I hold CitySpring since its IPO day. It was $0.89 when CitySpring launched its IPO in 2007. My average price for CitySpring is a high $0.65 that CitySpring is enveloped in deep winter in my portfolio for many years. At one time, it lost >50% its initial amount.
I did not get rid of CitySpring because of the regular quarterly dividends which generated about 7-8% yield and also the fact that it comprises just a small percentage of my holdings. Despite the high yield, I did not average down because of the huge debt CitySpring is carrying.
After many quarterly $0.0082 dividends, finally I managed to breakeven on CitySpring in early 2014.
CitySpring owns City Gas, which is the sole producer and retailer of residential gas in Singapore. It also owns SingSpring, which runs a large-scale seawater desalination plant in Singapore. An overseas asset Basslink operates high-voltage electricity grids in Australia.
This possible merger would combine CitySpring with Keppel Infrastructure Trust, which generates power from city waste and supplies reclaimed water to industrial users. This possibly could provide investors with long-term, regular and predictable distributions and have potential for long-term capital growth.
So, finally Spring comes for CitySpring investors.
itySpring
Infrastructure Trust, a Singapore piped-gas supplier backed by Temasek -
See more at:
http://www.straitstimes.com/news/business/more-business-stories/story/temasek-backed-cityspring-said-weigh-merger-keppel-unit-20#sthash.d4NnUoF3.dpuf
CitySpring
Infrastructure Trust, a Singapore piped-gas supplier backed by Temasek
Holdings, is exploring a merger with Keppel Infrastructure Trust - See
more at:
http://www.straitstimes.com/news/business/more-business-stories/story/temasek-backed-cityspring-said-weigh-merger-keppel-unit-20#sthash.d4NnUoF3.dpuf
CitySpring
Infrastructure Trust, a Singapore piped-gas supplier backed by Temasek
Holdings, is exploring a merger with Keppel Infrastructure Trust - See
more at:
http://www.straitstimes.com/news/business/more-business-stories/story/temasek-backed-cityspring-said-weigh-merger-keppel-unit-20#sthash.d4NnUoF3.dpuf
Hi there,
ReplyDeleteNow that the news has been confirmed, do you expect its share price to continue trending up? DPU is expected to increase, however it would often take years to achieve operational synergies between the two companies.
Do not expect exceptional performance for the first few years, but it is definitely a good business to hold in portfolio.
Vested as well!
Hi Anonymous,
DeleteYes. Expecting uptrend. Hope can grab some more CitySpring...
Cheers,
Farmer.
CityNet and DataCentre One are really odd fit into Keppel Infrastructure Trust which core business structure is in energy and environmental infrastructure assets.
ReplyDeleteCityNet and DataCentre One are a better fit into another listed company Keppel T&T which will soon be listing its data centre business unit, Keppel DC Reit.
Once this so-called merger (between CS and KIT) completed l am expecting parent company Keppel Corpn to review and further streamline CityNet and DataCentre One out from KIT into Keppel T&T; and later, to be acquired by Keppel DC Reit.
l do not expect the above so-called restructuring to happen in 2015 but more likely to happen in the next 3-4 years time.