We will know later today or by this Friday if there is any increment or disposal from MAA. Everyone has their own theory and opinion.

The law require any substantial shareholder (anyone above 5%... that includes LSE and MAA) to notify company of change if there is a change in his interests in the voting shares in the company; within 3 days after the date of change.

I entered KNM at 0.28 only after the MAA announcement, purely based on the speculation that MAA will increase its voting rights to more than 10%. I don't know about KNM before this. After seeing such fragmented shareholdings, no one control over 25%.. I would try to take control of the board if I'm MAA. I am also guessing.

it's hard to subscribe that someone who founded and at helm of the company would sell just because someone advice him to do so.
could it be maybe he knows something that the public does not know ? it's a question. i don't know about KNM. I came to know KNM coz of MAA and from the limited public info or news like https://www.theedgemarkets.com/article/curious-happenings-knm
Indeed it's curious happening ever since.

I have bet some on KNM yesterday just based on the speculation that i think MAA will increase to more than 10% ....

why did the founder dispose his 1.4% stakes to MAA directly if the company is worth much more?

in fact, I would prefer MAA to make a general offer for KNM. See if it can get more than 50% and make KNM its subsidiary and still maintain listing status of KNM and take full control. It is possible as the shareholdings structure of KNM is so fragmented and no one control 25% ... so ripe to take control.

i agree. it may not be right. it may also be right. nothing is certain. if tomorrow MAA invest in airline, supermarket, or ANYTHING, there will always be critics. these people are entrepreneur and it means their nature is always to take risky bets in investment. this is the animal spirits.

in fact, I would prefer MAA to make a general offer for KNM... even if means the company need to borrow for the leverage buyout and seek shareholders approval in general meeting ... See if it can get more than 50% and make KNM its subsidiary rather than just associate... Possible as the shareholdings structure of KNM is so fragmented and no one control 25% ... so ripe to take control. Another Turiya method. Oh i just love this high intense activity. :)

I am guessing MAA will accumulate more KNM shares to more than 10% shareholding . They have 7 days to disclose the changes in substantial shareholding, still within the disclosure rules. It won’t cost them too much in order to seek for board representation or even boardroom control and to be able to convene a shareholder meeting. Doesn’t make sense if MAA only buy 7% unless it’s short term or purely passive play…

At least we know MAA is prudent in their purchase.

I prefer they buy when the industry is consider at bottom of the cycle or at cheap entry. Buy cheap hoping to sell high. Maybe it will never go high. But at least I don't buy it at high price (boom of the cycle.. or during some euphoria mania eg. glove mania)

I am guessing MAA will accumulate more KNM shares to more than 10% shareholding . They have 7 days to disclose the changes in substantial shareholding, still within the disclosure rules. It won’t cost them too much in order to seek for board representation or even boardroom tussle and to be able to convene a shareholder meeting. Doesn’t make sense if MAA only buy 7% unless it’s short term or purely passive play…

MAA also own 7% of Altech Chemicals Ltd.
https://www.altechchemicals.com/top-20-shareholders
https://www.altechchemicals.com/about-us/profile

maybe MAA already got 10% ? if they are smart which i'm sure they are, they would have acquired more shares from the open market yesterday on 2 sep before all the necessary disclosure. let's see later this evening if there's any notice.

their announcement yesterday dated 2 sep was for accumulation from 3 aug - 1 sep.

"the Company has acquired to date over the period from 3 August 2021 to 1 September 2021 from the open market a total of 233,001,800 ordinary shares of KNM Group Berhad (“KNMG”) at an average price of RM0.227 per share, representing 7.01% of the total issued share capital of KNMG for a total purchase consideration of RM52,891,408.60 "

agree. plantation is still a good bet. most likely we will see more activities, consolidations, privatisations, mergers and acquisitions in the palm oil plantation industry. The way forward is economies of scale to compete globally. I think the big boys will always look out to buy small plantation companies or land if the price is right. last time i bet on this very small plantation in sabah called goldenland bhd. felda fgv bought goldenland bhd assets in sabah for 650 millions. after that the company distribute it as special dividend and reinvest in new palm oil plantation in indonesia.

https://www.thestar.com.my/business/business-news/2021/09/01/maa039s-isend-logistics-partners-ikobana-to-expand-delivery-service

i don't see how this deal will not go through because the offeror is TS Syed Mokhtar. if it's other people... yes, success probability is lower. So it is a bit strange to me that the share price still trade at such wide discount (almost 10% discount ) to the offer price.

is market 'worry' about why the IA report yet to release since it is more than 2 months now? Is alliance investment bank opinion might say "not fair not reasonable"? i think it is very low probability for all the obvious reasons we know. but hey..., the only certainty is uncertainty.

