http://klse.i3investor.com/blogs/rhb/87559.jsp

Some people are doing well in this sector.

traderman is right. It is a buyer's market. Decide at the end of Feb 2016 after results.

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BJCorp won the bid to setup a computerized lottery business in Vietnam 19 months ago in April 2014 and a business agreement to operate the online lottery with Vietlott Company was expected to be sealed in October 2015 which has not happened yet. What could be holding up the progress especially when the local authorities have said that they want the business to commence asap? Could Vietnam be having second thoughts because of Berjaya’s performances so far in their property investment projects there?

We must understand that Vietnam’s economy had been in the doldrums for a much extended period until this year and because of that the capex has not been rolling out, unlike in China and South Korea. There are some 9 projects totaling about USD5 billion. The local authorities have threatened to revoke the licences of a couple of ‘dormant projects’ but it is not clear whether that implies terminations or just a period of haitus. In hindsight, the holding back was commendable prudent management in the property department and now the days ahead appear to be brighter for Vietnam's economy.

A lesser organization would have been hard pushed into oblivion already by such challenges. However, Berjaya is a titan of a conglomerate and should be strong and resourceful enough to ride through these bumps, I hope. When the ride smoothens, the rewards will be that more sweet and bountiful.

A few matters are quite worrisome being (a) Great Mall of China in Yangjiao near Beijing, (b) the Airest City in Jeju Island, South Korea, (c) the Computerised Lottery Business in Vietnam, and (d) the development and construction projects in Vietnam. Kahhoeng mentioned the property projects earlier.

The Great Mall of China is already 2 years behind schedule. There is not much reporting of what is happening on the ground and China's economy is in a slowdown. BJCorp owns 51% of GMOC via Berjaya Leisure (Cayman) Ltd of BJLand while the remaining 49% is owned by Berjaya Time Square (Cayman) Ltd controled by VT and son. An earlier agreement to dispose of a 70% stake to Hong Kong’s Carnival Group had fallen off the shelf.

The Jeju Resorts works which was launched with pomp have been suspended following a Supreme Court overturning an earlier court decision in July relating to land matters. International litigation looms while the players lobby for supports to resume construction and a revision of a law. I find it bewildering that such a carefully approached and planned high profile project due to the multi-awards winning design, world heritage locality as declared by UNESCO, and under the auspice of a specially set up government agency, could run into such problems. I wonder if there is a turf war going on. BJCorp via BJLand owns 72.6% of Berjaya Jeju Resorts Ltd which has an 81% stake in a JV with JDC to develop the Jeju Airest City which will enjiy a host of tax holidays and concessions.

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myview, exactly my observation.

BJCorp-CY is an European style non-collateralised cash settled call warrant meaning it can only be settled on maturity, and with cash only.

The cumulative traded turnover volume crossed the 40m mark about a week ago. Just looking at the chart, the average price traded appears to be around 6 to 6.5c each. Assuming 70% of the traded volume came from the issuer's sales, by now approximately 30m CYs have been sold for a gross profit of around $1.9m, quite handsome for 3 months work provided the mother price does not track above 38c on maturity date.

I am not sure about this but I think an individual can deal with and use an investment banker to issue securities to be traded on the stock exchange.

I mean to promote a price rally which will please everyone.

I think better to be used to enhance the share price.

Eventually when the ICULSs are all converted, the liability arising due to the issuing these ICULSs valued at a nominal $1 ps will be reversed.

Yes, payment of $66m cash will reduce bank balance by $66m and issue of 353m ICULSs will increase liability by $353m. But dont forget that the 12% additional equity is worth $599m made up by $(66+353+180).

599m shares@ 30c is a gain of $179.7m.

The price to pay is 70c ps. BJLand's NTA is $1 ps. Therefore when the 12% additional equity is consolidated in the BJCorp's balance sheet, there will be a 30c gain in asset value which will appear in the reserves account, I think.

Based on face value, BJCorp would come out of the deal the clear winner over BJLand at today's closing market prices.

Payment for 599m shares of BJLand = Cash $65.86m + ICULSs (353m x 0.375) + Warrants (707m x $0) = $198.24m

Cost of each BJLand shares = $198.24m/599m = $0.331 ps

Compared with today's market closing price of $0.70 ps

I am not selling what i have. If I come into some more money, I would allocate a portion to increase my holdings of this counter.

