According to B.I.G Industries Bhd’s 2018 Annual Report, List of properties held by the group as at 30th June 2018, Item#14, a 54,635 sqm (13.5 acres) of land that was acquired in 2004 in Bukit Cerakah, Mukim Bukit Raja, Negeri Selangor, was owned by the company with a Net Book Value of RM5.376mil. However, on 30th Aug 2019, the company decided (for unknown reason) to write down the value of this property by RM5.276mil (citing this amount was the development cost on the property), leaving only RM0.1mil consisting of land premium cost in the balance sheet. This property was parked under a subsidiary named Tani Kukuh Sdn Bhd (TKSB). However, according to the latest 2021 Annual Report, the entire interest in TKSB was disposed for RM1mil. Based on prices of land quoted by certain property website, land in Bukit Cerakah is worth between RM50 to RM80 per square feet (1acre = 43,560 square feet), meaning the 13.5 acres of land parked under TKSB was worth between RM29.4mil to a whooping RM47mil. Does anyone know if this 13.5 acres of land was included in the equity disposal of TKSB?
Once price is low enough, i bet a Private Placement up to 20% of the share capital will be executed (with further discount to market price), and further diluting the stakes for minority shareholders. Btw.... they have up to end of this month to issue up to 20% of share capital via private placement. This private placement should have been completed when market price is near RM2/share for existing shareholders to benefits from this capital raising exercise.
Bingo!! Private placement done at the lowest price ..... not at the best interest of minority shareholders. If i'm the major shareholder, I would have done the same ;)
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Posted by targetinvest > 2021-10-26 21:33 | Report Abuse
@tiberian, first there will be a private placement of 20% new share.
Expect it to be placed at RM 1.50 range.
Subsequently will goreng to RM 3.
How big can it go? For long term, it will be a cash cow... I will tell you why soon