"the Group is still continuing with expansion plans for lands acquired in the vicinity of existing factories and the Group is optimistic that its plans would contribute positively to the Group going forward."

what a great growth story! it is very undervalued versus its peers. I believe it will trade much higher with more sensible valuation in terms of price/earnings or book value of other recession proof businesses like ajinomoto, guan chong etc.

no matter how you look at it, the offer price does not reflect the true value of the company. in terms of valuation wise.

volume so low. anyway the quarterly result report should be good. less motor insurance claims due to the lockdown and most likely good investments return due to equities market still rising.

the company is very inefficient and has relatively low productivity. it cannot compete at all. it used to be government owned and should have remain so. just like civil service. you create jobs to many unnecessary roles but that's what government are for. provide some safety net for those who fall through the cracks of a free competitive capitalist market.

refer to page 42 of the Annual Report 2020, the directors and senior management took about total RM28 millions as salaries and remunerations. how to invest ?

the circular by Independent Adviser recommendation should be out soon. most likely will be the usual BS... "not fair but reasonable".

Open Letter to PSA International Pte Ltd.

To : Board of Directors of PSA International Pte Ltd

PSA is known to be aggressive in overseas expansion for stake in some of the world’s busiest and fastest-growing ports. In 2006, PSA had a bidding war with Dubai World Port for Britain P&O port assets around the world. It was a great business move by PSA that resulted its competitor’s cost of acquisition expensive. Subsequently, PSA bought 20% in Hutchinson Ports from Hutchinson Whampoa. Maybe PSA should bid for MMC too!

MMC’s jewel, the Pelabuhan Tanjung Pelepas is Singapore’s main competition in transhipment. PTP recorded an astonishing 8.5% growth last year despite the pandemic. Why not bid for a strategic stake in MMC ports? This is a great opportunity for PSA to have a strategic business stake in Malaysia port assets. Show them your muscles. Make a general offer . It will be just “a drop in the ocean” for PSA anyway. Think when PTP pulled your customers (Maersk, Evergreen) away. Why let TS Syed Mokhtar get it so easily.

Looking forward to your offer.

Yours sincerely,
MMC shareholder.

the downtrend ... is real.

i agree with Syndicates. This stock always have insiders trading.

well, if the board reject the SCR, it shows that the board is not the "lapdog" of the major shareholder. truly independent and high standard of corporate governance. i probably might rejoice since this is like malaysia winning a gold medal in olympic despite share price will drop.

or.. maybe PNB gonna make their view known about the offer price.

padini is damn resilient. despite mco for months, share price support is so strong. doesn't matter at all

volume is strangely above average recently. i suspect something is brewing.

@johnzhang i think at 1.50, TY will most likely get enough support. i quite like to stay as shareholder too. doesn't matter if there will be any offer. as mentioned, already recovered most of the costs thru past dividends. i very much like the insurance biz in philippines , a good growth story. Umar Swift left the company in a very good shape. And he is the first foreigner to head Bursa now.

I can't speak for others. for me, honestly i don't know. I will only evaluate if the time comes. depending on the prevailing conditions then.
also, never show all your cards :)

TY can still easily takeover if he wants. That is why I believe there will be another attempt. I've experienced many takeovers before.

Here’s my independent advice to him. TY can reduced his cost of acquisitions by making two separate rounds of takeover. One year after another. First by general offer. Weed off the weaker players. Perhaps he may manage to grab further 20% outstanding shares?

Second round, use the SCR method to deal with the balance 40%....that consists the "stronger players" and the "dead/coma/sleeping/ignorant/couldn't-be-bothered" shareholders. His average cost will be slightly lower. He roughly knows who are the players already. Of course I won’t reveal my card especially in public for now.

