Posted by joyvest > 2023-06-03 11:36 | Report Abuse

AAX shareholders stand to gain more upon merger as their net worth is expected to more though they have to pay the price ie to absorb the debts of Cap A. If the cost is weighed by the benefit ( gain) , there is no reason why AAX shareholders should reject the plan.

Posted by joyvest > 2023-06-03 11:38 | Report Abuse

Lets put it this way, imagining I give you RM 5 but I stand to gain RM 50 in return. Dont you think it is a good deal?

Posted by Sslee > 2023-06-03 11:57 | Report Abuse

If you pay 5 for assets of negative 50 then your balance sheet will make a gain in non current assets goodwill on consolidation of 55.

Posted by sense maker > 2023-06-03 12:03 | Report Abuse

Wrong. Because capital A liabilities are not forgiven. Net liabilities totalled RM9.3b, mostly overdue.
A scenario could b like this:
They will have to b paid partially by capital A shareholders via rights issue during regularisation scheme. The remainder says RM6b will b transferred to AAX. If capital A is valued at RM12b minus its net liabilities of RM6b, AAX will have to issue AAX shares worth RM6b to capital A shareholders. AAX then has 0.41b plus 3.3b (=6b/rm1.8 assumed fair price of aax) paid up shares in issue. Post-regularisation, AAX will trade at rm1.8 still but with RM6b net liabilities on aax books.
Another likelier scenario:
To exit pn17, net liabilities must disappear. Therefore lenders and creditors of capital A will likely b partially paid and partially converted into equity. Capital A will b worth rm12b but with zero net liabilities. AAX will need to issue 6.66b new shares to acquire aviation biz of capital A. Enlarged shares in issue of aax will b 7.1b units. For rm2b net profits a year, eps will b 28sen a year post regularisation.

Posted by joyvest > 2023-06-03 12:05 | Report Abuse

If the assets of Cap A is negative , then the shareholders of AAX should be given more shares upon merger.

Posted by joyvest > 2023-06-03 12:22 | Report Abuse

This is exactly what I mean ie through assignment of debts to AAX and issuance of share by AAX .
Upon the merger, the debt of Cap A will be eliminated ie absorbed by AAX
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They will have to b paid partially by capital A shareholders via rights issue during regularisation scheme. The remainder says RM6b will b transferred to AAX. If capital A is valued at RM12b minus its net liabilities of RM6b, AAX will have to issue AAX shares worth RM6b to capital A shareholders. AAX then has 0.41b plus 3.3b (=6b/rm1.8 assumed fair price of aax) paid up shares in issue. Post-regularisation, AAX will trade at rm1.8 still but with RM6b net liabilities on aax books.

Posted by Mikecyc > 2023-06-03 12:26 |

Post removed.Why?

Posted by joyvest > 2023-06-03 12:27 | Report Abuse

This method is subject to due diligence which takes time and the values of assets are subjective which may face with resistance and resentment from Cap A 's shareholders

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Another likelier scenario:
To exit pn17, net liabilities must disappear. Therefore lenders and creditors of capital A will likely b partially paid and partially converted into equity. Capital A will b worth rm12b but with zero net liabilities. AAX will need to issue 6.66b new shares to acquire aviation biz of capital A. Enlarged shares in issue of aax will b 7.1b units. For rm2b net profits a year, eps will b 28sen a year post regularisation.

Posted by Mikecyc > 2023-06-03 12:29 |

Post removed.Why?

Posted by Sslee > 2023-06-03 12:32 | Report Abuse

i3lurker,
"I Cannot teach anybody anything I can only make them think"
At least some are start thinking except one tikus

Posted by Mikecyc > 2023-06-03 12:34 |

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Posted by Mikecyc > 2023-06-03 12:35 |

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Posted by sense maker > 2023-06-03 12:36 | Report Abuse

The market has spoken.
Capital A is roughly fairly valued at rm3.2b even when it has rm9.4b net liabilities, implying an enterprise value of rm12.6b.
Aax is valued by market currently at rm0.7b.
For capital A to exit pn17, No matter how capital A will settle with its lenders and creditors and no matter how aax share price will evolve, aax need to issue around rm12b worth of new shares.

Posted by ks5S > 2023-06-03 12:37 | Report Abuse

Diew... we have the right to reject the merger deal if no good. let those real analysts to comment. not the fake sifu

Posted by Mikecyc > 2023-06-03 12:37 |

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Posted by Mikecyc > 2023-06-03 12:40 |

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Posted by Mikecyc > 2023-06-03 12:41 |

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Posted by joyvest > 2023-06-03 12:43 | Report Abuse

If AAX is required to issue RM 12b worth of new shares, we are talking about issuance of 6.6 b new shares ( RM12b/RM 1.80 assuming this is the fair value) . The share capital of AAX will be ballooned by 6.6 b which is too much for the existing shareholders of AAX to bear. I doubt AAX shareholders would approve

Posted by Bon888 > 2023-06-03 12:44 | Report Abuse

KonI3licker...You should know he licking who`s back.

Posted by Mikecyc > 2023-06-03 12:47 |

Post removed.Why?

Posted by Bon888 > 2023-06-03 12:48 | Report Abuse

He just give the answer. You should know he is licking who`s back.

Posted by Mikecyc > 2023-06-03 12:48 |

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Posted by ks5S > 2023-06-03 12:49 | Report Abuse

fund manager won't invest 50 millions in a.pn 17 company if not good. there got analysts to calculate the risk

Posted by Mikecyc > 2023-06-03 12:52 |

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Posted by StartOfTheBull > 2023-06-03 12:53 | Report Abuse

2c per shot, one loaf of roti kosong as bonus. Don't forget to apply oil to ease his pain. Hahaha, sure both of them like it.