* This posting replaces an earlier one because I found an error in my earlier working which I have rectified below.

The 12% acquisition of BJLand is not dilutive of the NTA of BJCorp. The following figures in my simple calculations are rounded.

Existing ord shares today 4,382m
Existing 'OA' shares today 291m
After merging of shares, total ord shares will be 4,673m
Total book value of BJCorp today 4,382 x $1.5983 = $7,004m
NTA after merging of shares $7,004m/4,673m shares = $1.4988 ps

After acquisition of extra 12% BJLand equity, if deal is done;
Add 12% of BJLand at book value 599m x $1 = $599m
Less cash payment $66m

For ease of comparison, assume holders convert all 353m ICULSs to ord shares immediately on listing and ignore warrants first, then;
New NTA will be $(7,004 + 599 - 66)m/(4,673 + 353)m shares = $7,537m/5,026m shares = $1.4996 ps

If all warrants also fully converted to ord shares, then;
New NTA will be $(7,004 + 599 - 66 + 707)m/(4,673 + 353 + 707)m shares = $8,244m/5,733m shares = $1.4380 ps

Therefore, all fears about NTA dilution are misgiven when you look at the 3 figures; 1.4988, 1.4996 and 1.4380.

I am a layman and not a promoter of BJCorp but I own some shares in the company.

So only when the 290.856m BJCorp-OA shares become full fledged ordinary shares after today, the trigger is effectively sprung?

Try not to let your emotions cloud your thinking when investing or trading in stocks. It is to your disadvantage, friends.

Think about it. BJCorp is proposing to acquire VT & Penta's 12% equity in BJLand for $419.21m to be satisfied by 65.86m cash, 353.25m ICULSs and 706.5m free detachable warrants.

Simplified, the cash and convertible securities payments in kind add up like this approximately; $65.86m + (353.35×0.38)m + (706.5 × $0)m = $(65.86+247.35+0)m based on currently figures. That's $200.1m only.

You think VT is stupid?

Sorry, i am driving on the road.

Why? Your guesses will be as good as mine.

I think somebody is planning to move the mother up in a big way.

Therefore the value of this LD is hitched to the price of the mother share plus or minus a premium or a discount as you see it.

The first letter of ICULS is 'irredeemable' indicating no redemption for cash. This is further emphasized under remarks.

Therefore there is not much differences between holdind the ILCULS-LD and the mother scripts. Holding the mother entitles you to vote on matters and to receive indefinite dividends. Holding the loan stock entitles you to a fixed 5% interest pa.

Read the fine prints. No redemption allowed, therefore value of LD is hitched to the mother + or - a premium or discount as you see it.


Instrument Type : Loan Stocks
Description : IRREDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS 2012/2022 ("ICULS")
Listing Date : 26/04/2012
Issue Date : 23/04/2012
Issue/ Ask Price : MYR 1.0000
Issue Size in Currency : MYR 700109520.0000
Maturity Date : 22/04/2022
Revised Maturity Date :
Exercise/Conversion Period : 10.00 Year(s)
Revised Exercise/Conversion Period :
Exercise/ Strike/ Conversion Price : MYR 1.0000
Revised Exercise/ Strike/ Conversion Price :
Exercise/ Conversion Ratio : 1 ICULS is convertible into 1 new ordinary share of
RM1.00 each in Berjaya Corporation Berhad (BCorp) (BCorp Share)
Revised Exercise/ Conversion Ratio :
Mode of Satisfaction of Exercise/Conversion Price : Tendering of securities
Settlement Type/ Convertible into : Physical (Shares)
Remarks : There will not be any redemption of the ICULS. All ICULS remaining
immediately after the Maturity Date shall be mandatorily converted into new
BCorp Shares at the Conversion Price.
Each registered holder of the ICULS shall have the right at any time during the
Conversion Period to convert such nominal value of ICULS held into new BCorp
Shares at the Conversion Price. If at any time the nominal value of the ICULS
then outstanding is not more than ten per cent (10%) of the whole of the ICULS
issued, BCorp shall be entitled at its absolute discretion (but not obliged) to
convert at the Conversion Price, in accordance with the Trust Deed dated 6
March 2012, all such ICULS then outstanding in the manner provided in the Trust
Deed.
This Announcement is dated 25 April 2012.

