What do you do if you have Sembcorp Marine Shares?
The recent announcement to demerge from its parent company Sembcorp Industries made waves in the Singapore Investor Community. #SCM #sembcorpmarine #SCI There were many blogs reporting on how the recapitalisation would happen. All these opinions and advice were focus on the the demerger and speculation on whether SCM would merge with another shipyard. And there were rumours that privatisation were on the cards. What if you currently have 10 lots of SCM shares? What would you do when the rights issue goes through? Here are 3 strategies to focus on: 1. Exercise to buy the Rights Issue shares 2. Sell all at market value 3. Sell partial at market value and buy with remaining Rights Issue shares with the cash of the sold Rights Issue shares. Exercise to buy all Rights Issue Shares It's a no brainer. If SCM is offering $0.20 per share for the Rights Issue Shares, you should buy in. With 10 existing lots, you are entitled to 50 lots and that would calculate to 50,000 x $0.20 = $10,