A question for investors who buy now at $1.00 and plan to hold CSE beyond the special dividend payout : Will CSE fall 28 cents to 72 cents post-dividend?
Is CSE fairly valued at 72 cents post-IPO of Servelec?
For those not intending to hold CSE beyond the special dividend, an opportune time to sell would be a few days before x-d, I think.
What the price at that point would be is anyone's guess. I would venture it's higher than the current price of $1.00.
If only CSE had been more forthcoming by giving a timeline for the payment of the special dividend!
After all, they have said 28 cents a share, and they should know what the listing date roughly would be, when the $ will be credited to their account, etc.
Leaving investors to guess or grope about in the dark is bad communications!
UNLOCKING VALUE : The Servelec Group is will be divested at a trailing 12-month PE ratio of 12. 6x, which is significantly higher than the parent CSE Global’s average trailing 12-month trading PE ratio of 8.0x for the past one year.
Net proceeds from IPO = $219.6 million
Special dividend = $144.5 million (= 28 cents a share).
Balance = S$75.1 million to pare down debt (which will result in the Company being in a net cash position as at 30 June 2013).
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