Good news is coming out soon from Fed... as a good gesture in Ramadhan. With this gesture, it will give good mileage to BN in capturing the by-election in Besut.
any political risk this deal will not succeed since PR is going to court to nullify the entire 222 MP seats ? without political will this deal is just good on paper right?
Profit taking gradually set in, already reach distribution cycle (lower volume) after marked up last 2 days (spike volume). As water consolidation is still ongoing, any materialize deal may not reach so soon, have to wait till end of the year. Advice to locked in profit first and buy back later on weakness again.
I doubt it. However, It could seek further extension of 1 month with KDEB, under SPA 3month + 1month. KPS must seek shareholder approval first before the deal is seal.
another complexity of the water deal is the bond issued, apart from puncak wanted a sky high price and operation right of L2. u can expect non-stop huuuu-haaaaa of both the deal and share price
The delay i believe is due to State gov need to secure additional budget approval in the state assembly to buy KHSB from KPS and later privatize KHSB. However, there should have no problem in passing state budget increase as PR have majority seat in state assembly. As KDEB is holding company for KPS, it have no problem to grant additional 1 month extension to seal the deal as stipulated in SPA agreement 3 month + 1month extentsion
Agree, but both Fed and state must cooperate in order to complete these mulitbilion Langat 2 project. Somehow, it must reach compromised deal with each party take and give by compensation
The impasse now must be resolve as these outstanding issue has keep delaying in hope for political settlement in last GE13. Nonetheless, the political remain status quo, it can't delaying anymore judging from urgency now o complete langast 2 project
Oil and Gas contract; Maintenance and operate arrangement; willingness PAAB to absorb goodwill and surplus from revaluation assets; Indah water concessions up for grab etc are among the option to entice player to accept take over
Between Puncak and KPS, I weight more on KPS as the risk is lower and cushion further by upcoming special dividend of 26.6sen after completion disposal of KHSB
Both also have oil and gas division, but Puncak is involve direct upstream in oil and gas field, whereas KPS is involve in downstream to distribution gas after it acquire from shell
Puncak oil and gas division is contract base, command higher margin 40%, whereas KPS oil and gas is sustainable as it acquire shell gas distribution unit (rename brand from shell gas to Mida gas) (40% stake) and will deliver steady and consistence earning, commanding profit margin 15%
KDEB is holding company of KPS, controlling 60%. It is wise move for KPS after disposed its stake in KHSB to KDEB, and payback part of the purchase cost through special dividend. Similarly, if KDEB wanna to take over stake water assets held by KPS, namely Abbas and Splash, it will again payback KDEB by another special dividend
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....
optimuslyk
67 posts
Posted by optimuslyk > 2013-07-13 14:34 | Report Abuse
The more it drop, the more opportunity for higher gain when it rebounds :)