in financial , there was a term called myopic aversion..which means investors become panic or get excited when the stock price fluctuate ..if you deal with long term investment , one of the way to overcome this is to pay less attention to daily fluctuation.
As MPCORP corporate exercise take about 6 months for approval until distribution of circular and most likely the key action will happen towards the day after announcement of entitlement date, therefore , stay relax now , strategize yourself and prepare for the battle day by end of this year..

Hi Calvin , TPY became an official major shareholder might not warrant a buy opportunity but provide us the information if he dispose or purchase MPCORP stock in the open market , then , we will able to gauge his confident with this stock. Some of his 'business associate' might buy in the stock and not appear in the system if holding below 5%. Therefore , I was checking through the top 30 shareholder list of all his companies to find a common name and pay attention if this person at the end appear in the major shareholder list in the future. If you pay attention to the list , you will see some common name appears in the top 30 shareholders list . Example , if you go into Keladi , GBH , FCW etc under THC , you will see a lady name appears in the top 30 shareholder list of all this stocks and didn't seem to have any relationship with him..

The more we dig in and analyse , the more we know and can adjust the strategy accordingly.

I'm confident that MPCORP will be better than today after the corporate proposal as the new management will not worst than the management today. But the upside reduces as the significantly diluted , so , my expected return from this stock need to be revise downward..

Hi Calvintaneng , Since you are familiar with Johor property market , you might able to provide some insight here. Protasco and AB ( a company under TPY ) form a 64% : 36% JV to develop a pcs of land at Pasir Gudang , 99 years leasehold land at size of ~ 15 acres from JCorp at ~RM36 per ft2. GDV at RM505MM. Do you have any comment of the location of this land , it might be a good reference to MPCORP land at Taman Nusa Damai.

Hi leslieroycarter , when major shareholders with more than 5% holding in hand , they will need to report to Bursa when they purchase or dispose MPCORP stocks. TLO and TPY will need to do so . So far , yet to see any announcement about any changes in stock holding by either TLO or TPY.

Hi wt222 , if you read through this forum , you can easily find some comment which is baseless and got turn down with facts..this is an example of speculator...the mirror will show the speculator in front of you...

Here is my take on what will happen when the corporate proposal approved and the entitlement is determined.

1. Why only 15MM shares to TPY , just good enough for him to become major shareholders

2. Why 0.55 per share ? This is to prepare for the possibility for TLO or TPY to go for General Offer ( or Mandatory Take Over ) when their share go beyond certain level and at this price , is not attractive enough to get to 90% and MPCORP will remain listed

3. TLO will able to exercise WB by entitlement date at revise exercise price of RM0.50 per share. The share will entitle WB holder for right , WC , ICULS A and ICULS B if converted before determine date.

4. TLO will only subscribe to the Right and WC. Total fund required from the corporate exercise will be RM69,639,224 . Funded by RM8,2500,000 from disposal to TPY , RM37,000,000 for repayment from MPCORP and RM24,389,224 from own pocket

Shareholding will be 38% ( without WC and ICULS conversion ) or 28.79% ( without WC but all ICULS converted )

5. TPY will subscribe to his right + WC. No ICULS A and B. Total proceed of RM63,105,000 from own pocket.

Shareholding will be 23% ( without WC and ICULS conversion ) or 13.49% ( without WC but all ICULS converted )

6. Protasco will buy over all ICULS A and ICULS B entitle to TLO and TPY for total cash consideration of RM98,358,321.

Shareholding will be 18.79% ( without WC conversion )

Protasco with more than RM150MM cash in hand will able to fund the purchase . Why not announce now , only announce by entitlement date ?

- Protasco in the mid of issuing 50MM private placement share at RM1.65 for cash consideration of RM82,500,000 with 2 free warrant per placement share at RM2 conversion price. Just received approval from SC to extend the approval date to 9th Jan 2015.

- The announcement of involving in MPCORP now while corporate proposal yet to get approval might put uncertainty to Protasco stock price and private placement. The best timing is to announce before circular is distributed when the corporate proposal finalized and approved. ( no more uncertainty )

7. The share structure will be TLO - 28.79% , TPY - 13.49% , Protasco - 18.79%

No single shareholder above 30% and board of director with 2 representative from TLO , 2 from Protasco and TPY. The company will full of synergy.

Current management will be happy to retain current CEO and with new board member to assist the CEO to unlock the value of the company...a father who will be happy to see the son successfully drive the company to a new high while his iconic project APTEC continue as per plan...can retire peacefully...

Did anyone know the background of FAIZATUL IKMI BINTI ABD RAZAK ? From web search , she is the managing director of RSL engineering and also shareholder in companies where TPY has interest in ..think that her background might provide some hint on TPY track record.

My thought is that the deal with Dong Cheng and BlackSea are over. Most likely a new JV will emerge. My thought is that by entitlement date , when the proposal is 100% guarantee to move forward , more announcement will be make and will mark the new era in MPCORP. This is my view based on repeating digesting the information in the proposal and the facts that new shareholder understand the characteristic of current management , they will not inject in $$ to the company unless current major shareholder reduce holding to less than 50% and reduce control of the board.

hi lohman , here is something that I'm looking at from the standpoint as a father. We always wish that our next generation will do well , even better than us and we are willing to do whatever we can to achieve this aim. As a father at age of 70+ , especially just recovery from serious illness , not much time really left to work towards this objective and I really wish that a change will happen on making a success to the company so that the son can continue from here leading the company to a new high..this is more important for a father than personnel success. I will give him another 1 to 2 years to achieve this...

Hi lohman , I totally agree with you ..in my view , he is someone living in the ' fantasy land ' and hoping everyone following his wish. The only day may be we can see a change is when ' he lost contact with this world and become the "angel" in the fantasy land'....
As currently our investment is in positive territory , we are looking at cashing out if the same situation persist after the corporate proposal and move to others stock counters.

