Dear Investors of i3 forum

AMPROP reported a No Good Negative Quarter

See

Basic earning is -0.52

Making a loss this quarter

In normal time with this result AmProp will probably trade below 54.5 sen (the day when Datuk Hashim offered to take it private at 90 sen for a whopping 65% more!!

Why should he be so bullish when result is so poor?

And why should he pay extra 65% more at 90 sen when AmProp price was traded at only 54.5 sen

Can't he follow the example of FGV to offer maybe 60 sen to take AmProp private instead of the very generous 90 sen?

There MUST BE A REASON for Giving such a premium value.

What is it then?

YES!!

To find out let us do a simple investigation into AmProp Assets

Turn with us to AmProp Annual Report

Scroll down to the Property Assets owned by AmProp

Look at one example

Ok. From the above we now know AmProp owns 269,513 sq meters of lands in Seabana Cove with book value of Rm7,009,000

Let us find the Per sq feet value

Convert Sq meter to sq feet by multiplying with 10.764

268,513 x 10.764 = 2,890,273 sq ft

To get price per sq feet 

Divides  Rm 7,009,000 ...by 2,890,273 sq ft

=Rm2.43 psf

YES! GOT IT!

AmProp own Seabana Freehold lands with Book Value of Rm2.43 psf

Now what is the Current Market Value of Seabana Cove lands

Go see iProperty website

Sebana Cove Pengerang Agriculture Land For Sale (Beside Mainroad), Pengerang

Land area : 10 acres

From the above we get 2 details

1) The land is agricultural (not yet converted) The Lands owned by Amprop is Development Lands. Conversion from agriculture has been done for AmProp lands. No mention if land is freehold or leasehold. AmProp land is Freehold (Very rare in Pengerang where most are 99 year leasehold)

2) Price is Rm12 millions for 10 acres

Or Rm1.2 Millions per acre

How much psf

Divide Rm1,200,000 by 43,560 (an acre)

= Rm27.55 psf

So AmProp Freehold Development land only Rm2.43 psf versus Agriculture land at Rm27.55 is only 8.8% Cost

If revalue AMPROP Lands should go up 1,133% more

NOW YOU KNOW WHY DATUK HASHIM IS WILLING TO OFFER 90 SEN FAIR AND GOOD VALUE FOR AMPROP?

This is what all Good Companies should do to minority shareholders

And this is One Reason Why we Invest in shares of Companies with High Net Assets like WTK, BPLANT, ThPlant & FGV

FGV?

YES!!

FGV Lands only got a Book Value of Rm3,150 Per Acre

Now let's do a backward calculation of AmProp Lands in Seabana Cove

How Much per Acre?

Just Multiply Rm2.43 by 43,560 = Rm105,850 per acre

Now FGV Lands at Rm3,150 per acre is only 3% of Seabana Cove Lands

Of how many per cent more

Divides 105,850 by 3150

= 3,360% More

Huhuhu!

Should FGV be offered to be taken private at Rm1.30 Fair?

See what FGV non independent Directors say?

Felda may raise offer to take FGV private

Tuesday, January 26th, 2021

‘That’s the only way Felda can attract minority shareholders. I think RM1.80 should be the right price’

by SHAHEERA AZNAM SHAH / pic by MUHD AMIN NAHARUL

THE Federal Land Development Authority (Felda) may have to raise the offer price for the takeover exercise of FGV Holdings Bhd should it receive no cooperation from the latter’s minority shareholders.

A shareholder in FGV told The Malaysian Reserve (TMR) that he wants a higher price for the shares he owns in the company. “That’s the only way Felda can attract minority shareholders. I think RM1.80 should be the right price,” he said.

Last Friday, five of FGV’s non-interested directors advised shareholders to reject Felda’s offer as they believed the offer price undervalued the company.

The directors’ stance is opposed to independent advisor RHB Investment Bank Bhd’s recommendation, which in its report, advised shareholders to accept the offer as it was reasonable but not fair.

(Cannot trust RHB IB as they have vested interest in offering FGV Call Warrants. Might as well trust monkeys to jaga bananas.)

“Justifications by the non-interested directors have merit since the future market value of FGV could be higher due to improving financial performance in the past quarter and the company is in the middle of a turnaround strategic plan.

“They believed that if the remaining shareholders wanted to sell their shares to Felda, it should be at a higher price,” Putra Business School associate Prof Dr Ahmed Razman Abdul Latiff told TMR.

Minority Shareholders Watch Group CEO Devanesan Evanson said shareholders must make an informed decision on the matter due to the polarising views on the recommendation.

“The shareholders, especially the minority shareholders, are in a quandary as to whose recommendation they should accept. Some minority shareholders will be happy with the offer of RM1.30 and some will not be.

“Then we have the five non-interested directors, who are although not licensed to give investment advice, have a legitimate right to advise the shareholders as they know FGV more intimately.

“Presumably, based on the independent advisor’s fair value ranges from RM1.42 to RM1.60 per FGV share, the lowest offer price to make the offer ‘fair’,” he said.

Ahmed Razman said FGV’s value could be worth more than the recommended price of RM1.30, although it may not be as high as the planter’s IPO price of RM4.55.

“I think Felda has a deadline to buy the remaining shares so they will probably monitor the number of shares they can buy every day up to the deadline date. If they are behind the target, there is a possibility they will have to raise the offer price.

THIS IS IT. BY AUGUST 3RD SEE IF FELDA WILL REVISE A HIGHER OFFER FOR ALL REMAINING SHARES OF FGV AT A MORE REASONABLE OFFER

Best Regards

Calvin Tan Research

This is not a buy or sell call. Please do your own due diligence or in doubt consult your Remisier or Fund Manager.

Further Note

Kulim was also taken Private at Rm4.10 when it was Rm2.50 (A Premium of 60% very generous)

Subsequent 2 quarter results of Kulim were negative. But Kulim later converted 2 pieces of Oil Palm Lands to Thriving Townships in Pengerang & Desaru to change from agriculture to Residential & Commercial use.

So will be FGV lands all over Malaysia

In time past Felda sold some Palm Oil lands to Matrix Concept of Bandar Sri Sendayan which also turned into a Thriving New Township in Negeri Sembilan today (Those Felda Settlers who sold lands those days turned into instant millionaires

So the "entity" behind FGV privatisation will get Billions or even Tens of Billions if not Hundred of Billions from FGV precious prime land sales later.

That is why Minority Shareholders of FGV are looking for a just and fair price for privatisation.

Other candidates for Privatisation are

WTK, BPLANT AND OTHER ASSET PLAYS ARE AZRB, EKSONS, JTIASA AND ALL WITH HUGE NET ASSETS IN LANDBANKS OR PLANTATION ASSETS