Recently, there was an announcement of the proposed SCI (Sembcorp Industries) demerger plan with SMM (Sembcorp Marine).
I hold 12k shares of SCI. Some thoughts I had prior to these, were whether I should let go of the shares at a loss. My average price was $3.
SCI shares were trading around 1.50ish. But I decided to hold on as I truly believe in the potential of its utility business.
After the demerger news was out, I decided to wait and see.
Should the demerger proceed, I could end up with 50k SMM shares.
To me, how I evaluate this is, if SCI shares hover to 2plus and SMM maybe around 10cents after the rights. I would hold on to both till prices recover. With Temasek backing, SMM would likely survive.
If the deal does not get passed, I would continue to hold on to SCI.
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