Posted by 2Invest > 2022-04-29 13:30 | Report Abuse

Dear 80 Gram;

"Speaking to The Edge in an interview on Wednesday (April 6), Rashdan said Gamuda is looking to conduct the extraordinary general meeting (EGM) in the third week of May to seek approval from its shareholders."

https://www.theedgemarkets.com/article/gamudas-highway-sale-conclude-early-endmay-says-deputy-group-md

If voting result pass during EGM then only can proceed

Posted by 2Invest > 2022-04-29 13:32 | Report Abuse

Keep our fingers crossed

Posted by csan > 2022-04-29 15:24 | Report Abuse

80gram, oh. you have definitely misunderstood it. 30 april is last day for gamuda and litrak to accept the offer. they have already accepted the offer 2 weeks ago. now it is ALR's turn to do due diligence and issue bonds to finance the highway. both gamuda and litrak will also conduct an egm at the same time. everything should be concluded by 31 July.

Posted by Nikola > 2022-04-29 16:54 | Report Abuse

Pursuant to completion of the acquisition by ALR, Litrak holdings would have received an estimated equity value of RM2.698 bil for Litrak and Sprint. Gain from disposal of subsidiary and associate would amount to RM2.255 bil after taking into consideration of cost of investment in Litrak of RM50 mil and cost of investment in Sprint of RM392.93 mil.

With a gain on disposal of RM2.255 bil coupled with pre-existing retained earnings of at least RM100 mil, Litrak Holdings will be able to distribute dividend of RM2.355 bil, or 87% of total proceeds from disposal.

The remaining RM343 mil, or 13% of the disposal proceeds will have to be distributed via capital repayment. Pursuant to revised Companies Act 2016, the procedure for capital repayment is no longer that onerous. Companies Act 2016 introduced an alternative method for affecting capital reduction which can be done by passing special shareholders resolution and for the directors to provide a solvency statement, which is essentially a statement in writing signed by the directors that states the directors are satisfied that the company is able to pay its creditors, honor its next 12 months debt obligations and that its assets is more than its liabilities after the capital repayment exercise. The time period required for this process is generally 8 weeks from the date of the special shareholders resolution for capital repayment is passed.

Posted by valuewood11 > 2022-05-16 22:30 | Report Abuse

is there special dividend?

Posted by csan > 2022-05-23 21:45 | Report Abuse

https://www.ram.com.my/pressrelease/?prviewid=5986

Posted by csan > 2022-05-23 21:48 | Report Abuse

rating has been given to the proposed debt. the next step is to complete the due diligence, get the government approvals, issue the debt and complete the highway purchases. what's new in the press release was the expected debt issuance by 24 June 2022, 1 month earlier than the deadline for the deal on 31 July 2022.

Posted by speakup > 2022-05-23 21:50 | Report Abuse

besok limit up?

Posted by csan > 2022-05-24 11:39 | Report Abuse

speakup, for sure not. but it's exciting to see profit taking. matter of time before it goes to RM5.

Posted by EVEBITDA > 2022-05-25 22:38 | Report Abuse

wait for Litrak Q4 (march 2022) results. if they pay higher dividend than 15 sen can say the ALR deal is a done deal.

Posted by csan > 2022-05-26 23:32 | Report Abuse

they won't pay dividend. it's already in the RM5.08 takeover offer. if they pay 15sen, takeover price will be reduced by 15sen.

Posted by EVEBITDA > 2022-05-27 00:07 | Report Abuse

Ya agreed any dividend paid will reduced final payout. But as shareholders if the deal is a done deal they rather payout extra cash now vs waiting to complete the sale. Litrak has excess cash vs loan repayment and other obligations, so should be able to payout now if they are confident the deal is a done deal, just logistics. if the normal 15 sen, business as usual until all is signed and sealed.

Posted by investortrader88 > 2022-06-03 13:24 | Report Abuse

Last 2 weeks i sold my tickets at RM4.66.bought last year average RM3.61.good luck everyone.

Posted by rohank71 > 2022-06-08 14:55 | Report Abuse

circular for the EGM to dispose assets to be issued in 2 weeks. and EGM on first week July

Posted by csan > 2022-06-08 17:48 | Report Abuse

investortrader88, and wait 5 days later you get RM4.86 lol

Posted by taitaumau > 2022-06-08 18:02 | Report Abuse

My views - best scenario ??
1. pay 4,870 now
2. Incur trading expenses & interest, say 62 till receipt of special dividend say 4,540 within 90 days
3. Remaining holding cost : 392
3. Since CO. HAS NO INTENTION TO MAINTAIN ITS LISTING STATUS, share will be suspended after x-dividend ?
4. wait for 4 months to get back capital repayment 540
5. Interest lost on 392 - 4 months: 4
6. 7-months holding profit: 144
7. Good for cash rich investor ??

