That means there is a 5.5 sen arbitrage opportunity at today's prices.

We checked with the registrar, Mega Corporate Services, they confirmed that the on-going restructuring scheme will not affect the conversion of LA into shares if holders choose to convert. So comes 27 March 2017, LA holders can submit the conversion form and after 8 market days, the shares will be credited into holders' CDS account.

That means there is a 5.5 sen arbitrage opportunity.
We checked with the registrar, Mega Corporate Services, they confirmed that the on-going restructuring scheme will not affect the conversion of LA into shares if holders choose to convert. So comes 27 March 2017, LA holders can submit the conversion form and after 8 market days, the shares will be credited into holders' CDS account.

Perwaja LA is a better trading counter than the mother share. According to the revised restructuring scheme, the RM1.00 LA will be repaid with 70 sen per LA after haircut of 30%. The 70 sen will be paid via issuance of new Perwaja shares @ 15 sen each. So for every 1 LA, you will end up with 4.67 new Perwaja shares. At today's closing price of 12 sen per mother share, the LA is theoretically worth 56 sen. That is quite easy to understand. Current depressed prices were caused by margin account forced sale by the bank, which has completed 2 weeks ago, as reported in Bursa announcements. If u look at the annual report, only about 30 million LA are floating in the market. This is really small amount. The balance 250 million tightly held by major shareholders; their original cost is RM1.00 at time of subscription. They would never sell and would go for share exchange exercise.

Not many people know about this computation.

So the call is Strong Buy PERWAJA-LA at current price. The risk reward is too attractive!

Perwaja LA is a better trading counter than the mother share. According to the restructuring scheme, the RM1.00 LA will be repaid with 70 sen per LA after haircut of 30%. The 70 sen will be paid via issuance of new Perwaja shares @ 15 sen each. So for every 1 LA, you will end up with 4.67 new Perwaja shares. At today's closing price of 12 sen, the LA is theoretically worth 56 sen. That is quite easy to understand. Current depressed prices were caused by margin account forced sale by the bank, which has completed 2 weeks ago, as reported in Bursa website. Only about 50 million LA are floating in the market. This is really small amount. The balance 230 million tightly held by major shareholders; their original cost is RM1.00 at time of subscription. They would never sell and will go for share exchange exercise.

Since KINSTEL has 62% or 173m of PERWAJA-LA, its net asset value should increase by another 17 sen after restructuring.

This is why. Based on the proposed restructuring plan, after a reduction of 30% of PERWAJA-LA of nominal value RM1.00 to RM0.70 a piece, every 1 PERWAJA-LA will be converted into 3.5 new Perwaja shares @RM0.20. Currently the PERWAJA mother share price is RM0.290, so PERWAJA-LA will be worth RM1.02.

173m x RM1.02 = RM178m. This is almost the current market capitalization of KINSTEL.
Divided by share base of 1,029 million shares, this gives an extra value of 17 sen per share.

PERWAJA-LA should be worth RM1.02 after restructuring.

According to the Proposed Regularisation Scheme in pages 11 and 39, after haircut of 30%, the RCULS of nominal value RM1.00 will be reduced to RM0.70 a piece. So every 1 RCULS will be repaid via 3.5 new Perwaja shares @RM0.20. So if PERWAJA mother share price is RM0.290, PERWAJA-LA will be worth RM1.02 (0.290 x 3.5). It is now about 50 sen.

PERWAJA-LA is better now after the restructuring announcement. Should be worth RM1.02.

According to the Proposed Regularisation Scheme in pages 11 and 39, after haircut of 30%, the RCULS of nominal value RM1.00 will be reduced to RM0.70 a piece. So every 1 RCULS will be repaid via 3.5 new Perwaja shares @RM0.20. So if PERWAJA mother share price is RM0.290, PERWAJA-LA will be worth RM1.02 (0.290 x 3.5). It is now about 50 sen.

yes no capital reduction...hooray!!!

I heard the Chinese white knight has arrived in town to sign the actual agreement of restructuring plan..they will pump in RM300m to revive the company.. then later control the co and use it as they vehicle to conquer south east asian steel market!

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1665281

Someone said Legg Mason is involved. Havenport is the fund manager for Legg Mason for South East Asian equities. Legg Mason is one of largest US hedged funds.

Havenport asset manager from Singapore bought 53m shares or 8% of Salcon in open market. The last 2 blocks were bought at average of 0.950 - 0.970 in the last few days, according to Bursa announcement. Havenport is now 3rd largest shareholder of Salcon. Anyone knows what it going to do?

big announcement in spore over the weekend.. could be about Bintan Island resort mega billion development..Genting has a stake in Landmark..acq the land at cheap prices..NTA RM3.69