@taciturn, did you saw a madman escorted by a 'lawyer', 'shooting' the MD in the EGM as he said he'll. Or the rubbishman was bullshitting us again as expected. Or maybe he was not managed to borrow a pair of balls from his friends if he got any or he just couldn't afford to keep his 100 share of Ben.
tshwong: Lol, no I don't think he was there. The fact that 100% of votes were in favour of both resolutions seems to imply it so. I was expecting to hear something like 99.999% in favour and 100 shares against. XD
Here's a copy of the email to my peers regarding the EGM.
Okay, Benalec EGM update.
Both resolutions (land sale and ratification of heads of agreement) were passed.
Voting was done by poll. 100% votes in favour for both resolutions.
Here's what I've learned thus far. Any errors are due to my own (mis)interpretation
1) Sri Tanjung Pinang 2 - Benalec will definitely be participating when tenders are called for. Whether their prospects are good, it's hard to say.
2) Remaining land concession between Pulau Indah and Melaka amounts to 600 acres. Of this amount 400 acres have _already_ been reclaimed and is awaiting to be sold.
3) EIA for Tanjung Piai is still pending. Management is confident with regards to off-takers taking plots from 1MYSOT. Hopeful for approvals to happen by the end of the year. (My impression is that they're highly confident on this point - call it a gut instinct on my part - take note that this is not gospel truth! Just my impression)
One of the interesting points made by the MD is that he's not in favour of signing MoUs in advance for the sale of reclaimed land. He'd rather reclaim the land first, show it to a buyer and then come to an agreement. His analogy was pretty good, land under water is not as valuable as land above it. :p
Contrary to the article by the Malaysian Insider, reclamation work has _not_ started. My impression is that they've moved some equipment and materials on site in readiness. You do not need EIA approval for materials on site. Heh.
4) For the RM235m land sale to Ultra Harmony Sdn Bhd (128 acres), almost half of the amount has been reclaimed, with work on-going for the other half. I'm actually pretty amazed at how far ahead they are on this. In the circular the expected date of completion of the sale for each of the 4 stages (roughly 30 acres each) is May 2015, Oct 2015, Feb 2016 and Jul 2016.
At the rate they're ahead though it sounds like they've got a good chance of wrapping this up early. If so, that's a huge plus point.
Should've asked to clarify if their timeline is ahead, but it slipped my mind. Either way, I don't think they're going to be late in delivering vis a vis the expected completion as per the circular.
It was interesting to hear that depending on conditions they are really able to reclaim land at the rate of between 0.5 to 1 acre a day.
5) Confirmed that institutionals/funds are actually interested in Benalec again and that they've requested to meet (or have met) the management. The board seemed a little surprised at this as they thought this would only happen after the HoA is ratified and put to rest.
MD's impression is that institutionals have increased their stakes by at least 10% of the company's paid up over the last week (this is my interpretation of his statement).
6) A question was asked whether Benalec would take part in the reclamation of Forest City (for Country Garden of China) in Johor (area about 2000 ha), interestingly the Board declined to answer since it's currently a sensitive matter. (At least that's what I interpreted it as)
If true, this is definitely an interesting point as I didn't think Benalec would be involved in any way.
7) Regarding the sale of 45 million shares @ 77 sen in Benalec by Oceancove Sdn Bhd (the family holding company) on 9 April 2014, the MD was very forthcoming as to the reason which I found to be highly credible.
He explained that he (Vincent Leaw - and also implicitly also includes elder brother Leaw Ah Chye) had bought out his eldest brother's (Leaw Tua Choon) stake in the family company and needed the funds to pay him.
The shares were thus placed out and sold at a discount to raise the funds needed.
His explanation here was good, his stake in the sale of the shares was about 20 million shares (which means a loss of about 13 sen at that time per share - RM2.6m. This is my interpretation), but his (indirect) shareholding in the company had increased by 70 million from the buyout. Thus he's still up by about 50 million shares and since then Benalec's share price has gone from 90 sen to 1.10-1.20 (20-30 sen profit, so about RM10m-RM15m up). So he's still ahead.
I did not inquire at what price he bought his brother out, but safe to say it was probably at a discount to Benalec's share price.
Overall I came away from the meeting a lot more confident than before about the company's prospects (also the fact that HoA resolution passed with 100% helped - and that only one item remains to be completed - the Access Road issue which is minor in the greater scheme of things).
Vincent Leaw definitely came off as a credible (and determined) character. He carried himself well in answering questions.
I also liked a comment made by one of the other directors in an aside with me where he stated that Vincent Leaw really knows how to make the company money.
thanks taciturn for the write-up. I for one am equally happy that the resolution on ratification went about with ease. The problem is finally done and dusted with and the company can concentrate on making money now. EIA approval should not be too far off. Was also wise for the directors to keep a distance from the Forest City affair until things are settled.
xnciiyi44: If you only want facts, that's easy. Read the annual report, quarterly report and any announcements on bursamalaysia's website made by the company. There you go, facts.
If you want negative views (regarding Benalec), non factual (never seen any research) and extremely brief statements (usually one word descriptions, i.e. rubbish, nonsense et al), you know who to look for.
If you want my analysis/views (which are not facts but based on my interpretation of most of them), they're here for all to see. I can only stress that since it's my own work, it's what I believe in but should not be taken as gospel truth.
Sorry, but if you want it to be brief, you'll have to look elsewhere as I won't be able to help you there. As I'm sharing these postings for free (and my own personal enjoyment), I see no reason why I should have to come out with even simpler versions to suit another person's needs.
benalec did not pay 200mil upfront payment to 'sultan johor'..then how can they proceed with tanjung piai project??..they should pay and start making money afterwards..this is johor reality..hehehe
Price went up recently was artificially created to give feel good factor before the EGM. Apart from get syndicates to play the share price, spinners were also deployed to tell all sort of good things before the EGM. This kind of thing has been played all the time. Forum here no exception
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Posted by splendid_ignorance > 2014-06-25 11:03 | Report Abuse
Note, the land reclamation that is mentioned in the article has nothing to do with this company...