BJLand does not own any part of the Great Mall of China. GMOC is 51:49 owned by BJCorp and VT.

Due to sagging market sentiments, strong selling pressure and expected downgrades by increasing number of analysts, I cleared out completely yesterday averaging below 2.80. It's been a terrific time, exactly three and half years since Aug 2015. I am taking a haitus until there is more clarity on how the new businesses will work out.

Issue of new ordinary BJCorp shares to pay Penta for ordinary shares in BJLand must be approved by Security Commission. Got waiting time to kill.

First offer will likely be on exactly the same terms made to Penta including consideration being in shares of BJCorp. For every 30 ord shares of BJLand we sell to BJCorp, we shall be paid with 38 ord shares of BJCorp shares.

Fuel cost averaging USD92 per barrel when the spot price average was around USD84 during the period was poor handling. Cold feet and panic decision the reason maybe.

Everything else are good work done. From the IR website, the precis covering the Qtr & full year results is useful n great to dispel any lingering doubts some investors may have reading the main Qtr report especially pointing out the RM318 million one off expenses.

And we have a bright n exciting 2019 to look forward to with all the transformation happening.

Proposed dividend 12c

Let the freak storm blow over on its own first. Then a strong rise may follow.

From the 3Q18 Report, it would appear that only 13% of the 4Q18 fuel requirements as at 30 Sep were locked in at higher prices prevailing probably 12 months earlier. There was a straight line drop in Kerosene price of about USD30 between early Oct and late Dec last year. So if there were no significant hedging change during the 3 months, AA would have enjoyed cheap fuel prices for 87% of it fuel in the period.

A quick estimate for the average fuel cost for AAM in 4Q18 taking consideration of the Ringgit movement and historical kerosene prices, came up with a figure just short of USD80 against 3Q18's actual USD95 which would translate into a savings of around MYR200 million for 4Q18.

Extracts from 3Q18 .....

30. Derivative financial instruments

The fair value of derivative financial instruments is determined in accordance with MFRS139 “Financial Instruments: Recognition and Measurement”

(i) Forward Foreign Exchange Contracts
As at 30 September 2018, the Group has hedged approximately 74% of the USD dollar liabilities of its aircraft into Malaysia Ringgit (“MYR”) via Cross-Currency Swaps and Foreign Currency Swaps for aircraft deployed in Malaysia.

(ii) Interest Rate Hedging
As at 30 September 2018, the Group has entered into interest rate hedging transactions to hedge against fluctuations in the US$ Libor on its existing aircraft financing for aircraft delivery from 2005 to 2018.

(iii) Fuel Hedging
As at 30 September 2018, the Group has entered into swaps and options for both Brent and Crack which represent up to 13% of the Group’s total budgeted fuel consumption for remaining of 2018 and 6% for first half 2019.

Ximon, you got the interpretation of that clause in the Term Sheet right already then your remisier's ill advice confused your mind again. I am stumped if that came from CIMB. By the way, Call warrants are deemed to be exercised automatically at 9am on the expiry date so the price behaviour of their mother share on that day can not possibly have any bearing on the expired call warrant's value.

O Kyoto, Kyoto, whereforth art thou Kyoto?

60 days up already since newsprint

CW65 holders will end with nothing if AA's VWAP is 3.12 tomorrow.

There will be drastic transformation to some figures in the accounts with the finally concluded AAC sale in this Q4 report. Wonder if there are any accounting engineering for tax optimisation, shuffling or whatever that may render the results optically less pleasing.

Cool heads tomorrow.

Today's VWAP of AirAsia is 3.0967 currently, with 40 mins of trading time left.

I have a KenTrade platform.
Under Trade Detail page

Ximon, no.

21st, 22nd, 25th, 26th and 27th

It is sensible to mindful that the IB issuer would rather not pay anything if they can help it, right?

The Exercise Price for C65 is 3.1263. The VWAP of 21st and 22nd of Feb are 3.2029 and 3.1643 respectively. If CIMB/IB is not playing a cent on Maturity Day, the average of next 3 trading days' VWAPs must not exceed 3.0881.

Calcs: [(3.1263 × 5) - 3.2029 - 3.1243] ÷ 3 = 3.0881

MAHB should not hide behind the fact that MAVCOM is the body setting the PSC levels which should be construed as a ceiling.

