Posted by Siva68 > 2014-09-22 17:24 | Report Abuse

GuruB, could be side ways for awhile. Yes, will wait to see pattern from Tues to Fri. It has been still fluctuating in a tight range. Also waiting for some announcement. My prediction will be, price to peak before any good announcement.

Posted by GuruBursa > 2014-09-22 19:32 | Report Abuse

Siva, thanks for your comforting words :)

The interesting thing is with the two months timeframe already over, the company has yet to make any announcement to Bursa whether they require more time to evaluate the expression of non-binding interest and the ensuing due diligence by the party that made the non-binding interest, at the very least, for good governance sake...

Posted by 4u2c > 2014-09-22 19:52 | Report Abuse

support fading....n macd = red........not too good a sign ...im not too sure

Posted by Siva68 > 2014-09-22 19:56 | Report Abuse

GuruB & 4u2c, thanks for all infos. Lets wait and see. Hope something good surfaces.

Posted by 4u2c > 2014-09-22 23:42 | Report Abuse

keep the faith n stay close to 79 cts

Posted by kelesl > 2014-09-23 10:22 | Report Abuse

Wonder why no announcement yet??

Posted by GuruBursa > 2014-09-23 16:14 | Report Abuse

Siva, with Tuesday almost gone, we look forward to Wednesday - Friday...

Posted by Siva68 > 2014-09-23 21:25 | Report Abuse

OK, GuruB, no answers too. Let them play their game (big ones we too cannot fight). Have to make own judgement. May be want to keep some and sell some. Invest elsewhere.

Posted by Siva68 > 2014-09-23 21:41 | Report Abuse

GuruB, my above statement is just my perception only.

Posted by GuruBursa > 2014-09-24 02:07 | Report Abuse

Thanks Siva... Probably need to wait till October...

Posted by kelesl > 2014-09-24 12:07 | Report Abuse

Hi bovun, any idea of the announcement date or tentative price?

Posted by leon7 > 2014-09-24 12:32 | Report Abuse

Very low volume so far today. Minor drop is just due to overall market sentiment. Of course warrant holders will chicken out and sell down. Let's see how it goes.

Posted by char1234 > 2014-09-24 12:47 | Report Abuse

What price set? I hv some warrants. Sell ?

Posted by kelesl > 2014-09-24 13:04 | Report Abuse

Since the share price is now hovering around 70 cents to 80 cents so can it leads us to believe that the deal price is round this range...

Posted by GuruBursa > 2014-09-24 14:55 | Report Abuse

Siva, looks like it will drop to 70c level as mild selling continues to persist...

Posted by Siva68 > 2014-09-24 17:06 | Report Abuse

This fellows will drop price suddenly than move up. Possibility of that too.

Posted by Siva68 > 2014-09-24 17:34 | Report Abuse

Support level is at 0.715. If it goes below than that have to make own decision.

Posted by Superman > 2014-09-24 18:13 | Report Abuse

ANNOUNCEMENT MADE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
ACQUISITION DEAL IS ON!!!!!

FLY TOMORROW!!!!! FLYYYYYYYY~~~!!!!

http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/613390C1105C574D48257D5D0034A3DA/$File/ABRIC%20BERHAD_Proposals.pdf

Posted by Siva68 > 2014-09-24 18:26 | Report Abuse

Alright, thanks Superman for the update. Still trying to digest the whole announcement and fair value, also the 30% dividend.
For warrant holders the conversion price is @ 0.30, 1:1 which exactly translates to closing of mother price, ie 0.435 + 0.30 = 0.735

Posted by persie > 2014-09-24 19:23 | Report Abuse

When 30c is given as dividend, what should be the abric price ?

Posted by chengyee > 2014-09-24 20:05 | Report Abuse

Means they reward shareholder with a special dividend of 30sen from the disposal gain?

Posted by GuruBursa > 2014-09-24 20:19 | Report Abuse

Siva, there are 3 scenarios that could possibly happen to the share price tomorrow:

1) Price goes up by 30c or part thereof; or
2) Price stays at current level; or
3) Price goes down, buy on rumours sell on facts.

At the end of the day, the "market forces" will "determine" the price movement from hereon... :)

Posted by Ring > 2014-09-24 20:59 | Report Abuse

KUALA LUMPUR: A FTSE 250 company Essentra plc, which makes plastics products, is buying 100% of Abric Bhd’s main operating subsidiaries for RM146mil.

