in my opinion EPF shd providea cash option post merger for shareholders who wanted to cash out...otherwise this exercise will not be successful...bcoz either parties will not agree to a dilution in shareholding without any real benefits....
sometimes undervalue doesn't has value or worth value. just like sometimes low PE doesn't mean good compare to peer's higher PE. Example: GDEX and TNLOGIC; PMETAL and ARANK. Your money, your judge.
long time didnt check on this OSK. Hmm latest news not that positive if OSK decide to acquire more in order to be majority shareholder of the merged entity. That would cost OSK few billions. It may trigger an RI or more borrowing. If OSK decide to sell off its holding in RHB, then OSK would have nothing left in the financial industry and become a pure developer player. That wont be good for OSK as financial still generating quite a big income for OSK.
Looking at past trend, OSK would not reward its shareholders with the sales proceed just like what happened when OSK merged with RHB. It just pumped up its NTA and nett profit for certain quarter. I recalled that OLH didnt even reward shareholders with the fortune. It pocketed almost RM900 million profit for that quarter alone. That's the reason why it still keep lot of cash and the share price is still at pathetic level after all these years. That cash still sit inside OSK and generating nothing more than FD rates.
If OSK is going to call for an RI to acquire more shares for the merged entity, be prepared that the counter would be bashed down just like what happened to MRCB.
alcohol, wat make u think old will acquire more rhb_ammb shares. u are just making wild assumption. if old want to buy more shares, he will start to purchase rub shares, no need to wait till they merged.
You mentioned Financial still generating quite a big income for OSK... I am just wondering do you know what is the Financial about? Income from RHB profit? Or the OSK Capital (which is also Financing)? Income booked from RHB profit does not go into OSK as cash. Those (RHB profits) are just profit that cannot be cash out while profits from OSK Capital are more real income.
Do you know OSK borrowed much $$ from RHB for the RHB RI previously? That cost of borrowing is higher than RHB dividends. If RHB prices unable to increase much, OSK will be losing money from the investments. Unless OSK able to sell at high price for RHB shares. Hence, there is nothing wrong if OSK capable to sell RHB at reasonable price to repay the loan and rewards the shareholder.
860000, thank you for the sharing. yes profit booked from RHB isn't translated as cash. This I agree. Dividend wise from RHB would be translated as cash. However, such profit booked from RHB would still reflect on its quarterly results PBT and nett profit which play a significant part in determining the counter price of OSK. Isn't that RHB has reported averagely RM1.5 billion nett profit for the past 3 years and with OSK 10% shares in RHB, that would translate to RM150 million booked profit? Im not an accountant, hence i can only give a layman understanding in this.
I was incorrect to say it keeps lot of cash after 2012. It kept lot of cash prior to 2012 until it used most the cash for the RHB merger which pumped up the NTA but not the counter price and dividends to shareholders.
As of now, I don't find any news or updates regarding OSK wanting to sell its stake in RHB and who is the willing buyer. If OSK is not going to sell their stakes, are they willing to get their stakes diluted with the merger with AMMB then? If they are not willing, they only can acquire more to maintain their stakes in the merged/larger entity or sell off their stakes.
sctan, that's why I used the word 'IF'. Not for certain that OLH wants to buy more. And if he really want to buy, the stake available for sale now is from ANZ holding in AMMB. Not necessary must buy RHB.
unlike those days..now profit margin from bank is v low...single digit,,,profit margin from property higher 20-30% at least....doesnt make sense to keep the shares of rhb...and my opinion i also dont think they will sell unless the price is good...and no way are they going to add more shares...at this point with so many project in hand...they need cash badly...
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cocqueen
692 posts
Posted by cocqueen > 2017-06-02 09:24 | Report Abuse
main winner in this deal is olh & osk..osk will be re rated...will be a v different animal..