Posted by JXRepcoBuffet > 2014-10-09 22:41 | Report Abuse

OSK will gap up another 10% by tomorrow....

Posted by sam2828 > 2014-10-09 22:51 | Report Abuse

osk TP 2.6++

Posted by gohlai > 2014-10-09 22:52 | Report Abuse

TP 3.20

Posted by gohlai > 2014-10-09 22:54 | Report Abuse

http://klse.i3investor.com/blogs/hleresearch/61424.jsp

Posted by kudamuda > 2014-10-10 05:11 | Report Abuse

post merger, cimb share holders own 70% of new entity, rhb share holders own 30%. that means osk would roughly own 3% of the new entity? no longer substantial share holder.. maybe no board seat as well? could this be a negative impact?

Posted by lucky8888 > 2014-10-10 07:19 | Report Abuse

everybody will buy osk bcoz it is cheaper now...than buying rhbcap

Posted by Tornado > 2014-10-10 07:27 | Report Abuse

no rush la....
Us stock market tumbled le....

Posted by peazielle > 2014-10-10 08:50 | Report Abuse

should KLCI be impacted by dow since its our "budget day" announcement :)

Posted by Kian Leong Lim > 2014-10-10 08:52 | Report Abuse

There is a reality that says: There is no gain without a pain, this is for sure. But can everyone in this country bear the blunt of the painful process of transforming, and why should they?. I see this merger as a power "enlarging" process. For the 3 banks that want to merge they gain some and lose some. But for the Malaysian public, it is more pain and more risk than ever. In the short term and long term: In the long term, company wise nobody can tell, even its own impact on the Malaysia banking sector where it is going to make the smallar bank more difficult to survive (banking merger depends on current condition and situation). You merge and create a multi-big bank while the country's borrowers are already in vey big debts like 87%, where are you going to increase revenue and profitability (where the population are not growing). Of course, the merger is a "making progress" is a theory but will create pain for the Malaysia public in the short term and long term (No pain no Gain). For shareholders, there will be winners and loses. The only winner is MBSB because it is the worst stock and still could fetch RM$2.82 or what. But shareholders of CIMB and RHB are losers. The value of CIMB shares got diluted by 30% but poor rhb shareholders will see their shares devalue by 70%. In conclusion, MBSB is biggest winner, RHB is biggest losers, CIMB win some and lose some (not so bad). For the other Malaysian banks they are losers if they don't work harder than now, and the Malaysian public is losers because now they have a bigger bank they have the biggest risk on them. Everything is business for people, that is why we should do something for ourselves by not supporting this process because it is bad for us. Is it going to benefit all of us when we have a very powerful bank in the mist of others? Don't we need to care for the others also and not just ourselves only? You will learn very soon that everything is in fact a theory until everyone is happy or well taken care of . Let them hear our voices if we are not happy, because everything is a business for everyone.

Posted by Kian Leong Lim > 2014-10-10 08:57 | Report Abuse

If you don't know how to do business, you will remain a poor person forever, who are you to blame?

Posted by JXRepcoBuffet > 2014-10-10 09:25 | Report Abuse

the market react terbalik..... OSK down......

Posted by AhMoi > 2014-10-10 09:30 | Report Abuse

Posted by AhMoi > Oct 10, 2014 08:30 AM | Report Abuse X

Be careful market has never accorded RHB that kind of valuation ie 10+

It is an internal valuation for the merger purpose.... ask yourself if the value/market price of the new bank can ever reach the value now given under the merger exercise? ???



Posted by AhMoi > Oct 10, 2014 09:16 AM | Report Abuse X

Say, A's market value as accorded by the market all this while is 300k,
B's 100k

Now they want to merge and value themselves, themselves. .. oh.... A is worth 500k, B is worth 250k

And, they set up a new co C... ask yourself will the market value of C be suddenly 750k???? 350k more over 400k just like that...

Posted by adc38 > 2014-10-10 09:31 | Report Abuse

no one in OSK? damn cheap now,haha

Posted by ckl4717 > 2014-10-10 09:33 | Report Abuse

bought at 2.21 50 lots, i think its a risk worth taken. Maybe today price will affected by US market but in 1-2 weeks things will be much clearer.

Posted by Kian Leong Lim > 2014-10-10 09:34 | Report Abuse

OSK weakest of them all. Now you know why? I believe OLH is supporting the market now. Poor guy!

Posted by Kian Leong Lim > 2014-10-10 09:40 | Report Abuse

EPF is a winner also because it holds majority of the shares in MBSB. What about minority shareholders of rhb, they (rugi). I hope OLH can cut a deal with EPF to sell back his shares at the current market price of RM$8.70. The is no need to sell out osk shares. It always is a good thing to wait and see what happens later on.

Posted by kahhoeng > 2014-10-10 10:12 | Report Abuse

OSK is falling because of market sentiment, its blood everywhere lah...

Also, OSK is not valued as much because OLH is not saying what he would do with the merged CIMB-RHB shares. If he were to offer statement saying all RHB shares will be distribute to all shareholders, it will rise above 2.70. Given RHB share price, OSK's investment in RHB is worth 2.35 per share already.

