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Viva Ind Tr

Viva Industrial Trust

Using soccer example is like Everton merge with Newcastle to become one of the 4 big clubs. Then everton insists of having 1 more player in the new team and then vote down against the merger becos Everton not willing to compromise on that 1 more player request. In the end, deal unsuccessful and Everton remains forever middle table club and fighting for survival instead of fighting for champions league against teams like Real Madrid and having huge crowd every match.

Compare to willing to compromise and let the merger go ahead and become the new liverpool and in the long run become top team in england and challenge for champions league and racking in tons of $$$..

Clipper ( Date: 21-May-2018 01:55) Posted:

VIT share price was trading 95 cents, there about, before the merger annoucement. A day after the annoucement broke it started to fall to eventually settle at the 88-89 region. IMO, there is little incentive, if any, for VIT shareholder to accept the 96 cents merger offer. A higher, say 8-10% more, to the 96 cents offer will be reasonable and makes the offer attarctive for VIT shareholders to accept, ...IMO.

laksaman57 ( Date: 20-May-2018 17:06) Posted:

96cts offer provide opportunity for new ESR price growth. By combining present dpu, yield for new ESR share at 54cts should be 8%. Re-rating should boost the price to 65cts with competitive yield of 6.6% as compare to Mapletree Ind trust at only 5.9%.

if u want to vote against the deal for that 8-10% more , then i think is rather " illogical" becos once the merger is completed, ur ESR reits u get from exchange with Viva shares will be worth 20% more.

eg: If u exchange ur viva at 96 cents with ESR at 54 cents. After merger ur ESR shares will be worth at least 65 cents with re-rating. So u make a profit of 11 cents which is 20% (65-54 / 54 = 20%) compared to u asking for 8-10% more now plus all the feel good factor and 4th biggest reits factor.

So if u decide to vote down the deal, Viva shares either remains at 96 cents or due to the bad news of unsuccessful deal goes below 90 cents or goes back to pre-deal value of 95 cents there about(as what u mentioned), isnt this a lose-lose situation for both ESR and Viva shareholders?

Clipper ( Date: 21-May-2018 01:55) Posted:

VIT share price was trading 95 cents, there about, before the merger annoucement. A day after the annoucement broke it started to fall to eventually settle at the 88-89 region. IMO, there is little incentive, if any, for VIT shareholder to accept the 96 cents merger offer. A higher, say 8-10% more, to the 96 cents offer will be reasonable and makes the offer attarctive for VIT shareholders to accept, ...IMO.

laksaman57 ( Date: 20-May-2018 17:06) Posted:

96cts offer provide opportunity for new ESR price growth. By combining present dpu, yield for new ESR share at 54cts should be 8%. Re-rating should boost the price to 65cts with competitive yield of 6.6% as compare to Mapletree Ind trust at only 5.9%.

8-10% above 96 cents for viva will make the deal unatractive for ESR Reits shareholders to accept..unless the issue price for ESR Reits is raised to 59 cents (NTA of ESR Reits) or 8-10% above 59 cents for ESR Reits instead of 54 cents.

So if Viva and Reits shareholders want to argue then the deal will break down. lose-lose situation

Clipper ( Date: 21-May-2018 01:55) Posted:

VIT share price was trading 95 cents, there about, before the merger annoucement. A day after the annoucement broke it started to fall to eventually settle at the 88-89 region. IMO, there is little incentive, if any, for VIT shareholder to accept the 96 cents merger offer. A higher, say 8-10% more, to the 96 cents offer will be reasonable and makes the offer attarctive for VIT shareholders to accept, ...IMO.

laksaman57 ( Date: 20-May-2018 17:06) Posted:

96cts offer provide opportunity for new ESR price growth. By combining present dpu, yield for new ESR share at 54cts should be 8%. Re-rating should boost the price to 65cts with competitive yield of 6.6% as compare to Mapletree Ind trust at only 5.9%.

VIT share price was trading 95 cents, there about, before the merger annoucement. A day after the annoucement broke it started to fall to eventually settle at the 88-89 region. IMO, there is little incentive, if any, for VIT shareholder to accept the 96 cents merger offer. A higher, say 8-10% more, to the 96 cents offer will be reasonable and makes the offer attarctive for VIT shareholders to accept, ...IMO.

laksaman57 ( Date: 20-May-2018 17:06) Posted:

96cts offer provide opportunity for new ESR price growth. By combining present dpu, yield for new ESR share at 54cts should be 8%. Re-rating should boost the price to 65cts with competitive yield of 6.6% as compare to Mapletree Ind trust at only 5.9%.

Clipper ( Date: 20-May-2018 16:14) Posted:

bro, long time no chat, hope you huat huat so far in 2018 ! I suppose you still vested with VIT shares. I thought the 96 cents offer (10% cash and 90% ESR shares) is on the low side. Imagine those shareholders who enter just before or after its flagship Viva Business Park opening on 16 Aug 2017, the 96 cents offer is no better than what most would have paid from Aug 2017 to just before the merger news. IMO, I thought Viva management could have negotiated a more convincing deal than this current offer.

a number of positives here, and if ESR moves up above 54c, then it will drag Viva up along with it now since it is 90% pegged to ESR. and vice versa.

market will already accord the probabilities tomorrow. we shall see..