Hi lohman ,you are correct , the main problem with MPCORP today is the weak management that really concern investors. A lot of MOU signed and promises to turn around the company but year after year , no concrete action and the financial situation getting worst and worst. Execution is the key problem for current management.

I'm looking forward for new independent member to the board or even more new major shareholder for the company.

I think the MOU with BlackSea are gone , should able to get some confirmation from coming quarterly release by end of August. So , the hope now is Protesco to go into JV with MPCORP soon and sooner the better.

If for the best interest of the minor shareholder , the current management should consider to release their stocks to other reputable investors to manage the company and I will really respect their kindness...

hi lohman , I'm currently holding about 1,500,000 shares. Didn't plan to increase further. I'm now looking at either to divert some of my investment from YTLREIT , Tenaga , MPHBCAP or BSTEAD over to MPCORP to fully subscribe the right , ICULS A and B which wil lincrese my holding to 3,900,000 shares and 600,000 warrants after full conversion of the ICULS which required RM1,200,000 or sell away some MPCORP to fund the right issue.

Overall , I'm cautiously optimistic about the proposal , the proposal will make the improve the financial position of the company to a healthier level but the concern remain on the weak manage who will still in control of the company until I see TPY assigned to the board to work harder for his $$ or more new shareholders emerge , may be through purchase of MPCORP at open market and committed to subscribe the ICULS A and ICULS B to a level that are substantial for them to be in the board.

If TPY increase his holding from the open market , also a good sign as well...

Still long way to go , about 6 months to complete the action..so , can patiently observe and make decision...

Hi lohman , you are correct. I'm planning on the worst case scenario as once I observe the volume down to below 700,000 , I'm quite firm that is time to jump in for action...as of now..relax 1st..now , go for a nap...

I monitor through the stock price as per this morning , there are panic seller who queue at 0.005 higher and immediately canceled their order and sell at market price...

I believe this is no a surprise viewing at the facts that

1. Investors are not willing to inject more fresh fund into this stock , especially the management still the same , although I believe after completed the corporate exercise , TPY will be appointed to the board ( if current management is sincere and with TPY already holding more than 5% of shares which consider as major shareholder , should appoint him ahead of time )

2. the fresh fund required is huge , which is at 1.6X of stock price. Every 10,000 shares will required fresh funds of RM8,000. How many investors dare to commit more $$ to this stock with the same management ?

I'm using the assumption below to gauge the market

Current shareholder and TPY will keep their shares = ~178,000,000

50% of the public will sell away their shares

50% of the public will sell half of their share to fund the right issue


This means that about 83MM shares will be dispose in the next 6 months or 700,000 shares per day.

For sure this week I will not do anything and will continue monitor until the volume go below 700,000 per day for next action...

Good luck to everyone !!!

Apologize for the typo error . Our group holding of about 5,000,000 shares will required funding of RM4,000,000 ( RM2,000,000 for 4,000,000 right shares , RM1,000,000 for 10,000,000 ICULS A and RM1,000,000 for 10,000,000 ICULS B )

Good luck to everyone...hope everyone making good $$ to spend during 2015 New Year and Lunar New Year..

Hi kokwai9319 , yes , the 400 free warrant is attached to the right issue . I'm assuming the price at RM0.25 based on the facts that although the stock is out of money ( the stock price is lower than conversion price ) , the 10 years time value is very valuable , therefore , investors will be willing to pay RM0.25 for the warrant ( WC ) even is out of money. I yet to use Black Scholes model to calculate the warrant price.

Thanks for the compliment . I was doing sharing with a group of friends since years ago and we are doing quite well in our investment. My believe is that the opportunity to make $$ in the stock market belongs to everyone , when I shared , I didn't make less s there are ample of opportunity to make money in the stock market. I'm happy to see my friend successful financially. Our small group of investors with about 5,000,000 shares of MPCORP will meet up on coming Saturday to discuss our strategy to decide either we should divert RM8,000,000 from other stocks to invest in MPCORP ( we will go for option 1 or 2 , or a combination of both ) . I already reserve a quite corner at a fine dining restaurant , enjoying our discussion while wine and dine. After we realize some profit from MPCORP , we plan to celebrate at Waku Chin at Marina Sands. So far , I yet to dine at Waku Chin but in Kudeta ( can't remember the spelling ) before.

Yes , I'm expecting the stock price to go up , especially when the proposal getting close to approval ( will proceed with less and less uncertainty ) as the company after the proposal will be far better than before..
Stock market is an area where primary driven by emotion , so , some investors might sell due to the bad experience from previous right issue ( March 2010 ) and didn't want to put in more $$ due to skeptical...but I believe their stock will easily pick up by others..
I believe the stock will stay above RM0.55...

On manipulation , I think it will not be a wise idea of opening few accounts under the person name and performing transaction as under SEC rules , if same person account selling to each other or with suspect of doing so , will consider as manipulation and breaching of rules.
Most manipulator will have one or even no account..they will use accounts of various person as a group to transact between them without trace . Even some might ' rent ' account of stranger to do so ..as long as to minimize the link between the transaction parties...

hi fightingfish88 , I'm using Mosaic theory to analyze the possible outcome and the probability of success and factor it into the TP.
I don't have reliable source of information and I never depends on reliable source or insider information as is very simple , if the information come to you , it come to everyone and it has no value just to follow the information bulat bulat as might fall into the trap of the speculator.
The facts is based on the information gather. TPY invest into MPCORP , he will unlock the most value from his investment..as a shareholder of MPCORP and Protasco , if both companies performing , he will gain from both. Therefore , a JV will boost the value of both companies and he will be the winner.
Stock investment is about predicting the future..the more information digest and put it into a picture , the higher chances of gain..

