Anyway, not unreasonable for SIA share price to fall below $2.68.

 

$2.68 is the amount that an MCB holder effectively pays to obtain one SIA share if the default option in payment in shares for investment in MCB is the eventual outcome.

 

So if the SIA share price in 2030 is $2.68 and conditional upon fact that zero SIA dividend is paid till 2030, then an MCB holder has not suffered any financial loss if inflation is not taken into account (e.g. he has just obtained back exactly what he invested at the start at zero % interest).

 

Thus, SIA share price of $2.68 is no big deal really.

 

SIA shareholders also have no justification to KPKB because they were in first instance offered to buy the MCB at $1 and also later on at 85¢ at its lowest or even at below 90¢ pre COVID-19 vaccine roll out. This is effectively an insurance product so they can average their SIA share price downwards in case of SIA share price drop (i.e. falls below $4.84 conversion rate). SIA shareholders who had shun MCB were thus greedy people, hoping for higher returns. They deserve no sympathy because they didn' t buy the MCB to ' insure' against excessive losses.

 

Share market will be volatile, especially for airline stocks like Singapore with no domestic airline service.

 

I understand that SMRT was privatised by Temasek to hide the quantum and urgency of equipment repair costs and not because they scooped a cheap company (they kinda neglected the equipment to begin with). The metro equipment was apparently so poorly maintained that massive cash injection was necessary to prevent significant metro breakdowns and shareholders will vehemently protest such large emergency repair costs and probably make public SMRT director misdeeds. 

Something like government-retail share holder mutual cover up so government could proceed with the expensive urgent emergency equipment repairs whilst shareholders are silenced with a reasonably priced company buy out.

 

 

As for SIA, there is no critical need for any fund injection (e.g. for non-airworthy planes etc) as Temasek already backstopped the $6.2B of MCB. Retail shareholders can either sell their SIA shares or else buy more MCB when released to somewhat insure themselves against excessive losses if SIA continues to lose money. 

 

That SIA will do badly is expected and Temasek already is helping out massively by backstopping the MCB and meanwhile, SIA is obtaining debt reasonably cheap.

 

No further cash injection or delisting is necessary because even if SIA share price hit under $2.68, Temasek will still backstop S$6.2B of MCB, so SIA will remain solvent, even if it' s share price traded under $2 I believe.