MAHB is operating a monopoly airport business and airlines flying in and out of Malaysia are captive customers with no other alternative choice to use. The PSC pricing has broken the Competition law in Malaysia. The Malaysian Competition Commission should fine MAHB for their total disregard of this law.

The services and facilites provided are not the same for lowcost and full sercice airlines. Why are lowcost airlines forced to pay the same price for less?

There is competition between the low cost servivce and the full service airlines per se.

The Competition Act prohibits actions and conditions which have the object or effect of significantly preventing, restricting or distorting competition in Malaysia and conduct which amounts to the abuse of a dominant position in a market in Malaysia.

Competition Law seeks to protect the process of competition for the ultimate benefit of the citizens, allowing for lower prices, better products and services.

The PSC for the various categories of destinations are set by MAVCOM as per section 46 of the Malaysian Aviation Commission Act 2015. These revenues are collected by the MAHB to run the operations of the airport.

Ultimately, the consumers are the travellers who fly in the airplanes serviced by the airports owned by the MAHB.

Under the Malaysian Competition Act 2010, it can be construed that competition has been restricted and distorted in the pricing of the PSC when inferior services are charged the same amount as for superior services. The pricing has been set by MAVCOM and the benefits of the unequitable pricing are pocketed by the MAHB. Among the victims, are AirAsia and AAX.

The Malaysian Competition Commission (MyCC) should have looked into this and have something to say about it.

Yu Kan Chon dueled valiantly with Quek LC but not looking at scooping some cream off VT's moves with BJLand? VT is too good to tangle with?

I think they both did the same things, from my memory.

Eddysurge, I don't understand your question. Are u trying to say that there are 14% of free float shares whose owners will cause the takeover to fail?


ignissimia, can you disclose a bit why 14% bjland sold deal, bcos is it painful memory for bjland & Bjcorp minority?

The above relates to compulsory acquisition of shares of a listed company.

CHAPTER 5 SQUEEZE OUT OF MINORITY SHAREHOLDERS

Under Section 222 of the CMSA, where a Code Takeover has been made and that offer has been sccepted by holders of not less than 90% in the nominal value of those shares of that class (excluding shares already held at the date of the takeover offer by the offeror and persons acting in concert),the offeror can, within 4 months of making that offer, compulsorily acquire shares from the remaining
minority shareholders.

The successful offeror is required to give notice to the remaining minority shareholders in the forms stipulated in Schedule 5 of the Code Rules (depending on whether it is addressed to a dissenting
shareholder or a shareholder who has not accepted to the offer) within 2 months from the date the 90% acceptance condition has been achieved. This notice is to indicate its desire to acquire their shares and should include a copy of a statutory declaration by the offeror that the conditions for the giving of the notice are satisfied.

Upon receipt of such notice, the remaining minority shareholders have the option under Section 222(2) of the CMSA to serve a written demand requesting for a written statement of the names and addresses of all other remaining minority shareholders as shown in the register of members. The offeror is not entitled to acquire the shares of the remaining minority shareholders until 14 days after the posting of the written statement.

After the expiration of 1 month from the notice, the offeror is required to send a copy of the said notice and an instrument of transfer executed on behalf of all such minority shareholders by the offeror and pay, allot or transfer to such minority shareholders the amount or consideration for the shares to which
the notice relates.

Similarly, under Section 223 of the CMSA, where a takeover offer has been accepted by holders of not less than 90% in the nominal value of those shares of that class (excluding shares already held at the date of the takeover offer by the offeror and persons acting in concert), the remaining minority shareholders may within the offer period require the offeror to acquire its shares on terms of the takeover
offer or such other terms as may be agreed.

Bassed on the most conservative considerations, Kyoto 4 Seasons goes for USD750m and profit realised is USD350m gross. Take away 30% for taxes and misc expenses, net earnings = USD245m with half for BJLand around RM502.25m or approx 10c/share. My understanding is that VT said all this money will be returned to the shareholders before the privatisation exercise. So I guess some of us will receive a special dividend if we remain shareholders long enough. That's just the appetiser?

This way BJCorp will receive the bulk of what is due to company very fast and allow the valuation of BJLand to be reduced substantially by the amount of cash given out. Instead of paying for it first and then getting it back, it take it first and avoid paying for it, makes sense?