In my life , I saw a lot of people following reliable source of information and majority with their investment go to drain..therefore , I always skeptical about reliable source but I will still accept the information to include in the analysis ..

On MPCORP-WB , is quite tricky. Refer to the clause 7.5 of the proposal , it should interpret in this way - the management will decide on either to reduce the exercise price or adjust the qty to be announced during the entitlement date and take effect the next market day. This actually put in some uncertainty to the WB with potential high gain or losing everything.

Worst case scenario - the proposal drag beyond 21st April 2015 , WB expire out of money , all burn.

If the proposal get approved and entitlement date before 21st April 2015 , this scenario might happen ( below should represent the best case scenario )

The management decided to adjust the exercise price to RM0.50 per share for WB and any conversion before a determine date will entitle to the RIGHT + New warrant.

Most of the time , after approval received and entitlement date is determined , some short term event driven investors will come in to buy the stock to enjoy the RIght and Free warrant and will disposed the stock on ex-date to gain from the different in investment value ( especially from the new 10 years warrant with good time value ). The stock price will most likely jump after entitlement date towards ex-date.

Assuming the stock price at RM0.70 after entitlement date

WB conversion price at RM0.50 , the value for WB itself will be RM0.20

As 1 WB entitle to 0.8 right and 0.4 free warrant.

The gain from subscribing the right will be 0.8 * 0.2 = 0.16.

The gain from new warrant will be 0.4 * 0.30 ( the time value of the warrant although out of money ) = 0.12


Therefore , the opportunity for the gain will be RM0.20 + RM0.16 + RM0.12 = RM0.48 , which equal to almost 500% jump from current price of RM0.09.

Even the stock price stay at RM0.50 , for every 1000 shares of warrant B ( assume at RM0.09 )

WB conversion to 1 share = RM0.50 + RM0.09 = RM590 for 1000 shares

purchase of right share = RM0.50 * 800 = RM400

Total investment = RM990

Stock + warrant value ( assume after ex-date at RM0.50 per share ) = RM900 + 400*0.25 = RM1000

Return will be RM10 ( enough for one cup of coffee at Starbuck )...

The RM0.50 most likely will represent the lower limit , therefore , an investors will look at this as a very low downside high upside type of investment...

I'm expecting the WB price will be highly fluctuate from now until date of approval due to the reason above. Pessimistic investors will sell when get closer to 21st April 2015 while opportunists will accumulate to take advantage of the huge gain.

I hold slightly above 100,000 shares of WB , will keep until entitlement date. wort case , burn..best case , earn 300%...

The sell down last week on WB with the reason below:

1. Getting closer to 21st April 2015 , only 9 more months to go by coming 21st July 2014..what is the possibility of the stocks go beyond RM1 ??? Better sell lost for pessimistic investors

2. No action yet from management ...investors worry especially looking at track record , confident level is low

3. Most of the time , more than 500K in queue to sell ( up to 5 ticks ) while only less than 10K in queue to buy ( on one of the day , only 6.6K queue to buy at 0.09 )..this put more pressure to pessimistic investor..

p/s : my friend SMS last Friday , he bought 250K of WB on Friday at average 0.0925 before the announcement. Seem like he pick up most of the WB transacted in the last 2 days of transaction.

My view is that management will be more than happy if the WB get converted as it will bring in RM149.5M and the company will be totally debt free and with net cash position..stock price will boost after completion of the proposal...


RM57.5M from WB conversion
RM46.0M from Right subscription
RM23M from ICULS A
RM23M from ICULS B

Regarding property at Pasir Gudang , the latest property launched was from Mah Sing , 500 units of double storey terrace at a quite remote area from Pasir Gudang and infrastructure upgrading is under planning stage , price at not more than RM400K ( which should means close to RM400K). I think East IDR is picking up in speed by looking at reputable property developers such as Ecoworld ( Kota Masai ) and Mah Sing is owning more than 1000 acres of land there. When more information reveal about the 3rd link , a highway connecting Pasir Ris in Singapore either to Pasir Gudang ( lower construction cost as only 2km in length ) or Pengerang ( higher construction cost as 20km in length ) and then all the way to the border of Kelantan / Thailand will boost the property demands at East IDR as it will be more strategic location as closer to Changi Airport. We should expect East IDR soon will close the gap with Nusanjaya.

I ran through the history of the 4 companies ( the past events as per reported in Bursa Malaysia ) . My observation is that he is more on business than goreng the stock as there are solid activities on going to boost the value of the company. The goreng kaki will always accumulate the stocks through various undisclosed parties , then performing market speculation on something coming for a stock , pushing the stock price up ,attract attention of the investors to chase behind the stock and then sold all their holding and let the stock taking a free fall. The best example is when one of the stock about 2 years ago suddenly go all the way up from RM0.20 to RM1.00 with speculation that the 2nd generation of powerful politician will join the company , more investors go in to chase behind the stock and if I'm not mistaken , it go all the way to above RM2. By the end , when the speculation burst , the stock price went down to drain.
If a person want to goreng MPCORP , he will accumulate enough stock before the announcement and paint a very positive sign to MPCORP such as a MOA of injecting how much cash to the company through private placement at high stock price ( example : RM1 per placement share ) , the stock price will jump with limit up a day or 2 to above RM1 , then , he can immediately sold all the stock accumulated and after weeks , just due to unforseen circumstances , the MOA did not proceed as per plan and both parties mutually agree to terminate the MOA.
If he want to goreng the share , this is really a long way to go...I think he is more like another ' small cap businessman' , this person will take over the 60 to 70% of the company, proceed with right issue + free warrants to turn the company into net cash position and then proceed with business activities to boost the value of the company and cash out by then with a target of 3 to 4X return in 4 years time. Recently he just completed the deal started from 2010 with almost 400% growth in his investment.
This person with RM300M cash in hand now , what will be his next move ??

