Huge Payday For Scomi Engineering Investors And...... Scomi Group

Yeah I SAW Scomi Engineering's Special Dividend announcement. Yummy! A special dividend payment of 29.5 sen. (well to be more precise it is 23.5 sen tax exempt and 6 sen less tax of 25% or 28 sen nett)

Then something just clicked.

Aha Scomi Group.

Why? I recalled the posting on Scomi Group posted last month: Scomi Creditors Allows Scomi To Postpone Repayment Of 630 Million.

Well posted on that posting, as per Scomi Group's last reported earnings, at end March, Scomi Group had 135.191 million in cash and total debts of 1.303 billion and Scomi Group had some 630 million medium-term notes that needed to be redeemed but somehow its creditors were kind enough to allow Scomi Group postpone the payments.

630 million medium-term notes to be redeemed.

Big bucks.

And yeah, it's nice to know there are still kind creditors around. :D

Now Scomi Group, as per Scomi Engineering's 2009 Annual Report, Scomi Group owns 69.31% of Scomi Group or some 192,567,567 shares of Scomi Engineering. A 28 sen dividend from Scomi Enginerring should work out to close to 54 million! (Do correct me if I am wrong or flawed in my calculations. :D )

Now I had written on Scomi Engineering before, in Nov 2009, I posted A Quick Look At Scomi Engineering's Quarterly Earnings.

Anyway, fast forward to present day. Scomi Engineering's last reported earnings was on May 2010: Quarterly rpt on consolidated results for the financial period ended 31/3/2010. A quick check would show that cash balances is around some 49 million and total debts is about 225.468 million.

Now Scomi Engineering had announced earlier about its disposal of assets plans, ie the disposal of Machine Shop Business for USD101 million. See announcement here: Announcement_SEB.pdf

Sounds familiar?

No?

And then .... what about all them Scomi Marine postings on its recent disposals of assets?

Hmmm.... doesn't it 'suddenly' not fall nicely into the small picture?

Just posted the other day: Do You Think Scomi Marine Is Doing A Fire Sale?

Oh... gosh... that 'the other day'... was just two days ago! Oh my! How time flies so quickly.... when there is no FIFA. :D

Anyway after the disposals of assets , as per my flawed calculations, Scomi Marine should be net cash of around 486 million. The experts thinks it should be around 522 million. Ok, say I am wrong and let's use that 522 million. Ya.. the more the better. :D

Now as per the 'according to source' theme mentioned in that news article highlighted in the posting, Do You Think Scomi Marine Is Doing A Fire Sale?, Scomi Marine is speculated (they use the word 'may' :P ) to make a capital repayment.

Huhu... capital repayment.

I wonder how small Scomi Group shareholding in Scomi Marine.

Well, according to Scomi Marine's 2009 annual report, Scomi Group owns some 42.71% of Scomi Marine or 313,043,478 shares.

Hmm... 42.71% of 522 million.... is how much?

Hmm... that should be around 222 million.

But ... but.. but... I don't see Scomi Marine making a full capital repayment of 522 million... I just don't see.... lol... unless I am blind of course. LOL!

Anyway... IF Scomi Marine do make a capital repayment... ya... Scomi Group would get the bulk of the money.... how much? I dunno. It depends on the IF and HOW BIG is the capital repayment.

And this is where it all clicked in...... let me see if I can get it correct... but if I am wrong... lol... I am wrong. Don't bash me up for it. :D

Let's see.... the chain of events here....

Scomi Engineering announces disposal of asset... then .... Scomi Engineering announces NICE special dividend.

Scomi Marine announces disposal of asset... err... Scomi Marine... speculated to make capital repayment.



And oh yeah.. Scomi Group is the largest shareholder....



Oh.. Scomi creditors just recently allowed Scomi Group to postpone its loan payment due...



Hmmmm........ mmmmm...... mmmmmmmmmmmmm












PS: THIS IS NOT A STOCK TIP!

LOL!

How many times need I say that I am NOT a SOTONG? :P