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#

quite obvious that certain party with insider information is manipulating the price with advanced planning for some other motive (eg. takeover). it is not normal indeed.

it is just the beginning. the rising momentum and volume.. will be on uptrend for a while i think... this company has been on a pn17-freezer for the past 10 years .. Hardly people know MAA. Takes time for the retail and institutional investor to realise that the share is a good buy and full of cash.

https://eresearchsystem.bursamalaysia.com/eResearch/webdownload.pub?id=32966

"...BCC has total assets worth RM313mn as at Dec-19. Meanwhile, based
on the independent valuer report, the land has a potential value of
RM250mn. As such, the purchase consideration of RM230mn is a real
bargain. Note that Boustead acquired BCC for a total purchase
consideration of RM310mn in 2014.

the joint acquisition was proposed by Northport. This acquisition is
expected to complement MMC’s (the holding company of Northport)
cruise terminal business in Penang by adding Kuala Lumpur and Klang as
points of attraction for cruise operators. ..."

yet to know who is buying.

in an IDEAL situation, it would be great to have a foreign fund to make a hostile bid. due diligence has been made in 2019 with respect to the estimated fair value of the company at around RM2.19 per share. hostile bid is an extremely rare practice or almost non existence in malaysia capital market landscape . just saying, how nice if that is the case. #dreaming :)

the market did not like the recent announcement of MMC's purchase in either the 50% stake in Boustead Cruise Centre or/and Retro Highlands. I honestly do not like it either. but i see that acquisition is relatively small to other deeper value that MMC has.

last time, back in 2009 the market also did not like MMC foray in land purchase in Senai too. it was deemed risky and expensive.

Then in 2015, Senai sold a piece of land it bought at RM140 million (in 2009) at RM370 million to I-Park Sdn Bhd. MMC made profit. https://www.theedgemarkets.com/article/mmc-sells-senai-land-rm36997m

i think the market overreacted. It is not a loss. It is an investment. All investment comes with a risk. You can make profit. Yet to know. I think the selldown was overdone. But we all know this :
“The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The Intelligent Investor is a realist who sells to optimists and buys from pessimists.”

MMC is still deeply undervalue.

how long to process the upliftment PN17 application ?

It is at the full discretion of Bursa Malaysia

The current CEO of Bursa Malaysia is Datuk Umar Swift since Feb 2019.

He was the CEO / Group Managing Director of MAA from Sep 2006 until Feb 2019 ... more than a decade ...about 13 years at helm .. making MAA from unhealthy to a very strong and healthy company, financially. With that skill, no wonder he was head hunted to lead Bursa Malaysia.

Honestly, I do not know why it is taking Bursa Malaysia so long to process the upliftment. No one else know MAA situation better than Datuk Umar Swift. One cannot stop to speculate there must be something else going on ...

It could be ...... a) out from PN17 b) some sort of takeover again , second attempt c) new shareholder/s accumulating d) new development on investment (eg. bidding for digital banking license, manufacturing business?) e) punters want to goreng/gamble

with its recent acquisition appetite, there is more compelling reason for them to unlock its ports valuation thru IPO soon.... whether to narrow down the discount holdings and discount to book value.

"The Proposed 50% Retro Highland Acquisition provides opportunity for potential steady flow of
construction orderbook for residential and commercial buildings to MMC Group by participating
in property development through the strategic collaboration with a leading Malaysian property
developer, namely SP Setia, to undertake the QSPH Project, which includes the development
and construction of commercial and residential buildings.

This can be achieved by way of leveraging on the Company’s existing competencies (via its
subsidiaries principally involved in engineering, infrastructure and property development
businesses), particularly in property and construction in Malaysia. In this case, MMC
Engineering Sdn Bhd, a wholly-owned subsidiary of MMC is expected to tender for portions of
the construction works that are related to the QSPH Project, which has an estimated gross
development value amounting to RM16 billion over a period of 24 years. With this, the QSPH
Project offers opportunities for MMC Engineering Sdn Bhd to potentially participate and secure
sustainable construction earnings throughout the long-term project period."

the proceeds from its January disposal (RM227.6 million) of the Red Sea Terminal Company can be easily use to cover this 50% of Retro Holdings (RM250 million). It's from one investment gain to another investment.