I think either ways is OK as long as it make money. I always avoid the 1st one as due to information assymetry , the risk is high as it come and go very fast . The 2nd method is quite OK as it take longer time and can be trace as long as we pay attention to the announcement.

my thought is not because of the size of bursa , is just the past rack record is preventing them from coming back to Bursa..someone is stopping them from coming back due to the sour experience

Is over in Malaysia market after the 1997 incidents..there are a lot of big shark with multi-billion deals in the and fine difficulties to come back to Bursa..like one of them keep on proposing the RM50B project to the government..

So already over..TPY still young and ambitious..with bright future..

Pledge account didn't means that is for sure a margin account , is just means an online account. A wise investor will always look for opportunity to optimize the $$ for maximize return , taking advantage from the difference between the investment return and borrowing cost. For example - carry trade

1st of all , lets look at the $$ committed by each parties

Current major shareholder - committed RM7,750 for right with warrant. If included their entitlement for ICULS A and ICULS B , will be RM72,602,000

New major shareholder committed RM63,105,000 for right with warrant. If included their entitlement for ICULS A and ICULS B , will be RM69,105,000

The right with warrant will be very attractive at RM0.50 per share as the warrant with 10 years exercise tenure and exercise price of RM0.75 most likely will value at RM0.25 to RM0.30 when mother share at RM0.50 ( although out of money but the time value of the warrant is very valuable )

ICULS A and ICULS B will not as attractive as compare to right with warrant as the interest is quite low at 1% and 2% as compare to the value of the warrant. But ICULS A and ICULS B will be valuable if the stock price stay above RM0.50.

Strategy for minor shareholder to consider , depending on your confident level and $$ in the pocket
3 options

1. Subscribe in full all rights , ICULS A and ICULS B

for example , assume 100,000 shares in hand. Entitle to 80,0000 right ( RM40,000 ) , 40,000 free warrant , 200,000 ICULS A ( RM20,000 ) and 200,000 ICULS B ( RM20,000 )

Total fund injected- RM80,000

Final holding - 180,000 shares , 40,000 warrant , 200,000 ICULS A , 200,000 ICULS B

2. Sell away some shares in next 6 months to raise fund for the rights , ICULS A and ICULS B

for example , assume 100,000 shares in hand , sell 60,000 at average RM0.535 in next 6 months ( proceed of RM32,000 ) and left 40,000 shares

will entitle to 32,000 rights ( RM16,000 ) , 16,000 free warrants and 80,000 of ICULS A ( RM8,000 ) and 80,000 ICULS B ( RM8,000 )

Total fund injected - RM 0

final holding - 72,000 shares , 16,000 free warrants , 80,000 of ICULS A and 80,000 ICULS B.

If all ICULS converted , will be 104,000 shares with 16,000 free warrants

3. Do not subscribe to your right , warrant and ICULS A and ICULS B. Sell away your entitlement ( LR etc ) in the open market for extra $$.

If you believe that the synergy will create value in the future , you might go for option 1

If you believe the synergy will create value in the future but not really confident with the current management , which will still in power after the corporate exercise , go for option 2

If you are worry that the fund raising is to get $$ for the benefits of major shareholder , go for 3. You will still get some cash from the exercise..at least for a cup of coffee at Starbuck..

In term of target price , here is the valuation results based on the facts that the corporate exercise completed by Q1'2015 and the management kick start the JV for Wisma MPL refurbishment and Lakehill / Aptec project by 2015 for 10 years

[ the target price was lower than previous valuation as the corporate exercise significantly diluted the total number of stock in the company ]

1 year holding - RM1.15 ( 230% upside )
2 year holding - RM1.38 ( 66% annual compounded return )
3 years holding - RM1.44 ( 42% annual compounded return )
4 years holding - RM1.51 ( 32% annual compounded return )
5 years holding - RM1.60 ( 26% annual compounded return )

I like Soh Chee Wen as long as he flow through some residual $$ to me...

Lets get started with the new major shareholder TPY. 1st of all , we can get started with his investment style. He is a venture capitalist. Venture capitalist are investor who look for high investment return ( able to accept high risk ) by investing in start up company , distress company etc looking for high growth rate , cash out in few years and invest their capital in other high growth investment opportunity.

Ran through his track record on Nexgram , Witoni , Iretex and Protasco , one of the common observation was fund raising exercise to support business growth. This is in line with his investment mandate - venture capitalist for high growth.

If we look at the stock price of th 4 companies above , except Witoni , all others 3 companies was doing well in term of stock price. A sharp change in stock price mainly due to adjustment for corporate exercise.

In term of selling down Iretex stock. Is common for a investor to switch their fund from one company to another if observed better opportunity. In this case , I believe when a deal seal between him and current major shareholder of MPCORP , he need to cash out to inject fund into MPCORP. This is just an individual investment strategy.

example , if I have stock in a company at 10% compounded growth and observe another investment opportunity with 20% growth , I will cash out and invest into the company with 20% growth. This doesn't means the 1st company is not good , is just the 2nd one is projected to be better than the 1st one.

Overall , my view is positive about TPY based on his track record.

How TPY will add value to MPCORP ?

1st of all , he committed fund of RM63,105,000 into MPCORP , with optional another RM6MM to pick up the ICULS A and ICULS B. As a venture capitalist , he should have a certain level of confident to inject his fund while stay behind of another major shareholder with more than 50% share.

Hoe TPY can add synergy to MPCORP ?