As a financial advisor to BJCorp, Penta can't be designated as a "Person Acting in Concert" before it crosses over the 10% shareholding limit. Therefore everything is legit so far.

Fi fo fi fum, I smell the genesis of a multi bagger happening in VT's stable of counters. Which one is it going to be?

Nobody knows what the opening price of AAGB will be on 12 Dec but the reference price will be the closing price of 11 Dec minus RM0.40 regardless of anything.

Looking good. Finally somebody decides it's time to get real.

Close down MAVCOM. Mot and DCA like in the good old days will be better for the industry.

An easy reference source of world jet fuel prices.

Jet Fuel Daily Price
1.78
U.S. Gulf Coast Kerosene-Type Jet Fuel Spot Price FOB, US$ per gallon
As of: Monday, November 26, 2018
Source: US Energy Information Administration

1 Barrel = 42 US Gallons


Link: https://www.indexmundi.com/commodities/?commodity=jet-fuel

Posted by supersaiyan3 > Nov 30, 2018 12:32 AM
On QR and others....
i. Dig out my draft note, correct me if i am wrong.

Cash in hand @30Sep RM4432m
AAC sale proceeds already received USD936.6m by 3Q18
AAC sale proceeds bal to be received USD248.4m in 4Q18
SDiv payment due on 28Dec RM1337m
Total loans @30Sep RM4272m
Loans transferred together with bal of AAC sale in 4Q18 RM1073m
NTA @30Sep RM8659m
NTA to be reduced by book value of bal of AAC assets transferred in 4Q18 (approx RM880m ?)

Below is the situation assuming that the 40c SD has been paid out and the AAC sale 100% completed:

Cash adjusted (m) = 4432 + 1043 - 1337 = 4138
Loans adjusted (m) = 4272 - 1073 = 3199 (Net cash position)
NTA adjusted (m) = 8659 + 1043 - 1337 + 1073 - 880 = 8558 (2.56 ps)

Net cash RM160.3 million.

The crack spread of aviation fuel a few days ago was around USD14.15.
Current Brent Crude is USD58.38, so Jet fuel price should be around USD72.53. Average fuel price in 3Q18 report is USD95.00, a difference of USD22.47 which could have been RM252m less for this quarter.

USD183 or approx 15% of AAC sale was completed at the end of June and therefore should have been taken up in the 2Q18 report already. Therefore gains in this regard for 3Q18 should be adjusted to $650m. It must be pointed out that gains from disposal of AAC assets are not necessarily uniform. So take note.

Beza, I think shareholders' approval is a must. Can some one in this line of work confirm which is correct?

Renegade Master, yeah what a fine movie!

Greed, for lack of a better word, is good. Greed is a clean drive that captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind.

Without greed, there will be no progress. Ask Gordon Gekko.

Issuing of a dividend requires shareholders' approval. Sharehders must be given a reasonable advance notice to attend an EGM to this end. There isn't much time left.

I remember TF&KM picked up the 558m private placement of new shares in late January 2017 meaning that they drew down their offshore loan of ~$1 billion just a few days earlier. If they intend or have to redeem their loan at this 2 year juncture, we shall be hearing something about the SD very soon.

One-off gains to be booked in the 3Q18 financial report; $231m for 25% Expedia and around $800m for AAC (approx 80% transaction completed).

Operational profits maybe $100 to 200m, allowing for a hostile quarter.

What is there to be apprehensive about? The future? Cleaner and rakyaat-centric PH government, lower oil prices, weaker USD due to restrained rise in US interest rates, and a likely tamed US-China Trade War due to US backing off.

Outlook for Airasia turning super bright

Naughty operator

29 Nov is the date given by both Public Bank IB and i3investor.com for AAGB's Q3 Financial Report. However the date 22 Nov was given by an AA executive 6 days ago as reported by The Star.

AAX Q3 Report release Today
AAGB Q3 Report release 29 Nov

Last night the Brent Crude touched USD62 before rebounding slightly. 2018Q2 Reported an average cost of USD89 per barrel for aviation fuel. Based on Q2 operations, every USD1 drop in aviation fuel cost will render savings of RM12 million for the quarter.

Sell in May and go away, then invest again in November.