All the sinkie mom and pop who did not sell or bought Olam yesterday thinking that Temasick has done a proper due diligence on Olam are going to get very angry soon.
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"Olam shares surge on bonds issue plan - Channel NewsAsia"
- Thread starter Zatoichi
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don't pray pray .... better offload now .... manyak toxic binya.:o
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this i like.......hopefully all can be translated into opposition votes come 2016
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Usually but not always. The market tends to overshoot one way or the other.
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Today's BT reported:
Another sticking point that Muddy Waters raised was how the deal had come about, which was that the banks underwriting the deal had gone to Temasek with the proposal, and Temasek in turn went to Olam with the deal.
This was sparked off by what Olam's CEO Sunny Verghese had revealed on Monday when he announced the rights issue. "This was a deal that was taken by the banks to Temasek, and then presented to us by Temasek," he had said then.
This order of events was lent a sinister sheen by Muddy Waters yesterday. "We theorise that Olam's banks told Temasek they would turn off the taps unless Temasek provided additional financing to the company," it said.
While DBS, Credit Suisse, HSBC and JP Morgan are underwriting the deal, the underwriting buck stops at Temasek, which currently owns about 16 per cent of Olam. It has committed to subscribe to its entitlement and also to underwrite the entire rights issue.
Although Olam has maintained that it has enough funds to meet its debt obligations over the next 12 months, an analyst told
The Business Times that "Olam completely depends on the banks' goodwill. It needs the banks to roll over the debt". He added that if all the banks were to suddenly yank funding, Olam might have to sell assets, unlike some other companies with ready cash to pay the banks back on short notice or those in possession of free cash flow that could be used to secure funding from another bank.
Adding to the speculative atmosphere, Mr Verghese bought one million Olam shares last Friday - the last working day before the deal was announced - while two of its independent directors - Robert Tomlin and Michael Lim - bought 200,000 shares each the day before that.
The timing of the purchases provided fuel for market murmurings that Olam might have run afoul of rules and regulations.
In order to participate in the offer, investors who have lent out their shares for a fee will have to recall them - increasing the cost to short-sellers of borrowing the stock.
However, not all of Olam's shareholders will share Temasek's risk appetite or deep pockets. Though investors should be able to sell unwanted bonds in the market, forcing them to become lenders or risk dilution is not a great way to earn their trust.
What's more, Olam's demonstration of solvency does not answer broader concerns raised by Muddy Waters in its 133-page indictment of the company's accounting practices, acquisition strategy and leverage.
CEO Sunny Verghese told Reuters just last week that the company would not raise debt in the next five to six months. He also insisted it had enough liquidity at hand to repay debt and finance capital expenditure over the next 12 to 18 months.
Olam and Temasek may have devised a clever way to fight Muddy Waters. But it looks a short-term fix.
Another sticking point that Muddy Waters raised was how the deal had come about, which was that the banks underwriting the deal had gone to Temasek with the proposal, and Temasek in turn went to Olam with the deal.
This was sparked off by what Olam's CEO Sunny Verghese had revealed on Monday when he announced the rights issue. "This was a deal that was taken by the banks to Temasek, and then presented to us by Temasek," he had said then.
This order of events was lent a sinister sheen by Muddy Waters yesterday. "We theorise that Olam's banks told Temasek they would turn off the taps unless Temasek provided additional financing to the company," it said.
While DBS, Credit Suisse, HSBC and JP Morgan are underwriting the deal, the underwriting buck stops at Temasek, which currently owns about 16 per cent of Olam. It has committed to subscribe to its entitlement and also to underwrite the entire rights issue.
Although Olam has maintained that it has enough funds to meet its debt obligations over the next 12 months, an analyst told
The Business Times that "Olam completely depends on the banks' goodwill. It needs the banks to roll over the debt". He added that if all the banks were to suddenly yank funding, Olam might have to sell assets, unlike some other companies with ready cash to pay the banks back on short notice or those in possession of free cash flow that could be used to secure funding from another bank.
Adding to the speculative atmosphere, Mr Verghese bought one million Olam shares last Friday - the last working day before the deal was announced - while two of its independent directors - Robert Tomlin and Michael Lim - bought 200,000 shares each the day before that.