Posted by investortrader88 > 2022-06-08 20:11 | Report Abuse

csan

investortrader88, and wait 5 days later you get RM4.86 lol

2 hours ago

@csan.i earn 29% good enough.investor who bought my tickets if hold until now earn money .market will be alive .luckily im not clever enough not a sifu selling at the highest price each stock i bought.im easy to be grateful.

Posted by ahyen10 > 2022-06-08 23:55 | Report Abuse

https://www.theedgemarkets.com/article/litrak-distribute-rm508-share-highway-sale-does-not-intend-maintain-listing-status

Posted by marqdesade > 2022-06-09 14:53 | Report Abuse

can anybody enlighten me what is the scenario for the shareholder after this is carried out? We receive rm5.08 div but post voluntary delisting our shares will be worthless?

Posted by csan > 2022-06-09 20:05 | Report Abuse

investortrader88, i can see that you got scared when share price was persistently low at those RM4.65 levels. never a good reason to say you earned 29% and its good enough. instead, i would try to learn to better evaluate the risks next time. privatisations of companies like MAA and CCB failed for strong reasons but its difficult to see how Litrak will be the same.

marqdesade, the company is worth RM5.08. when you liquidate the company, how can it be worth anything after that?

Posted by csan > 2022-06-09 20:06 | Report Abuse

the minute ALR issues the sukuk, this is a done deal. no need to bother about the EGM.

Posted by rohank71 > 2022-06-12 22:22 | Report Abuse

Mgmt and Bursa hope to issue circular this week for EGM on or before 29 June.

Posted by IronShirt > 2022-06-13 14:38 | Report Abuse

no meat at current price. Let epf have it All

Posted by rohank71 > 2022-06-14 08:18 | Report Abuse

circular to be out by 5pm tomorrow in line for EGM on or before 30 June.

Posted by csan > 2022-06-14 09:14 | Report Abuse

i am going to have to backtrack a bit here. what has caught me by surprise was the increase in 10-year Malaysian Government Securities (MGS) yield to more than 4.2% over the past few days. ALR will find it very difficult to issue the sukuk at a yield below 5% since this sukuk is not government guaranteed. without guarantee, yields are always 1-2% higher than the 10-year MGS. if ALR is forced to issue the sukuk at above 5%, there is a likelihood of the Litrak takeover price being revised down.

Posted by csan > 2022-06-14 09:15 | Report Abuse

rohank71, no. the rules state a minimum of 21 days is needed. the deadline to issue circular for 30 June EGM is long gone. and in any case, the EGM is not important at all. it is all about the issuance of the sukuk by ALR. shareholders can pass the resolution at the EGM but if the sukuk cannot be raised, the deal cannot proceed.

Posted by Just88 > 2022-06-15 10:39 | Report Abuse

How to know whether ALR has issued the sukuk ?

Posted by csan > 2022-06-15 13:06 | Report Abuse

just88, RM5.5 billion sukuk - for sure you will read in the news when it is issued. its a giant amount by industry standard.

Posted by csan > 2022-06-15 13:08 | Report Abuse

my feeling is this takeover will proceed. but takeover price could be reduced depending on what rate alr raises the sukuk at.

Posted by rohank71 > 2022-06-15 14:45 | Report Abuse

@csan, I also though 21 days but was corrected by friend that's it's 14 days as per SSM requirements unless Litrak M

Posted by rohank71 > 2022-06-15 14:46 | Report Abuse

@just88, can get it from Rams press release.

Posted by rohank71 > 2022-06-15 14:48 | Report Abuse

EPU, LLM, MOF has all given approval. now only pending Bursa approval of Circular. Bursa very powerful

Posted by Just88 > 2022-06-15 15:10 | Report Abuse

Thank You

rohank71

@just88, can get it from Rams press release.

23 minutes ago

Posted by Just88 > 2022-06-15 15:57 | Report Abuse

All general meetings other than AGM shall be called Extraordinary General Meeting (EGM).

14 days notice for AGM and EGM where ordinary resolutions need to be passed.

21 days notice for AGM and EGM where special resolutions need to be passed.

28 days notice for AGM and EGM where ordinary resolutions requiring special notice need to be passed.

Posted by Just88 > 2022-06-15 15:58 | Report Abuse

I think this one requires 21 days notice

Posted by csan > 2022-06-15 18:40 | Report Abuse

rohank71, no the sukuk has not been issued. you can't have the egm if alr cannot raise the money. if you hold egm and later the offer price is reduced, you need another egm.