Posted by Siva68 > 2014-09-24 21:10 | Report Abuse

GuruB, thanks and as Ring mentioned above, they are buying @ 146MIL for the 100% stake. I am still in a limbo on what would it translate towards price per share should the company acquire them.

Posted by 4u2c > 2014-09-24 21:23 | Report Abuse

how many shares in total does Abrick has ? rm 146mil/by that = price per share ???

Posted by GuruBursa > 2014-09-24 21:29 | Report Abuse

Siva, the RM146m price tag is on a "cash free, debt free" basis, hence the eventual price tag will be lower.

The RM146m was probably derived based on certain valuation methodologies, the "unknown items" are cash and debt of the group of companies which are subject of this transaction.

These two items have to be deducted from the RM146m price tag. Correct?

This is a very creative way of determining, or dictating rather the share price.

Posted by Ring > 2014-09-24 21:37 | Report Abuse

Abric Bhd has proposed to sell its entire core business of producing electronic security seals to UK-based ESNT International Ltd for RM146 million cash, on a cash-free debt-free basis, effectively turning Abric into a cash-rich shell company.

Once the divestment has been approved and completed, which is planned to take place in the fourth quarter of this year, Abric plans to distribute a special dividend of 30 sen per share, which is about 41% of its stock price of 73.5 sen at today’s close.

“The board (of Abric) believes that the proposed disposal provides an opportunity for Abric to unlock the value of its investments in the disposal companies, at a reasonable price… Abric is expected to record a gain on disposal of approximately RM63.9 million,” the company said in a filing with Bursa Malaysia.

Posted by 4u2c > 2014-09-24 21:39 | Report Abuse

up to know only superman says price will fly like him---SUPERMAN .....i hope he is right...limit up to rm 1.00

Posted by Ring > 2014-09-24 21:54 | Report Abuse

KUALA LUMPUR (Sept 24): Abric Bhd has proposed to sell its entire core business of production of electronic security seals to UK-based ESNT International Ltd for RM146 million cash on a cash-free, debt-free basis, effectively turning Abric into a cash-rich shell company.

Once the divestment has been approved and completed, which is planned to take place in the fourth quarter of this year, Abric plans to distribute a special dividend of 30 sen per share, which is about 41% of its stock price of 73.5 sen at today’s close.

“The board (of Abric) believes that the proposed disposal provides an opportunity for Abric to unlock the value of its investments in the disposal companies at a reasonable price… Abric is expected to record a gain on disposal of RM63.9 million,” the company explained the disposal’s rationale in a Bursa Malaysia filing today.

Abric said it is planning to sell the entire equity interests of the units of its wholly-owned subsidiary Abric Worldwide Sdn Bhd to ESNT.

The latter will also purchase the remaining 40% stake it did not own in subsidiary Abric Eastern International Ltd (AEIL) to facilitate the disposal for THB113 million.

ESNT’s offer of RM146 million will then deduct the unaudited net debt of Abric’s subsidiaries for sale of RM8.9 million.

“The disposal consideration was arrived at on a negotiated ‘willing-buyer, willing-seller’ basis after taking into consideration the historical earnings before interest, tax, depreciation and amortisation (EBITDA) of the disposal companies for the financial year ended Dec 31, 2013 and their earnings potential,” Abric said.

Abric stated the disposed companies’ proforma profit after tax was RM1.8 million, while EBITDA was RM10.4 million and net assets RM63 million. Its total original cost of investment for the companies was RM63 million.

Abric intends to distribute up to RM44.6 million from the sale proceeds to shareholders, assuming all the 49.53 million outstanding warrants as at Jul 18 are fully exercised.

“The board is still deliberating on plans for the utilisation of the proceeds from the proposed disposal (apart from the special dividend and purchase of the 40% of AEIL),” said Abric.

The company intends to maintain its listing status, it said. After disposing of its core business, Abric said it may be classified as a “cash company” within the Practice Note 16 of the listing requirements. It might also be deemed a Practice Note 17 company on grounds of “affected listed issuer”.

Abric said it expects to be well-positioned to pursue acquisition opportunities with its disposal gain of RM63.9 million.

