TM wants to justify their high charges for low speed internet, hence they decided to simply impair their network assets. As you know, impairment is subjective and since they are pressured to lower their prices, they decided to full in on the impairment. Its just their way of telling the government to back off, and the customers in Malaysia to go fly kite.

What GHL should focus on is not Tesco or Jusco or big supermarkets. Rather, they should be going after merchants that sells a lot to or are popular with tourists from China. From there they will get a cut of the profits from the Alipay transactions. Its a no brainer for the merchants to use Alipay if they want biz from China.

Its only natural. Contra players will sell and make a quick gain. You have to decide whether you are in it for the long haul or short haul. For me, Alipay + Actis + influx of chinese tourists will boost the company's earnings in the future. Sure, it may be over-valued based on its current earnings, but its under-valued if you consider the possibilities that Alipay + Actis may bring. The balance sheet is also healthy as hell.

@leslieroycarter High PE is not unusual for growth stocks. Besides, the PE ratio is based on historical earnings. No one knows the full impact of Alipay on future earnings. If the earnings are high in the future, the PE will be relatively low. That said, have to watch this counter closely.

@stockmanmy Grats on getting it at RM1.04. Wish i was glued to the screen earlier instead of running around doing errands.

@cheeseburger If a bidder after making a bid were to acquire shares at a price higher than the offer price, it would be required to revise the offer price under the law. So no, Actis cannot simply accumulate shares from the market at anything beyond RM1.00.

@6044 Actis will probably not revise the offer price. If it does, it will become hostile and the board will react accordingly. This is a friendly deal from the looks of it.

@hillsixtynine Most likely Simon wanted to cash out a part of his holdings at Rm1.00 and still hold a substantial stake with Actis involved in the company. If he wanted to dump all his shares at Rm1.00, wouldn't it make more sense that he negotiated to sell his entire stake at Rm1.00 instead of half and then wait for the MGO to happen. The crossing of shares is strategic more than anything else. Its not a hostile takeover or an attempt to take GHL off the board.

http://www.theedgemarkets.com/my/article/actis-emerges-largest-shareholder-ghl-triggers-mgo

Simon Loh still owns 19.1%. Do people here seriously think he will accept the offer?

Centurion is correct. Actis is actually a good fit for GHL. The press release is all positive about the emergence of Actis as a new controlling shareholder. Its a boon for GHL. All the negative reaction to the news puzzles me.

@hillsixtynine the MGO is a procedural thing. SC rules. So what will happen next? Normally, if the offer price is higher than the market price, shareholders will sell to the offeror. As disclosed in the notice, if Actis stake is below 75%, the company will remain listed. If above 75%, they will opt for delisting. If it goes over 90%, Actis will buy off all remaining shares at RM1.00 (whether the remaining shareholders like it or not). There is no negotiation, etc. Now, if the offer price is BELOW the market price, chances are no one will accept the offer of RM1.00 and GHL continues as a listed company with the same bunch of shareholders with the exception of Actis who bought over 44.37% stake from Cycas and another guy. Think about it.. who is dumb enough to sell at RM1.00 when the price is already RM1.10?

@cheeseburger, think you ought to read the notice and understand what is a MGO. Its mandatory because they triggered the rules. Its not mandatory for anyone to take up their cheapskate offer of Rm1 a share. If you think its worth Rm1 per the offer, continue to sell the shares. I'm pretty sure you'll regret it.

@shzewei, who knows why cycas want to exit? Perhaps they made enough profit at RM1.00 per share. The question we ought to be asking is why is the offeror buying such a big stake, willingly triggering the MGO, i.e offering to buy the entire company for RM665 mil in cash? Also, the MGO is a trigger. In other words, if you emerge as a major shareholder holding over 33% through an acquisition, you need to make an offer to the other shareholders the same price you bought the shares, hence the term MANDATORY. Thats the rules. Shareholders can opt not to sell to the offerors, but the offerors has to offer to buy at RM1.00. If no one sells to them or take up the offer, they will still hold that 40% stake. If people sell to them and they accumulate to more than 75%, they will delist the company according to the notice. Unlikely anyone will sell given the company's strength.

They will only delist if they manage to acquire more than 75% stake. This is just a step that they need to take after acquiring more than 33% per the takeover rules. It is unlikely people will take up the joke of an offer of Rm1.00 per share. KWAP for example won't be that stupid. People are over-reacting to this news.

The offer was triggered due to the offeror acquiring 40% stake in the company. If someone acquires and then makes a GO, it means the company has value. Why sell your shares to them at RM1.00 when the shares were trading at 1.10 to 1.20? It would be silly to accept the offer at RM1.00. Don't let the offerors laugh their way to the bank.