Daily Brief Singapore: SATS, Singapore Medical and more

In today’s briefing:

SATS: If Three Different P/E Firms Can’t Create Value for 8 Years, Can SATS?

SATS (SATS SP) is almost back to 2020 Covid lows after announcing the WFS acquisition.
Buying from PE firms is always problematic as they have already skinned the proverbial cat, in the case of WFS, it has been passed around many times since 2006.
At a time of rising interest rates, SATS is assuming a large pile of debt and will need to dilute shareholders significantly. Would this deal have happened under Alex?

Singapore Medical (SMG SP)‘s voluntary conditional offer from management (chairman, CEO, exec director) at S$0.37 cash per share or one new share in the offeror will close on 1 November.
The 90% minimum acceptance condition will not be lowered. Irrevocables remain at 51.67% of outstanding shares. The offeree circular will be despatched by 18 October.
The offer is underwhelming and will struggle to hit the 90% minimum acceptance condition. With shares trading in line with the offer, take profits and head for the exit.

Back on the 14 September, healthcare provider Singapore Medical (SMG SP) announced a low-balled voluntary exit offer from TLW Success, an entity equally controlled by three senior members of management.
TLW is offering S$0.37/share, a 13.8% premium to last close. TLW shareholders plus irrevocables hold 51.67% all-in. The Offer is conditional on 90% of shares out held by the Offeror
In the Offer Doc, the Offeror has, surprisingly, waived its right to lower the acceptance condition. It will not be lowered. There is no IFA opinion in the Offer Doc.

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