ChinKeng Kee, I dont think I should elaborate more on this since anything I could say would still be mostly conjectures as they would be based on incomplete information and presumptious, and the gamemaster can play his moves any which way he chooses including stalling and even suspension midway.

However, I do feel the pieces are being manoeuvred into positions in a field set for a masssive and lengthy corporate play which will reward those with patience and gall. We need to steel our balls to benefit fully during this enrichment process. It's about time soon.

I think it will basically be similar to but a less complicated version of the previous run. Good luck, everybody.

Typo error. ICULSs ... 10 years maturity ..

BJCorp will own approx 75.05% of BJLand after this exercise.

The 353m+ ICULSs have a nominal value of $1 each, cant be redeemed for cash, and can at any time be or must at 20 years maturity be converted to ordinary shares at $1 each.

The 706m+ warrants are convertible to ordinary shares at $1 each.

The picture is quite clear now.

Ok it is still premature to assume a Mandatory General Offer is in order. Let's see who is behind the 20.72m conversion.

Why the conversions of LDs? We shall find out soon enough. We can only speculate why in the meantime.

What is for sure is that the trigger for the MGO has been intentionally set off.

Whether there will be any cause for celebration tomorrow, it is hard to gauge for this counter. Haha.

It may be another unrelated party converting the LD ICULs but very unlikely.

A price offered may not be attractive but usually offers should be in the vicinity of the NTA?

Sorry, my fumbling hands deleted my earlier post.

If the latest LD ICULs conversions announced today has been carried out by VT or any party that he has interests in or who act in concert with him, then a threshhold has been crossed to trigger an MGO for BJCorp.

Acquisitions, direct and indirect, since 29th June 2015;

29 Jun 4,250,000 open market purchases
30 Jun 1,597,300 open market purchases
03 Jul 1,152,700 open market purchases
20 Oct 26,000,000 LD conversion
30 Oct 9,050,150 LC conversion
04 Nov 35,677,750 LC conversion
16 Nov 3,383,100 LD conversion

Total 81,566,000 acquisitions from 29/06 to 16/11

03 Dec 20,716,666 LD conversion by VT & associates ???

New Total 102,282,666 2.1887+ % of 4,673,179,934 #


# Expanded share base after latest new issues

The USD usually strengthens towards the end of the year probably due to redemptions and repatriation of funds back to USA. The Ringgit usually weakens at the end and beginning of the year too maybe due to a lot of overseas school/university fees becoming due and parents making last minute purchases of foreign currencies for their children's overseas living expenses. It is a seasonal thing which has some bearing effect.

Here goes nothing. Assuming AA is in consolidation and will surely rebound to new highs and taking the low & high of the recent run-up as 0.765 & 1.61, the Fibonacci Retracements at 61.8%, 50% & 38.2% are 1.29, 1.19 & 1.09 which may be new support levels.

I am still holding shares bought earlier and shall buy again at these levels, the lower the price the more the purchase.

Imagine an annual sales of say 20m pieces at say $150/piece, that is $3b annual retail sales. What is 20m a year if the products are consumed globally like burgers and pizzas? Not even chicken feed. Intrinsic costs a piece? Hardly anything after R&D, plant, packaging and distribution.

Layman's perspective.

Investeye, yeah news piece is a bit off current but I don't think the fundamentals have changed in a significant way. Maybe the attitudes of the market commentators has shifted slightly with respect to what they feel the Fed ought to do come December. But the Fed has always leaned towards the dovish treatment especially when the market starts to throw tantrums in response to any threat to withdraw cheap money.

http://www.marketwatch.com/story/now-there-is-little-chance-of-a-federal-reserve-rate-hike-in-2015-2015-10-23

Lighten up, people. No Fed rate hike until at least 2nd half of 2016.

The 15 largest shareholders own more than 90% of the company's shares. The top 30 shareholders own more than 95% of the shares. The remaining free float is just a measly under 5% which will be further diluted when the recently approved private placement of 10% additional shares are fully subscribed and issued.

Some of the names in the lists of shareholders and directors look intriguing and promising of great things to happen. However, let us see how things develop from here onwards, whether there will be more new products coming on stream and more significantly if the productions reach mass proportions to churn out fantastic results first.

Easy does it.

For those of you who are familiar with the Iron Man movie series, the armour suit that Tony Stark wears to become the Marvel superhero employs IoT technology to work. Only difference is the processors' speed it is working with which is totally out of the realm we are in today.