The timing of the purchases provided fuel for market murmurings that Olam might have run afoul of rules and regulations.
In order to participate in the offer, investors who have lent out their shares for a fee will have to recall them - increasing the cost to short-sellers of borrowing the stock.
However, not all of Olam's shareholders will share Temasek's risk appetite or deep pockets. Though investors should be able to sell unwanted bonds in the market, forcing them to become lenders or risk dilution is not a great way to earn their trust.
What's more, Olam's demonstration of solvency does not answer broader concerns raised by Muddy Waters in its 133-page indictment of the company's accounting practices, acquisition strategy and leverage.
CEO Sunny Verghese told Reuters just last week that the company would not raise debt in the next five to six months. He also insisted it had enough liquidity at hand to repay debt and finance capital expenditure over the next 12 to 18 months.
Olam and Temasek may have devised a clever way to fight Muddy Waters. But it looks a short-term fix.
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Verghese now says he wants to concentrate on running the business and will not be distracted by outside comments.
Speaks volumes huh?
Price still heading south - $1-50 now, down 6%. If it goes below $1-47, all hell will break loose - macam kena lau psy.
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olam gangnam style ?
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Not entirely correct. How do the ratings agencies such as S&P, Fitch, Moody's rate our Temasick to be AAA? I am sure Temasick did not open their up-to-date accounts to them.
They have to open book to certain extent. Otherwise how to rate? Temasick should be quite straight forward, as very little debt, and fully own and backed by MOF.
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To keep it short and sweet, haha, you're accusing me of throwing "smoke bombs" while I'm accusing people like you of being too "money-minded"; or was it me initiating the "money-minded" accusation first, followed by you accusing me of throwing "smoke bombs", etc.? LOL
Anyway, whatever.
Readers will just have to decide for themselves what to believe/trust.
I'm not sure who you're referring to by "sinkie mom and pop", but I'm betting that near-zero of the buyers yesterday were middle-class Singaporeans.
Most of the buyers must have been upper-class multi-millionaire pro-PAP/Temasek Singaporean (including PRs) cronies with at least a million S$ of cash to spare.
Yesterday's volume was 80+ million shares, so that's only about 80 multi-millionaire (out of the tens of thousands individual millionaires in Singapore) cronies! LOL
It's crony-capitalism:
http://en.wikipedia.org/wiki/Crony_capitalism
that always WINS, though.
Which is all that matters to these cronies, who don't give a damn about "morals" or "righteousness" or "rightness".
They only care about winning and ruling, and they won't hesitate to litigate, and/or financially bail out one another, to secure their victories.
And I'm still wondering WHO he is! LOL
No, I'm afraid not! LOL
SPH's real job is to BRAINWASH money-minded Singaporeans! LOL
Seriously, SPH has much better things to do, i.e. BRAINWASHING people, than to waste time and energy being greedy for money.
Simply because Singapore Government Bonds are AAA.
Temasek/GIC has only ONE creditor, i.e. the Singapore Government.
As for Singapore Citizens being the creditors of the Singapore Government?
Hahaha! Wishful thinking, right?
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Those bullish on this stock good luck to you....it's your money and your right.
Time will prove who is correct.
No need come here to write essay try to talk up the stock....go to share forums got more audience.
Time will prove who is correct.
No need come here to write essay try to talk up the stock....go to share forums got more audience.
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hahahaha..true.
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I feel sorry for all these small investors for they obviously do not know Temasek's past record with Merrill Lynch, ABC, Shin Corp and Dao Heng Bank; just to name a few of many failed or overpriced acquisitions/mergers.
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Desperate Ah Neh is contemplating how many more billions of Dollars of rights to issue to Temasek.
You know what to do when you see a cobra snake and an Ah Neh.
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Many sinkies bought olam shares, and many local private banking clients also bought olam bonds denominated in sgd. the negative impact is going to be more than past temasick failures although the potential lose to temasick is nothing compared to shin corp etc.
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Tuan tuan and Puan puan,
Last call, Last call,
Offload tomorow before it is too late !!
:o
Last call, Last call,
Offload tomorow before it is too late !!
:o
