CIMB has raised target price for Puncak to 3.40...

wiwangwang, thanks, hope good news come this week...

mywb, actually, not much faith. but no harm, having some joy first...

http://news.sinchew.com.my/node/446288?tid=1

（雪蘭莪‧巴生3日訊）雪州州務大臣阿茲敏表示，雪州政府有信心如期接管雪州水供公司（Syabas）和商業高峰（Puncak Niaga）的營運。 他今日出席BaiduriDimensi私人有限公司新貨倉開幕儀式後，在媒體詢問下表示，隨著本月14日的期限已到，雪州水供管理有限公司（Pengurusan AirSelangor）將在本月15日正式接管，相信屆時能緩和巴生河流域的水供問題。 他表示，早前他與投資商會面，尤其是有意在雪州進行投資項目的投資商，他們非常關切水供問題，惟他已向有關投資商保證，將提供充足的水源。 “州政府將確保工業區獲得充足的水供，這也是在接管水供公司後，州政府所看重的一部份。” 續監督冷岳2濾水站工程 另外，他表示，儘管冷岳2濾水站計劃工程稍有拖延，但州政府仍會繼續監督中央政府，以確保此項計劃能如期完成。 他說，州政府將在來臨的2016年財政預算案宣佈新措施，以尋求替代方案來解決州內水供問題。 歡迎有意改革國家政黨 另一方面，詢及有關伊斯蘭黨須辭退有關州職或行政一事，也是公正黨署理主席的阿茲敏表示，公正黨向來持包容性態度，來接受各黨的意見，且任何有意一同參與推動國家改革的政黨，他們都無任歡迎。 “他們有權利商討有關事宜，這是該黨的權利。” 他說，當中的分歧無法在一兩天內就獲得解決，這必須在各黨商討後，才能有個決定。

thought I have posted a new news, guess its been found much earlier than I do. Luckily I am not in the news reporting business, sigh!

ks55, my reasoning goes like this. Puncak has a net cash of over 3.60 plus net non-cash asset of 1.00 after Selangor water asset disposal. If below 3, that would be a heavy discount to its cash position and not worth selling. At above 3.80, the cash discount is no longer there, meaning Puncak new business plan has convinced investors some what (unless its traded above 4.60), so its ok to sell if don't like the new business plan. between 3.30 and 3.80, the discount isn't much, so if there is a heavy discount for other shares in the market, switching is alright. between 3.00 and 3.30 though, the discount is still relatively large but not large enough, much like 鸡肋, thus making it a tough call if to exchange or not.

with regards to your Maybank at 5.00, I would assume investors had sensed future loan portfolio to suffer high default to result in heavy selling. At that point, I sure would rather hold puncak.

Puncak, to me, has 2 risks. One is if the deal CAN be completed in time, i.e., within the next 15 days. While current development seems to point towards completion, it has yet to be proved, particularly after past incidents that show politicians are not doing what they are saying, PR and BN alike. If this deal is completed within timeframe, I suppose there will be a surge in share price to reflect its cash position. Another side problem of share price reflecting cash position is anal-ysts reports all suggesting or making an impression a net cash of around 1 billion after special dividend, which is inaccurate. An analysis on its balance sheet will show that net cash after special dividend will be at least back to 1.5 billion, mainly due to its current cash position, reduced debt from sukuk conversion, and warrant conversion. There may be less sukuk conversion/warrant conversion, but the result, while result in net cash to below 1.5 billion, net cash per share will rise above 3.60.

Second is if Rozali will handle cash over 1.5 billion after special dividend with care until a 'really' suitable investment plan is adopted. I believe if share price is traded between 3.30-3.80, it is to reflect both trust level on Rozali with higher price suggesting better confidence (a major factor) and market sentiment (a less important factor given Puncak will become a cash company already).

hng33, sep 15 was 18 days ago, are you suggesting oct 15?

To me, if Puncak were to trade between 3.00 and 3.30, I would be facing the dilemma if to sell or hold. Below 3 is a sure hold, above 3.80 is a good sale while 3.30-3.80 is good if some alternatives could be found.