TPY Is 2nd major shareholder of Protasco with 17.70% of holding ( refer to Protasco 2013 annual report ). Protasco is a company with 6 major core business such as construction , property development etc . Protasco with a 64% JV property development project at Pasir Gudang through Sun Rock Development Bhd.
Beside , Protasco is a company with quite strong cash flow position.

I believe after completed the corporate exercise by Q1 2015 , Protasco will form JV partnership with MPCORP to refurbish Wisma MPL and develop Lakehill and Aptec land and stock price should soar by then.

Overall , my view is positive about TPY as he will create synergy to the company through fund injection and JV with his current investment in other company.


Mr. Por Yee Tey founded Nexgram Holdings Berhad (formerly Nextnation Communication Bhd) and has been its Chief Executive Officer and Managing Director since May 5, 2005. Mr. Tey is one of the core founders of Nextnation Group of companies. Mr. Tey is a businessman and venture capitalist. Mr. Tey has extensive experience in electronic marketing and e-commerce infrastructure building. Mr. Tey's investment focus is on emerging markets especially Asia Pacific with special interest in technology, infrastructure and energy companies. Prior to Nextnation Group, he served as Senior Consultant of Lilo Media Sdn Bhd. until May 2004. At Lilo, he managed to grow his network and expertise, which enhanced shareholders' value and steered the listing of Nextnation on the Ace Market of Bursa Malaysia Securities Berhad. He has been the Chairman and Executive Director of Wintoni Group Berhad (alternative name WinSun Technologies Bhd.) since June 25, 2013. He has been an Executive Director of Ire-Tex Corp. Bhd since May 30, 2014. He has been an Executive Director of NextNation Communication Bhd. since May 5, 2005. He has been Non Independent & Non Executive Director at Protasco Bhd since March 10, 2014. He has been Executive Director of Protasco Berhad since March 10, 2014. He served as an Executive Director Petrol One Resources Berhad from March 14, 2011 to November 2, 2011. He served as a Director of Lilo Media Sdn Bhd. until May 2004. Mr. Tey obtained his Bachelor of Commerce degree, majoring in Business Administration and Finance from the University of Manitoba, Canada in 1998.

I just finished digesting the information. Will share the strategy to optimize the value with option base on each individual profile. The objective is to maximize our value through symbiosis , the current and new major shareholder want to maximize their value , we just tag along enjoying the residual left over...

After the LPD , as the stock is heavily diluted , the future TP will be significantly reduce. Investors will need to decide either to pump in more $$ to maintain the same targeted return or maintain # of share as of today and lower total profit due to lower future TP...
Need some brain juice and decision making here...

Need time to digest the 20 pages of proposal..will be busy weekend ..need to stop for one week preparation for coming Ultramarathon...

Glance through ,

1) new major shareholder emerge , but not more than 50% , is negative as the current management will stay..negative impression from shareholder will continue
2) Current and new shareholder committed to their right and ICULS entitlement , cash will be pump in to the company and reduce financial distress situation - positive ..most likely for the next few months , stock price will stay above RM0.50 and increase after approval obtained as to get MPCORP shares at RM0.50 + 10 years Free detachable warrant ( the time value will be valuable )
3) Minor shareholder will need to decide either to pump in more cash..I believe most will not proceed based on the previous experience of right issue with free detachable warrant in year 2010. I'm expecting some minor shareholder will sell their shares either to cash out or raise fund to subscribe for the right + free warrant if not planning to increase total number of holding as compare to today.
4) some new investors will take opportunity from the right issue , begin to pick up the stocks for long term holding of 5 to 10 years , pending for the company to unlock the value of Lakehill land as now company with cash flow to get the project going and with better financial position to strike for JV.
5) the most interested part will be current warrant ( MPCORP-WB) , it seem that the warrant will most likely expire without exercise as the exercise price is at RM1.00. But as the expiration date is on 21st April while the proposal above expected to be completed by Q1'2015 , which means that MPCORP-WB will still with may be 1 to 4 months of transaction ? "Based on the number of Existing Warrants outstanding as at the LPD. The number of Existing Warrants
may be adjusted as a result of the Proposed Fundraising. Any necessary
adjustments will be made in accordance with the pro
visions of the Existing Deed Poll." -will the exercise price be adjusted to equivalent of RM0.50 ? If yes , the MPCORP-WB might be a high risk high return opportunity towards Q1'2015. The pessimistic investors might sell away their holding , the optimistic one might pick it up at attractive price and hoping of making more than 100% in 3 months time if after the LPD , the stock price up beyond RM0.60...

Very interesting but need more time to digest the information...

MULTIPLE PROPOSALS MALAYSIA PACIFIC CORPORATION BERHAD (“MPC” OR “COMPANY”) (I) PROPOSED PAR VALUE REDUCTION; (II) PROPOSED RIGHTS ISSUE OF SHARES WITH FREE WARRANTS; (III) PROPOSED RIGHTS ISSUE OF ICULS A; (IV) PROPOSED RIGHTS ISSUE OF ICULS B; (V) PROPOSED INCREASE IN THE AUTHORISED SHARE CAPITAL; AND (VI) PROPOSED MEMORANDUM AMENDMENT (COLLECTIVELY THE “PROPOSALS”)

MALAYSIA PACIFIC CORPORATION BERHAD

Type Announcement
Subject MULTIPLE PROPOSALS
Description MALAYSIA PACIFIC CORPORATION BERHAD (“MPC” OR “COMPANY”)

(I) PROPOSED PAR VALUE REDUCTION;

(II) PROPOSED RIGHTS ISSUE OF SHARES WITH FREE WARRANTS;

(III) PROPOSED RIGHTS ISSUE OF ICULS A;

(IV) PROPOSED RIGHTS ISSUE OF ICULS B;

(V) PROPOSED INCREASE IN THE AUTHORISED SHARE CAPITAL; AND

(VI) PROPOSED MEMORANDUM AMENDMENT

(COLLECTIVELY THE “PROPOSALS”)

The announcement is dated 18 July 2014.

