Posted by kkbee > 2012-11-28 21:50 | Report Abuse

Hi any sifus mind to advise? :

I am confused with the proposal of capital reduction from par value RM1 to RM0.10: how does this mathematically deliver another few billions of cash for whatever purpose (pay debt, operating expenses, hedging loss, buy aircrafts, employees bonus) solely from this exercise? (exclude the right issue).

Looking at its latest Quarterly BLS:
Total cash = 1.4B
Short term debt = 3B
Long term debt = 5B
Total shares = 3.3B (RM1 par value)

By doing this exercise, how does the extra billions of cash come from?
For a MAS IPO subscriber, what does it mean to him?

I hope any sifus here kind enough to provide some precious opinion. Thanks!

Posted by chleong > 2012-11-28 21:59 | Report Abuse

FROM: lowyat.net

It is happening on account book.
While your x number of shares remain the same.
Last time you have 1000 shares at RM1 par value, now become 1000 shares at Rm0.10 par value.
Par value is the money paid/injected to issue the share previously.

FROM: lowyat.net

Basically no diff, that's just some kind of information to the shareholder that: We had loss 90% of the capital that you invest in our company, and seems like we are not going to earn them back, as we are in need of fresh fund now, we have to admit that and write them off so we can call you to inject more money under the regulation that govern the account.

As shareholder, you might need to prepare for the rights call, the rights price can start from RM0.10 (rights normally same or higher than PAR value, unless that's 2 call rights). Ratio & price will be determine later (actually also can roughly estimate, get the market value, divided by the intended capital need to be raise which is RM3.1b, then you will see roughly how much per share, that should be more or less the money need to be prepared).

Hope these answers and explanation from another blog forummers help

Posted by Matsaham Mashuk > 2012-11-28 22:01 | Report Abuse

Mmm..correction not over yet.Smile--)

Posted by kkbee > 2012-11-28 22:14 | Report Abuse

dear chleong, thanks! Great explanation, especially from shareholder perspective!

Further question, stepping in MAS' shoes: "write of 90% of the capital" means MAS will reflect as ~2.8B additional loss in their next P&L statement? But how would that "manufacture" another few billions of fund for operation and debt payment use, putting aside the right issue funds?

Posted by SYED ABDUL RAHMAN SYED AMIR > 2012-11-28 22:25 | Report Abuse

Is the par value reduce BY 90 sen or TO 90 sen? I read a report by Maybank it is to 90 sen? and in another in STAR it is by 90 sen I am not sure which one is right?

Posted by gray > 2012-11-28 22:32 | Report Abuse

such is the quality of reporting in malaysia... part value reduced from RM1.00 to RM0.10 therefore a cancellation of RM0.90 par value....

Posted by gray > 2012-11-28 22:33 | Report Abuse

part value = par value typo

Posted by mmk79 > 2012-11-28 22:49 | Report Abuse

today market is just too panic and overreact to sell seeing you sell I sell and that's way everyone sell.

Posted by chleong > 2012-11-28 22:58 | Report Abuse

from bursa announcement on the restructuring plan.

Par value is the money paid/injected to issue the share previously &
there is also the Share premium account. well i am still learning (not good in explaining, neither am i an accountant, just borrow the words from somewhere else) about how these corporate world COOK up the Account. as observed there are so many corporate accounting fraud happened in USA & ??? everyone tries to CHEAT if the REWARD & MONEY JUSTIFY. ACCOUNT FRAUD & CREATIVE DRESSING is already a norm. who knows??? who audit??? who cares??? everything done behind your back. WHAT TRANSPARENCY. #%XXX corporate governance. i don't believe all this crap. in US the Bank is the biggest con man they work together with the regulator. try to watch this documentary "INSIDER TRADING". thank you

Posted by mmk79 > 2012-11-28 23:01 | Report Abuse

so has anyone here figured out how to calculate the revised STRUCTURED WARRANTS ANNOUNCEMENT: ADJUSTMENT TO TERMS OF STRUCTURED WARRANTS
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1131233

Posted by kkbee > 2012-11-28 23:04 | Report Abuse

hahaha, well said chleong. I hope I also own the privilege and magic to COOK up my own account to write off all my housing loan, car loan, credit card debt...

Posted by sixteenblue > 2012-11-29 08:39 | Report Abuse

"'Delisting MAS a wiser option'"
http://www.btimes.com.my/Current_News/BTIMES/articles/20121129005729/Article/index_html

Posted by Hustle > 2012-11-29 08:43 | Report Abuse

Really want to do that ker? Even Indonesia not dare to delist Garuda :)

Posted by euclid > 2012-11-29 08:51 | Report Abuse

If MAS is de-listed, how can it raise fund? Unless tax payers pay for it...

Posted by Hustle > 2012-11-29 08:54 | Report Abuse

Borrow Ah Long lah,free painting on the plane is included on the packages :)

Posted by esegaban > 2012-11-29 08:54 | Report Abuse

mas is delisting?must be joking.....if this happen,wah a big issue will play by the pembangkang...hahah...dare to delisting?

Posted by GTMSH > 2012-11-29 09:25 | Report Abuse

Another fund-raising exercise ...MAS group chief executive officer Ahmad Jauhari Yahya said “the rights issue was important for MAS.''“We basically need to ensure the money is there for us...

