Airasia still got Logistic arm named Teleport,and Gojek case a bit link with it。。Gojek I dunno why last time they put 40 m now 50m that means the situation is bad until their negotiation get worse...If I am not wrong this GoJek Thailand branch is linked to Stanley subsidiaries's subsidiaries's. Could there be a bleach case again like Serba Dinamik...?
AAGB (“Board”), RHB Investment Bank Berhad wishes to announce that the Company proposes to undertake a renounceable rights issue of up to RM1,024,058,370 in nominal value of 7-year redeemable convertible unsecured Islamic debt securities with a nominal value of RM0.75 each (“RCUIDS”) on the basis of 2 RCUIDS with 1 free detachable warrant for every 6 ordinary shares in AAGB held on an entitlement date to be determined by the Board and announced later by the Company (“Proposed Rights Issue”).
This pandemic looks like a never ending story in our country. And it affects our economy badly
Posted by strattegist > Jul 10, 2021 11:24 AM | Report Abuse
sure make sense... Most areas in Selangor and KL are under EMCO/PKPD. As such, more swab tests would be conducted on the residents of the affected areas thereby giving the high number of cases
Airasia still got Logistic arm named Teleport,and Gojek case a bit link with it。。Gojek I dunno why last time they put 40 m now 50m that means the situation is bad until their negotiation get worse...If I am not wrong this GoJek Thailand branch is linked to Stanley subsidiaries's subsidiaries's. Could there be a bleach case again like Serba Dinamik...?
For now, it's not about whether our own country open for flying or not, we have to look at our neighbouring countries as well, Thailand, Indonesia and etc... Cases on the spike now and will take a while for this curb to go down...
Each RCUIDS will be priced at a nominal value of 75 sen apiece. The RCUIDS come with a seven-year tenure and a profit rate of 8% per year. Each RCUIDS are also convertible to one new AirAsia share on a one-to-one basis, according to the filing to Bursa Malaysia.
As I had mentioned in my posts in February, March and May, all indications pointed to the fact that AA is looking to raise up to RM1b in the form of RI. That has now occurred, so this really shouldn't come as a surprise. I would, in fact, think that it should be considered a positive as it addresses a funding need.
What does AA's "rights issue of redeemable convertible unsecured Islamic debt security/RCUIDS" entail? Essentially, for every 6 AA shares you hold, you get to subscribe for 2 RCUIDS (and get 1 free warrant when you do so), i.e. 6 AA shares = 2 RCUIDS + 1 warrant.
As it stands, you need to pay RM0.75 to subscribe for 1 RCUIDS, and pay RM0.75 if you wish to convert it into an AA share. As long as you do not convert, the RCUIDS will pay interest of 8%p.a. on a quarterly basis. Take note that AA MUST redeem (akin to a buy back) any unconverted RCUIDS on and from the 4th anniversary from issue date, based on a redemption timeline of 25% on the 4th anniversary, 25% on the 5th anniversary, 25% on the 6th anniversary and 25% on the 7th anniversary.
As for the warrants, they have a tenure of 7 years and will have a maximum exercise price of RM1.00 each.
Salute tony, despite negative nta but still able to borrow and share price is still close to $1. MT negative as est 5 years without dividend. LT positive if without new virus.
In business there is no such things as supporters. We are here to make money not to do charity We keep or sell the shares because of the information available to us . That’s simple.
@Sunshine - yes, it is RM0.75 to subscribe + RM0.75 to convert, so RM1.50 in total. Commercial call by the board I suppose.
Not a bad deal if you consider the fact that if the RI is issued in Dec 2021, it will need to be redeemed starting on the 4th anniversary (Dec 2025). Every year from Dec 2021, the RCUIDS will pay out 8%p.a., i.e. RM0.06/year/RCUIDS. Assuming you convert in Dec 2025 immediately before redemption, your cost (calculated on a very simple basis) is RM0.75 (subscription) + RM0.75 (conversion) - RM0.24 (RM0.06/year for 4 years) = RM1.26/share in total.
If you think AA shares are worth RM1.26 come Dec 2025 (I personally think it will be significantly higher even before then), then its a good deal. If you don't and choose not to convert, AA will just redeem the RCUIDS, so it would not dilute the shareholding pool. Quite clever structuring, actually.
Everyday burning cash. No more cash to burn now asking money from you to burn. Alpha beta delta gamma epsilon etc covid variance will go on and on until airasia on the verge of bankcruptcy n share price hits 0.10 n tony n gang kena margin calls left with undy only to wear. Sell.
Humbleisland - You're spot on. Except, the conversion is free, no need to pay another RM0.75. Say at anytime you want to convert, you just request and it will be converted to ordinary shares - And you will stop getting the 8% coupon since you will be holding ordinary shares instead of the RCUIDS. But why convert? I'd rather take the 8% yield, as the RCUIDS will be listed and will mirror the ordinary share price of AirAsia.
The only thing you have to pay for is the warrants, paying for the exercise price when you want to exercise it. That's all. Damn good deal. They structured this well. If they did an ordinary rights issuance there will be immediate EPS dilution (and cost of equity is super high nowadays due to our country risk premium) and have to offer a steep discount and there will be tons of ordinary shares floating in the market for AA. Whoever from AA who structured this is a genius and thought it through well for the minority shareholders.
..... selling pressure coming..... arrogant diehards that keep asking for lower will get their wish soon... just like TG diehards that keep asking where is my 3.50....
Hello Humbleisland - Yup, this part you're slightly mistaken. Just to allay your fears. You can refer to Mode of Conversion at Page 29 - Its by surrendering only. For the Warrants, the Mode of Conversion will be via the Exercise Price and payment of the Exercise Price, Gorgeous deal right? We get a "discounted" price of RM0.75 from the current market price, with no immediate EPS dilution, 8% yield PA, and a warrant for every 2 RCUIDS subscribed for which will further "subsidise" the RM0.75 we are paying for the RCUIDS.
Can sit on the 8% for 7 years and get better returns than EPF.
Investformilkmoney - For rights they will announce it in due course like any other rights. First have to have EGM, and then there will be an abridged prospectus with the subscription form that you have to fill up and hand it back to the share registrar.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
WealthSoWonderful
2,596 posts
Posted by WealthSoWonderful > 2021-07-12 15:08 | Report Abuse
25 sen kambing