How much will the merged CIMB-RHB worth depends on how well the two integrate, for that, only time will tell.

Posted by paulthesotong > 2014-10-10 10:26 | Report Abuse

Concur just cut a deal with Taiwanese, Chinese or whoever n get back 2.3 Billion . With that kind of money, Ong will be the King of Bursa.

Posted by hocklai > 2014-10-10 10:50 | Report Abuse

market is heading to 1800 points...be very cautious...afternoon will drop somemore...

Posted by hocklai > 2014-10-10 11:12 | Report Abuse

look at the big roadblock to throw at 2.21...it is a trap if you buy OSK now...KLSE already down 16 points ...next week will drop further when down jones tonite drop another round..

Posted by armt > 2014-10-10 11:53 | Report Abuse

not when dow jones drop.. more like IF it drops another round. Market so unpredictable lately

Posted by vinvin > 2014-10-10 12:41 | Report Abuse

Why did the price of this counter dropped when the deal is supposed to be in rhbcap's favour ? Just wondering...............!!!!!!

Posted by kahhoeng > 2014-10-10 14:38 | Report Abuse

because OLH has not indicated what OSK would do with its RHB shares yet? And most counters drop, 785 downs vs 90 ups?

Posted by lucky8888 > 2014-10-10 15:17 | Report Abuse

sapu osk...

Posted by adc38 > 2014-10-10 15:44 | Report Abuse

lucky888, you faster sapu and push the price back

Posted by hanting999 > 2014-10-10 15:58 | Report Abuse

RHB (up 19 sen); OSK (down 7 sen). Does not make any sense. Either OSK is overpriced or someone is pushing it down. OLH has to tell us what he is doing to RHB shares; since he may be no more in the Board of CIMB-RHB.

Posted by damagpie > 2014-10-10 16:05 | Report Abuse

Perhaps its because OSK already up yesterday and most people expected the RHB valuation to be at least 10.80.

Posted by armt > 2014-10-10 18:30 | Report Abuse

What’s New
CIMB-RHB-MBSB has announced details of their merger which entails taking MBSB private at MYR2.82/sh, and merging CIMB and RHB via a share swap of 1.38 CIMB shares for every 1 RHB share.


What’s Our View

The outright winner, is MBSB (MBS MK; Not Rated, FV: MYR2.82), which is to be taken private at MYR2.82/sh. Investors will have an option of cash or RCPS in a new unlisted mega-Islamic bank, which would likely be palatable only to strategic shareholders.

The deal is neutral on CIMB, whereby we estimate a post-merger dilution in FY15 ROE to 11.4% from 12.3%. Pegging on a lower FY15 P/BV target of 1.35x (FY14 1.7x previously) results in an unchanged TP of MYR7.60, which translates to a FY15 PER of 12.2x, in line with Maybank. We maintain our HOLD call on CIMB.

Valuing CIMB at MYR7.60/sh and taking into account the 1.38 swap ratio, RHB would be valued at MYR10.45 (+20% upside). Our TP is raised to MRY10.45, and we upgrade RHB to BUY from HOLD.

OSK (OSK MK; Not Rated) could eventually hold just 3% in the enlarged entity and we think it would make commercial sense to dispose off this shareholding. On revaluing its stake and applying a 20% discount to its RNAV, we derive a FV of MYR2.64 (+15% upside).

Key risks at this juncture would be (i) regulatory approvals, (ii) EPF’s right to vote on this deal and (iii) Aabar’s acceptance.

Posted by kudamuda > 2014-10-11 11:34 | Report Abuse

if EPF can't vote. Then OSK's vote become significant? right?
then OLH may make a deal out of it.. and dispose off all the RHB holding after the merger. Because 3% in the enlarge entity didn't make good commercial sense as written above.

With the disposal, OSK will have $$ for the PJD-OSKprop merger?

haha.. any idea?

Posted by kahhoeng > 2014-10-12 10:31 | Report Abuse

To be, the best case scenario would be OSK distributing all RHB shares to shareholders and have the rest merge with PJDev and OSK Property...

