Integrated Logistics Bhd (ILB), which in June announced the disposal of its two Chinese units for Rmb998m (RM533.9m) cash, proposes to reward its shareholders with a special dividend amounting to RM181.2m. Based on a share capital of 164.7m, the proposed special dividend will translate into a net payment of RM1.10 per share. means buying in now will get RM 1.10 plus business for only 86cent.
I think the dividen proposal will mostly approved end of the day, not an issue. However what is the outlook of remaining business and what the mgmt intended to do moving fwd is the key.
according to their circular, proposed special dividend estimated within 3 months from the date of receipt of the proceeds from the Proposed Disposals.Tentatively they expect end of Oct 2013 to completion of the Proposed Disposals
within 12 months they have plan for strategic aquisitions within the industry in which ILB Group operates. It is tough for Logistic company to earn money, So i prefer they annoucement capital repayment with their huge cash of RM166m.
i have took profit and stay away from this counter earlier. As said there is no visibility on the profitibility of remaining operations. The Dubai JV operation not doing well and poses greater losses this quater, there is no cash cow in IL business portfolio as whole. It looks to me they have nothing left beside the cash pile after sales of China operations.
Looking at the price movement today, most likely the sale of China operation is completed and special dividend of RM1.10 is on the way, expecting ex-date soon. Cheers.
i think so ... today volume 2.5m, very encouraging. They are supposed to conclude the sales by this month end. After disposal, netcash per share is 2.10, no borrowing ...
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tonylim
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Posted by tonylim > 2013-09-05 11:57 | Report Abuse
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