Accounting and business understanding of working capital is difference. A reorganization need new fund to run a company for certain period to generate cash to first service the interest before looking at profit, Bankers do not expect business to clear all debts if not how they make money? Bank that does not hold debt cannot earn profit from interest servicing. Ideal case for bankers is that a company is under debt with constant repayment of interest that run a business that has demand and sustainable. budget passenger flight is always on demand.
Yong if like that 1.3/0.4= around Rm 0.28 per share. Now share price is 0.70 but the offer price is only 0.28. The remain capital a segment value is 0.42
" According to TA Securities, Capital A would record a gain from remeasurement of RM2.3 billion from the disposal of AAAGL and a disposal gain of RM6.1 billion from the disposal of AAB.
However, the research firm noted that Capital A's management had indicated that it may no longer pursue the listing of its intellectual property segment, the AirAsia branding, on Nasdaq via a special purpose acquisition company (SPAC).
AAX will swap their shares in AAX with shares of the NewCo — Airasia Group Sdn Bhd — on a one-to-one basis.
The NewCo will then acquire Capital A's aviation business — AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) — for RM6.8 billion. It will be issuing new shares worth RM3 billion in the NewCo to acquire AAAGL, while it will acquire AAB for RM3.8 billion, to be satisfied by assuming RM3.8 billion of the RM3.83 billion worth of debt that Capital A owes AAB.
Just a simple mathematic with debts from AAB RM 3.8 billion and billion debts inside AAAGL. Thus even with RM 1 billion new capital raise by NewCo (AAG) is that 1 billion enough for working capital and servicing total debts?
I am sure NewCo(AAG) will fall into PN17 company. Stony end game is getting capA out of PN17 at the expense of NewCo (AAG).
Shark smell the blood and come in for the killing.
I just congrats those who dare to risk, how you condemn tony also you cannot not admit he is really creative in making sure his business survive and yes, who know, it will collapse, this is what share market is lol
If Stony is not careful then he himself, the BOD and all will be losers if the deal end up against the Company Act 2016, whereby after the merged the Newco(AAG) default on debts, lease, trade or other payables.
Wrongful Trading In the CA 2016, an offence of wrongful trading is captured in section 539(3) that:
“…an officer of the company who knowingly was a party to the contracting of a debt had, at the time the debt was contracted, no reasonable or probable ground of expectation, after taking into consideration the other liabilities, if any, of the company at the time, of the company being able to pay the debt, commits an offence…”
Fraudulent Trading Whereas section 540(1) of the CA 2016 stipulates an offence of fraudulent trading as below:
“If it appears…that any business of the company has been carried on with intent to defraud the creditors of the company or creditors of any other person or for any fraudulent purpose, the Court may declare that any person who was knowingly a party to the carrying on of the business in that manner shall be personally responsible…”
If an offence under section 539(3) has been made out, offenders may be punishable with a maximum imprisonment of 5 years or a maximum fine of RM500,000, or both. Reading together with section 540 of the CA 2016, it is added that the offender may even bear personal liabilities for the payment of the whole or any part of the company’s debt without any limitation of liability upon a court’s declaration
hahah snake snake lee buy 0.70 sell 0.65 , now uptrend to rm 1.00 only can red eye white eye see news so good , still dont buy? i suda masuk earn some easy bucks ,, not big but good enough :)) im flying AA overseas again next month ,, maybe they can give me enough funds for another
6 hours ago" ===================== Update: ALL MATCHED!
I am in the game! Giddy Up!, Tony!" =================================
So Sorry Lee, this is my 4th time reentering into AA/CapA transaction. While you whine and roll on the road throwing tantrum, we are printing money. Thanks Tony, you make rich!
All eyes on Capital A and AAX with active trading today as Capital A Bhd's proposal to streamline its aviation segments, as it will help it compete better with established full-service carriers. Investors viewed the exercise positively as it strengthens AAG's business model for long haul–short haul integration, with a new medium haul segment as the intermediary, by leveraging onto the new A321 fleets.
Post restructuring, Capital A will still retain ownership of the four major business segments namely, ADE maintenance repair, overhaul services; Teleport logistic; AirAsia MOVE SuperApp; and digital finance BigPay and will also still own 18.39% stake in AAG. The gems are with Capital A, now lean and mean without too much flying the aircrafts and exposure of instable aircraft fuel.
Both Airlines climbs more than 5% and 13% respectively.
Live is so beautiful when you are flying with a True Magician...
YTL Power and Yinson also did great climbing more than 7% and 3 % after consolidating sideways for 3 months. Unfortunately Lady Sap remain unchanged.
whats more... he makes it look so easy... now sslee has ntg to cry about , everything he has been negative about is no more. I wonder what else he could say tony > sslee and loser gang defying the odds , i have been here more than a year and I beat them in estimates , dont be too stubborn and only accept traditional view , its OK when the old go , only then the new can GROW TOny the man of the ERA
Merger of airlines alone enough to reverse all of Capital A's negative equity, says Fernandes
The divestment of AirAsia Aviation Group Ltd (AAAGL) is expected to give rise to a pro forma gain of RM4.69 billion to Capital A, while the disposal of AirAsia Bhd (AAB) would result in a gain of RM6.07 billion.
Do you believe in fairly tale? That debts, lease payment, trade and other payables just disapear into thin air? Or is this a scam of zero sum gain? What is gain by capitalA will be a lose to Newco. So what will be Newco balance sheet look like?
Do anyone know what is Stony talking about below on what will happen to AAX? Has Stony already get investors for the RM 1 billion PP? What do it mean because we're doing a dividend in specie, we have to get the court's approval for a capital reduction?
AirAsia X told Bursa Malaysia on Thursday that it will first create a new entity — called AirAsia Group Sdn Bhd — to take over the listing status, raise RM1 billion through private placement, before taking over the airline businesses from Capital A.
“So the first thing is get the circulars done for this transaction, which I hope will be done in two weeks,” said Fernandes on Friday.
“Then we have to submit it to Bursa Malaysia for approvals of the circulars, which I hope can be done quite quickly. Then we have 21 days to call the EGMs (extraordinary general meetings) from both companies to approve this transaction.
“Once that's done, because we're doing a dividend in specie, we have to get the court's approval for a capital reduction. And then we can list [AirAsia Group]. So the timing of the formation of the aviation group, our present timeline is about September,” he added.
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....
limch
2,962 posts
Posted by limch > 1 week ago | Report Abuse
LU some comment why cannot see?