I read that on the NSE, the North bound traffic is actually higher than that of the South bound and the revenue from NSE contributed to 80% of Plus. I was also told by a reliable source that there are about 100k heavy vehicles or trucks on the NSE daily. Considering that WCE has a flatter terrain and is running from port to port, about 83 km built by the government is toll free, wouldn't it attract good traffic to it.

We wouldn't have more info than the 3 major shareholders who has invested heavily into the company and now are prepared to fork out hundreds of million to subscribe for their entitlements and even undertaken to subscribe for excess shares up to 80%.

I am riding with them at a much lower cost.

Quote

For the first nine months of 2016 (9M2016), the NSE registered a moderate 4.4% growth in traffic volume to 13.4 billion passenger car unit-kilometres (PCU-km)

Unquote

Jon,

MARC reported in April 2017 that traffic on the North South Expressway growth was 4.4%, contrary to what you mentioned.

https://www.marc.com.my/index.php/marc-rating-announcements/727-marc-affirms-its-aaais-rating-on-plus-rm23-35-billion-sukuk-musharakah-programme

Operators are here to set TP... lol

Please approach your remisier.

Full completion will be in 2022, upon completion of a 10+ km stretch in Tanjong Karang.

The chance is very slim. Even if it happened , I would believe that it will rebound very fast. When the rights issue is completed, it will move to its intrinsic value. This is a long term stock to hold. I believe its value will be reflected towards the completion of the highway in Aug 2021, barring unknown risks.

Yes

You can convert it to the mother share by surrending 1 rcps +4cent for 1 mother share, to the share registrar of the company at anytime during the 2 years tenure of the rcps OR 4 rcps for 3 mother shares. You can also sell it in Bursa as it is also listed and tradable.

Obviously it is to their advantage if they could get their excess shares which is priced at such low price. They would be able to increase their shareholdings at relatively lower costs.

Not forgetting that, according to my estimate, their average cost per shares ranged from 70 cents, rm1.10 and rm1. 20 respectively. They have been holding at least 5 years. IJM has the lowest cost among them but IJM first bought into the company in 2005 @28 cents and subscribed the rights issue @rm1.08, 3 for 4 in 2014. The other 2 major shareholders also subscribed for the rights in 2014.

So, this coming rights issue is absurdly cheap.

The 3 major shareholders combined currently holds 61+%. They have collectively undertaken to subscribe up to 80% of the rights issue, splitting among themselves proportionately according to the percentage of their shareholdings. Effectively, each of them will be subscbring in excess of about 30% of their entitlements.

Die die also must subscribe. It's too cheap.

Sheep, thanks..

Sheep,
If you don't mind to show your calculations, thanks.

Unless the mother share drop to 16 cents and below, then rcps holders may use their 4 rcps to convert 4 rcps for 3 mother share under option 2. Otherwise, likely use option 1 for the conversion.

Issue price is fixed to such low price, as well as the warrant conversion price. The 3 major shareholders undertaken to subscribe 80 % of the total rights issue. It is to their advantage if minority shareholders do not subscribe. However, full subscription will raise the required fund.

And there is a free warrant, 1 for 4 rcps subscribed

Someone can help Darren?
PA usually has a discount.

Apart from holding 80% stake in West Coast Expressway, the company is holding 40% in Rimbayu, a 1879 acres property development in Kuala Langat, which is about 10km away from Kota Kemuning. The development is handled by IJM Land which holds the other 60%. More than 1000 acres of the land has not yet developed. The GDV over the next 10 years in the region of RM10B. The company's holding cost of the land is only rm5+ per sq ft against a market price of more than rm30 per sq ft. Transactions done in the neighbourhood in the past few years was rm33 per sq ft.

Already in the posts above

Wow, Darren Soo has just One and Only One post so far

Top 400 shareholders holding 100K shares and above, 92.24%.

The above 3 major shareholders hold a combined 61.37 %. A fund Credit Suisse hold about 6%. Top 30 shareholders holds 78.87 % as of 29 June 2019..

Considering the estimated average cost of the major shareholders, not including interests, holding period of min 5 years and above

MWE : 1.20
UFH : 1.10
IJM : 0.70

Jon, what would be the price or compensation you think the govt is going to pay?

Toll collection at section 8, 9, 10, 4 and 5 could commence soon. The company is hiring :

PENYELIA TOL - (7 positions, based in Shah Alam / Klang)
Warganegara Malaysia;
Berkelayakan SPM atau Diploma;
Mempunyai pengalaman bekerja dalam bidang perkeranian/pentadbiran;
Berkemahiran dalam Microsoft Words & Excel;
Bersedia untuk kerja syif (06:00, 14:00, 22:00);
Memantau dan mengawasi aktiviti kutipan tol;
Memastikan CSA mematuhi kesemua polisi dan prosedur pada setiap masa ketika bertugas di lorong; dan
Mempunyai etika kerja yang baik, bertanggungjawab, berdedikasi, jujur & amanah dalam menjalankan tugas.
Apply now or Email to: hr@wce.com.my

Anyone? lol

The net equity injected by WCEHB as todate, less the rm150m term loan, is RM523. 73million
The market Cap now is only RM476 million @47.5 cent, haha

Lelong Lelong

No more rights lah..

