Any of you go for EGM ? Can anybody explain why the company want to raise cash from rights issue to finance property acquisition while they have sufficient cash to do so ? Total land purchase goes to RM314m. Its cash stands at RM471m. Why raise fund with rights issue for RM170m ? And it is a related party transaction. Can't we feel suspicious on this ? The company cash per share stands at 35 sent but the current share price only 31.5 sent. The main reason is the rights issue. Alternatively, they should adjust the ratio to 1 for 2 which may not so damaging. We should vote against the rights issue in the EGM.
how much power does the minority shareholder have? unlikely to swing any votes, we have to suffer paying more cash upfront and take the brunt of this risk.
We should call or promote all minority shareholders to come for the EGM. At least, give your proxy to those who want to come to defend minority interestes
The art of business , vote even putting enthusiasm attitude on it , show correct attitude on managerial hard work on the proposal , let the firecracker burn even great , achieve the big objective touch the ultimate level , sound even garmateh .
It is a related party transaction deal ,another word, got motive behind. If the deal got through , then the L&G will be like an Elephant share. So huge shares how to move ?
boycott it , remain usual , all the things is ball hit ball method , not serve the purpose , i see the wrong pattern right only , is unusual trade insider , reject consist reject , protocol remain protocol , collapse the issue , objection on it .
all minority shareholders must stand united and be present at the egm to vote against the resolutions. we have to fight for our rights and don't allow the major shareholders Mayland to take advantage
let me analyse for all the shareholders of the company. Mayland will receive rm330m cash from the sale of the 5 companies. they only need to pay 130m for the rights subscription, they still keep rm200m cash in their pockets. From the rights issue, l&g receives rm400m, together with the current cash position, total 900m. After paying cash for the acquisition of the 5 companies, still left with rm600m cash, ie 100m more than pre-rights issue. If shareholders don't pick up, Mayland will subscribe the excess, thereby increase their control of 30% to perhaps 50%. That's why they want an exemption from MGO.
They get to control the company with a higher stake at a dirt cheap price, pocket a huge stash of cash from the sale of the 5 companies, and with RM600m at their disposal!!!! we have seen several cash rich companies end up with their cash disappearing and the companies in deep shit!!!! remember xingquan, felda, TRI,
Dear friends and fellow investors, let us all attend in full force and show them our power, reject all the resolutions
We should ask the management not to be so "aggressive". Why not just purchase the Semenyih project (the Diamond City) for RM134m. This project take up 40% of the total purchase consideration. With this, management may abort the rights issue ! It can be financed from its cash and borrowings.
Let's put all number in a right perspective. First we don't assume minimal scenario where only the major shareholder fully underwrite the shares. Also, we don't assume the maximum scenario where all ICULS are converted. Based on latest circular, its share in issue is 1,119 mil. A RI 8:5 @RM0.21 will enlarge additional shares of 1,791 mil shares (or total gross proceeds RM376 mil), and the final share in issue will be 2,910 mil shares. The major shareholder is "smart" enough to raise RM376 mil , and just sufficient to "contra-off" the purchase acquisition of RM336 mil and the balance goes to corporate expenses and working capital, etc....Mingo....they did not touch its cash YET in the balance sheet of RM471 mil as at 31/12/16. Impact ? the major shareholder managed to dispose his land to L&G for RM336 mil and pay RM172 mil (assuming full undertaking arise), and pocket RM164 mil , AND raise its shareholding toward 40% level AND no GO needed ! The major shareholder is taking minority fund into his pocket, AND at the same time raise its shareholding FOC ! the cash of RM471 mil in balance sheet remain untouched and assume a 40% control, meaning the major shareholder still "own" back RM88 mil. Impact on NTA and cash per share? Well, a math calculation show it is diluted to RM0.356 and RM0.16.....
It is a serious related parties transactions & conflict of interest. Mr Low Gay Teck, the Managing Director of L&G (the buyer of these lands) is the ONLY EXECUTIVE DIRECTOR, all others are NON-EXECUTIVE directors.
As Mr. Low is also a director at Mayland Parkview Sdn. Bhd (the seller of these lands), he is deemed interested party & has absented himself from voting as the ONLY EXECUTIVE DIRECTOR at L&G. However, after the transactions being done, he is the ONLY ONE to execute these lands purchased without his consent. Mayland is taking us for a ride. We should vote against such transactions.
REVOLUTION DID , reformacy on 15.3.17 , vote against all resolution , show minority also got minority power roof , i believe justice will win , finally , united collapse the road block .
Current leak news , OUR GROUP already success , grouping at 25% minority , amount is keep increasing , i believe , before 15 -3-17 , it can touch the attractive figure , beat down the issue , objection achieve .
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TomyamGong
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Posted by TomyamGong > 2017-03-03 16:31 | Report Abuse
dangerous