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Ivy Yeo asked 7 months ago

I am the existing shareholder of SPH for a pretty long time.  In your past workshops, it is stated that it is only good to enter into SPH when it becomes a property company.
SPH has announced the demerger of its media arm to CLG. What is your view on this issues.
Is it a time to buy in more shares as the share price has dropped to $1.57 at the opening of the market.  
Should i vote for demerger in the coming EGM.
Your response appreciated.  Thank you.

6 Answers
Victor Chng answered 7 months ago

Hi Ivy,
 
Voting for the demerger depend on the details of the offer that the management is going to announce. At the moment, the detail is still not out yet. It is hard to make decision now.

Jieren Zheng answered 7 months ago

May I point out that previously SPH was not priced as a developer (with a discount to book) as well.

Victor Chng replied 7 months ago

Yes this is a risk for them also. Regardless the outcome, it definitely will have an impact on their share price.

Ivy Yeo answered 7 months ago

In this case, I shall wait for your details before deciding whether to vote for demerger.  Currently, the general consensus to the announcement is not favorable.  It has already reflected in the selling down and share price at the end of the trading day on Friday.
Would seek your advice again nearer the EGM when more details are available. 
Thank you.
 

Victor Chng answered 7 months ago

Hi Ivy,
 
Yes, the deal does not sound favourable to shareholder. 

Victor Chng answered 7 months ago

Hi Ivy,
 
Just an additional information, based on the information so far, Shareholder have to pay $110m for the disposal. After the disposal, they left with the property arm. It probably may take sometime for them to stabilise. If I am the shareholder, I probably will look at better opportunity.

Victor Chng answered 7 months ago

Hi Ivy,
 
Here a youtube video that we did on SPH. Hope it helps