Should buy more when the price slump. The NTA per share is RM2.06. It is expected to grow higher and higher if the company continue to generate profitability.
the message from the minority shareholders was clear from the previous attempt in takeover. don't waste time and money if the offer is too low. The minorities will reject by headcounts and by shares value again if the offerer uses the SCR takeover instead of general offer. You can try your luck again.
I am totally new to this counter and have yet to own any share . Can anyone share what was the privatisation price the unhappy minority shareholders were expecting to receive then ? Did the price reached the offeror well before EGM for his consideration ?
A SCR was proposed at RM1.10 when MAA was trading at around 60 sen. After announcement the following day it went limit up to 90 sen and the days after went further up to around RM1.05. However the SCR failed at the EGM when more than 10% of the minority shareholders voted NO to the offer price of RM1.10 hoping that the offerors might revise the offer upwards. The offerors reacted angrily to the failed SCR attempt. My average cost of MAA was 60 sen and I sold the off all before the EGM at RM1.04 and haven't bought back.
@TheContrarian, you are brilliant! Did the unhappy minorities indicated what price they wanted ? Do you think another SRC attempt will made within say 1-3 years?
I am just trying to gauge whether the gap between what minorities want and what the offeror willing to give remain too big for another SRC to happen. Without SRC opportunity, this stock can be quite full for a long period.
The NTA was around RM2, I think a group of minorities comprising individuals was holding out for at least RM1.50 The offerors reacted angrily after the EGM in an outburst interview with reporters and said something like there will not be another offer ever again.
@Johnzhang, sometimes we get lucky with our stock picks. I held MAA for over a year, received dividends thrice (dividends were great then at 3% to 6% half yearly). Weeks before the proposed SCR, MAA shares went on a downtrend dipping to around 50 sen and I added on to lower my average cost to 60 sen. Suddenly price suddenly start to creep up but no one anticipated a takeover attempt, most of us were just accumulating for the good dividend yield and expecting bumper dividend from the balance of the sale proceeds from the disposal of the domestic insurance business to Zurich.
@TheContrarian, thanks for the information. Based on what you said, the next SCR may take years until the bitter feeling of the acquirer fade away and until the minorities patience’s wear off. It’s like a tug-of-war.
@TheContrarian,do u really think they will never offer another SCR?As the latest annual report TY still holding,40% or 105mil shares.Since MAA is not declaring any dividend since 2019,why TY still wasting time holding tight and not selling single share?He might make another offer or waiting for someone to offer his big block at good price, anyway nobody knows when.Im still holding some at average 0.88,wait for another offer,better than put in FD.Not a buy call,just my thought
Additionally, TY’s stake remain 105,777,084 unit since 2019 despite there were plenty of opportunities to soak up at much below takeover offer price of $1.10. However, there were sharebuyback (SBB) after the failed takeover until mid Aug 20. A total 9.5 mil treasury share from SBB were cancelled in Dec 20. The last SBB was in Aug 20. Why SBB stop despite its share price from mid Aug 20 to end Feb 21 ( 6 months period) was trading between 58 to 75 sen only ? Logically if TY soaks up more cheap share from open market, he can afford to eventually offer higher price for the remaining Minorities to ensure success. All these seem to point to TY’s lack of interest to undertake another SCR soon .. Just my view for sharing. Glad to hear yours too.
MGO creeping rules not allowing controlling shareholders to increase their shareholdings by more than 2% within 6 months period restrict the share buybacks. A breach of this 2% rule would trigger a MGO which the controlling shareholders do not want.
@investorbat, instead of another SCR, the controlling shareholders might attempt a MGO instead like what Tony Tiah did at TA Enterprise. But they are in no hurry. SCR is difficult to succeed because of strong opposition from the minorities (30% voted NO in the last SCR).
I think at the AGM/EGM in June 2020 (I am no longer shareholder by then) a 6% dividend was approved by the shareholders, to be paid within 24 months. Already 12 months have lapsed. MAA has more than enough excess cash to pay out the 6% dividend but the BOD are deliberately delaying it.
I think BOD/TY has no reason to delay it because 6% dividend for 105mil shares could give him few mil $ for his indirect controlling stake in Melewar.Im still try to figure out his next move
For SCR, the offeror is making use of the company's internal resources to fund it. For MGO or GO, the offeror must have his personal or third party resources to fund it. He need about $220 mil to fund the GO if at $1.50. I think SRC is more likely and he is in no hurry to do it . He will only do it when the company retains higher profit to cover the higher price minorities demanded , provided minorities don't shift the goalpost . Dividend for next few years may be in jeopardy,. Just another possibility for investors to think about too.
the main reason TY given during the last SCR was hardly to meet Bursa unreasonale requirements to out of PN17, therefore better to privatized it instead of delisted and thus give a way out for shareholders. I think TY is a creative perosn. IF YOU CANT BEAT THEM, JOIN THEM. Is his motto perhaps. Although he fail the SCR, he successfully sent MAA COE to be BURSA CEO *jokinglah* ..Anyhow..At the end, MAA is out of PN17 too . If he cant beat the minority, hope he can join minorities too to build a bigger company from there. :)
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Cipta
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Posted by Cipta > 2021-06-04 11:33 | Report Abuse
Is MAA venture into glove industry too?