i have a feeling that today's high volume will come mainly from Tengku Uzir acquiring the shares.....We will see.

Morning, there are rumors that the two brothers, Shahril and Shahriman, might want to take this counter private after the disposal of APIIT. It would make sense for them to do given the cash position of the company post disposal, which will be around RM2.20 per share.

However from my understanding any potential offer would be lower than the NTA of the company (around RM4.00/ share post disposal). I personally think it would at least be at the cash position of company which already represent more than 80% premium to Friday's closing of only RM1.18.

It will be great if you guys could verify this by asking any of your investment bankers friends. Any deal should be done by either Maybank of Cimb.

2721,
pp is normally meant for high net worth individuals or institutional investors. If the pp investor is a big institutional investor like epf for example, this would provide better coverage for the company in the future. More analyst will follow the stock.

I wouldn't worry too much on this private placement exercice. Gadang has more than 200mil cash in their books as of nov 15. This private placement will generate around 45mil cash for the company. It is weird that the major shareholders are willing to dilute themselves for cash they don't actually need in the first place.

There are 3 scenarios to why they need this PP.

1) their current project is depleting their cash reserves faster than what the company can generate.

2) They need cash to participate in a new project. Example mrt2 contracts.

3) strategic alliance with new investor that can help bring in new and bigger projects for the company. Example the pan borneo contracts.

I doubt it's because of 1. If this is the case, the company still have abilities to borrow money. Their current net gearing is only 10%.

Tengku Uzir, the cousin of Tengku Abdullah (crown prince of Pahang) has a proven track record of being able to bring in contracts for WZ. Examples are:

1) Bauxite mining contract that was awarded by Tanah Makmur which is related to the Pahang Royalty.

2) West Coast Expressway contract of RM500mil awarded by IJM of which he has relation with. Tengku Uzir used to work in Road Builder Holding a subsidiary of IJM.

3) Duke contract awarded by Ekovest Group amounting to RM 100mil.

Prior to the emergence of Tengku Uzir as a substantial shareholder, WZ was only as sub RM100mil revenue company. This all change when he comes in.

So i am confident that WZ will be able to secure a big contract this year.

This Tengku Uzir keeps buying the stock little by little almost everyday. There must be news coming out soon.

My guess is either these 3:

1) End of moratorium on the bauxite mining of which WZ is expected to be one of the main beneficiary. Previously most of the mining is done by illegal operators. From my knowledge, WZ is one of the few that actually follows the procedures set up by the Pahang Govt. Most of the illegal operators are now afraid to start back ops after the tough actions taken by the MACC early of this year.

2) Award of contracts for the Center Spine Road package of which WZ is partnering with UEM. Total contract worth is estimated to be around RM4bil. Assuming WZ controls 30% of the JV this will translate to a potential RM1.2b worth of contracts. The award is expected to be given by JKR. Given that WZ is a Pahang Royalty related company, there is a high chance that the JV might be awarded the contract.

3) Award of the Pan Borneo Highway contracts where WZ is partnering with PKMM Bina, a Sabah based company. There will be 3 packages for Sabah with the total 3 package amounting to RM12bil.

My hope is that it would be number 2 or 3 as this would provide a very positive catalyst to the company. As of end 2015 the company's orderbook stood at RM800mil. CSR or the Pan Borneo contracts will more than double this.

This is a good level to enter. Company will be a cash rich upon completion of disposal. My personal target price is around RM2.20 to RM2.50.

Current price will provide a steep margin of safety due to the undemanding valuation of only 0.5x BV.

Upon completion BV will rise to RM4/share which means the valuation is only 0.34xBV.

Hopefully they will make the announcement soon. Feb most probably.
Chuck, 200mil is a bit low. I still think it would be between 300 to 400mil.

Guys, rumours in the market is that the deal is almost done.

Not sure about the valuation but should be around RM300m- RM400m, as reported in the media. Also heard that maybank is one of the advisors.

U guys sure got friends in the bank. Maybe can check to comfirm?

Not sure bro patrick. All the things u said are what was being presented in the media. But looking at the timeline, IF Ekuinas really wanted to list Ilmu by 2nd half 2016, they will need to complete the deal soon.

But totally agree that the company is undervalue at the moment....

U buy already??

Hopefully the offer is more than rm300mil.

The potential deal between Ilmu (owned by Ekuinas) and Sapres will be on the acquisition of the remaining 49% interest of APIIT. Ekuinas is expected to list its Ilmu Group in 2016. They would want to acquire 100% of APIIT which is one of the most profitable asset in Ilmu's portfolio b4 the listing. The edge mentioned that potential value of the 49% to be around RM400m which translate to around RM2.86 per share.
Investors are practically getting all the other business in SAPRES for free. I seldom see a stock that trades below the cash value. So i would assume the stock to be heading to at least the cash value (RM2.86) once and if SAPRES receive an offer from Ekuinas. Even if the offer is only RM300m this would still translate to RM2.15 per share.

http://www.mybursa.news/2015/10/29/sapura-resources-apiit-stake-could-be-worth-over-rm400m/

According to the edge article, Sapres portion of Apiit is valued @ rm400mil. With 139.6 mil shares = Rm400mil/139.6mil = RM2.87 per share.

This means if deal goes through @ 400mil, there will be cash of RM2.87 pe share in the company's book.

I seldom see stocks trading below cash portion (stock currently trading @ only 50% of potential cash to be receive, if deal goes through). Hence why i am bullish in sapres.

Even @ rm300mil, the cash portion to b received will be rm300mil/ 139.6mil= rm2.15 per share.

What u guys think?

If 2016 listing, they will need to clean the 2015 books to show in their prospectus. In order to do tht they need to acquire minority interest b4 end of the year.

http://www.dealstreetasia.com/stories/malaysia-ekuinas-pushes-education-porfolio-ilmus-ipo-to-another-6-to-12-months-12472/

They seem to want to list in 2016.......

I think deal is still on. Ekuinas wants to IPO their education group next year. Some analyst in the news said they need to clean up their books first b4 can list. If not, cannot get good valuation since profit need to share with minority.

What u guys think?