Abric, which was trading in the 30 sen-band before May, closed half a sen lower today at 73.5 sen, with 628,900 shares traded. Its market capitalisation was 71.81 million.

Posted by 99kandar > 2014-09-24 21:58 | Report Abuse

tomorrow fry and fly to the space lo....
morning open already Big Gap Up la.... hahaha ....
No joke No play play ... hihihi

Posted by Siva68 > 2014-09-24 22:00 | Report Abuse

no of shares (mil) 99,053....NA/Share 1.15
after warrant conversion (mil) 148,579....NA/Share 0.87
after 0.30 dividend (mil) 148,579.....NA/Share 0.57

Posted by cyctailor > 2014-09-24 22:04 | Report Abuse

Up up up!

Posted by 4u2c > 2014-09-24 22:09 | Report Abuse

looks like it....

Posted by Siva68 > 2014-09-24 22:12 | Report Abuse

Calling it a day. Thanks for all the input. I'm hoping for it to be up too, better still with a gap. Hope there will be a write up on the fair value of the share tomorrow.
Wishing everyone to make some good profit. Good night everyone.

Posted by GuruBursa > 2014-09-24 22:40 | Report Abuse

Siva, good job.

But we still have to deduct the debt and cash from the numbers you have worked out.

It may work out to less than 80c per share at the end of the day.

Posted by chengyee > 2014-09-24 23:01 | Report Abuse

Guru Bursa, if it is cash-free and debt-free basis, why still need to deduct debt or plus cash?

Posted by char1234 > 2014-09-24 23:30 | Report Abuse

Buy 70 ct share now n get 30 ct bonus.thats abt 40 pct. gain.go go go

Posted by leon7 > 2014-09-24 23:50 | Report Abuse

Few months ago, I said the magical number is 1.3.

RM146m - RM11m paid to buy subsidiary = RM135m
RM135m divided by around 100m shares (will be more on wb conversions for the dividend) = RM1.35 per share.

NOW WHO'S YOUR DADDY!!!???

Joke aside, i foresee it to rise. Dividend of 30 cents on a 75 cents mother share??

Let the party begin ;)

Posted by char1234 > 2014-09-25 00:12 | Report Abuse

Warrant will follow mum?

Posted by tc2012 > 2014-09-25 00:19 | Report Abuse

leon7 you have to include 49.53 m warrant excercise(30 cents) amt 15 m.
total shares about 150m
total cash receive = 15+135= 150 m
so it should be around 1.00 per share

Posted by persie > 2014-09-25 07:07 | Report Abuse

Have to consider adjusted price after the dividend. After 30c dividend, what is the price after that. Is it still worth after the dividend and share price drop?

Posted by Siva68 > 2014-09-25 08:53 | Report Abuse

Good morning everyone. Looks like gap up. Happy investing and have fun too.
My friend chinesetea, gave a rough explanation on how to derive a fair price. May be anyone would like to do some calculation.
64 million clean profit divide by num of share add to Eps. New Eps x PE= new price.
Than you have your 0.30 dividend to add on.
Hope this can be some help.

Posted by HC Lee > 2014-09-25 09:07 | Report Abuse

WATCH OUT FOR PUMP AND DUMP !!!!!!!!!!!!

Posted by xiedonghin > 2014-09-25 09:09 | Report Abuse

http://www.theedgemalaysia.com/business-news/308805-stocks-to-watch-abric-ql-lay-hong-ta-enterprise-sapura-industrial-glomac-coastal-contracts-scientex.html

Posted by as1915000 > 2014-09-25 09:11 | Report Abuse

30 SEN SPECIAL BONUS?

Posted by wisdomtot > 2014-09-25 09:16 | Report Abuse

What happen to the company after bonus payout? Becomes a shell company with zero earnings ? Have to look for new biz to acquire.

Posted by bovun2014 > 2014-09-25 09:46 | Report Abuse

concert to SPAD company like SONA, Reach and Hibiscus.

Posted by shlyw > 2014-09-25 09:48 | Report Abuse

http://www.nanyang.com/node/651377?tid=462

Posted by kaonryou > 2014-09-25 09:58 | Report Abuse

After the disposal, Abric should have RM0.89 NA per share.

Posted by davidkkw79 > 2014-09-25 10:02 | Report Abuse

after sell, this company will be PN17 company...then surely will cause to panic sell.