Posted by sanjeestar > 2012-11-29 09:38 | Report Abuse

Ya the money is there for to spend unnecessary....make more losses ... in future ...

Posted by Matsaham Mashuk > 2012-11-29 10:37 | Report Abuse

Mmm..correction still on.smile--)

Posted by mmk79 > 2012-11-29 11:06 | Report Abuse

Fully supprt to delist this useless, lousy, blood sucking, pampered, begger company

Posted by Hustle > 2012-11-29 11:10 | Report Abuse

Huge seller...Nice observation Mat...any insider news from Ahmad :)

Posted by cyclist > 2012-11-29 12:26 | Report Abuse

Mat i Airline System

Posted by mmk79 > 2012-11-29 17:06 | Report Abuse

60cents coming.

Posted by devilnevercry > 2012-11-29 17:55 | Report Abuse

go mati airline with ur useless mgmt, GOMEN & union la bloody beggar. Only know how to ask for more $ and doesn't know how to contribute.

Posted by humbled > 2012-11-29 18:08 | Report Abuse

Dejavu again. Have seen this happening (MAS in trouble) few times already. Sigh....never change....

Posted by theobserver > 2012-11-30 05:07 | Report Abuse

first the rights issue, then shariah-compliant....do u guys think its like another way of ''bail-out'?

Posted by devilnevercry > 2012-11-30 08:38 | Report Abuse

end up privatisation in 2013

Posted by millyjim > 2012-11-30 08:49 | Report Abuse

pls tell me if you holding 1000 shares purchased in the market for rm1.00, can I ignore the rights issue and keep only my 1000 shares until the market price return to profit rm1.05 (in profit)

Posted by Hustle > 2012-11-30 09:17 | Report Abuse

Sure you can,just the unit become less only,but value increase.Same like sometimes they do stock split,quantity increase but value decrease.But anyway,if GLC company that declare quarter earning also do this kind of dirty trick,I'm sure I will not vote for current political leader.Since,he can't stabilize the share market,means that he will fail to attract investor and unable to control inflation.If you lose your penny until GE,you must vote for a change,if not you will also encounter the same shit after GE.US GE is a Good example,nothing change,people keep starving.

Posted by Keith Gan > 2012-11-30 10:10 | Report Abuse

another RM500 from MAS...tq Mas...hahahaha ^^

Posted by waja9073 > 2012-11-30 10:45 | Report Abuse

Hehehehe .... I made 1K from MAS on T+3 (What else contra lah).

Posted by azta12 > 2012-11-30 10:46 | Report Abuse

good show,scale up another 5 sen.Ahmad jauhari acceptable explanation at yesterday briefing.

Posted by angkor > 2012-11-30 10:47 | Report Abuse

price brought down and swing back up... it is playing a yo-yo game... more news coming soon b4 the rights come into picture

Posted by esegaban > 2012-11-30 11:33 | Report Abuse

TA correction? or rebound?

Posted by angkor > 2012-11-30 11:37 | Report Abuse

rebound... price dropped to fast.. oversold

Posted by mmk79 > 2012-11-30 11:44 | Report Abuse

Can collect ci?

Posted by esegaban > 2012-11-30 14:18 | Report Abuse

for me...ahah...can collect rite now....;)

Posted by angkor > 2012-11-30 14:27 | Report Abuse

good to slowly collect now.. more news coming from mana ada sistem

Posted by KC Loh > 2012-11-30 14:33 | Report Abuse

read here: http://klse.i3investor.com/servlets/forum/300214613.jsp

Posted by Hustle > 2012-11-30 14:58 | Report Abuse

Hi KC any news regarding provide massage service on the air hehe...

Posted by KC Loh > 2012-11-30 15:01 | Report Abuse

massage in air i dunno. scandals in hotels plenty! :)

Posted by Hustle > 2012-11-30 15:04 | Report Abuse

hahahaha...any nice photo been expose...kebaya style...like it

Posted by angkor > 2012-11-30 15:08 | Report Abuse

if they can provide massage service... sure can work. first in airline industry and share price sure rocket up. forget about the turnaround plan, just provide new massage service...

Posted by Hustle > 2012-11-30 15:09 | Report Abuse

AA also smell no smoke hehe...

Posted by devilnevercry > 2012-11-30 16:23 | Report Abuse

I want helicopter service on the air. Hehehe

Posted by Hustle > 2012-11-30 16:25 | Report Abuse

This style is a bit extreme on the air better don't practice bro hehe

Posted by angkor > 2012-11-30 16:34 | Report Abuse

wow helicopter? this is the forbidden technique... not everyone can take it man... if got MAS share sure up like crazy...

Posted by devilnevercry > 2012-11-30 17:29 | Report Abuse

crazy is good. swing upside down and we earn regularly :p

Posted by esegaban > 2012-11-30 21:41 | Report Abuse

mmm...after read all the Q4 report....my conclusion...very good for management MAS,although the revenue is less compare last year but the liability and loss is decreasing...so,for me..rite now is the time to buy and hold...mayb for Q1 next year, will be better compare to this year....

Posted by esegaban > 2012-11-30 21:43 | Report Abuse

the TA also show positive sign....insyallah, next week will go up higher....