0-14 days to go...

Guess deal is to be completed soon, Langat 2 is back!

http://www.theedgemarkets.com/my/article/lgb-taliworks-consortium-bags-rm7587m-langat-2-reservoir-job?type=Corporate

LGB Taliworks Consortium bags RM75.87m Langat 2 reservoir job

KUALA LUMPUR: LGB Taliworks Consortium Sdn Bhd (LGBTC), the joint venture company of Taliworks Corp Bhd and LGB Engineering Sdn Bhd (LGBE), has been awarded a RM75.87 million contract to construct and complete a 92 million litre balancing reservoir for the proposed Langat 2 Water Treatment Plant and Water Reticulation System in Selangor.

In Taliworks filing to Bursa Malaysia today, Taliworks said the contract was awarded by the federal government’s Pengurusan Aset Air Bhd (PAAB) to LGBTC, in which it owns a 20% stake, via a letter of acceptance dated Sept 28, received today.

The estimated time frame for the contract is 27 months. LGBE and Taliworks entered into a joint venture agreement today expressly to undertake and complete the works in relation to the Langat 2 project.

LGBTC, in which LGBE holds the remainder 80% equity, was incorporated on Sept 23.
LGBTC has an authorised share capital of RM1 million, comprising 1 million shares of RM1 each, and an issued and paid-up share capital of the same.

Taliworks has injected RM800,000 for its stake in the company via internally-generated funds, its filing showed. The shareholders of LGBTC (Taliworks and LGBE) have undertaken to increase the eventual issued and paid-up share capital of LGBTC up to RM4 million, it said.

Subject to the approval of PAAB, LGBTC shall sub-contract 70% of the works to Taliworks’ unit, Taliworks Construction Sdn Bhd. The shareholders’ mandate related to the sub-contract works had been obtained at a recent annual general meeting of Taliworks.

“The JVA will encourage Taliworks’ participation with LGBE, in respect of future opportunities in the construction of civil engineering works in water supply projects.

The project is not expected to contribute materially to the earnings of the group for the financial year ending Dec 31, 2015, as it is still in the early stages of mobilisation and planning. However, it is expected to contribute positively to the future earnings of the group.

“The directors of Taliworks (save and except for interested directors) are of the opinion that the terms of the JVA are fair and reasonable, and are in the best interest of the Company,” it said.

Taliworks (fundamental: 2.4; valuation: 1.5) said that its director Lim Chin Sean and Datuk Lim Chee Meng who are substantial shareholders of the company, are deemed to be interested by virtue of their directorship and direct shareholdings in LGBE.

Taliworks, which is also in the midst of talks with Silk Holdings Bhd ( Valuation: 0.30, Fundamental: 0.20) to buy the latter's 33-year concession of the Kajang Silk Highway that is ending in 2037, closed unchanged at RM3.48 today, for a market capitalisation of RM1.53 billion. Year-to-date, the stock has gained about 78.5%, from RM1.95.

Has Rozali got mad with delay and showed his card? Or, just a coincidence?

http://www.theedgemarkets.com/my/article/180000-households-still-without-water-syabas-misses-upgrade-deadline?type=Corporate

180,000 households still without water as Syabas misses upgrade deadline

(Sept 30): Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) has announced a delay in the upgrades to water supply machinery due to be completed this afternoon, meaning more than 180,000 households in Petaling and Kuala Lumpur will still be without water until the work is finished.

“The inlet valve replacement work on the Bukit Gasing Suction Tank and work on the bypass valve to the Bukit Gasing Pump House in Petaling Jaya, under the Mitigation Project 2, are facing delays due to some unexpected technical issues on site,” said Corporate Affairs Division executive director Priscilla Alfred in a statement released today.

The work has affected 103 areas in Petaling District (176,831 accounts) and in Kuala Lumpur District (7,000 accounts) since yesterday.