On behalf of the Board of Directors of MPC (“Board”), AmInvestment Bank Berhad (“AmInvestment Bank”) wishes to announce that MPC proposes to undertake the following proposals:-

(a) proposed reduction of the issued and paid-up share capital of the Company pursuant to Section 64 of the Companies Act, 1965 (“Act”), involving the cancellation of RM0.50 of the par value of each existing ordinary share of RM1.00 each in MPC (“Existing MPC Shares”) (“Proposed Par Value Reduction");

(b) proposed renounceable rights issue of up to 322,178,213 new ordinary shares of RM0.50 each in MPC (“MPC Shares”)(“Rights Shares”) together with up to 161,089,107 free detachable warrants (“Free Warrants”) at an issue price of RM0.50 per Rights Share on the basis of four (4) Rights Shares together with two (2) Free Warrants for every five (5) ordinary shares of RM0.50 each in MPC (“MPC Shares” or “Shares”) held after the Proposed Par Value Reduction on an entitlement date to be determined and announced later (“Entitlement Date”) (“Proposed Rights Issue of Shares with Free Warrants");

(c) proposed renounceable rights issue of up to RM80,544,553 5-year 2% irredeemable convertible unsecured loan stock (“ICULS”) (“ICULS A”) at 100% of its nominal value of RM0.10 each on the basis of two (2) ICULS A for every one (1) MPC Share held after the Proposed Par Value Reduction on the Entitlement Date (“Proposed Rights Issue of ICULS A");

(d) proposed renounceable rights issue of up to RM80,544,553 10-year 1% ICULS (“ICULS B”) at 100% of its nominal value of RM0.10 each on the basis of two (2) ICULS B for every one (1) MPC Share held after the Proposed Par Value Reduction on the Entitlement Date (“Proposed Rights Issue of ICULS B");

(e) proposed increase in the authorised share capital of MPC from RM250 million comprising 500 million MPC Shares (after the Proposed Par Value Reduction) to RM750 million comprising 1,500 million MPC Shares (“Proposed Increase in Authorised Share Capital”); and

(f) proposed amendment to the memorandum of association of the Company (“Proposed Memorandum Amendment")

(collectively referred to as the "Proposals").

Please refer to the attachment for further details regarding the Proposals

My view is that any stock invested will depends on the risk and return of an individual. For example , some high risk high return investors who look for one stock towards financial independent will opts for high beta stock such as MPCORP, hoping for a huge return like 5 or 10X return in 5 years to be financially independent ( invest RM500,000 to become RM2.5M to RM5M ). KSL might not be his choice.

For those who look for consistence total return ( appreciation and dividend ) so that appreciation can hedge against inflation while dividend as source of passive income might opt for low beta dividend payment stock such as BSTEAD , REIT , KSL etc.

In term of writing an investment recommendation , either buy or sell side , the financial code and conduct requested the writer to provide the position in the stock so that reader can determine the motive of the writer and make decision accordingly. I observed some writer or columnist use the statement ' the writer might or might not hold any stock ' is not good enough , the writer should provide his holding in the stock for reader to judge the motif behind his or her write up.

Mosaic theory is a method in stock analysis , using public material and non material information to draw a conclusion. It will not factor in insider information which is consider non public material information.
I have being gathering information about MPCORP and potential white knight information to draw the conclusion. It might be correct and it might not. But the more I do this , the more informative I'm and improving my general knowledge and skill...life is about life long learning...

If the ' king of small cap' is the white knight for MPCORP, estimated cash of RM300MM is ready for action..good luck to all MPCORP shareholder..I really wish my prediction through Mosaic Theory is correct...

When Ecoworld offered RM1.40 per share to Focal Aims major shareholder ,the stock went all the way from RM0.70 to RM3 and then to RM5. The asset of the company didn't change , the only changes is the management. Why investors willing to pay 7X more for the stock price , I believe the investors have high confident with the new management. I believe MPCORP minor shareholder also looking forward for new major shareholder to emerge as white knight as situation will not be any worst than today. I believe this day will come soon..as situation is getting desperate..

As per my understanding , MPCORP major shareholder holding in the company is less than 1/4 of his family overall wealth and they are using the cash to support the short term cash requirement of the company which might not be a long term solution to the company. Eventually , if they need to sell their stock to others , it will be good news to minor shareholder as the new major shareholder will able to pump in $$ to unlock the value of the assets. Even at the end the company need to liquidate , I believe we are still able to get back more than what we invested after payment of debt. Therefore , downside is almost negliable while upside potential is high.

I believe most investors sold their stock during 1st day of listing as they received the stock almost free of charge [ from 2 MPHB ( Magnum ) held and received 1 MPHBCAP at the price of RM1 and later received capital repayment of RM0.98 ] but they didn't realize that MPHBCAP worth more than RM3 as this company with huge amount of asset such as 600+ acres of land in Gombak , Rawang and Teluk Tempoyak Penang under JV with Bandaraya where MPHBCAP expected to receive ~ RM1B in cash for the next 7 years. Their hold as well 2+ acres of prime land at KLCC area , 1800 acres of land at Pengerang and other assets such as Flamingo hotel in Penang and Ampang ( together with 13 acres of land ) and more ....
Every RM1 per ft2 up on Pengerang land will add RM0.10 to the stock price.
The TP in 1 year time should be RM3.50. If holding for 5 years until Pengerang land fully reflected in value , the TP should get close to RM8.