"Should the Shareholder’s Loans and Loan Interest is excluded from the valuation, the range for the 50% equity interest in Retro Highland is
ranging between RM178 million and RM205 million. For information, as at 28 February 2021, Retro Highland has a short-term funds, cash
and bank balances of approximately RM81.7 million "

Not that i like this deal, but I think this investment is relatively "small" to MMC's ability and overall assets and market is over-reacting.

will MMC try again to persuade Suria to sell some stakes? everything has a price right?

https://www.portstrategy.com/news101/world/asia/mmc-makes-another-play-for-sabah-ports

https://www.thestar.com.my/business/business-news/2021/03/18/auto-sector-back-in-high-gear

will do well this company.

...the shipping container market is showing continuously strong demand that shows no sign of weakening in the short term.. MMC ports are definitely in position to capture some of this boom cycle.

https://theloadstar.com/containership-charter-market-has-gone-bananas-with-2m-on-a-fixing-spree/

I think the IPO of its ports division is likely to happen this year to capture the highest valuation. Invest for the long term.

https://www.youtube.com/watch?v=RlrnS8hYSQI&ab_channel=PTPMalaysia

maybe seeing is believing :P

Semiconductor boom? Gloves boom? You need import raw materials and export the finished products. Guess where are the entry/exit points for all those stuff? Oh, let's not forget about the TRANSHIPMENT...(other countries to other countries container... transit hub) which happen to be MMC's biggest and most lucrative one : Pelabuhan Tanjung Pelepas (PTP) :)

"the port sector to remain resilient, underpinned by global trade and investments in the manufacturing sector that generate tremendous inbound (feedstock) and outbound (finished product) throughput for ports."

“MMC is well positioned to capitalise on these via its stable of five ports in Peninsular Malaysia with a total container handling capacity of 21.3 million 20-foot equivalent units (TEUs) annually, ”

MMC port operations set to capture manufacturing boom

https://www.thestar.com.my/business/business-news/2021/02/16/mmc-port-operations-set-to-capture-manufacturing-boom

maybe the glove troopers realised that the gloves exporting boom need to consume much gas (Gas Malaysia) and energy (Malakoff) for production, logistic (Kontena Nasional) and pass through one of (MMC Ports). :D

when your conviction and your own time tested theses is proven to be correct, you don't leave. if you can you pile in more. In other words, you go for the jugular.

if you guys have confident in ports business like I do, go research about another Malaysia listed port business Suria Capital Bhd. To me it's another gem. As a matter of full disclosure, I have interest in Suria shares. I like port business for many reasons. One of them is that port is a country's strategic asset that's kinda monopoly and also I am familiar with it. When I was in UK I've witness the takeover of DP World of P&O Ports drama.... with US politicians against it ... with Singapore's PSA counter bid and caused P&O Ports share price shot through the orbit... Eventually Dubai won the bid but forced to divest of its US operations. It was about 15 years ago but still remember this high profile takeover case. Closer to home, we also had Tenaga takeover of Lumut port (Integrax Bhd) drama. Did I say I love ports ? :)

MMC approached Suria before but didn't manage to convince Suria to sell. It's understandable that Sabah government / people wants to have full control of its ports. There was even rumours that DP World (Dubai) wanted to buy Suria ports as well. I think MMC will again try to convince Sabah to sell... in return... offer them a share swap of the larger listed entity. It's just my speculation.

When it wakes up.... It's going to roar like MMC ! There is not much outstanding shares out there too. Collect while you can. SM owns 51% of MMC, Sabah government owns 51% of Suria .

I’ve said before, the share price of this large capitalisation company with its high voltage trading volume will rise further irrespective what we all say here.

Of course, I also recognise that there is something unsound about increasing one’s exposure in the course of a trend because it makes one vulnerable to a temporary reversal. I am nevertheless willing to increase my shareholdings even at this point because I believe that the scope of reversal has diminished. Short term volatility is greatest at a turning point and diminishes as a trend becomes established. This is the case now."

How much further more? What we know and have seen to other precedents (other companies stock prices) is that they tend to overshoot and it’s pointless to give any target price when the trend is still very much so relevant and prevailing.

"As long as the music is playing, you’ve got to get up and dance” - quote Charles Prince (ex-CEO of Citigroup)

Sabah very different working culture... Very chill and relax... Hahaha

this giant already woken up... it will continue to rise irrespective of what we say or comment here. just watch the momentum....enjoy the ride.. It's like those massive container ship's momentum....moving ahead. last thursday she blasted its horn... many heard and noticed her ...

@pinky can i know what is the facebook group? I want to see what they write in the forum too. Thanks

https://www.thestar.com.my/business/business-news/2021/03/05/mphb-capital-unit-still-in-talks-to-sell-stake-in-mpi-generali

I wonder where does the volume come from? to have such high voltage trading volume....