Wednesday, November 25, 2015

SIA Offer for TIGER Air

Whenever I fly budget, I will choose Tiger Air. The main reason being, after trying Jet Star vs Tiger, I find flying with Tiger a more pleasant experience, in terms of service as well as air-craft space and facilities.

Just a few months ago when I was holidaying in Bali and was flying TigerAir when the Bali airport was closed for 6 hours due to volcanic ash threat. 6 hours, it was really exhausting! But a few hours into the waiting, Tiger made an announcement for their passenger to collect complimentary food and water, FOC. I noticed inside the airport, Tiger was the only airline that gave out free food and water to their passengers. And food means rice and meat, not bread or cakes. NICE gestures indeed, right! It won my vote for the best budget airline for SURE! hehe...

So now SIA is making a takeover offering at $0.410 and an option to subscribe SIA share at $11.1043.

Some Minority Shareholders have voiced out that this offer is "not reasonable". The Minority shareholding is 44.2%, btw, it is not really that "MINOR" (this is just an accounting terminology usually used).
What do you think? Is it a good deal?

While on one hand, Tiger is still not showing profits, they are definitely narrowing on the losses (if you take out the one-off "Provision for onerous aircraft leases of $108.6Million!"). See the most recent Oct 2015 results announcement:

I am confident (as SIA is too) that Tiger will be able to show profit in the near future. So there is no better timing to offer a buyout as now. $0.41 offer with an option to purchase SIA share at $11.1043 while SIA share is trading at $10.70 currently. A -ve option to purchase LOL NOT very nice of SIA, indeed. So opportunistic. The offer shows they are not as "high-class" as they brand themselves to be, isn't it. In fact, rather low-ball. BAD PRICE, BAD TIMING. I am sure SIA knows that at 41ct, MOST minority shareholders will be making a LOSS. Plus offering an option to purchase SIA share at not a single cent of discount? How Sincere is that in inviting Tiger shareholders to become SIA shareholders? *Speechless* Not cool ya.

Please Note, SIA only holds only 56% of the shareholding in Tiger. If they can't reach 90% share, this deal may not go through. So in this case, the "MINORITY" shareholders here are NOT that minority at all. They hold 44%. So if this is not a good deal, you can choose not to sell. Then SIA may have to make a better offer or status quo or apply to MAS for approval or they may think of exiting Tiger all together, which I don't think they would given the investment they have put into Tiger and the changing competition and growing demand in the region for low-cost carriers.

Friday, November 20, 2015

ONE lesson I learn from CHC Saga

What is the lesson you learn from following a 5 1/2 years saga of City Harvest Church?

I am not here to judge or to pass judgement. I am not fit to do that. But five and half years long of court drama is hard to miss by our attention, isn't it? It certainly would pique one's interest in one way or another. It is pointless to pass judgement on who's right or who's wrong. In any case, the court has passed the judgement. 

Photo source: Channel News Asia

For me, I find the whole sage really interesting and my over-analytical mind never fails to want to analyze the situation.

What is the 1 (ONE) lesson do you think we can learn from this whole painful episode besides
"Don't be a finance manager of a non-profit organization! It is very high-risk".
Sometimes finance manager doesn't necessarily know all the things that are happening in the organization. In fact sometimes finance manager is the last person to know (sad!). Sometimes the CEO, CFO, COO can hide things from the managers, but in this case, the finance managers of CHC are still implicated. Really "soey" (unlucky)... dunno what else to say about the 2 beautiful finance managers except that I feel really sorry for them. Salary also not so high (compared to the "CEO"), now end up have to sit in jail... I remember reading that one of the finance managers said that she did not see anything wrong with the whole financial transactions and arrangements! If she is telling the truth, then it just shows that she is not really that qualified an accountant. And I won't be surprised as hardly any qualified accountant would want to join a non-profit organization.

Apart from the financial issue, ONE Thing I think I learn is that we should learn to be REASONABLE and MODERATE and NOT go to the EXTREME.

I am not sure if you notice, but a lot of problems are created when one is Being EXTREME in their view. Usually when one is being extremist, he doesn't even realize it himself or will deny it. All he can see is usually just his own point of view.

How then can we avoid falling into an extreme situation?

One way is to always have HUMILITY, to accept that we are only human and no human-being is perfect. Therefore we need to be Open and be Willing to Listen to other people's view and opinion.

Sunday, November 15, 2015

Generating Positivity

The recent situation in #Paris and many other incidents we read recently on the news about the violence perpetuated by a certain perverted group, naturally evokes certain reactions and feelings in us.

The feelings can range from anger, despair, disgust, helplessness, fear etc. Honestly, I felt so too. I too felt angry about the evil and injustice perpetuated, and I felt helpless that it seems like it cannot be stopped. But then the analytical mind of mine continue to search deeper, I asked myself is feeling angry and helpless going to do any good to the situation? The answer is NO. Feeling negative about the already negative situation is just going to generate more negativity. Feeling angry with the culprits will not solve any problem.

So then what would be a better reaction?

I found the answer while reading this book "How to Solve Our Human Problems" with a nice cup of coffee from #NylonCoffee:

I highlight some important points:

1.  "Due to strong attachment to our own views, we immediately experience the inner problem of unpleasant feelings when someone opposes them (our views). This cause us to become angry, which leads to arguments and conflicts with others, and this in turn gives rise to further problems. Most political problems experienced throughout the world are caused by people with strong attachment to their own views. Many problems are also caused by people's attachment to their religious views"

2. "Our attachment, anger and ignorance are the causes of all our problems and sufferings. We will definitely realize that unless we control these delusions there is no other method to solve our human problems"

3. What I have learnt is that if I can't change the external, then I must change the internal. I can't change the whole world, but I can change my reaction to the event in the world or the world around me. So instead of choosing to be reactive or retaliate with anger and blaming this group and that group, it is better for me to choose to send a thought of loving-kindness, of peace and healing to others as the world continues to spin, as nature continues to take its course. 

Let's choose not the negative but POSITIVE reactions instead, for in that way, the cycle of negativity can be exhausted.

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