Better offer soon before its jewel, Philippines insurance is generating more and more profit and command higher valuation.

@Johnzhang I was part of the minorities that blocked the deal. We openly informed the independent directors that we had the numbers in public and in private letter. Yes I was aware that it’s always like a poker game. Except that we did not lie. This group of investors have different objective mainly we're long term investors. We fully respect and understand that every individuals/shareholders is DIFFERENT. Each individual have different objective, different background, and most of all different cost. We were confident then because this small group already recovered most of their costs if not all (through dividends over the years). So this is the main difference between us and the rest. We are in this company for the long term and has been, as long as the company is properly run without any financial shenanigans.

In fact, one of the reasonS that I think there will be another attempt in takeover is that the company did not do any share buyback. If the company did buyback, the minority will be able to block him much easier than before because the eligible pool of voting shares will be reduced. Unlikely he will use the general offer method because he will just own about 54% judging from the previous EGM result.

Again, we openly inform the Offeror, give us a more respectful offer. Please don’t insult us again. If not, don’t waste the company resources and time. We still have the number in excess. It is up to them to believe.

the purchase will make Turiya becoming MAA's subsidiary. Revenue and profit will be reflected in MAA's book after the transaction.

its a gem! revenue is growing each year. very stable and solid growth. i'm in for the long term. i believe the dividend will grow too.

invisible hands trying to depress the share price so that when the offer comes, it will be seen as being "reasonable" . same old trick

the message from the minority shareholders was clear from the previous attempt in takeover. don't waste time and money if the offer is too low. The minorities will reject by headcounts and by shares value again if the offerer uses the SCR takeover instead of general offer. You can try your luck again.

its by june 2022. not by june 2021. get ready for another round of takeover before that. why share the company profit with the minority?

@Inv3st0r69 NO WAY!!! I DISAGREE WITH YOU COMPLETELY !!! (Too bad I can’t insert emoji here!!)

It is illegal to have any side deals. Offeror cannot have a favourable deals with selected shareholders unless otherwise approve by Securities Commission. PNB will not do such thing.

PNB is managing millions of Bumiputeras and Malaysians savings. MILLIONS of naive, innocent, inexperience Malaysian entrusted their savings to PNB to manage and create value. PNB's mandate is crystal clear. PNB will NEVER EVER compromise on integrity in safeguarding the wealth of its unit holders (millions of Malaysians). I believe PNB will fulfil its duty to enhance and create value to all its unit holders. I believe PNB will negotiate for higher offer because they are in the position to do so and will "strive to enrich the lives of Bumiputeras and all Malaysians for the prosperity of the nation."

The question you should ask : Why is PNB not part of the party acting in concert together with the Offeror to takeover?

Happy weekends!

7) Miraculously, the IFA may issue a Circular that says the offer is " not fair and not reasonable". Then the directors do not recommend the proposed offer. But we all guess what the IFA opinion is going to be already even without any due diligence done. This is the loophole major shareholder is taking advantage of in almost all of Selective Capital Reduction takeovers in Malaysia. Singapore has already close this legislative loophole few years ago by making any exit offer must be fair AND reasonable to protect the interest of the minority. Malaysia still do not want to close this loophole. It is solely under the prerogative of Securities Commission to change/improve the takeover guidelines. Currently, the "not fair but reasonable" opinion by IFA can fly through our law. We all know this convoluted opinion does not make sense at all and benefit only the major shareholder whose interests were unfairly protected.

8)The resolution fail to meet all the three conditions during the EGM for the privatisation to take place (many shareholders by headcount OR shareholding values vote against the deal).

9)The Offeror may increase or sweeten its offer price to entice shareholders approval (vote) before the EGM if their army sense many going to vote against the resolution. The stake is really high. In my opinion, I think the Offeror really want to privatise MMC by all means because the ports market valuation is going to be sky high if they manage to list it. Currently with MMC is also a listed company, and most of MMC profits derived from its ports division, I think they meet some hurdles to spin off the ports arm through IPO under the Bursa chain listing rule.

The list of possibilities is not exhaustive. But like I said, in my opinion, so far for now, those mentioned possibilities is unlikely. I agree with @Johnzhang. But at the same time we cannot be so certain too. Just like election, it will get more exciting as nearer to the date (EGM) as we get more information. Regardless, this is an interesting high profile takeover case to watch.