Well, just trying to give a farout vision of what the future might hold.

At an estimated industry size of USD1.7 trillions against a world economy size of approximately USD82 trillions, it is staggering to imagine how this IoT technology is going to permeate into everything around us and revolutionize the way we live.

And we only have one small group in the whole of Malaysia sticking their fingers into this pie at the level Keyasic is doing?

So if management wants to buyout, bankers are supportive, market is not dumping and we are still sniffing around despite a gloom, must be fairly ok lah.

Have you known any banker who is not hard a nosed fair weather lender? When it is all fine and sunny, they swarm around begging you to borrow their umbrellas to protect your skin but when the storm is brewing, they recall the umbrellas before they are blown away.

So, if your forward plans are not super convincing and fool proof, forget about any facility from them. Guys, obviously Tony got the nod already!

Look at it this way. When somebody makes an unsolicited offer to take a listed company private, doesn't that imply the demand for shares of the company will immediately rise, no?

With a dogged buyer and many speculators hoping to make some profits on the ride up? More so, if the offeror is the company's management and already the largest shareholder who knows exactly how much the company is worth.

Next question should be how high will AA's price go up? r Moi has suggested 1.61 minimum based on assumed redemption amount for TF&KM's loan.

What would happen if there are also a few deep-pocketed funds sniffing around too?

The following were disposals made in the open market;
09 Jul 2015 2.5m@1.24
15 Jul 2015 170K@1.29

We would not have known the reasons for the disposals. At that time, people did not make much out of them because they were not very significant and isolated.

Where do you get that info from, r°Moi? That would have reduced TF&KM's holdings and must be disclosed being both a substantial shareholder/s and key person/s of AA. Did it happen only in the last few days?

Maybe TF took his eyes off the ball too often and leaving his lieutenants to man the control posts while he dabbled with the FA soccer and F1 adventures. He also set private businesses dealing with telecommunication, financial services & insurances, budget hotel chain, TV media production, education and other less publicised private ventures while chairmaning AA.

All these activities were seeded and fed by borrowed capital from banks secured by the 19% of AA's equity owned by TF and KM. This block of security was valued by the market at USD100m at the end of Aug but currently hovering within 10% below USD200m, the amount they owe.

In the last 5 years AA's top line grew 70% but the bottom line dropped 83% as it struggled with growing pains in new frontiers and global vagaries.

Perhaps, potential parties that Tony may approach for loans or equity participation in the special purpose vehicle for a privatisation exercise are Credit Suisse and CIMB, the local partners of AA of Thailand, Indonesia, Philippines, India & Japan, Malaysian funds and entrepreneurs, China entrepreneurs, and even Airbus associates.

I am sure AA is worth the fight for, TF & KM still have the resources to hold on given time, and the 2 bankers are giving them the leeway to fight the good fight.

IoT will be the next big thing to power our economies.

It does not help that TF and KM together do not owe the banks large enough so that the banks would turn into their guardian angels and babysit them to survival.

Air Asia is now very open and vulnerable to predators so if TF and KM do not have something up their sleeves or good wealthy buddies to back them up, AA may slip from their grasps if someone who is interested had been watching the unfolding events in the last 10 months.

At times like this, you will find out who your real friends are. Other will find out what sort of person you are. Brings to mind the time in 1986 when Standard Chartered Bank was able to beat off a hostile takeover bid from Lloyds Bank with the help of 3 white knights from the East in Pao Yue Kong of Hong Kong, Sir Robert Holmes a'Court of Australia and Khoo Teck Puat of Singapore.

South Korea has many casinos in operation. In Jeju Island alone which is more than 2.5 times the size of Singapore, there are at least eight listed casinos which are being eyed by foreigners especially from China.

Most Koreans like most people would naturally welcome development where they live. It would be strange to see the RM1.9b BJCorp's development derailed because of one spirited local protester among 4 resisting landowners from an initial group of 22. The 18 had accepted increased compensation.

I cannot help feeling that there are other invisible and sinister forces involved in the blockade.

http://www.koreatimes.co.kr/www/news/biz/2015/05/123_178272.html

If he wants to do it? The money is in the books and hidden in the undervalued real assets. Only need an financier to provide the bridging. But that the way of a bookkeeper. VT is an empire builder who only needs the control.

@posby, I am with you, still accumulating.