If Insas just disposes 10% stake in Inari ( balance still got near 20% after sale), total net cash realised is RM250 million based on market cap around RM2.5B of Inari currently. Insas market cap is RM633 Million now, RM250 million cash is 40% of current Insas's market cap.
Truthseeker, if a bungalow in KL let said RM2 Million market price and rental rate suddenly drop from RM10k to RM6K (40% drop), would u think the bungalow price will drop to RM1 Million( 50% drop)? Insas NTA is at RM1.84, at current price, it is almost 50% discount to its NTA. Can you get it?
Insas can fetch your so call high NTA if it manage to sell all its Inari at current price. In theory is it possible w/o causing price drop or who will buy all Inari if Insas want to sell? Likely scenario is Insas can sell some Inari but not all.
Truthseeker, u can refer on the latest quarter report (page4), based on NTA RM1.82, the value for associate companies ( Inari, Ho Hup, Omesti and etc) is taken from old booked value at only RM162Million. If u calculate based on current market cap of Inari at RM2.5B, NTA can easily above RM2.5.
tc88, who will buy all the shares Insas have so that it can achieve the high NTA as you mentioned? It can buy Ho Hup now but should Insas decide to sell all who want to buy? That's why BJ Corp also face the same problem it can never fetch NTA value. Better buy high dividend or high cash stock not high shares(NTA) stock.
Boost Inari share price then dispose it. Value unlocking for Insas. A cash rich small cap buying Insas's stake of Inari. More valuable assets injected into it's balance sheet. For Inari, it's just change of ownership.
truthseeker1. Change your attitude or u will be a loser. Look at the bright side. Dun just focus on the negative aspect. U will be very sorry if Insas announces tons of realized gain end of May.
Inari RM3.5 is only result that Insas holding valuable asset. the most important is Inari's dividend to Insas, that is Insas' earning.
Same like property developer , buy a land and didn't build anything land evaluation shows the land is valuable , but company got money come in if didn't do anything ?
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Posted by truthseeker1 > 2015-04-13 11:50 | Report Abuse
Insas money is used to buy Ho Hup not rewarding shareholders with more dividend.