Look like going to limit up !

Old article from The Edge Weekly. Why minor investors reject the offer.

MAA Group Bhd’s EGM on the morning of May 29 could be an interesting affair. A group of minority shareholders is believed to be planning to scuttle a privatisation bid — via a selective capital repayment (SCR) of RM1.10 per share — and seek more compensation from management.

Seeking to take the group private is Tunku Datuk Yaacob Khyra who, via the Melewar group, controls 38.67% of MAA. As an interested party, he cannot deliberate on the offer. Yaacob is the only substantial shareholder in MAA.

The Edge understands that the minority shareholders have the required numbers to scuttle the deal. According to one of the shareholders, “One group looking to stop the privatisation has 18 million shares or a little more than 10% of the voting shares.”

Another source says among the shareholders looking for a larger payout is Andrew Pegge, the managing director of Laxey Partners Ltd, who is said to have accumulated a stake of more than 3% in MAA.

The source adds that Pegge and Laxey could accumulate more shares in the days before the EGM.

According to the Circular to Shareholders, among the conditions of the SCR is that it must not be voted against by more than 10% of the non-interested shareholders of MAA.

Back-of-the-envelope calculations indicate that 18 million shares works out to 10.73% of the 167.74 million eligible voting shares.

The main grouse of the minorities is the payout of RM1.10 per share, which works out to RM184.51 million.

As at end-December, MAA — excluding its insurance business in the Philippines — had total assets of RM447.13 million, of which 51.7% or RM231.31 million was cash.

As at end-December, MAA’s net asset per share was RM1.94, which means the SCR of RM1.10 is at a 43% discount to the company’s net assets.

According to the Circular to Shareholders, the SCR offer price of RM1.10 represents a discount of 76 sen (40.9%) to 98 sen (47.1%) to the estimated fair value per MAA share, which ranges from RM1.86 to RM2.08 (of which about 85 sen is attributable to cash and cash equivalents per MAA share as at end-December.

It is also worth noting that in June 2016, Zurich Insurance Group AG acquired MAA’s 75% in MAA Takaful Bhd for RM364.4 million and, according to MAA’s FY2018 annual report, the remaining RM93.75 million of the sale consideration from the disposal is receivable at end-June this year, which would increase MAA’s cash hoard.

Mercury Securities, the independent adviser for the SCR, says MAA also has RM66.53 million invested in financial assets, which when liquidated could further increase its cash pile.

Mercury Securities’ view is that the proposed SCR is not fair in view of the SCR’s low offer price of RM1.10, but reasonable as it provides an opportunity to entitled shareholders to exit to realise their investments in MAA at the SCR price, at a significant premium to the historical market prices.

One minority shareholder laments that the MAA board has a duty to find an asset to buy and if it does not, it would be best to return cash to the shareholders. He also questions why the board has not come up with a revised proposal and why the EGM is being held in end-May and not end-June after the money from Zurich has been collected.



Yaacob’s take

In a brief phone conversation with The Edge, Yaacob says minorities have to take into account that MAA is a Practice Note 17 (PN17) company.

“There is a risk that MAA will be delisted,” he says.

However, the minority shareholder suggests that MAA may require its shareholders’ approval to be delisted, similar to the case of Hovid Bhd, which was delisted late last year.

MAA has been a PN17 company since September 2011. On Friday, MAA announced that Bursa Malaysia had granted the company an extension until Oct 31, 2019, to submit a regularisation plan.

Yaacob adds that comparisons with other SCRs are not fair as MAA is the only PN17 company to undertake such an exercise.

He adds that the offer price cannot be changed as the circular is already out. “There is no way to change it — Melewar can only make another offer in 12 months,” he says, referring to Rule 21 of the Securities Commission Takeover, Mergers and Compulsary Acquisition Code.

On MAA’s large cash pile, Yaacob says that the cash should be looked at as an asset and, as such, the SCR of more than 57% of MAA’s net assets is acceptable.

“Cash is an asset anyway,” he says.

Asked why MAA had not utilised its RM231.32 million cash hoard as at end-December to buy new assets, Yaacob replies that there were no good assets available.

“Instead of spending RM180 million on a business that is not that good, I had better give it to the shareholders.” The offer of RM1.10 works out to a total payout of RM184.51 million.

