Dispose land & warehouse at RM399mil. All money being used for repayment of bank borrowing and working capital. Zero cents of dividend payback to shareholder!!! After dispose the land, have to lease back at RM20mil per annum, signed 5 years contract, RM100mil rental expenses is locked.
Just imagine, with current situation (self owned land), Pelikan is making losses. After dispose the warehouse, need to pay lease expenses of RM20mil per year, mean its existing losses will be widen by RM20mil in coming years.
Worst things is this transaction is expected completed by Dec 2021. Mean, the lump sum gain will only reflected in Feb'2022. It is approximately 8 months from now before you can see the result. 8 months, alot of thing can happen, PM can change two times within 8 months, Covid-19 can change to Covid-21 as well.
The Disposal Consideration will be mainly used for the Group’s working capital requirements, rewarding the shareholders through special cash distribution, further reorganising its operations internally and for partial repayment of its bank borrowings, thereby enhancing overall profitability and lowering its financing cost.
Reduce the debts first, then only talk about profit. Common sense la. It is better than proposing right issue, private placement anyway. Company did a good moves.
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....
DickyMe
14,932 posts
Posted by DickyMe > 2021-07-07 16:03 | Report Abuse
Limit Up...66 sen...cipat mali...Huat chaiii!