The longer it takes, the more pain it gives to shareholders who are waiting, especially in this weak market. KLK has all time to wait or else they may sue LTAT for breach and remedy. Let's see how this game plays out. LTAT under pressure from the political side, but KLK will just keep extending the dateline. Unless KLK throw in the towel(give up), the deal will be aborted. If LTAT abort must pay penalty. Its a waiting game now.
Expect mild support at 1.15 and strong support at 1.09. Next resistance at 1.18 to 1.20 and later 1.30. Very safe bet, the best Q results to come in Q3 2023. Mgmt has mentioned that business is booming since 2H 2022. DSH2 to be major catalyst.
The other balance land (no dev value) of about 80K ha is not under the LLA. So the Pref share only take the profit of LLA and some downstream bz whilst the ordinary share take profit of the other asset including MSM and the others.
You are right, #rohank71. You can also read pages 242 to 246 of the IPO Prospectus fo4 more details. Thanks for the heads up, rohan. It's interesting how the plantation land value is not given to shareholders of FGV but only earnings from the bz. It's like U a hospital. The hospital rents a purpose build building and derives the income but doesn't own the building itself. So we buy the hospital for the business or the building. Unlike IOI, KLK, we buy both the land and bz, but FGV we only buy the bz, and land is not for shareholders. Early termination shareholders get a compensation which is nowhere close to the land values.
the sell down of Feldas 3% block in FGV will happen after the bonus issue when Felda will do a road show and book building... anyway its only a 100M shares to be sold to meet the revised guidelines for public spread for large companies.
hi messi, there will not be anymore privatisation of FGV with this Pref Share scheme. Felda will end up with the 82% of the Pref Shares and will be willing to sell down their FGV shares via a placement exercise.
@observatory, Litrak proposed to sell their Assets at say 7% WACC. Thats the value of the asset (based on the concession agmt). ALR buys and proposes (obviously with Litraks support) to waive Govt Subsidy (and no more toll hike) and in return gets tax waivers ect. We all know Govt saves abt 4B in waiver of Subsidy whilst forgoing Tax hence geting ALR to buy at 5B. If ALR sticked to the concession agmt terms and raise bonds at below 7% they make money (provided traffic forecast and actual is same). Since ALR has changed the terms of concession agmt, its deemed a new proposal and hence has diff factors to consider. Thats why MOW gave them up to 2040-2044 as buffer to ensure the fund raising is successful. This proposal is a BIG win for the GOM to avoid paying the subsidy. You may see all approvals has been obtained from GOM even before Litrak shareholders. Its not normally the case in other deals. Lets not worry too much and hope shareholders do not vote against the proposals.
cost of debt is for Litrak specifically and not for ALR. ALR is buying at WACC of 7.95%. (see page 58) so provided borrowing cost below 7.95% and no reduced traffic ARL will pay down the loans earlier.
Ya agreed any dividend paid will reduced final payout. But as shareholders if the deal is a done deal they rather payout extra cash now vs waiting to complete the sale. Litrak has excess cash vs loan repayment and other obligations, so should be able to payout now if they are confident the deal is a done deal, just logistics. if the normal 15 sen, business as usual until all is signed and sealed.
SM only enriches himself. its a fact and its all written in the wall ie relisting of malakof and even more interesting is he is taking mmc private cheaper than hiis injection and projected cashflows of ptp in 1999. shame to bursa.
MMC was a great play for all those who bought in last 3 to 4 years... sorry for the people who believed in SM and hoped he will deliver. when pnb can throw the towel on him it says alot... dont trust a crook.