DS Thong is very lucky as far as the stock market and the Takeover Code are concerned
While he will be crucified for making a VGO at a miserably low RM1, nobody can accuse him of daylight robbery when making a MGO at the same price (as it is by virtue of warrant conversion)
He will also claim that he is required to do it (whilst secretly rejoicing in his ability) and will furthermore recommend non-acceptance (whilst secretly ensuring its unconditionality)
Lastly, if the price remains below RM1 in February, he will claim that he is converting his warrants at a loss - what a martyr!
Dear INSAS shareholders, No. of outstanding warrants: 265,202,536 Exercise price per warrant: RM1.00 Expiry date of warrants: 25 February 2020 Number of RPS issued: 132,601,268 Unlike other company INSAS is not short of cash to redeem the RPS RM132,601,268 hence INSAS do not need any warrants holders to convert their warrant (No incentive to push the mother share above RM 1.00 for warrants conversion)
As of Dato’ Sri Thong, he can hold his last card very close to himself but the option are very limited to. 1. Let warrants expired and do nothing (No MGO) 2. Convert some warrants to trigger 33% threshold and offer MGO at RM1.00 3. Let warrants expired and buy mother share from market to trigger 33% threshold and offer MGO at 7 days weightage average market price.
My INSAS stock picked for 2020 thesis is not base on MGO RM 1.00 but purely on its visible profitability: 1. Inari: NP to SH RM200million. Insas share of profit RM 38 million. 2. ICL income: RM 31 million 3. M&A: NP RM 11 million 4. Retail trading and car rental: RM 1 million 5. Property investment: RM 4 million 6. Investment holding: ?????. 7. Interest saving on RPS RM 5.3 million
I believe in Dato Dr. Tan (Masters and PhD in Engineering Science in 1981 and 1983 respectively from Harvard University, USA) ability in leading INSAS Technology and spearhead INSAS Tech growth.
And I believe in Dato’ Wong ability to make INSAS more efficient and thus increase INSAS profitability and once INSAS warrants and RPS 2015/2020 expired on 25th Feb 2020 more clarity will emerge and Dato’ Wong will have more rooms to formulate dividend policy and seek approval for MGO waiver to start share buy back again.
Dear all, Below is email reply from Dato’ Wong on my proposed share buy-back waiver for MGO
Hi Mr Lee
Thanks for your past & continuous support & I personally have no objection to your proposed resolution. However, there are stringent processes, procedures and compliance requirements under the Bursa Listing Rules & Take-over Code that our CF advisers are looking into it and it is unlikely that we are able to make the waiver application in time for the approval of Insas shareholders by this coming AGM. We are seriously exploring this waiver proposal and if possible, we hope to initiate this waiver application process in year 2020.
The Insas board destroy value and should be summarily sacked
How can the directors defend a situation where the value of one of the parts is more than the value of the whole?
They should just distribute the inari shares to the Insas shareholders, and exile themselves to a Tibetan temple and learn to do a better job in their next life
Aiyo paperplane...siapa pokai..this year...judi is better than last year...no pokai lagi...next yr what is your pick...I wanna follow you buycall leh...you didnt ho back you house kah...I left msg there....lol..aiyoyo..kikiki
Aiyo..last chance liao...CNY rally..if no rally...end of the game for the warrant....all become toilet paper...even boss brother own warrant also become toilet paper...lol...aiyoyo...kikiki
Yes this is a gem to the controlling shareholders retail investors holding trap value stock for years n directors getting good paychecks thinking one day will go higher
Based on the analysis of these few taiko, most probably chongker needs to offer mgo at rm1. So now still have 20 cents profit. It is close to 25% profit. Everyone should buy more Insas mother, iso asking why chongker don't want to share profit with small ikan bilis.
Not only that - chongker also spent nearly RM1m to buy (and burn) the bulk of the rest of the wb to ensure that he will be the only significant warrant converter
In the new year spirit and in spite of possible adverse dragonslayer comment, I wish to repeat my theory
In 2 months time, the Thong group will convert 100m warrants and trigger a conditional mgo at RM1
It presently owns nearly 33% of Insas and this will increase to just under 42% on warrant conversion
During the mgo, Insas will do full share buyback totalling 49m shares - it has bought 30.3m shares and can buy a total of 79.3m shares being 10% of the enlarged share capital
This will further indirectly increase the Thong group interest, and it only needs acceptances for about 40m shares for mgo success
Please hang on to your shares for an almost 25% return in 2 months
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63 posts
Posted by Insasman > 2019-12-25 20:58 | Report Abuse
I was replying to musangking but he disappeared