Insas sold another 13.5m inari shares yesterday

Actually, the article in the Star yesterday is not correct because until about 3 months ago, the Ruberex price never exceeded RM1

There is nothing wrong in selling at RM1.80

The point I am trying to make is that it is quite easy for DS Thong to accumulate 18% of Insas through his nominees and then “cross” the block to trigger the unconditional MGO

SSLee

In the Ruberex transaction, the vendors were Sheng Sheng Enterprise (24.6m), DS Chiau (22.6m) and a Mr Peh (10m)

Apart from Sheng Sheng Enterprise which had 12m shares then, the other two were not included as top 30 shareholders as at 30 April, only 2 months ago

It just goes to show how changeable a company’s shareholders can be

It’s very frustrating when you can see but cannot reach

SSLee

Please remember that DS Thong has DAILY access to the shareholders list

Stockraider

I also want to go for the big one but just want to caution that we may not be able to get it

SSLee

It is possible that 5 of his nominees could have been collecting say 3-4% each, and they may already have collected 18% in total

Your shareholders list is NOT current

SSLee

FYI the controlling shareholder of Ruberex bought a 20.6% stake to increase his interest from 29.5% to 50.1% and triggered an UNCONDITIONAL mgo

I suspect DS Thong may do a similar transaction by buying a say 18% stake in Insas

If the purchase is at say 80 sen, the mgo will be at 80 sen also and we will never be able to realise the value in the company

SSLee

Are you switching?

I am despairing of the counter

The price doesn’t go up when others do but will follow suit when others go down

To be frank, all this profit does is improve the NTA of Insas and make the already-great undervaluation greater, without any benefit to the shareholders via a higher share price

Time to do something else

Insas sold 5m inari shares in the past couple of days

Although inari is classified as an associate, it is not a core holding as the shares are periodically sold

Why can’t some of the inari shares be distributed to us?

If Insas doesn’t want to do buy back because DS Thong doesn’t want to apply for a waiver, we will never be able to unlock the value

I hope enough of us will protest about this at the upcoming AGM

At the risk of repeating myself ad nauseum, the following share buyback statement in the annual report is very detrimental to minority shareholders:

“The Company does not intend to undertake the Proposed Share Buy-Back such that it will trigger any obligation on the Major Shareholders and/or person acting in concert with them to undertake a mandatory general offer pursuant to the Code”

The solution is very simple as also detailed in the statement elsewhere - DS Thong can apply for a waiver as specially provided under para 4.15

SSLee

Until and unless Insas distributes some or all of its holding of inari shares to us long- suffering shareholders, the extreme undervaluation will remain

Tqvm

Year end coming soon

SSLee

Just checking - have you contacted Dato Wong re the mgo waiver arising from share buyback ?

Ok tqvm

SSLee

Which company contributed to the big loss on share of associates ?

If inari contributed about RM7m profit, another company must have lost over RM10m

If DS Thong really needed money, it would have been much easier to get Insas to declare a special cash dividend

As SSLee has said before, DS Thong may have been reluctant to unlock value because of the potential dilution from warrant conversion

This is no more an issue, and I hope that DS Thong will do something soon since he has recently raised more than RM10m from the sale of his personal Inari shares (which is still ongoing)

Philip

That is precisely why insas should return the excess assets, to reduce the denominator

Immediately, Insas should buy back it’s own shares but the board has made a decision not to do so if it results in a mgo obligation by Thong

This is actually detrimental to the minority shareholders, which I will raise at the next AGM if there is no mgo waiver resolution

Under the old rules, inari would not even qualify to be considered as an associate company - it is non-core despite what the board says as Inari has outgrown the parent and is more than able to stand on its own without any help from Insas

Just had a quick look at parkson’s balance sheet which is mainly fixed assets which may not so liquid unlike
Insas

If I were Thong, I would distribute the inari shares

Sum of the parts

Philip

How do you explain a situation where the market cap of insas’s 19% stake in Inari is worth nearly twice the market cap of Insas?

What happened to the sun of the parts valuation model?

SSLee

Why RM5.5m loss from share of associates when Inari’s profit was basically unchanged?

Which associate made such a big loss?

Care to explain why?

But DS Thong cannot officially buy any more Insas shares

Btw he has started to sell his inari shares held by Immobiliare holdings which owns about 9m shares

DS Thong has now sold his all his direct holding of inari shares

He sold a total of about 4.5m shares in April

SSlee

Re my last post, allow me to clarify

Distribution of treasury shares is not technically zero-sum - because the company uses its cash to buy back shares to then give back to shareholders for free - but it is not as efficient as cancellation, which actually improves the NTA per share

SSlee

Thank you for the effort

If I may say so, I think 2) is not necessary

Please just talk about cancellation in 3) because distribution of treasury shares is a zero-sum game - you buy back to give back to shareholders - and won’t be beneficial to the company or us

Tq

I was selfishly hoping he had plans for Insas

According to the inari announcements, DS Thong disposed of about 3.4m shares in April reducing his direct shareholding from about 4.5m to 1.061m shares

I wonder why?

13lurker

Thank you

Very profound

Anyway we can always dream

Stock raider

Noted

You will be surprised how cash rich Insas is

Even after redeeming the rps, Insas can easily pay out RM150m (25 sen dividend) without affecting its operations

SSLee

I am sure you are aware that a certain someone has said that Insas will repeat the rps/warrant exercise

This is not as hare-brained as you and I may think - I understand that there are plans for such a proposal

SSlee

Let us forget about the inari share distribution

What do you think about a special cash dividend of up to say 25 sen?

You yourself said the inari share distribution is out of the question so this means you will never realise the value

SSlee

I have no problem at all to effectively pay 65 sen for 1 inari share

The problem is that this will not materialise if we don’t do anything about it

Wishing for it will not make it so

I think I am more normal than you

Screaming your head off can also be therapeutic

Noted tq

We can vote with our feet but we can also fight for our rights

And inari dividends of course

Here, we must give Insas credit because it’s share of profits of inari is reflected as a non - cash item in the consolidated balance sheet

All its cash reserves are therefore from other sources (apart from inari share sales)

It would be different if inari were a subsidiary company in which case Insas would control all the cash resources