“Due to the delay in the upgrades, the resumption of water supply in the affected areas, will be delayed and take a longer time than the scheduled recovery period,” she said but did not give a new date when water supplies would resume.

“Syabas will continue to provide emergency water supply through tankers to affected consumers,” she said but added that people should use water sparingly because of the large area involved and priority being given for emergency use, and supply to hospitals, dialysis centres and charity homes.

Consumers can access details and the status of water supply in their respective areas by downloading the mySyabas app for free on any smartphone. – The Malaysian Insider

alas, forgot to add, 0 - 15 days to go...

hng33, yes, read more company announcements and reports before making decision.

speakup, it would seems to me there are two issues surrounding Puncak that needs to be addressed before investment from investors:

(1) Despite what was said, there is still no certainty that the deal will be completed according to schedule, especially after so many delays and blame game between state and federal

(2) negative anal-yst reports emphasizing only 2.90 per share from water asset disposal (omitting the fact that Puncak will have at least 3.60 cash per share upon disposal and full conversion of sukuk/warrants, will be much higher if no full conversion) and its losing money O&G business in the wrong sector (despite the fact that its rather small relative to its balance sheet and it still has over 500 million of asset, of which its landbank in Kuala Selangor is worth more than 180 million already based on recent ECO-World purchase)

Once at least of the above issue is addressed, we should see a spike as suggested by hng33, though its hard to say by how much, given so many negative anal-yst reports

hng33, I think CIMB's risk is not so much on the political side, but its foreign shareholders are among the highest (leads to more volatility and downward pressure on share price) and its business exposure in Indonesia, Thailand, and China could drag down its performance. In the past few quarters, dismal performances in Indonesia and Thailand are the major reason CIMB's results are disappointing. I personally like CIMB too given its regional exposure and had fallen from its 3 years peak of RM 9. But guess I will wait till December to decide. Plus, no much money left to invest anyway...

0 - 16 days to go...

Azmin is a big joke trying to delay the restructuring arguing about the ownership of land, and now it backfires... My curiosity, are recent disruptions really due to overdue maintenance/replacement? Or, is it Rozali's angry hand?

0 - 16 days to go...

money888 calendar day with the last day assumed to be Oct 14, the date another extension request is needed.

posby, have faith is one thing, stress is another, plus, posting the water disruption news has nothing to do with stress too. If you have noticed, since rozali becoming the ceo (or is it chairman) of Sybas recently, water disruption frequency has increased. Rather than saying that I am stress right now, you might as well said that I am mocking politicians, or our society, since we are the one voting for these politicians.

arr... forget to add, 0 - 17 days to go

More disruptions to come if deal not completed soon?!?

http://www.themalaysianinsider.com/citynews/greater-kl/article/3-day-water-supply-disruption-in-petaling-kl

3-day water supply disruption in Petaling, KL

Published: 26 September 2015 10:38 AM There will be a scheduled water disruption in Petaling District and parts of Kuala Lumpur from 8am on September 29 to 8am on October 1.

This is to enable upgrading and maintenance work by Syarikat Bekalan Air Selangor Sdn Bhd (Syabas).

Syabas said in a statement that the inlet valve at the Bukit Gasing suction tank and the by-pass valve at Bukit Gasing pump house would be replaced.

It said the work is expected to take 12 hours on September 29 but it will take another 36 hours for water supply to resume to normal.

0-19 day to go...

0-20 days to go...

mywb, you are posting a news related to water rationing to suggest restructuring is not even started yet?!?

Cheoky, you have a point...off to bookstore for reading

from CIMB

Eco World Development Group Bhd - Surprise analyst briefing
Eco World held an analyst briefing today to announce acquisition of a large tract
of land and to explain its new asset-light JV partnership strategy. Acquisition of
2,198 acres of land in Klang Valley for RM1.18bn or RM12.34 psf is positive, as
market price of land in the area is easily RM20-25 psf. RM3bn sales target for
FY15 is intact and new landbank to boost GDV to RM75bn.