Actually the company only needs to fork out 20% equity for their portion. The total project cost is rm6.69 Billion, 20% equity is rm1. 338B.
WCEHB's 80% portion would be rm1. 07B

So far WCEHB had already injected
rm673. 73 millions (out of which is a rm150m term loan which would be repaid after the current rights issue). RM320 millions from this rights issue (after repayment of the rm150m term loan with rm4 million interest) will be injected as equity. The proceeds from the conversion of the 2 billion rcps in 2 years would bring in another rm80 million.

So, the total equity injected would have been RM1. 073 billion then.

The company, wcesb, could raise some rm500m-rm600m to fill up the debt portion to 80% which would be RM5. 35B. The current total financing obtained is RM4. 74B. There would be some savings from the land acquisition payments for cases now in the court.

So, no more requirement to raise fund after this RI. This was brought out in the recent AGM and the CFO did say so.

https://youtu.be/fB1ltq84azg

Khazanah : PLUS is not for sale. The offers are too low.

Cannot buy Plus..

Buy wce lah, though can't get controlling stake.. lol

Meant if you had stopped at the 2.46B PV b4 the rights issue, the number of shares now is 1.002B, the PV is well exceed rm2. Correct?

But this rights issue was first mooted in March 2018. It was already more than 18 months. It is too bad if the shareholders aren't prepared to raise the money to subscribe for the rights..

The share price likewise had been going down for 18 months since the rights issue was proposed then

Just pity those who need to sell some to subscribe for their rights...

The 10% placement was raised prior to the rights issue in 2014

Prior to the rights issue, there was A 10% private PLACEMENT of 52 million share @RM1.11, raised RM57.2 million

All these proceeds, RM464 million +rm52. 7 million, were paid to and received by the company. The money had been pumped in as equity to the WCE Expressway project..

Just these CASH is more than the current market value.

Total outlay is rm2400 and you do not need to convert the rcps to mother share as yet

You are entitled to subscribe for 10,000 rcps @0.24, and you will receive 2,500 warrants for free.

Wait for announcement... Should be soon

In Aug 2014, before the wce expressway project kicked off, there was a rights issue of 3 for 4 @RM1.08, raised RM464 MILLIONS, issued 429,743,826 shares

All the present 3 major shareholders subscribed for their entitlement.

At the current market price of 47.5 cents, the market cap is only RM476 millions.

From the period of 2014 to 2019, the associate company Rhimbayu contributed a total of RM170 millions profit.. and the company did not lose money but was profitable..

Now the expressway is more than 60 % completed and 64 km stretch was open to traffic... Another 14 km stretch near Klang will be open to traffic in the next quarter if not earlier..

Furthermore there is still more than 1000 acres of prime development property landbank in Rhimbayu, which is a 40% associate of the company, not yet developed; the company's holding cost of the land is only rm5+ per sq ft against a market price of more than rm30 per sq ft.

How could the sellers do not see the values that they are throwing away...

Sure... 50 cents is cheap or expensive? Lol

50+24+24=98
98÷3 =32.7, assume warrant is zero value... lol

Huat!
Huat!
Huat!

Better don't buy, lol

Don't do charity by providing free toll as a shareholder... Lol

Toll free now on wce expressway..

Bukit Melintang to Teluk Intan, toll free since 1st June

Kampong Lekir to Bruas since 23rd Sept..

Thank you to all the wce expressway sdn bhd shareholders.... Haha haha... They are now forking out more money to finance the project... Lol

Please fix the rights issue price.

Very easy actually... Make it cheap cheap.. Cheaper and cheaper..

Just fix entitlement as 2 rps for 1 and 1 warrant for 4 rps subscribed...

Lol

Abolishing Toll is like talking nonsense

Duke 3, 29.8km total length, rm 3.738 billions

Next quarter will announce Dividend, most probably, like last year and payment by the end of the year..

Good results, reversed the consecutive 8 quarters Y-o-Y decline handsomely. This quarter Y-o-Y increased by 50%!

Corporate Governance

Aiyah! Market has spoken today and what it had whispered? I couldn't hear it clearly as there were too much noises distorting the whispers.. Haiz..

Anyone keyed in to sell @1.08...? or bought a bundle @90?

It's a probability! LOL!