PROPOSED DISTRIBUTION For illustration purposes only, the respective amounts to be distributed under the Proposed Distribution are illustrated in the table below: Cash distribution amount per share (RM) Entitled shareholders (RM) Proposed Capital Reduction and Repayment 0.36 69,321,975 Proposed Special Dividend (defined hereinafter) (1)1.85 (1)356,237,926 Total 2.21 425,559,901
Hopefully price will go north substantially. So what will happen after this special distribution date? Looks like SCGM will be without its breadwinner soon pending its future plan. RM2.21 is below my breakeven point.
The proforma NTA after the Sale is RM2.74 per share but this is based on 30 April 2021 audited NTA of 99 sen. The latest NTA @ 31 January 2022 was RM1.04. If we assume the Q4 EPS is another 3 sen....then effectively there is another 8 sen that needs to be accounted for. Therefore, the adjusted NTA shall be RM2.82. Bear in mind that this proposal takes 9 months to complete and am sure more EPS will be earned,
At current price @2.30, I will load even more as I will get back 2.21 as cash dividend and still have my shares intact and therefore my cost is only 9 sen going forward. As this is a cash company, I hope that the company can secure a good viable business in future and if they can't secure one, I am sure a clean PLC is worth for other business to do a back door listing. Bear in mind that the adjusted balance cash per share after the dividend payment could easily be more than 60 sen in 9 months time. It's definitely a GOOD deal to me.
cwc1981, no. you get RM2.21 cash but after that it is still listed with about RM0.43 cash and they will look for new businesses. have a look at nylex. its market cap went as high as RM100 million after the disposal even though they had a remaining cash balance of about RM10 million only. in my opinion, shareholders could get more than RM3 in the end and the market is mistakenly undervaluing scgm.
If the owner can make SCGM so successful now....why doubt that they cannot repeat this success in other business....hmmm! I definitely will buy more and keep.
Simple calculation - now they hold 40%, to approve disposal of core business they still need another 35% to ensure to get 75% vote in favor.
So now the share price is RM2.30+, then the disposal (if approved and success) will bring in RM2.80.
2.80 - 2.21 (special dividend plus capital repayment) = about 60 cents net cash inside the company.
If current share price is 2.30+ - 2.21 = the net cost is only 10 cents. Use 10 cents to buy back adjusted 60 cents NTA company some more they are in control (they can decide further declare speciail dividend, capital repayment), what harm for them to buy in further? The more they buy at current share price, the more they get.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
vcpmaster123
411 posts
Posted by vcpmaster123 > 2022-01-11 16:36 | Report Abuse
Run 1st.. Brothers fight each other