Landmark CEO, Mark Wee bought into Blumont for $0.0004. Now he wants to sell Blumont shares to Landmark for $0.005 (increase of 1150%) in exchange for Landmark's assets. No wonder Landmark share price won't go up, it's being run by a very "smart" CEO.
This deal to sell land in Bintan to Blumont looks like a shady deal. Mark Wee and Fong Chee Khuen are shareholders in Blumont. One is the CEO, one is the COO of Landmarks. Which hat are they wearing? On what basis did the board members approve this?
Landmarks is not selling land to Blumont. No cash is coming in. They are exchanging land in Bintan for shares in Blumont. What is the use of having shares in Blumont? It’s being run by the same group of people. It will be the same result. The land would be sold, they pay themselves salary, no dividends is announced. What does Landmarks benefit to exchange this land for shares in Blumont? When all asset is sold and money spent, what is the 29% stake in Blumont going to be? By then, Mark Wee and his cronies should be good enough to retire.
Why is Genting turning a blind eye to what they are doing to the company all these years? Their % in the company has been diluted by the current management. Soon, they will not be the majority shareholder.
This deal must be stopped. There should be a change in BOD and management before Landmarks is stripped of everything.
Landmark CEO is slowly transferring all Landmarks assets to Blumont, a company with net assets worth $2.7m only. Who would want to buy Landmark anymore? Landmark major shareholder Genting still sleeping, maybe not aware.
From Landmark's circular part 1, page 90 (dated 24.3.2022). They already mentioned "significantly large premium". All the best to Landmark shareholders.
As for the justification to the NA per Blumont Share of SGDO.0001 as compared to the Issue Price, which is at a significantly large premium, which is not detrimental to the non-interested shareholders of Landmarks premised on the followings: (i) the Issue Price to be issued pursuant to the Proposed Disposals, represent a Significantly large premium as compared to the NTA per share attributable to the owners of Blumont based on the audited financial statements for the FYE 31 December 2020 of SGDO.0001 . However, assuming that the Proposed Disposals had been completed on 31 December 2020, being the end of the most recently completed financial year of Blumont Group, the pro forma NT A attributable to the owners of Blumont is expected to be at SGD78.72 million with the pro forma NTA per Blumont Share is expected to increase to SGDO.0018. The NTA of Blumont may improve further in the mid to long term period when the Target Companies start generating profits, of which Blumont will be able to operate the Natra Bintan Hotel within a shorter time frame.
Good luck to Landmarks on this deal if it goes through. Blumont gets the revenue generating assets like Natra along with some plots of land that they now own and can sell. In return they give shares to Landmarks. To me, it’s like exchange revenue generating business and plots of land for toilet paper.
Landmark’s NTA is most probably inflated and not updated. If you believe that their asset is worth that much, you would be in for a surprise when it’s time to sell.
Landmarks is left with only Anmon to generate cash. It will not cover the cost of KL and Singapore office. It will not even cover the cost of maintaining the operations of Bintan. I wonder how are they also going to repay their loan regularly.
may end up force to PN17 by Bursa? delisted from Bursa? or come up with a plan to revive the business? big Investor join the boat? how low can it go? market cap already below 100mil? asset worth billion? so what will happen next?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....