Posted by StartOfTheBull > 2023-06-03 12:58 | Report Abuse

When you see someone licking shitt in Jln Alor quickly turn away because aqua will come in with full force.

Posted by Mikecyc > 2023-06-03 13:03 |

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Posted by Mikecyc > 2023-06-03 13:08 |

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Posted by StartOfTheBull > 2023-06-03 13:21 | Report Abuse

Off course, even the busok buntut fellas close shops the planes can still fly for many years to come.

Posted by Sslee > 2023-06-03 13:32 | Report Abuse

Again think CapitalA with Net current liabilities of RM(8,524,896,000) can CapitalA stay afloat for the next 12 months?

Posted by joyvest > 2023-06-03 14:08 | Report Abuse

*Capital A Berhad's total debt last quarter was 17.821 billion ( Lease Liabilities of RM 14.91 Billion 

 +Borrowings of RM 2.91 Billion)
*Capital A Berhad's NTA is Negative about -9 billion +++. Technically, Cap A is insolvent.
* How on earth would AAX be audacious to takeover Cap A whether through merger and acquisition?
* Would you bail out a heavily debt stricken company ?

Posted by joyvest > 2023-06-03 14:17 | Report Abuse

For the whopping debt of 17.821billion, it would take about 11-12 years to settle with the combined earnings of RM 400 million per qtr ( RM400m x 4 qtr= 1.6 b per annum) of both companies . WTF

Posted by Janus Mun > 2023-06-03 14:20 | Report Abuse

......just cut lost if its not going up.no need talk so much trash la.5%-10% lost is reasonable cut lost.

Posted by Janus Mun > 2023-06-03 14:22 | Report Abuse

listening to noises only affects your trading ability....learn to cut lost to maintain capital for next stock trading

Posted by speakup > 2023-06-03 14:34 | Report Abuse

As i said before, Tony can only save 1: which will it be? Aax or Capitala?

Posted by joyvest > 2023-06-03 14:34 | Report Abuse

Basically, AAX is more healthy but Cap A is in deep shit

Posted by joyvest > 2023-06-03 14:51 | Report Abuse

If he does not save Cap A , then it is a reflection of his bad management . When a sister company ( Cap A ) is in trouble even though through no fault of him ( the culprit was due to pandemic,not his management ) , he should make an effort to save it rather than to abandon it .

Judging from Tony's character, he would salvage Cap A by hook or by crook. It is believed that the creditors ,lessors ,lenders etc would not be harsh to him but lend him a hand as they have fatih in the management of Tony .He did it before to turn a " once a debt stricken company" into one of the most successful budget airline " Airsia" .Hence , there is no reason why he could not do it again.

By the way, Tony has once said" In the event of crisis, you will know who your true friends/ associates are ''

Posted by Mikecyc > 2023-06-03 14:52 |

Post removed.Why?

Posted by Mikecyc > 2023-06-03 14:55 |

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Posted by joyvest > 2023-06-03 14:59 | Report Abuse

Tony has a daunting task ahead of him to convince the shareholders of AAX to salvage Cap A. We will see if the AXX shareholders are behind him or not. If not, Tony will use his last weapon ie to resign and the existing shareholders of AAX would stand to lose more.

The choice is to back Tony or not remains to be seen very soon

Posted by Mikecyc > 2023-06-03 15:06 |

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Posted by ks5S > 2023-06-03 15:15 | Report Abuse

chant the mantra every morning
namo namo... oil south, aax north

Posted by Mikecyc > 2023-06-03 15:19 |

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Posted by joyvest > 2023-06-03 15:22 | Report Abuse

Some guys like to invest in troubled companies such as PN17 . They just hope ( but i call it gamble ) that the companies would be restored even 1 out of 10 is restored, their investment has already been recouped. Unfortunately and most cases , their plans are backfired. However, such can never be taken as a " stereotype" . Cap A could be of exception

Posted by joyvest > 2023-06-03 15:29 | Report Abuse

I reiterate that AAX and Cap A are in PN17 status through no fault of the management of Tony but the unforeseen prolonged pandemic worldwide beyond the control of the management of Tony. Now then that the pandemic is over ,there is no reason why they cant not take off in view of the overwhelming demand to fly again. Air transportation is a necessity to cross borders and there is no reason why it will be sunset like glove.

The prospects of Air Industrials are bright and there is no reason why AAX and Cap A can not be restored. That s
why i say AAX and Cap A are of exception as compared to other PN 17 companies of the present and in the past

Posted by Mikecyc > 2023-06-03 15:30 |

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Posted by joyvest > 2023-06-03 15:37 | Report Abuse

well, if both companies can make a combined earning of RM 400 m ( min) in total per quarter.One year would be RM 1.6b. With that, it would take 11- 12 years to settle all the whopping debts of RM 17.8b . I think it is a tremendous effort too good to be true.

Posted by Mikecyc > 2023-06-03 15:39 |

Post removed.Why?

Posted by Sslee > 2023-06-03 15:42 | Report Abuse

It is still STony fault for delaying the debts restructure of CapitalA for reasons only knew to him.

Look at Malaysia airline and AAX with debts restructure that clean the Balance sheet, they are now in a better position to make good net profit.

Posted by joyvest > 2023-06-03 15:48 | Report Abuse

Think about it, the creditors , lenders and lessors are not silly. They look at the long term . Why should they kill the goose that lays golden eggs? They stand to get nothing back if they put the companies into liquidation. If they give both companies a lifeline, they are still able to turn around and generate substantial income and earning so why do they want to kill them off ? More and more passengers are flying and airports are busier than ever which are the harbingers of the business as usual.