80+ percent and is enough to do what ever they want with it. |
| (Post 48 of 109) 12/01/2000.13:08:52 |
| Author : |
Dilbert,
OCBC's move to takeover/merge with Focal Finance was the start of a long restructuring process intiated by MAS. There are too many finance companies in Spore, and MAS wanted them to merge to form strong bodies. Unfortunately, not much of that happened, as most of the smaller fincos are family owned that make $2-3mil profit per year, and their shareholders are quite content to just make loans to small business. So, MAS turned up the heat by requiring all fincos to have a high paid-up capital by 2002 (can't remember how much, but think figure was somewhere in the region of $400-800mil). That meant requiring fincos to come up with more cash capital to run separate fincos. Only HongLeong Finance is large enough to NOT require additional capitalisation immediately. Most of the others either had to capitalise their shareholder funds (make bonus issues) to raise their paid-up capital , or to pump in more cash (rights issue). However, the bank-owned units felt it better to privatise the finco operations under the bank umbrella, where the same paid-up capital requirement of $1.2 billion could be used to support those finco operations as well. Hence DBS Finance (unlisted, but operating as separate entity) got merged with parent bank in 1998, while UOB privatised UOF middle of this year. Even the likes of Keppel TatLee Finance has proposed a 2-stage restructuring scheme designed to merge their finco operations into parent bank (see that thread for details). So, that leaves only OUS and OCBC Finance among the bank-backed units left. What do you think they will do? Come out with additional capital to support a standone finco operations? I think not. Even the Hong Leong group has to consider whether it wants to stump up additional capital to have 2 brands to support -- the larger HL Finance and its +60% unit Singapore Finance. There is talk, however, that the HL group has offered Singapore Finance as the anchor finco to be used to merge with the smaller independent fincos...but talks are slow and protracted. I really like the finco sector for its low radar screen image which makes these apt to spring surprises. That plus, the immense value that exist there. The larger Fincos trade for low PEs of 5-6x, and anywhere upto 50% discount to NTA. Compare that to banks which trade for 15-18x PE and upto 2x book NTA. It seems logical to meto merge the 2 operations so that there is an immediate upscale benefit for finco ratings to bank ratings! No inducement to buy. Have vested interest. Just my 2.5c worth. Warren |
| (Post 49 of 109) 12/01/2000.14:02:25 |
| Author : |
Posting this here to support the case of how banks are reabsorbing their finance units into parent umbrella.
=================================================== Business Times - 29 Nov 2000 DBS to integrate finance arm back into the bank 150 staff to be absorbed by bank which will also take over unit's clients By Siow Li Sen DBS Bank has decided to integrate its wholly-owned finance arm, DBS Finance, back into the bank as part of its continuing efforts to streamline its operations here and in the region. A statement from DBS Bank yesterday said the exercise will result in the redeployment of 150 employees from the finance arm into the bank and is expected to be legally completed by the first quarter of next year. As at end-1999, DBS Finance had assets of $3.69 billion, loans of $2.7 billion and deposits of $2.75 billion. In 1999, it reported a profit before tax of $57.3 million and net profit after tax of $40.1 million. Julie Yeo, DBS' vice-president, corporate relations, said all the employees of DBS Finance will be taken in by the bank, and transferred to various departments within the bank. Peter Tan, executive director of DBS Finance, will join DBS' enterprise banking unit as one of the group's managing directors. No decision has been taken yet on what will happen to DBS Finance's five branches and two lending points which operate as one-stop loans-only centres, she said. All DBS Finance's customers will become the bank's clients and they can look forward to additional financial products and services offered by the bank, said Mr Tan. "We will also be able to leverage on the bank's IT resources and capability in e-banking to offer DBS Finance's customers newer, more effective and convenient delivery channels," Mr Tan said. He stressed that there would be minimal disruption and impact to customers and their accounts. DBS Finance, set up in 1970, was one of the pioneers in providing hire purchase financing among finance companies in Singapore. It also offered a wide range of financial products like deposits, share financing, housing loans and ship financing. Like other finance companies, its client base is made up mainly of small and medium-sized enterprises. |
| (Post 50 of 109) 12/02/2000.00:19:34 |
| Author : |
According to the last update of Finance Companies Act ( CAP 108 ), last update on 12 May 1999, section 7 on minimum capital requirements - the capital funds are to be not less then 50 million dollars.
Check www.mas.gov.sg You can take the bet that OCBC finance will be taken private. But there are always some shareholders who can be very difficult to convince. If you consider ICB - the capital requirement is 1.5 billions for banks and UOB has every reasons to take ICB private. Maybe ICB another better choice ? |
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