This Scheme of Arrangement takes time. Just be patient. If you cannot wait just sell your shares. The shares will still trade on Bursa until the day of the EGM (don’t know when yet). Let’s just say about 3 months (estimate early Sep 2021) to the D-Day (EGM), shareholders voting day.
In one week time or sooner or later, the Company will tell you which financial advisor (FA) they will be engaging to advise on behalf of the company. Then wait for maybe another month for the IFA to issue a Circular to advise the minority shareholders. Etc etc. It takes time to do a valuation on such a big holding company.

At this early stage, there are still risks (that the takeover fail) or few possibilities that can still happen from now until the EGM, although some of them is quite rare or never happened in Malaysia or I think is unlikely.

1) Will PNB being the 20% shareholder find this offer undervalued the company? Will PNB negotiate a higher price? Or reject offer? Or they simply will just accept this offer? This is not the first time PNB deal with the Offeror. MMC bought Northport from PNB and many other transactions. Anyway no news or rumours about where PNB stand regarding this proposed offer yet.

2) The directors exercise an independent business judgment rule with reasonable care, skill and diligence will reject this offer outright. The directors have all the power vested to them by Malaysia company law to throw out the proposed offer regardless what other people (expert or non expert) think if they feel the offer is not in the best interest of the minority shareholders. Then you will see Corporate Governance at its FINEST. Board of directors is given exclusive powers to manage the company then neither individual shareholders nor the general meeting may intervene in or dictate the exercise of that power. They only way if some shareholders do not agree with the directors decision is by voting them out from the board or seek relief through the Court. While they are still the directors, there is nothing anyone can do.

3)Some other shareholder/s or fund/s (known or unknown) accumulate the shares and have enough numbers (either by headcounts or share values) to block the deal. Recently this happened to CCB Bhd , MAA Bhd. This is a more probable scenario. Or they simply just want to arbitrage on the offer price vs market price, which currently at 10% profit. You won’t know unless they made known their intention or have a reliable insider source. If not, is all guessing.

4)Competing bid, a general offer by other local or foreign company. But most likely they will wait until the Directors already issued their recommendation. It is tactical. Because if let’s say Company XYZ really want to buy a strategic stakes in MMC (it is unlikely because at best they can only own maximum 48% which is non-controlling) and offer a competing bid, they will wait until the period where the Directors already issued their opinion and recommendation to the minority shareholders but no choice to present this alternate offer to shareholders. If a hostile bid happen, then just buy popcorn and watch this Greatest Takeover Show ever in Malaysia. Probability is near zero.

5)Regulatory roadblock. It is all hypothetical. Let’s say the government thinks SM alone controls too much of Malaysia businesses… and want to remove some of his monopoly of Malaysia. They may find some ways to block this (ie. Competition law? etc). I am not familiar with the Malaysia regulatory in terms of seaports/airports, afterall these are national interest asset. Example; Malaysia now has a legislation that prohibit any individual to control any bank except those existing one (exemptions to those existing Godfathers).

6)Some minority shareholder/s seek court relief (ie injunction )

Although I think it is unlikely for MMC case, I have seen all sorts of surprises, sometimes the unexpected do happen in the finance investment world. I am also guessing. Nothing is certain. Just be patient, good luck everyone and enjoy the journey.


"There are two types of people: those who try to win and those who try to win arguments. They are never the same."

@xiaomiin , one of the 3 conditions that SM has to meet during EGM is : The proposed deal must NOT be voted against by more than 10% of the votes in value of the entitled shareholders (minus SM shareholdings... SM is not counted because the interest is conflicted).

In this case, the numbers is already fixed. The rest of minority shareholders own 48.2% which is 1,468,949,712 shares. 10% out of 1,468,949,712 shares is 146,894,971 shares.  So that means, if there is 146,894,972 shares that voted AGAINST , the whole takeover will fail. 146,894,972 shares is effectively about 4.8% of MMC total shares.

Hence, PNB who controls 580,387,600 shares can VETO this deal regardless what you, me, or other shareholders want. They have the number.

Let's hope many news reporters will ask what PNB plan to do in order to maximise the value and use its power for the people's interest. Remember, PNB is managing public funds especially Bumiputeras and Malaysians. Their veto position is clear and obvious. And they also have a clear mandate.