Very geng, market price of land in Kuala Selangor is easily RM 20-25 psf. Err... when evaluating Puncak, with its around 280 acres land there, shouldn't that easily worth RM 240 - 300 millions then? Wonder if this is bias or ignorance?!?

sudahkena, same feeling here, so near yet so far... another 0 - 22 days to wait!

hng33, my mistake, its actually 280 acres in Kuala Selangor. I had earlier wondered if there's any value left in Puncak asset and put a lower value given its distance from KL. With this news, I suppose Kuala Selangor is not far by Selangor standard.

The land is not cheap in Puncak annual report either, around 500+k as well. Its value is not much if it can be developed into property. With Eco World's involvement, guess Puncak can gradually develop its 280 acres and turn them into cash.

Its definitely better than the 0 value based on so many banks' anal-ysts!

Will Puncak benefit from it? If I were not wrong, Puncak has 250 acres of land there too, that's RM 125 million worth of land.

http://www.theedgemarkets.com/my/article/eco-world-buys-26-parcels-land-rm15b-township-kuala-selangor?type=Corporate

KUALA LUMPUR (Sept 22): Eco World Development Group Bhd ( Valuation: 0.90, Fundamental: 0.85) is acquiring 26 pieces of leasehold land in Kuala Selangor, with a collective land size of 2,198.40 acres (0.81ha) for RM1.181 billion, cash.

In a filing with Bursa Malaysia today, Eco World said its wholly-owned subsidiary Paragon Pinnacle Sdn Bhd has signed five separate conditional sale and purchase agreements (SPAs) with four vendors for the proposed acquisition.

It expects the proposed acquisitions to be completed by the second quarter of 2016.

The indicative market value of the lands, as appraised by Henry Butcher Malaysia Sdn Bhd via its valuation letter on Sept 21, was RM1.1896 billion, hence the purchase price represents a discount of approximately 0.7% of the market value of the lands, said Eco World.

Eco World said it intends to develop the lands into a self-contained township with a potential gross development value of approximately RM15 billion, based on preliminary management estimates.

According to the property developer, the proposed development is expected to be developed over a 15-year period.

“Paragon Pinnacle is currently in the initial stages of development planning and as such, is unable to ascertain the expected costs required for the development to be undertaken on the lands,” it added.

According to Eco World, the developments planned on the land comprise a mixed eco-township named ‘Eco Gardens’ (1,400 acres), an integrated and gated industrial hub ‘Eco Business Park V’ (518 acres), and an affordable homes’ portion to be known as ‘Laman Indah’, which will be built on the remaining 280 acres.

The filing stated the lands are located in the north west of Klang Valley and are approximately 45km from the Kuala Lumpur city centre and 40km from the Petaling Jaya city centre.

The lands are well connected to established suburban centres such as Kota Damansara, Shah Alam and Sungai Buloh via major roads — Jalan Batu Arang, Persiaran Mokhtar Dahari, Jalan Meru Tambahan and Jalan Kuala Selangor, as well as existing highways such as the LATAR Expressway, North-South Expressway and Guthrie Expressway.

“The accessibility to the lands is expected to be enhanced with new proposed expressways including the West Coast Expressway,” the filing added.

Eco World said the proposed acquisitions will provide the group with sizeable tracts of lands in the North-Western growth corridor of the Klang Valley, enabling it to establish a dominant presence in this area with access to a new market catchment to complement its strong township positioning in the South-Western and South-Eastern corridors.

“The lands’ location in an emerging growth corridor with access to the ports and major suburban centres is ideal for the group to replicate the success it has achieved in Iskandar Malaysia,” it added.

On funding, Eco World said the earnest deposit was funded via internal funds whilst the balance is expected to be funded through a combination of internal funds, bank borrowings and/or equity funding.

“Nonetheless, the actual amount required by Eco World to fund the proposed acquisitions can only be determined at a later stage and the source of such funding will be decided after taking into consideration the gearing level of the group,” it added.

In this regard, Eco World also said it is looking at a partnership for growth business model, whereby it will invite like-minded institutional, private equity and/or corporate partners to co-invest and fund Paragon Pinnacle, which will result in a potential reduction of Eco World’s stake in Paragon Pinnacle.

