I find this announcement funny as well. Cause from the earlier announcement, it was suppose to be a French company named Autajon and it is for 5 subsidiaries of the company. One in JB, one in Thailand, one in Indonesia and the other two in China. So, with the disposal of these two losing money subsidiaries, which I believed would have been supported by the other 3 other subsidiaries, that would mean that the remainder 3 subsidiaries should be doing pretty well. Would there be another announcement for the other 3? Well... your guess is as good as mine. LOL!!!
Which one bro. I basically just browse through their announcement and also comment from Nicholas. Bear in mind, I don't work there and have no idea what the owner is planning. The two subsidiaries were in fact losing money and as a management, if I am their management, it would be best to dispose them and keep the money making subsidiaries. Otherwise the profit made would have been pulled down by the money losing subsidiaries.
Secondly, the initial announcement mentioned Autajon which I believed is a French company. Out of nowhere, come this new entity and again, based on the initial announcement, the deal was for 5 subsidiaries but the latest announced SPA only involved 2. So, is the other 3 off the deal or will there be another one more deal? Autajon?
That is why I said, I find this announcement funny cause no head no tail. Not meant to confuse others as I myself am confused mah.
Ya agree with you bro stingray...steady,the mentioned co is not new entity,it is indirect linked to autojun as well and the said subsi for komark Seems healthy too.but anyway,this hopefully will pave the way for further movement for corporate deal
Ahhh... I see. I wasn't paying attention on that. If it was a new company, then I would assume that it is a SPV for the takeover. Since, it was not new, I thought Autajon was never involved. Otherwise, why would they use another name when it was Autajon that send in their interest. See the confusion? Haha.
Hi Stingray! Yes the whole SPA is very confusing. But it is sort of giving hint that Autajan is serious about the deal and likely that the other money-making subsi will be sold at a reasonable price. Fingers crossed.
lagora is the subsidiary of autajon. For the latest announcement, they bought the China & HK division for MYR48m. I consider that is good news because Komark Bhd can sell lost making division with entirely cash compensation. For other remaining subsidiaries in ASEAN, I think there will be further announcement before 26th May. Autajon will mostly takeover whole ASEAN market as they have no foot soldier in this region. Weakening Asean currency at this moment is best time for Autajon to proceed further with this acquisition. Hold you tickets and wait for good news.
which part of the pdf attachment mention that China subsdiaries is making losses? Can someone please guide me page what or which section from the pdf attachment?
It also stated some of the machine in China will be shifted to other ASEAN country.It is means no more selling factory after this?? Currently China generated 70% revenue for Komark group :)
Volume is low today with such a big drop. Operators are you attempting to wash us out? LOL. Btw the S&P is confusing. It sounds like they are not going to sell other subsi.
After sold the China subsidiaries, the NTA become 0.63, but no debts. If Komark stop selling other Asian subsidiaries, i believe the owner have the ability to turn the company back to profit in future.
first of all, the sale of one of the subsidiary = 0.38 per share, there are 4 subsidiaries are going for sale, so why scare they cant be more than the share price now 0.455. Panic sell had been triggerred by so much low volume, u knw uncle lim and their investors hold how much shares? Its about 20% of the total shares, approximate 25mil. they are not selling at all. We died they also die, u only invest how much, they invest 25mil.
Cesc you are right. Too bad market is not rational. Market is of the fear that the other subsi will not be sold and hence the original expectation failed. But the panic sell is indeed overdone.
The panic sell is due to Komark only sell one of his subsidiary, and the rest are not interested by the buyer, because the buyer only interested on the China market, and not the Asian.
Alan yes but Cesc means after the sale, the NTA is still much higher than the current share price. Also likely will be more profitable as losing subsi in China are sold.
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Posted by bigbigboss > 2016-04-21 22:50 | Report Abuse
how about the deal ? still going on ?