Not to dampen the high expectation of return as shown by many of you, may i take a cautious views to draw your attention on the following matters Upon completion of disposal on 13/10/22, 1. Compensation receivables (80.5M) - this amount is still pending certification by Malaysian Highway Authority. EGM circular says "If the Government of Malaysia actually settles less than the amount receivable shown in this Circular for any reason, then the relevant Concession Holding Company bears the full risk of this shortfall. 2. Retention sum (20.5M) - uncertain whether there is any warranty claim (retention period will only expire on 31/1/13)
Anyway, i do hope that there is no significant impact on capital repayment should the above events unfortunately occur. Note: EGM Circular Pg 118 refers
taitaumau, the circular also says that the actual amount received compared to the estimate has always been +-5% historically. The future interest income should cover for any shortfall. and if i am not mistaken, there is also a WACC return on that retention sum that ALR has to pay to Litrak.
No, its asset is 100% in cash, but only 90% of the cash is in designated trust account which can only be distributed to shareholders or acquiring new business. Balance is in normal bank account under BOD's free control.
Csan, the regulation stipulates that at least 90% cash in hand must be placed in a designated trust account. Could be more than the estimated future expenses. Need to wait for the next results to see the trust amount.
taitaumau, as you pointed out earlier, government receivable around RM80million, retention sum around RM20million. but balance sheet only has RM75million receivable. any idea where is the balance RM25million? or is the RM75million in the balance sheet a conservative estimate?
Scan, my understandings (may be wrong): 1. Sprint disposal proceeds for compensation rec. (47 x 1/2) and retention monies (7 x 1/2), Total= 23.5 + 3.5 = 27 M (b4 any warranty claim) is receivable by Ass. Co. (Sprint Holding, S, unlisted). This amount will only be reflected in Litrak Holding ( H, listed) upon receipt ( under equity accounting) 2. This amount is hidden in Holding A/C under the heading "Assets held for distribution" , though the value is stated nil, in order to comply with Acc. standard 3. This sum, TOGETHER WITH OTHER ASSETS x 1/2, IF ANY, will be distributed to H , via capital repayment exercise,
taitaumau, oh yes i missed that associates part out. so there is actually still another RM25 million not in the net assets of the balance sheet yet? well, now should be RM15 million after warranty claim and this would make the net assets approximately RM0.54. is that right?
Bstead nta 1.62. Net debt 6.85Bil. Share price 0.655. Insas nta 3.16. Net cash 789Mil. Share price 0.77 Kseng nta 6.74. Net cash 1Bil. Share price 3.53 Insas & Kseng look juicier for privatisation than Bstead.
49.5sen to 54sen is not small money. just be aware of the risks pointed out by taitaumau earlier. but i do think the market is wrongly valuing it by taking the latest net assets and deducting RM10 million from that. they forget that there's another RM15 million that is hidden away. anyway, these kinds of pricing mistakes is how some of us can make money.
Good News !!! Reference is made to the Company’s announcements dated 13 October 2022 in relation to the completion of the Disposals. The Board of Directors of LITRAK Holdings wishes to announce that the Company had on 6 April 2023 received an amount of RM57.94 million from ALR representing the balance of Government Compensation Receivable pursuant to the SSPA. With that, other than the Retained Amount in relation to the ALR Warranty Claims as announced by the Company on 4 April 2023, all proceeds from the disposal of LITRAK have been received by the Company. This announcement is dated 6 April 2023.
samanthalee1024, no. it will be around 52-53sen. because there is some dilution from exercise of ESOS. 52-53sen assumes the RM1.7million interest per quarter remains the same in the upcoming quarters. but its likely to be a little higher because of OPR hike.
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