This, in turn, will bring a corresponding reduction in its obligations to fund the proposed acquisitions.

“Under the business model, we intend to retain a minimum of 30% equity stake in Paragon Pinnacle to ensure that the group will continue to enjoy a meaningful share of the development profits,” it added.

guess until 1.5553 bil is announced transferred to complete the deal will we see higher valuation, that would be another 0 - 23 days. Sigh!

hng33, I have an average cost of around 2.90 from 3.00 after recent purchases. Frankly, you are brave to cut loss at this moment, while I can only hope for a rally soon if a deal to be completed within 3 weeks time, best if within the next 10 days.

Big sharks hard to challenge? I will keep on holding ...

roger, I posted the news assuming that not many subscribe to Edge Daily (actually its free, just sign up on Edge website.) And its a piece of information every concerned Puncak shareholders may want to know given US market selldown Friday.

From Edge Daily

http://ded.theedgemarkets.com/Daily/2015/DEDsetia/DEDsetia_20150921a3xpjh.pdf page 6

All parties working hard to meet October deadline

To complete acquisition of Puncak Niaga's water assets, says Air Selangor

wonder if there's any chance news about Selangor handing over 2 billion asset for collateral be out after closing today? Otherwise, how would Selangor state be able to take over Syabas and Puncak beginning Oct 1?!?

ec1705, may I know had I posted something that's inaccurate or my comment on Azmin inappropriate? If yes, kindly indicate which part that's inappropriate and I would appreciate it. And, please, I never expect Azmin to help me making money. I just hope that he is not making FALSE statement in public that's misleading!

cheoky, thanks. Azmin, stop politics, just announce the payment and takeover lah, 我颈项都长了！

When puncak at 2.51? Think Roger is planning to buy at this price

Damned Azmin, I lost so many investment opportunities all thanks to him...

hng33, I have invested based on the news that I can gather and quarter reports as well as bursa announcements that I can read. While I have increased my position in Puncak over the past week, can't help but still have concern over its timely completion due to:

1) Azmin's trust-worthiness is rather low on water restructuring (not sure about others, though never likes his 藕连丝断 with PAS).

2) While the Puncak share price has barely moved by the gradual progress in restructuring, can't help but notice that the gap between Puncak and warrants are shrinking. To me, mother gaps higher than warrant means restrucutring is perceived completed while a warrant gaps higher than mother means more time is needed to complete the deal. Right now, it is as if current price is rather close to the Puncak's fair market price, probably just fall short of 20-50 cents. Its odd to me, especially when the most recent quarter report suggested a minimum of 3.56 cash per share post water deal even when its other assets are ignored, suggesting a minimum of another RM 1 upside potential.

3) Unfriendly anal-ysts reports that are rather consistent from MIDF, CIMB, Affin-Hwang, and AM. Guess only Kenanga has a higher valuation on Puncak right now. It's a bit weird. Unfortunately, I didn't have sufficient knowledge about how the financial analysts industry work, I can barely deduce any useful information out of it.

If Azmin's word has any credibility, water deal with Puncak shall complete at the end of this month or early next month. February statement by energy ministry's LOO is most like in conjunction to licenses taking effect only beginning Feb 22, 2016.


http://en.selangorku.com/25155/cm-acquire-syabas-puncak-niaga-effective-october/

CM: Acquire Syabas, Puncak Niaga effective October


SHAH ALAM, 8 Sept: Pengurusan Air Selangor Sdn Bhd (Air Selangor) will emerge as a new company that provides water services to Selangor, Kuala Lumpur and Putrajaya starting March 2016.

This was announced by the Chief Minister, Mohamed Azmin Ali, after Air Selangor managed to successfully acquire Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) and Puncak Niaga Sdn Bhd (PNSB).

