Does anyone have any information regarding the status of the antidumping duty investigation by MITI into coated iron or non-alloy steel flat-rolled products from China, India, Japan, and South Korea, prompted by a petition from Perusahaan Sadur Timah Malaysia (Perstima), which advocates for local coated steel manufacturers on 15/8/2024 ?

https://www.spglobal.com/commodity-insights/en/news-research/latest-news/metals/081524-malaysia-launches-antidumping-duty-probe-on-coated-steel-from-china-india-japan-south-korea

@forthewin

LPI needs to divest PBB stocks to fulfill regulatory obligations so that PBB can take over LPI.

Scenario 1 - LPI to return the funds generated by selling PBB shares to current shareholders through a special dividend, leaving it to them to decide where and how to invest for optimal returns.

Scenario 2 - LPI to utilize the sales proceeds from selling PBB shares to fuel future growth by acquiring other companies.

In the second scenario, the existing LPI investors will certainly benefit more.

The process of acquiring a business is a complicated and frequently long journey that companies undertake to grow their operations or enhance their market standing. From the moment a potential target is first identified, to the completion of due diligence and negotiation, and finally to the integration of the acquired company, every stage presents its own distinct challenges and factors to consider.

LPI will probably focus more on expanding organically than on acquiring other companies.

Be optimistic about Scenario 2, but be ready for Scenario 1.

Wishing you a pleasant day.

At present, the primary burden mainly stems from the Philippine operations since its inception in August 2022, further exacerbated by the tinplate dumping in the Malaysian market by foreign nations like India, Korea, China, and Japan.

According to the most recent quarterly results for the period ending 30/9/2024, the revenue for Philippine has been consistently rising, and the net income has also shown steady improvement.

This indicates a brighter future for increased plant utilization in the Philippines, which will be evident in the upcoming quarterly results.

Regarding the operation in Malaysia, since the anti-dumping duty is expected to be implemented in 2025, the outcomes should be favorable.

Regarding the Vietnam operation, it remains quite stable.

In summary, as the Philippine operation accelerates and the Malaysian operation sees improved margins due to the anticipated anti-dumping duty in 2025, the light at the end of the tunnel is becoming increasingly bright.

@forthewin

You may refer to the following link for more information

https://www.thestar.com.my/business/insight/2024/11/02/complications-in-public-banks-corporate-exercise

@forthewin

Yes, the dividend income will be $40m lower

But, the sales proceeds from the disposal of Public Bank shares by LPI will yields an amount (A)


Scenario 1: - likely

amount (A) likely to be distributed to existing LPI shareholder as special dividend.


Scenario 2: - unlikely

amount (A) to be kept in the fixed deposit with licence bank by LPI to earn interest income

INITIATION OF AN ANTI-DUMPING DUTY INVESTIGATION CONCERNING IMPORTS OF FLAT-ROLLED PRODUCTS OF IRON OR NON-ALLOY STEEL, OF A WIDTH OF 600MM OR MORE, CLAD, PLATED OR COATED WITH TIN (ELECTROLYTIC TINPLATE OR TINPLATE) ORIGINATING OR EXPORTED FROM THE PEOPLE’S REPUBLIC OF CHINA, THE REPUBLIC OF INDIA, JAPAN AND THE REPUBLIC OF KOREA

https://www.miti.gov.my/miti/resources/Media%20Release/(15_AUG_2024)_ANTI_DUMPING_TNPLATE_(ENG).pdf

@paperplane

The decision to sell or not is entirely yours.

Scenario 1: In the event that LPI chooses to sell 215 million PBB shares to the market, it is expected to record a substantial profit and provide windfall dividends to its shareholders.

Scenario 2, LPI shareholders would receive around 500 free PBB shares for every 1,000 LPI shares if LPI opted to distribute 215 million PBB shares as a dividend-in-specie.

In conclusion, LPI stockholders will profit handsomely in any of the aforementioned scenarios.

LPI holds some 215 million PBB shares. If PBB holds LPI, these shares cannot be held by LPI and what will happen to that block? Will it be sold to the market or distributed as a dividend-in-specie?We will have 12 months from the date of completion of the proposed acquisition of LPI to address this matter.

It is still premature for us to make a decision on this matter but rest assured, we will explore all possibilities and make a decision at the appropriate time that will not be disruptive to the share price of Public Bank, whilst ensuring the interest of the shareholders of PBB and LPI is protected at all times.

https://www.thestar.com.my/business/business-news/2024/10/14/structured-success-continues-for-public-bank

From MIDF Research.
KEY INVESTMENT HIGHLIGHTS
• Public Bank acquiring a 44.15% stake in LPI. This will trigger a MGO
• Offer price is unattractive – at a discount to current market price
• Still fundamentally sound with good dividend yield. Offer price is not a reflection of its fundamentals
• Forecasts unchanged
• Maintain BUY | Unchanged TP of RM14.52 | based on an unchanged FY25F P/BV of 2.42x

www.midf.com.my/sites/corporate/files/2024-10/lpi-cu-no_incentive_to_participate-midf-111024.pdf

TA Securities described the acquisition price of RM9.80 per share as reasonable. With a PBV of approximately 1.7x, the offer presents a slight premium compared to recent transactions in Malaysia, where average PBV multiples have been around 1.6x.

It noted that the premium appears justified, given that PBB is acquiring a controlling stake in LPI, which likely provides additional strategic benefits such as greater influence over LPI's operations and synergies within the group.

“However, the offer price represents a notable 23.7% discount to LPI’s 5-day VWAP and a discount to its current PBV of around 2.3x. Given this significant discount, we believe that minority shareholders will unlikely tender their shares under the MGO,” TA said

Analysts are less optimistic that LPI's remaining shareholders will be enticed to sell their stakes through the mandatory general offer at RM9.80 per share, given the steep discount

Perstima Vietnam is considering to file anti-dumping petitions to initiate investigations.

@mesoan

"This price of RM 9.80 was negotiated based on a willing-buyer, willing-seller basis. Additionally, money is not a factor, it's more about realigning our interests," Li Shian, the youngest daughter of the late founder, told the media after the signing ceremony.

My study indicates that when trading resumes tomorrow, October 11, 2024, the price of LPI shares is likely to continue its upward path.

My research indicates that no current LPI owners will sell to Public Bank for RM 9.80 a share, which means that the MGO acceptance rate will be very low and that LPI will most likely stay listed once the offer closes.

It appears that Public Bank purposefully set the offer price at RM 9.80 per share in order to discourage current LPI shareholders from selling their shares to Public Bank in order to maintain LPI's listing.

Miti starts anti-dumping investigation into tin products imports from four countries

https://theedgemalaysia.com/node/722851

bonus issue ?

propose a Final Single-Tier Dividend of 20.0 sen per ordinary share in respect of the financial year ended 31 March 2021

As cars stood idle in people’s driveways and roads were largely deserted during the Covid-19 lockdown (MCO), the number of claims made on motor insurance policies fell sharply.