I accumulated MPHBCAP since the stock listed in early June . My valuation showed that this stock should worth more than RM3 but it get started trading at ~ 1.35. Up to date , the return is already 70% for 1 year of holding. Still continue to accumulate , even up to last week at RM2.28. My avergae now is at RM1.72

I'm accumulating MPHBCAP as well due to their land at Pengerang..either the link go to Pasir Gudang or Pengerang , I will benefit from it but the expected return from MPCORP will be higher for next 5 years of holding

Another project under proposal is the extension of KLIA express to KLIA2 and then to Melaka and Port Dickson for a cost of RM2.2B.By 2020 , when HSR and IDR MRT Is ready , Singapore , Johor , Negeri Sembilan and Melaka will be well connected. Focus will be shift from Western IDR ( Nusanjaya ) to Eatern IDR. MPCORP land will be very valuable. Another potential bonus for MPCORP is the 3rd link , what if link to Pasir Gudang rather than Pengerang ( for cost concern as building the bridge to Pasir Gudang will be at least 3X cheaper than to Pengerang ), this will be big boost to MPCORP land in Pasir Gudang.
In summary , if MPCORP can resolve the financial distress in short term , the future will be very bright. For those yet to buy MPCORP while looking for long term opportunity , can consider for long term holding.

Previously this project was turn down by MOF. MASTEEL recently announced that they will seek approval for this project again but I'm not optimistic. I believe the focus should be on the connection of MRT from Singapore to Johor. The Thomson line in Singapore is progressing and expected to be ready by 2019. Johor government is working on the MRT connection for IDR , expected to be ready by 2020. By then , expected Singapore and Johor to be like one ' piece' and population in IDR will growth to 4MM. By then , all the property build today will be absorb by the population growth. IDR future in the 5 to 10 years should be bright. I believe MPCORP management knew about that by holding on to the property to enjoy price appreciation. But for the interim , should do something to resolve the financial distress situation such as dispose away Wisma MPL to resolve the debt issue and begin to launch property project at Lakehill to turn the company around and begin to pay dividend to shareholder..

I always look at each event from worst and best case scenario to determine the risk and return profile for the event. At best case scenario , the white knight come in on time and stock price rocket up , warrant will provide the best return as compare to the stock.

At worst case scenario , if the management required more time to unlock the value of the assets , the warrant might leave to expire by 21st April 2015 and all burn.

One possible scenario is the management extend the warrant as per Hevea resolution few years back [ as per below ] ( I bought Hevea stock at average RM0.33 per share in 2009 to entitle to the warrant at RM0.01 per share in 2010 and sold it later at average 41.5 sen on 13th Jan 2011 [ as per below ]

For those with superior risk appetite and willing to look for extremely high gain with extremely high risk ( worst case burn also OK ) , can consider to accumulate some warrant towards 21st April when the price is low to buy a change on corporate exercise as below.

In summary , my view of using the warrant to gauge how desperate the major shareholder might be risky. Beside , if the warrant burn , the loss to him might not as severe as he is still holding 61.4% in the company stock and if all warrant burn without exercise and without dilution effects , his weightage in the company will be not be effected.

The ADSB claim on 21st Sept will be more severe as this will reduce the size of the land and affect the overall landbank and asset of the company. Worst case will drag beyond 21st Sept 2014 by paying 8% interest per annum but how long he can drag , same go to RHB debt..

Hope the management realize that while they are trying to deliver the most value to the shareholder by unlocking the asset at the best timing , the minor shareholder need to b taking care of in interim...this is like trying to deliver Lobster to shareholder in long term , they need to get some small prawn to fill up the stomach rather than let the shareholder eagerly waiting with starvation...


EX-date 28/01/2010
Entitlement date 02/02/2010
Entitlement time 05:00:00 PM
Entitlement subject Rights Issue
Entitlement description Renounceable rights issue of up to 42,666,667 new warrants in HeveaBoard Berhad (“HeveaBoard” or the “Company”) (“New Hevea Warrants”) to all the shareholders of HeveaBoard on the basis of one (1) New Hevea Warrant for every three (3) existing ordinary shares of RM1.00 each held in HeveaBoard (“Hevea Shares” or “Shares”) as at 5.00 p.m. on 2 February 2010 (“Entitlement Date”) (“Rights Issue”); and

Restricted issue of up to 12,533,333 New Hevea Warrants to the holders of the unexercised 2004/2009 Warrants on 31 December 2009, being the expiry date of the 2004/2009 Warrants (“Expiry Date”) on the basis of one (1) New Hevea Warrant for every three (3) unexercised 2004/2009 Warrants held on the Expiry Date (“Restricted Issue”)

(collectively known as the “Corporate Exercises”)

3 out of 6 in my investment group lead me to this chat room..he just SMS me , why I goreng goreng here..I responded..I just share my view and past experience....as I like to talk and share..since has ample of free time..

An example was in early 2007 , when Vietnam property market was hot , there were 3 pages of analysis in local newspaper about Vietnam property and more than 10 property developers name was mentioned in the news..only BJLand was left out from the news..and BJLand is the biggest property developer in VIetnam.....

FAMA financial analysis showing in 'a perfect' market , to make $$ is to invest in distress and negliable stock as this stock tend to be under value. BJLand and BJCORP in 2006 didn't get any coverage by analysts , no newspaper even want to report their news..by mid of 2007 , when the stock begin to pick up , analysts coverage come into the picture , the stock price already at RM3.00 and then to RM5.60. When investors begin to jump in following the news , the stock retreat all the way back to RM3.00 until today ( after factor in split few years back ) and lost half of the value by investing in this stock from 2008 onwards..

MPCORP meet the requirement of FAMA analysis..will one day , MPCORP come into the limelight of investors after material announcement ..investors follow the market and jump into this stock , the good time already over...

