CONCLUSION AND RECOMMENDATION Premised on the above and the evaluations as set out in Sections 5 and 6 of this IAL, Alliance Investment Bank is of the view that the Proposed SCR is NOT FAIR but REASONABLE. Accordingly, Alliance Investment Bank recommends that the Entitled Shareholders VOTE IN FAVOUR of the Special Resolution at the forthcoming EGM of the Company.
The pro forma effects of the other components of the Proposed New Scheme of Arrangement on the consolidated net asset and gearing of PCB Group based on the latest audited consolidated financial statements as at 31 December 2019 and assuming Proposed New Scheme of Arrangement had been effected as at 31 December 2019 are shown below: Audited as at 31 December 2019 After Proposed Disposal of PERKESO Properties After Proposed New Scheme of Arrangement RM’000 RM’000 RM’000 Share capital 272,770 272,770 272,770 (Accumulated losses) / Retained earnings (86,081) (40,188) 49,792 186,689 232,582 322,562 Non-controlling interest (195,777) (195,777) (195,777) Total Equity (9,088) 36,805 126,785 No. of Shares (‘000) 100,000 100,000 100,000 Net (liability) / asset per Share (RM)(3) (0.09) 0.37 1.27
The upcoming EGM in November is very critical. If the resolutions pertaining to the proposed VGO is not passed, the share price of both TA and TAGB will fall sharply as Covid 19 will continue to have a negative impact.
So minority shareholders of TA must either : 1) Attend and vote for the resolutions OR 2) Appoint a proxy to vote for the resolutions on their behalf.
Otherwise, it may be advisable to sell the shares before the EGM, just in case the resolutions are not passed.
New plant capacity will help it to work through its abnormally huge inventory of tin concentrates and intermediates thereby giving a positive boost to revenues, profits and also dramatically alter the balance sheet
Monetization of the Group’s assets which involves the equity disposal and land held for development. The Group has finalized discussions with potential investors and is currently in the midst of finalizing all the relevant documentations to conclude the deal.
Monetization of the Group’s assets which involves the equity disposal and land held for development. The Group has finalized discussions with potential investors and is currently in the midst of finalizing all the relevant documentations to conclude the deal. The Management has identified the proposed utilization of the proceeds which include among others the paring down of selected borrowings, working capital requirements particularly the on-going projects and other investment activities. The realization of this monetization exercise would facilitate the process of improving the Group’s overall gearing and financial results besides enhancing the progress of all the projects currently implemented.