nylex is a good comparable as it is another cash shell. it is trading at around 4x it's cash value per share. it is a matter of time before scgm shoots past RM1, which is only 2x its cash value of 50sen now.
scgm receiving court order next tuesday on 29 november 2022. we should get the capital repayment by 1st half of december.
just88, management's intention is to get a business and they have been approached by those in the EV and renewable energy space. this will cause the share price to shoot up way past the cash value like how jentayu sustainables did. i will not be surprised to see the share price going to RM0.80-1.00 (post payment of RM0.36 in December) when the acquisition proposal is made.
taitaumau, the circular also says that the actual amount received compared to the estimate has always been +-5% historically. The future interest income should cover for any shortfall. and if i am not mistaken, there is also a WACC return on that retention sum that ALR has to pay to Litrak.
observatory, yes i actually took profit for most of my holdings at around RM4.90 and kept the rest. could have earned a little bit more if i had kept it all. and no, RM5.09 + interest accrued is not correct. it should be RM5.09 + additional RM8 million due to delay in completion + interest accrued. overall, it should not be a surprise if we get around RM0.55 in 11 months time.
just88, its capital repayment after liquidation. and what other assets does litrak have now other than cash in trust account? lol
ironshirt, the correct word is vast amount of bullets instead of spare time. looks like we're not in the same league then awww. secondly, you think the court is your grandfather take 9 to 15 months to issue court order? hahahaha
i have direct knowledge of the matter and its quite funny to see comments from people who got stuck and are worried like goldenhorse hahaha. this one the champion so far...saying they are signing today....5 days ago haha
raising funds through sukuk is similiar to ipo on bursa. for ipo, first step need to lodge exposure document with SC, then get Bursa approval and a long list of procedures. ALR has not even started the first step for their sukuk.
not that the potential reduction in offer price is a lot...but ironshirt got so worked up. not hard to tell that he has a significant amount of capital in Litrak hahahaha. whereas most of us like me and speakup have taken a lot of profit at around 4.85-4.90 that day, so we're pretty chill because our holdings are quite small now. just waiting to see if there is opportunity to top up. if revised down to RM2.54 billion, then offer price will be at around current share price.
EVEBITDA, that's Litrak's WACC. Litrak is a combination of debt and equity. ALR is clear that they are looking to raise debt at 5%. that's how observatory pointed out the higher value ALR is offering. but if cannot do 5%, then will just reduce offer price to around RM2.54 billion lah.
if ALR cannot secure the funding they want at 5% interest rate by 8 september which is the next Bank Negara meeting where interest rate is expected to go up by another 25bps, then the completion risk will increase significantly.
As at the date of this Circular, ALR is still in the process of securing sufficient financial resources to undertake the Proposed Disposals. The fund raising by ALR is expected to be completed by 15 August 2022.
We note that the one of the Conditions Precedent to be fulfilled by ALR pursuant to the Finalised SSPAs is having successfully raised funds to make the required payments to each Vendor. In the event that interest rate increases to a level which is not feasible for ALR to raise its sukuk funding for the settlement of the Disposal Considerations resulting in this Condition Precedent not being fulfilled before the Long Stop Date(1), and ALR has no alternative source of funding, the Proposed Disposals cannot proceed. We wish to highlight that Bank Negara Malaysia (“BNM”) had on 11 May 2022 and on 6 July 2022 increased the Overnight Policy Rate (“OPR”) by 25 basis points respectively. We are of the view that any further increase in OPR by BNM may increase the completion risk for the Proposed Disposals.
you still have ignored the fact that ALR has not been able to raise any money 2 weeks after their 24 July deadline. you're unable to address this issue but instead deflected to my supposed "non-ownership" of shares hahaha. plus the Gamuda EGM is clear in that they said "subject to fulfilment of conditions" by ALR lol
IronShirt, lol don't talk like a small boy. Talk about facts like mgs yield, discount rate etc. You, me and everyone in this forum can't influence the share price of something as big as Litrak. Only EPF and some directors can.
as expected, almost 1 week now and still no announcement of alr sukuk issuance. if nothing by 8 july, that means cannot meet the target completion date of 31 July since 21 days notice needed for EGM. i still expect the deal to go thru but at lower price.
ok pg 7 of the 8jun announcement says ALR estimates their interest rate to be 5%. with this rate that they anticipated earlier, i am 90% certain that the offer price will be reduced but it won't be that much. maybe 10-20sen per share, which is still definitely higher than the current share price.
80gram, yes alr is supposed to announce the finalisation of the sukuk on 24 June. what interest rate, who gets the allocation etc. not that 24 june is d-day, +- 1-2weeks is fine. but if 2 weeks past 24 june still cannot finalise, means there are some problems. as i expect, it will be an interest rate problem. investors will demand around 6% rate and ALR will come back to litrak to reduce the takeover offer. then litrak can carry out the EGM to approve.
when alr made the takeover offer for litrak, it would have used a discount rate to value litrak's assets right? isn't that discount rate tied to the sukuk? if alr used 5% to value litrak's cash flow but the sukuk investors require 6%, then alr has to go back to litrak with a new, lower offer using the 6% discount rate isn't it?
mbsb is backed by epf so it won't fail. exim and sabah development is close to government guarantee, so it should be similiar to mgs. not alr. the minute we have some black swan economic event, you can kiss your traffic growth bye bye.