Hi Calvin , thank you.

Is 6 of us in a group with holding within 100,000 to 1,600,000 share individually. We are looking forward for MPCORP to unlock the asset value and together with other stocks in hand , we are totally financially independent. Just need to success by investing 2 risky stocks in our life to make this happen.

I remember one of us in the group ( my friend same class with me from secondary school to University ) called his broker to buy BJLand before 2006. The broker advice my friend not to buy as the company with weak management . At the price of RM0.60 , couple with the BJCORP-LC free stock , at RM0.60 , we recieved 1 BJLand and 4 BJCORP-LC , this is a way a bargain with low downside and high upside , looking at the asset in BJLand such as BJToto , property value etc...We are looking for opportunity to make $$ ...The term Symbiosis came into my mind , we are eating the left over from the tycoon , he make big $$ , we make small $$ from the residual. He called the broker and insisted he wanted to buy BJLand at RM0.60. Years later , RM0.60 turn into almost RM10.00 in Jan 2008 , we are half way towards financially independent.

Is human behavior avoiding bad news and get excited with good news. When stock price going up , investors get excited and chase behind the stock. When stock price down , will get panic and trying to release the stock.

To be success in sock investment , be a contrarian, going against the market..if a stock with good asset value and weak management and stock price at good bargain , buy and keep it for few years until the management unlock the asset value.

The major shareholder with bigger interest than us and more desperate to unlock the value as significant portion of his wealth is tight in with this company. ( same as VT holding in BJGROUP in 2005).. he will be the biggest beneficiary if the stock price rocket up...

This stock will be in the same category as BJLand and BJGroup ( became BJCORP on 2nd Jan 2006 ).

BJGroup went through a long debt restructuring exercise from 2003 and finally done by 2nd Jan 2006.

After that , BJCORP-LC has been for quite a while hovering within RM0.05 to RM0.10 while BJLand at RM0.60 to RM0.80.

From Jan 2006 to mid 2007 , most investors believe these 2 stocks will trade at very narrow range , taking the opportunity of selling high at ~ 10% margin ( buying at 0.60 and sell at RM0.65 to RM0.70 ). By mid of 2007, BJLand and BJCORP announced UBS AG and Golden Sachs as new shareholders and the stock went all the way from RM0.60 to RM3.00 and then peak at RM6.60 for BJLand and RM0.10 to RM1.00 for BJCORP-LC.
It caught quite a number of investors in surprise and missed the opportunity by trading in narrow range before mid of 2007.

We are the small group which were quite lucky by buying BJLand before 2nd Jan 2006 , recieved about 4 BJCORP-LC for every BJLand share free of charge from BJCORP as part of internal debt settlement and we hold all the way until Jan 2008 and sold everything at RM5.50 for BJLand and RN0.89 for BJCORP-LC , with a return for more than 10X for holding period of about 4 years.

Later , we invested 1/3 of our capital in BJCORP-LC when it retreat back from RM1.00 back to RM0.20 and BJAsset at RM0.40. By end of 2009 , we began to switch from BJCORP-LC and BJAsset to MPCORP and currently we are holding about 2% of MPCORP outstanding stock.

We are trading at wider range as we did not want to repeat the phenomena of BJCORP and BJLand as above. Under best case scenario , if white knight emerge and MPCORP halt trading for a day or 2 with material announcement ,the stock price after resume trading will rocket up and who ever sold their stock before at narrow range will miss the opportunity.

In contrary , as MPCORP Is a company with good asset and weak management , the downside risk cannot be ignore.

Therefore , we are taking the approach of selling portion of holding at various prices all the way up to RM3.00 pending material announcement , while at the same time , will accumulate once price drop below RM0.42. This will reduce our average buying price while waiting for material announcement.

The funding to accumulate more MPCORP came from the dividend that we receive from the remaining 2/3 of the fund that we invested in high dividend paying stocks such as BSTEAD , YTLREIT and MPHBCAP.

Personally , I believe the restructuring of MPCORP will happen soon , reason was that the management is getting desperate to resolve current financial distress situation, from individual and shareholder perspective.

I read through the write up from Calvintaneng and reviewed the details through Google Map , it quite make sense that Lakehill land is at strategic location moving forward and just a matter the management ( either current or new ) will unlock the value of the asset. [ Thank you CalvinTaneng for the details information, it was helpful ]

At worst case scenario , assumed inaction from management , no white knight , no JV and all warrant burn...

The outstanding stock will stay at ~ 288,700,000. At RM0.42 , will equal to RM121,254,000 in market capitalization . Current debt and Liability ( up to date at ~ RM280MM ) , total asset value required will be ~RM400MM.

Wost case sceario , Wisma MPL sold at RM200,000,000 , the land in Lakehill will be at about RM7 per ft2.

Personally , I believe will not be difficult to dispose both asset at above pricing. So , RM0.42 will be a good downside supporting price.

I personally went to Wisma MPL , overall condition was below average but the value of Wisma MPL was not only the building but the size of the land.

Wisma MPL with about 2 acres of land and at current land price transacted at Golden Triangle at RM2000 to RM3000 per ft2 , the land itself already worth more than RM200,000,000.

An investor with good financial position can buy over the property and have the option to refurbish the office tower ( or convert it into service apartment or hotel ) , the retails building and build a new 50 storey residential tower above the retails building ( beside the office tower ) , the return will be significant.

For the land , look at the price Ecoworld paid for Kota Masai land and Mah Sing new acquired land , the price of Lakehill land will go higher than RM7.20 even if classified as agricultural land.

The waiting period is longer than we expected , as this stock with good asset pending unlocking of it's value , it worth waiting with patient...

Good luck to all MPCORP shareholder..hopefully the good day coming soon...