Clipper ( Date: 20-May-2018 16:14) Posted:

bro, long time no chat, hope you huat huat so far in 2018 ! I suppose you still vested with VIT shares. I thought the 96 cents offer (10% cash and 90% ESR shares) is on the low side. Imagine those shareholders who enter just before or after its flagship Viva Business Park opening on 16 Aug 2017, the 96 cents offer is no better than what most would have paid from Aug 2017 to just before the merger news. IMO, I thought Viva management could have negotiated a more convincing deal than this current offer.

laksaman57 ( Date: 18-May-2018 21:58) Posted:

https://www.theedgesingapore.com/viva-industrial-trust-stapled-securityholders-receive-96-cents-apiece-proposed-merger-esr-reit

As and when New ESR price hit 65ts, if there is a second wave merger with Sabana at present metric 44cts/8% yield/53cts nav will propel new ESR once again. Huat 2x 😆

96cts offer provide opportunity for new ESR price growth. By combining present dpu, yield for new ESR share at 54cts should be 8%. Re-rating should boost the price to 65cts with competitive yield of 6.6% as compare to Mapletree Ind trust at only 5.9%.

Clipper ( Date: 20-May-2018 16:14) Posted:

bro, long time no chat, hope you huat huat so far in 2018 ! I suppose you still vested with VIT shares. I thought the 96 cents offer (10% cash and 90% ESR shares) is on the low side. Imagine those shareholders who enter just before or after its flagship Viva Business Park opening on 16 Aug 2017, the 96 cents offer is no better than what most would have paid from Aug 2017 to just before the merger news. IMO, I thought Viva management could have negotiated a more convincing deal than this current offer.

laksaman57 ( Date: 18-May-2018 21:58) Posted:

https://www.theedgesingapore.com/viva-industrial-trust-stapled-securityholders-receive-96-cents-apiece-proposed-merger-esr-reit

bro, long time no chat, hope you huat huat so far in 2018 ! I suppose you still vested with VIT shares. I thought the 96 cents offer (10% cash and 90% ESR shares) is on the low side. Imagine those shareholders who enter just before or after its flagship Viva Business Park opening on 16 Aug 2017, the 96 cents offer is no better than what most would have paid from Aug 2017 to just before the merger news. IMO, I thought Viva management could have negotiated a more convincing deal than this current offer.

laksaman57 ( Date: 18-May-2018 21:58) Posted:

https://www.theedgesingapore.com/viva-industrial-trust-stapled-securityholders-receive-96-cents-apiece-proposed-merger-esr-reit

Agreed. Both side shh hoping it will re rate but if esr-combo price doesnt move up sufficiently at least to 6.x % yield or less, then not so much meat to do any more M&A. Maybe can kick off future reits M&A by those solid low yield reits like maple, capita?

tonylim70 ( Date: 18-May-2018 15:57) Posted:

Short term dun expect the share price to move much. This one need patience one.. At least until the merger is completed in 3Q this year aka around September. After completion, re-rating will happen and shd see 60 cents AT LEAST... longer term (2-3 years) may even hit $1 if they carry out more merger and venture overseas.

pirateboy ( Date: 18-May-2018 15:47) Posted:

Solid outcome also for ESR. If the market will consider a yield of 6.5% for the combined entity, looking at 4c/6.5% or 61.5c for ESR already, and Viva shh will benefit too as they swap shares at 54c.

Short term dun expect the share price to move much. This one need patience one.. At least until the merger is completed in 3Q this year aka around September. After completion, re-rating will happen and shd see 60 cents AT LEAST... longer term (2-3 years) may even hit $1 if they carry out more merger and venture overseas.

pirateboy ( Date: 18-May-2018 15:47) Posted:

Solid outcome also for ESR. If the market will consider a yield of 6.5% for the combined entity, looking at 4c/6.5% or 61.5c for ESR already, and Viva shh will benefit too as they swap shares at 54c.

Song hor, those who collected Viva at below 90c in the past month. :D

Annoucement out: Merger confirmed.

Summary: For ESR Reits shareholders, the sweetener is dividend going to increase (every quarter should be at least 1 cent). For Viva, the sweetener is the price issued is 96 cents (90% ESR shares + 10% cash as sweetener) ==> win-win for both set of shareholders

Indeed smart of Viva to claim deal to be completed month end to calm the market.

Big re-jig of both counter share prices on Monday. Or maybe the market had it right after all....

tonylim70 ( Date: 18-May-2018 08:18) Posted:

Both ESR and Viva halt

laksaman57 ( Date: 17-May-2018 21:23) Posted:

https://research.sginvestors.io/2018/05/viva-industrial-trust-maybank-kim-eng-2018-05-16.html?m=1

they said they hired KMPG CF to be their IFA, so a deal seems clear, just a matter of time.

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Viva Industrial Trust