Posted by Just88 > 2022-06-15 18:57 | Report Abuse

Csan, based on the news, I thought it should be egm first then sukuk issuance .

Posted by Just88 > 2022-06-15 19:08 | Report Abuse

KUALA LUMPUR (April 7): Amanat Lebuhraya Rakyat Bhd's (ALR) proposed takeover of the four highway concessionaires linked to Gamuda Bhd is expected to conclude in end May or early June this year, according to Gamuda deputy group managing director Mohammed Rashdan Mohd Yusof.

The RM5.48 billion offer by ALR was officially received by the holding companies of the concession holders on April 2.

Speaking to The Edge in an interview on Wednesday (April 6), Rashdan said Gamuda is looking to conduct the extraordinary general meeting (EGM) in the third week of May to seek approval from its shareholders.

“Once we get the green light from shareholders, then the week after that they (ALR) can issue the sukuk and pay us (Gamuda)... hopefully by end-May or early June,” he said.

The exercise will also require the approval of bondholders of the concessionaires. It is understood that ALR is also seeking to have the same bondholders subscribe to its sukuk that will be issued to fund the acquisition.

Posted by Just88 > 2022-06-15 19:09 | Report Abuse

https://www.theedgemarkets.com/article/gamudas-highway-sale-conclude-early-endmay-says-deputy-group-md

Posted by csan > 2022-06-16 14:34 | Report Abuse

just88, like i said, what's the point of holding egm if ALR cannot raise the money at below 5% yield? if ALR need to raise at 5+ or 6% yield, they need to reduce to offer price. and then call another egm to vote for the new takeover price? that's why u have not seen them calling for egm until now.

Posted by rohank71 > 2022-06-16 15:46 | Report Abuse

conclusion. not able to raise bonds below 6% yield, no EGM even after MOF and EPU approve the proposal?

Posted by csan > 2022-06-16 16:14 | Report Abuse

deputy MD of gamuda in that article posted by just88 above mentioned cost of capital below 5%. i am not sure if 6% if the threshold. i am in the midst of finding out. based on that article, i would imagine a maximum of 5%.

Posted by 2Invest > 2022-06-16 16:36 | Report Abuse

Guys, chill.

Don't worry about the Sukuk. It will be a done deal.

Posted by rohank71 > 2022-06-16 19:04 | Report Abuse

the window to complete the deal before 30 June is over

Posted by Just88 > 2022-06-16 19:43 | Report Abuse

Question : since they knew they are not able to complete the deal by 30 June, why did they still base their valuation as at 30 June ? If the deal is completed after 30 June, do they have to revise the price up to the completion date ?

Posted by Just88 > 2022-06-16 19:46 | Report Abuse

Note that the targeted financial close date for the sukuk is 24 June 2022

Posted by csan > 2022-06-17 07:35 | Report Abuse

2Invest, at below 5% yield?

Posted by 2Invest > 2022-06-17 17:28 | Report Abuse

Dear CSan;

We don't actually need to know about the coupon rate. Unless interested in the sukuk to be issued.

Normal protocol once if the authority approve ALR's application, ALR will appoint a commercial bank as their Principal Adviser & they will have joint bookrunners (other commercial banks) to sell bond for them. Then only institutions/retail investors will have a chance to buy. (Limited to HNWI for individuals) Unsold remaining units will be hold by banks.

ALR will still receive amount that they ask for if they agree terms from the banks before open to the market.

Not too long ago Exism, Sabah Development Bank & MBSB also issue with ok reasonable coupon rate sukuk only.

1 slightly higher than MGS, 1 about the same, another one actually lower.

Don't worry

Posted by csan > 2022-06-17 18:46 | Report Abuse

mbsb is backed by epf so it won't fail. exim and sabah development is close to government guarantee, so it should be similiar to mgs. not alr. the minute we have some black swan economic event, you can kiss your traffic growth bye bye.

Posted by 2Invest > 2022-06-17 20:23 | Report Abuse

Chill, chill. Tenang, sabar.

Being shareholders of Litrak, our concern should only on EGM result for now.
Once if EGM pass, ALR will issue sukuk to pay Litrak. (We don’t have to bother how many % ALR agreed pay to banks)

May be some of us here will ask what if failed?
Then we have to ask question like
Can I accept DY at 5.++% instead of 6.++% for the next 2 years? (May be some of us here having higher holding cost & 2 years later most likely will have a higher DY)
Continue to hold for the next 10 years if YES, else sell it off.

Pass those concern about bond coupon rate or how ALR financially sound? Or whether if ALR can pay on time etc…… to the bondholders

BTW, you are very resourceful & informative & I must thank you for that.

Cheers!!! Keep our fingers crossed