Singer Sri Lanka may sell Regnis Lanka to Softlogic for 1.5 times above Net Asset Value

Jiggysaurus

Jiggysaurus

Assistant Vice President - Equity Analytics

Posts : 962
Join date : 2012-06-14

StockGuru wrote:

Jayashantha wrote:

So bet high...Softlogic will buy Singer most probably for nearly Rs.15 billion from a faciitated credit line.

Wow only 2 billion. What a deal from the guru.

StockGuru

StockGuru

Senior Manager - Equity Analytics

Posts : 385
Join date : 2011-01-19

Jiggysaurus wrote:

StockGuru wrote:

Jayashantha wrote:

So bet high...Softlogic will buy Singer most probably for nearly Rs.15 billion from a faciitated credit line.

Wow only 2 billion. What a deal from the guru.

Jiggy brother disregard typo...something wrong with the system..

It is about Rs.15 billion something like US $ 120 million.

RPPA

RPPA

Expert

Posts : 2565
Join date : 2014-09-17

StockGuru wrote:

Jayashantha wrote:US $15 billion seems to have been a typo.

It is US Rs. 15 million = nearly US $120 million.

Last few months Singer has got lots of business units and Business from Browns Group (Brown & Company) - BRWN including photocopy business and some other imported brands.After LOLC acquired Browns the BRWN is now undergoing a consolidation phase and business restructuring phase.They have sold many businesses to Singer and LOLC lead Browns fame in 2011 were eyeing Singer Sri Lanka how ever they were unable to acquire since LOLC couldn't find necessary funding.

Singer BV has been eyeing to exit SL by offering the franchise to someone else for a long time.
If Softlogic acquires Singer business that will give lots of synergies since it will increase Softlogic's retail business footprint with Singer Mega and Lifestyles and with Softlogic Max and Odel with Softlogic retail phone brands and clothing brands with Burger King and many more.

After that LOLC-Browns fame lead Bond King (who had large quantity of Singer during 2011-2012) manipulated SINS shares from Rs.100 - Rs.125 levels on a two day cycle and exited.

However now Softlogic who has lots of banking contacts to fund acquisitions will be buying SINS group and it might pave way for Softlogic Finance and Singer Finance to merge too.

So bet high...Softlogic will buy Singer most probably for nearly Rs.15 billion from a facilitated credit line.

I really can't understand to what extent of debt SHL is going to go for. The group currently has long & short term debt of Rs.53.70Bn including public deposits (9.5Bn) & shareholders funds of only Rs.13.80Mn.

Now again targeting a major acquisition through debt. I don't thing any institution will provide cheap lending due to SHL due to the risk they are taking.

So any kind of cash flow pressure is enough for this group to crash.
ex-Same thing happen to PCH as they acquired companies through M/T facilities & when the share price come down co, will be in a total mess.

kassachandi

kassachandi

Assistant Vice President - Equity Analytics

Posts : 976
Join date : 2014-08-15

What will be sins price for the deal Mr sstar

anges

anges

Assistant Vice President - Equity Analytics

Posts : 749
Join date : 2012-12-04

only time will tell how the debt will affect the bottom lines !

StockGuru

StockGuru

Senior Manager - Equity Analytics

Posts : 385
Equity Stars : 11709
Reputation : 39
Join date : 2011-01-19

Ashok is Sri Lanka's 'Leverage King' not like PC House Rishan.

He invites every banker for a good lunch and dinner and keep a good relationship for debt financing.If he can't get he goes abroad talk to foreign debt financing institution and get the loan somehow.It his style to live and run on debt until he lives.If he pass-away or quit the group only the Softlogic group will crash.Until then SHL will expand.So may be all Shareholders' of Softlogic can pray for the health,wealth and happiness of Ashok so that Shareholders can go up with a handy dividend yield and capital gains.

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Singer Sri Lanka may sell Regnis Lanka to Softlogic for 1.5 times above Net Asset Value

26 Re: Singer Sri Lanka may sell Regnis Lanka to Softlogic for 1.5 times above Net Asset Value Mon Oct 20, 2014 4:21 pm

Jiggysaurus

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29 Re: Singer Sri Lanka may sell Regnis Lanka to Softlogic for 1.5 times above Net Asset Value Mon Oct 20, 2014 9:06 pm

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anges

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32 Re: Singer Sri Lanka may sell Regnis Lanka to Softlogic for 1.5 times above Net Asset Value

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