THE INVESTMENT APPROACH OF CALVIN TAN

THPLANT – A candidate for privatization? By Calvin Tan

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Publish date: Tue, 30 Nov 2021, 08:26 AM
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Hi Guys,

I have An Investment Approach I which I would like to all.
November 29, 2021 By Calvin Tan Smart Investment

Dear Friends

From what we gathered so far there is a possibility after IjmPlant taken private by KLK – the next to be taken private could be THPLANT

And these are some factors

  1. Tabung Haji already owned 73.8% of Thplant shares. Only 26.2% shares are not owned by Tabung Haji

At the current price of today at 62 sen (Nov. 29th 2021)  the Total Value is only Rm143.6 Millions

 

At the latest quarter report Thplant has managed to refinance its current debt to long term loan. Plus it has raised a Cash hoard of Rm313 MILLIONS in just 9 months.

Why did Thplant wanted to raise up so much CASH?

Tabung Haji weighs taking palm oil firm private

Lembaga Tabung Haji (LTH) has asked banks for proposals on the potential deal for the owner of palm oil and rubber plantations, one of the people said, asking not to be identified as the information is not public.

PETALING JAYA: Malaysia’s pilgrimage fund is considering taking its agricultural firm TH Plantations Bhd private, people with knowledge of the matter said, amid a rally in palm oil prices.

Lembaga Tabung Haji (LTH) has asked banks for proposals on the potential deal for the owner of palm oil and rubber plantations, one of the people said, asking not to be identified as the information is not public.

 

Shares in TH Plantations have risen 4% in the year-to-date, giving it a market value of about RM526mil. LTH owns 73.8% of the company.

Discussions are in the early stages and LTH could decide not to proceed with the plan, the people said. LTH and TH Plantations did not respond to requests for comment.

Now one more interesting development

TH Plantations appoints new CEO, CFO

KUALA LUMPUR: TH Plantations Bhd has appointed Mohamed Zainurin Mohamed Zain as CEO and Shahrizal Suhainy as CFO of the group, effective Oct 1.

Mohamed Zainurin holds a Bachelor of Accountancy (Hons) degree from the University Utara Malaysia. He is a Chartered Accountant and a member of the Malaysian Institute of Accountants (MIA) as well as a Certified Practicing Accountant (CPA) of Papua New Guinea.

NOTE: THESE NEW DIRECTORS HOLD ACCOUNTING DEGREES WITH AUDIT EXPERIENCE

So is privatization on the Card?

How much should Tabung Haji pay? If at Rm1.00

Then Rm231 Millions to take it private

If at Rm1.20 then Rm277.9 Millions

The Cash Hoard of Rm313 Millions in Thplant is more than Sufficient to Pay off all Shareholders to take it private

Like FGV Thplant estates are valued as low ar Rm3,000 an acre or a mere 0.07 sen psf

Its Tanjung Tuan Condo 1222 sq ft in Port Dickson has a book value of only Rm9,000 (Current value is Rm350,000)

So Tabung Haji after Taking Thplant Private could unlock all its value by disposing assets at Full Market Value

 

Warmest regards

Calvin Tan

 

Please buy or sell after doing your own due diligence or consult your Remisier/Fund Manager

 

What if Tabung Haji decides not to take Thplant private?

Is there a Plan B for the Cash Hoard of Rm313 Millions raised?

 

Could Thplant then resume its Good dividend years by giving out generous dividend as high as 22 sen like those years when Cpo prices were good.

That remains to be seen

In any case listen to these words again

“The Board of Directors of THP welcome both Encik Mohamed Zainurin and Encik Shahrizal and hope that their appointments would propel THP’s momentum of its recovery plans

Momentum of its recovery plans?

Yes, whether Plan A or Plan B Thplant is on course to recover as the New Appointment is expect to “PROPEL” THPLANT.

 

The Regency Tanjung Tuan Beach Resort, Port Dickson - Low Rates 2020 |  Traveloka

THPLANT owns a 3 Room Unit  of Tanjung Tuan  Apt Service Condo (1,222 sq ft) (Port Dickson) has a Book Value of Rm9,000 (Current Market Value: Rm350,000) shows deep undervaluation

 

 

 

 

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