Guys any idea why sunway got so much debt, what is it really investing in ah? The previous sales, got cash paid some debt but remaining was for building more hospitals right? What about the other cash? Guess EPF feels a little unsecure thats why sell abit gua, but seriously though thats a lot of debt.
I have doubts where the issuance of this pa is based on the 1 out of 5 mother shares, where if at the end of year 5 all pa are converted to mother share, the market price of the mother share ought to drop because of dilution, price now is 1.71*5/6= only 1.415, which means it might not be so lucrative as scenario one, the issuance of dividend is also subject to profit, and discretion of the directors. 2nd worst scenario compared to scenario 2(assumption is no price drop) is now at 1.22 buy 1000, at year 5 dispose 1,415 sell 1000, gain (1.415-1.22=0,195)/1.415=13.7%. oops still looks lucrative. but we should discount the return rate over 5 years. 5 power root of 1.137=2.601% annual compounding interest. seriously this isnt much if you can manage your portfolio for more than 2.601% returns every year.