That would at least worth 2.80 - 3.00 easily

Posted by Gheekong > 2014-10-12 14:49 | Report Abuse

Part I: Cimb and Rhb merging. Instead of giving Rhb a valuation of 12, it has been given a middle of the road valuation of 10 but Cimb has been valued at the lower end ( 7.27 ). Cimb exchange rate for the new entity was not favorable, it was better to hold Rhb shares for the exchange. A higher goodwill valuation was not accorded to Cimb. This was to please Aabar and to simplify the merging process otherwise goodwill valuation have to be given to the 3 banks which will complicate things further. It is like CokeCola merging with Yeo ( no offend to Yeo ), the bigger company should command a higher goodwill valuation.
Part II: Mbsb given the choice of being takenover ( cash out ) or merging with mega Islamic Bank. A higher valuation was given to Mbsb as in a takeover.
Reasons why Osk retreated:
1: profit taking.
2: Dowjones fell, klse sea of red.
3: funds pulling out of M'sia.
4: investors impatient, cannot wait.
5: those who want to keep the share price down.
6: day traders taking advantage of the situation.
7: those who think Osk holding in Rhb has been diluted from 9.91% to 3%.
9.91% x Rhb 25.8b = 2.556b
3% x ( Rhb 25.8 + Cimb 60.58 ) = 2.591b
Therefore no dilution. Market cap. taken from the star newspaper.
8: risk of not being approved by Bank Negara. Very, very slim chance of this happening as B Negara would not have given permission for the 90 days negotiation. Very disruptive to share price if BN were to allow it in the first place.
9: EPF to vote or not. Not an issue any more as EPF voting is now to speed up and shorten the merging process.
10: objection by Aabar. It has been given the opportunity to invest in the mega Islamic Bank and more over Cimb has been given a lower exchange rate for the new entity and Rhb has a value higher than the market value.
All the risks being greatly reduced.
Kudamuda, good thinking. Osk movie Part I : PJD + Osk prop will materialize soon.
Part II: Coming soon. Osk have no choice but to diversify, no ifs, to drive the company forward. Ong told you PJD + Osk prop merging to gain status of being first tier developer, with 3b in turnover per annum. He has to do the same to Osk holding, he is not blind to this. End result mini Mega OSK created.
Ong only needs to sell half of the new entity as PJD 800m + Osk prop 244m = 1,044m
Hopefully he will give you the other half. If he use the other half for projects in the mini Mega Osk, profit will soar and so will the share price. Hope you enjoy reading this.

Posted by hanting999 > 2014-10-12 18:57 | Report Abuse

Gheekong, glad to 'hear' from you after a long silence. Enjoy your 'analytical' write-up. Thanks. I am hopeful OSK will rise; but the 'red sea' is swarming around us. Otherwise BOH CHOW SEE AAAAHHH!!!!!!!

Posted by babu > 2014-10-12 19:05 | Report Abuse

Hi GHeekong, I enjoyed your very well thought out comments ! Thanks

Posted by Wong Kah Wei > 2014-10-12 19:20 | Report Abuse

Gheekong,very like u said....mini mega OSK coming soon.

Posted by kahhoeng > 2014-10-12 21:40 | Report Abuse

I was wondering what's OSK core business be when its stake in RHBCap drops to less than 5%...

Still hoping on OSK merging its other non-RHBCap businesses with PJDev and OSK Property

Posted by ykgykg > 2014-10-12 22:21 | Report Abuse

It is a holding company with NTA 2.7 and low PE.

Posted by kahhoeng > 2014-10-13 08:02 | Report Abuse

Then OLH really have to work hard to move price closer to NTA, why else is he paid that much of money?

Posted by Kian Leong Lim > 2014-10-14 13:43 | Report Abuse

Mr. OLH is a respectable person. He supports the government which is the right thing to do right now. And I trust him.

Posted by kahhoeng > 2014-10-14 14:57 | Report Abuse

Sold my osk @ 2.15, probably add back later

Posted by hanting999 > 2014-10-14 15:30 | Report Abuse

A respectable person will keep his company's shares at a respectable price.

Posted by kahhoeng > 2014-10-14 21:23 | Report Abuse

hmm... an NTA above 2.80 with a market price of 2.14, real respectable...

Posted by hanting999 > 2014-10-14 21:32 | Report Abuse

At RM2.14, the price is sweet and respectable to OLH. Now, you see what I meant. RM2.80 less RM2.14 gives one a respectable profit. BOH CHOW LAK KOH AHHHHH!!!!!!!!

Posted by kahhoeng > 2014-10-14 22:04 | Report Abuse

good one...

Posted by sapuking > 2014-10-15 15:32 | Report Abuse

http://www.theedgemarkets.com/my/article/osk-holdings-board-meet-discuss-potential-acquisitions-osk-prop-and-pjd

Posted by 5percent > 2014-10-15 15:46 | Report Abuse

2.07 loh... I will buy below 2.00

Posted by hanting999 > 2014-10-15 16:36 | Report Abuse

I fear the worst. Acquiring your own companies? Is this respectable? The only person getting rich is the person selling and buying his own companies. Not at this time; not at this time. Properties are having a bad time.

Posted by damagpie > 2014-10-15 17:19 | Report Abuse

OSK is like a Mini Epf style merger here in action.

Posted by hanting999 > 2014-10-15 17:37 | Report Abuse

Hi, damagpie. OSK may adopt the method of the EPF style merger. OSK PROP issues shares to OSK (at agreed ratios) for a first tier property giant; and then buy over PJD to form a company to build PR1MA houses. (Just my dream.)

Posted by Icon8888 > 2014-10-15 19:52 | Report Abuse

OSK take over PJD and OSKP

http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/0A2E539E22EB7CDC48257D72003E2187/$File/OSKH_Announcement_Final.pdf

Posted by SP0094701 > 2014-10-15 20:14 | Report Abuse

Tomorrow osk will climb back ??????