From the top 30 largest shareholders list, one person name Lam Kong Tang owns 1.61% , if he can accumulate another extra 3.2% , which makes him 4.8% ownership, then he alone too (beside PNB) will be able to veto this deal. From this Tue until few days before the EGM, Lam Kong Tang or ANYONE, including local/foreign funds, existing or new shareholders can still buy MMC shares.

There are many other possibilities. Very unlikely there will be other competing offer. But if that happens, it will be a really fun and interesting corporate takeover exercise .

Sometimes takeover go through, sometimes it does not. It's not a sure thing. It all depends on the number of shareholders voted on the EGM and/or its shareholdings. Shareholders have the ultimate says. Last year Jardine Matheson failed to takeover Cycle Carriage Bintang Bhd. This year they tried again with sweeten offer. Again, it failed the second time. MAA privatisation also failed because the shareholders rejected the low offer. And few other cases.

I’m sure some MMC shareholders will find RM2 offer is too low. It is corporate democracy... it will purely be NUMBERS game. Who has the number. Just like elections. Do you have the number? (eg. Anwar said he has)

PNB owns about 20% or more through its Amanah funds. PNB is not party acting in concert. PNB alone will be able to veto this deal. EPF also owns about 2%. If PNB agrees, which in my opinion most likely they will judging from PNB/EPF support of MMC's previous corporate RPT transactions in 2008.

So, i think this privatisation deal will likely go through.

Unless PNB and EPF will voluntarily abstain from voting and only let minority shareholders to decide if the proposed deal should go through or not. Do you think that will happen? I don't think so. Based on the 2008 RPT, we can deduce or suspect how BFF between SM and PNB.

Regardless, PNB has a duty to maximise value for its stakeholders since it is managing public funds. Their mandate is to enrich the lives of Bumiputeras and all Malaysians. With such great power comes with great responsibility. In my opinion, they can easily and should negotiate a slight higher offer, let’s say at RM2.20 per share. Even at RM2.20, it will still be 30% discount to MMC book value. Everyone still win. Bumiputeras, Malaysians, PNB bosses, SM, MMC shareholders, independent directors, bankers, lawyers all win. It looks good on PNB for doing their best and leverage on their veto position in the interest of Bumiputeras and Malaysians.

they need to create more products, enter into more markets and change management to more aggressive and hardworking one.. Those old guards really too comfortable already.

they are just selling coffee product. it is not a high margin or difficult to enter market. competition is fierce. have you been to supermarket aisle that sells coffee product?
they need volume. its a low margin high volume game. they need to expand into more international markets. but i think the management a bit lazy. no drive. hence share price is being punish for their incompetence.

it's a matter of time people will realised this undervalued company. with NTA of RM3.22 per share... almost like MMC... it's ripe for takeover too. Easily hit above RM2 .

I agree with the comment on Suria Bhd, a Sabah port company. Not many people know about this undervalued company. I invested in Suria too. Same like MMC which is 51% own by SM, Suria is 51% own by Sabah government. MMC had tried FEW times to buy Suria but Sabah government do not want to let go its strategic port asset. It makes sense ... Why sell your strategic and important asset to other people? There's also news that Dubai World Port also want to buy Suria. Go research on your own about Suria Bhd. Although it is much smaller port company (only Sabah)... it is solid, steady, stable. I have commented few times on my opinion regarding port businesses.

Congratulations to the recent MMC shareholders! Our conviction is correct on MMC.

most likely it is privatisation offer . Question is only : At what price and which method (GO or SCR)? i think it is a genuine intention that SM wants it private... like what he did to Tradewinds. If too low offer, it's going to be waste of his time since quite many institutional funds can block it.

privatisation is definitely on the cards. after privatisation, SM will list its ports division.

the question is; how much will he offer? better buy more now to have more bargaining power.

https://www.theedgemarkets.com/article/mmc-likely-undertake-shiptoship-transfer-business-yan

reminds me of Transmile. Anyone remember?

Guess where do all this export containers have to pass through?

https://www.theedgemarkets.com/article/malaysias-february-exports-jump-176-strongest-yoy-expansion-october-2018#