*****
“Starting October 1st, Air Selangor is expected to acquire Syabas and PNSB, however they will both continue to provide water services to consumers.
*****

“All efforts will be focused on improving water treatment services, distribution system, reduction of non-revenue water (NRW) and continuous and adequate water supply to consumers,” he said.

He said this during a press conference after the Air Selangor Services Industry Structuring Signing Ceremony between Aset Air Berhad (PAAB) and Air Selangor at the Shah Alam Convention Centre (SACC).

The state and federal government managed to finalise four agreements involving Facility Agreement, Lease, Solutions and Rights between PAAB and Air Selangor for 45 years under the Leases and Rights of Use Agreement, thereby meeting the 60-day deadline from the signing date of the supplementary agreement on July 10.

Also present was the Minister of Energy, Green Technology and Water (KeTTHA), Datuk Seri Dr Maxiums Ongkili and the Chairman of PAAB, Datuk Seri Tajol Rosli Ghazali.

Maxiums said that Air Selangor has been awarded the Individual License (Facility) and Individual Licence (Service) under the Water Services Industry Act 2006 (WSIA) which allows the entity to own water assets in addition to controlling services in Selangor, Kuala Lumpur and Putrajaya.

*****
“However, the license shall come into effect on February 22, 2016, to enable all agreement features to be carried out.
*****

“Air Selangor and PAAB are given five months to perfect all agreements, including amending the Syabas Concession Agreement and terminating the concession agreement accosiated with PNSB and Abass,” he said.

hng33, I have doing that myself too, in hope this time the deal is real. Meanwhile, edgy while doing it, sigh!

hng33, I still have little faith in Azmin despite the signing, sigh! 一朝被蛇咬，三年怕井绳啊

if I were not wrong, the steps are as follow:

1. state handing over 2 billion asset as collateral to federal for 2 b fund
2. paying puncak for sybas and puncak sdn bhd
3. KPS seeking shareholder approvals to sell asset before getting paid
4. further negotiation between splash and state on selling price before sealing a deal
5. state seeking for fund should splash price is higher than earlier allocation

the biggest uncertainty, to me, is on (1) will azmin hand over 2 b asset for fund, which is why I have been edgy for a while

roger, did I offend you in any way, you sound sarcastic? Or, is anything wrong with my valuation on Puncak that has cost you dearly?

Am I down? Yes. Am I panic? Hope not, I have actually increased my position in Puncak through warrants for the past week. Feeling bad though, cause I have introduced this share to some friends, and actually has a few buying with 2 still holding. Probably that's why I have been feeling bad and down.

hng33, I have been holding Puncak believing that water restructuring is unavoidable and Puncak is deem to benefit from it, have it sold or have a rate increase while keeping the business. Though, the price differential between Puncak and its warrant had me concerned.

given today's sell down, are we going to see 2.48 again?!?

roger, what non sense that I do will cause me to earn nothing from Puncak? are you suggesting Puncak will have more to drop?

Hng33, so bullish this time?

I just sold Puncak at 2.61 to buy warrant at 1.62, adding exposure at the same time.

what a great analysis from an 'anal-yst', since its other businesses don't look good, lets assume everything to have 0 value and give an additional 10% discount to the proceed from its to be sold asset. Had that 'anal-yst' cites uncertainty in completing the restructuring, I would have more faith in his/her comments.

Also, wonder if that 'anal-yst' realize that the 2.90 proceed from water asset is incorrect?!? Its derived from dividing 1555.3 million with the enlarged share cap without adding the 180 millions from relieved debt and proceed from warrant conversion?!?

拉锯战？

cheoky, rozali is definitely no with us, with or without deals, he gets paid monthly to the tune of millions. Even with the deal, rozali is keeping 1.3 over billion and handing out only 500 over millions to us. So, we felt like communist, but definitely not living like communists. Oops, probably you are right, cause this is exactly what's happening in communist countries now...

guess market has no confidence or reservation on the completion of water restructuring. probably that's why the price is so low currently. if so, once a deal is confirmed, price is going to shoot. Question is, who holds the answer or really know the progress except Azmin and Ongkili, probably should add Najib too?