He adds that in the current environment, even companies with a great track record may not perform in view of the ongoing China-US trade war and the uncertain conditions in Malaysia.

Last time they offer rm1.10 to privatise MAA when MAA still loss making. Now MAA is making huge profit. If they want to privatise again, then offer price must higher than rm1.50.

Super super buy

NOVAMSC attract billionaire Mr Ooi Keng Thye to buy company share. Mr Ooi is Frontkn largest shareholder. How the share price to reflect this news?

Mtronic control by same group of ppls in Sanichi.

MYEG Wong Thean Soon Emerge As Shareholder In CUSCAPI (0051)
https://klse.i3investor.com/blogs/technicalanalyst/214833.jsp

MYEG Wong Thean Soon Emerge As Shareholder In CUSCAPI (0051)
https://klse.i3investor.com/blogs/technicalanalyst/214833.jsp

MYEG Wong Thean Soon Emerge As Shareholder In CUSCAPI (0051)
https://klse.i3investor.com/blogs/technicalanalyst/214833.jsp

Today will close at 60sen.

Megan88, if u want go to die. I will not stop u. Buy as much as u can la. I feel very happy got players like Megan88, if not how can we make money in the stock market. ahaha.

Barakah will be another Perisai and DAYA. The price will dip to 0.005 and even delist.

U all think Nik Hamdan and Samling group stupid? If Barakah worth to hold, why they keep selling in the market? They know Barakah is a bad ship, they already jump boat. U all still want to buy, got too much money to lose ya? I am very sure Barakah will dip to 0.005.

Buy SMTRACK, same boss with VC 0060.

Damn strong Redtone. Hope today can break 40sen.

Redtone rebound.

Never mind. Keep for long term.

Yalor. Hold long term to maximise ur profit. Dun bother short term up and down.

closed at 36sen no bad, even no at day high.

Ok. understand. sherlock

Buying momentum and interest very strong. Today close above 40sen no problem.

sherlock. U mean Redtone will team up with Huawei to develop 5G in Malaysia ? If it is true, it will be super good news.

Don't forget Redtone is net cash company, with cash on hand RM65Million. This equal to 8sen per share. Zero Debts

MTNS业绩标青·立通国际第三季净利翻7倍

（吉隆坡19日讯）立通国际（REDTONE,0032,创业板电讯媒体组）旗下管理电讯网络服务（MTNS）业务表现标青，推动其截至2019年1月31日第三季净利增加7.10倍，至537万3000令吉，较前期净利为66万3000令吉。

首9月赚1056万

首9个月净利为1056万2000令吉，较前期净利306万2000令吉，增加2.45倍。

第三季营业额为4540万8000令吉，前期则为2730万2000令吉；首9个月营业额为1亿零554万2000令吉，较前期则为8662万8000令吉。

该公司文告指出，在现财政年最后一季，预料旗下管理电讯网络服务业务将继续作出更高贡献及为企业市场提供数据服务领域，将推动通讯服务的成长。

But too pity to selling too early at low price ma. No easy to find a potential good stock in market, should try to maximise our profit.

Why so many ppls selling now ? I think still got huge upside la. Q4 results will extremely good. Barring any unforeseen circumstances, the Board expects higher contribution from its MTNS segment going forward while data services for enterprise market will continue to contribute to the growth of telecommunications services segment.

I will hold for 6mths. My target price is 60sen.

If u look at the future prospect, current price still cheap. This is long term buy , dun play contra.

A good article to share 股海捞月- 立通国际 (Redtone, 0032)
https://klse.i3investor.com/blogs/technicalanalyst/202989.jsp

But there are still alots of ppls willing to send their hard earn money to punter. I really dun know why they cannot learn from mistake before.

Orion now trade at day low even got good news showing punters keep selling in market. No looking good in near term. Likely will drop to private placement price 15sen. Bcos punters will get the placement shares at 15sen compared to 17.5sen now. They will keep selling.

haha ... moneykj. This is stock market la.

cicakman. Redtone is growth stock, clean balance sheet. So, i no worry to hold it for long term.

cicakman. yalor, but that one is out of our control la. Only they know the timing.

Redtone zero debts and net cash RM65 Million. Net cash per share is 8sen.

I bought at 60sen yesterday. Should i cut loss now or hold ? Any advice here ?

Daya buyer is coming. Dun miss the flight. Target will hit 3sen this week. 200% profit !