https://www.youtube.com/watch?v=Gl8Ad7Tr9vQ&pp=ygUMd2NlIHByb2dyZXNz

I echo your greetings Mr Waters

Armada’s future would lift off with Petronas being the benefactor.. Hopefully the merger takes place with MISC’s outfit.

👌

https://www.businesstoday.com.my/2024/11/16/gain-for-misc-with-bumi-armada-synergy/

This is about a month old and am not sure if posted earlier by others but here goes.
Gain For MISC With Bumi Armada Synergy
By Editor -November 16, 2024

News broke in Jul 2024 that MISC may take a substantial stake in Bumi Armada Berhad, obliquely implying that Objektif Bersatu Sdn Bhd (OBSB, ultimately owned by tycoon Ananda Krishan) that holds a 34.6% stake in BAB could be looking to exit the company.

MISC’s share price subsequently corrected 16% from RM8.90 on 3 Jul 2024 to a recent low of RM7.46 on 25 Oct 2024, as shareholders feared the implications of MISC possibly having to expend a lot of its cash on a mandatory general offer (MGO). We think that this worst-case scenario is now unlikely to be true, as MISC and BAB announced to Bursa on 14 Nov 2024 that both parties have signed an MOU and will over the next nine months explore a merger of MISC’s Offshore Business Unit (OBU) with BAB in an all-share transaction. CGS Investment Bank theorises that MISC may inject its OBU into BAB in exchange for new BAB shares. The house’s target price for BAB implies a RM4.7bn valuation (in contrast to its market cap of RM3bn), while it also values MISC’s offshore business at RM15bn.

Combining the two entities at these valuations, MISC will end up with a 76% stake in the merged entity (‘ME’), while OBSB’s stake in ME may be diluted to 8.3%. MISC may be obliged to execute an MGO for BAB, according to the Malaysian Code on Take-Overs and Mergers 2016, but if OBSB publicly announces that it does not intend to accept the MGO, there is a chance that MISC may not cross the compulsory acquisition threshold of 90%, which fits in well with the stated intention of both MISC and BAB to keep ME listed.

As such, assuming the merger is completed, CGS expects MISC to place out shares in ME to ensure adequate free float. A 10% placement by MISC may raise RM1.97bn for MISC (assuming a valuation of RM19.7bn for ME), equivalent to 22% of the RM9.1bn that MISC had spent on building the FPSO Mero-3. In this way, CGS believes that MISC can indirectly achieve its goal of paring down its stake in Mero-3, since its efforts to find trade buyers for the Mero-3 have so far not been successful, according to the company.

Operating synergies and prospects for MISC’s growth
MISC may experience a relief rally, since an all-shares transaction will help preserve MISC’s cash balances. The house thinks that a merger of two mid-sized FPSO companies can also help pool engineering resources, with cost synergies, while MISC can gain exposure to BAB’s growth initiatives, including the Bluestreak carbon capture and storage (CCS) project in the UK, and the potential to monetise gas via a floating liquefied natural gas (FLNG) solution in Indonesia. The house reiterates Add on these potential rerating catalysts.

EGMs will need to be convened at both companies, giving minority shareholders a chance to analyse closely and vote accordingly. The key downside risks are if the valuation for MISC’s OBU is lower than expected, or if BAB’s valuation is higher than expected.

Gamuda has top quality mgmt and am afraid IJM has let that slip over the last two decades. Gamuda’s Mcap is over 2x IJMs.

TimCoke … any basis to your comment ?

@Robert Waters lol

charlatans

Section 2 ??? opening imminent another faux pas… one blunder after another.

The exercise period of the Warrants comprises the period commencing from the issue date of the Warrants up to the market day immediately before the 5th anniversary of the issue date of the Warrants ("First Exercise Period") and the period commencing from the 5th anniversary of the issue date of the Warrants up to the market day immediately before the 10th anniversary of the issue date of the Warrants ("Second Exercise Period") ("Exercise Period"). The Warrants entail a step-up pricing mechanism whereby the exercise price for the First Exercise Period is RM0.39 and the exercise price for the Second Exercise Period is RM0.45. Any Warrants not exercised during the Exercise Period will thereafter lapse and cease to be valid or have any effect. This Announcement is dated 22 November 2019.

an inspiring insight!!! true genius

Was an honour having worked for him. May his soul rest in peace.

indeed

true. farcical

Poorly managed....best have emigrated leaving rubbish to run companies

Thanks Treeinvestor ..Bloomberg has reported it.

It would take a genius to be unprofitable

Dividend yield
on average is about 3% while MGS is at 3.77%.. Hopefully PBA hikes it above the safe MGS

It is largely state owned. If value is to be created it had better pay good dividends.

I stand corrected

Ranhill & Puncak Niaga - Malaysia boleh policy

PBA runs the risk of serving the public rather than maximising shareholder value, a political animal as it is.

This heroic stock is in a moribund state

we need Singapore CPF to support

do not trust management; promises promises

Wow Vicky you are being quite dramatic

it is a large amount of shares listed in such a short time

Sadly, suspect this is for the long haul and it appears in transition away from fossil fuels and has not become the typical tomorrow stock. There seems not much point even if we scream from the rafters and go blue in our faces I doubt much attention is paid to us retail investors. If the kitchen is too hot one might as well bite the bullet as I think this mob is for the long haul. So it is well and dandy shooting Gary the messenger but the pivot is AK himself who is answerable for the misery laden on us the retailers , some of whom have fallen in love with it.

Well we just have to wait and see..rather than being misled

"BAB notes that the Facilities were oversubscribed".....exudes confidence

MISC CEO quits...wonder if he was anti or pro Bumi deal. Check it out in the Edge weekly it cost no more than RM7

Armada is at silly prices and wont be surprised if it even hits a transient 40 sen ( panic selling ) ; with cashflow yields on song am backing up the truck for the long haul

All this is a result of Malaysia's brain drain. Smart ones are overseas.

poorly managed company with substandard engineering consultants

Robert Waters, you could probably be right but the saving grace is that downside is limited (says he)..glad am out of this but if it falls to the silly price region may reconsider..

Thanks Bitgold

spot on steady31... major shareholder appears to be all about himself and the faithfull are bearing the cost.. poor souls

crazy movement

Huge churn

Google translation

(KUALA LUMPUR, June 6) Sources familiar with the matter revealed that Malaysia International Shipping (MISC, 3816, Main Board Transportation and Logistics) is in talks with Bumi Armada (ARMADA, 5210, Main Board Energy) to acquire the latter's shares and become its major shareholder.

Financial weekly TheEdge quoted sources as reporting that negotiations for Malaysia International Shipping to acquire Bumi Armada have been ongoing, but there has been no breakthrough yet.

In response to a reporter's inquiry, MISC also said: "The company is actively exploring any investment opportunities that can add value to its shareholders. If there is substantial progress, the company will communicate with relevant stakeholders."

It is understood that the above negotiations were conducted at the shareholder level and did not involve management, so the reporter did not seek advice from Bumi Armada.

The largest shareholder of Bumi Armada is Malaysian tycoon Ananda, who currently holds a 34.58% stake in the company.

Is India's Tata also a competitor?

It is believed that Ananda had the idea of ​​quitting several years ago, and Shapoorji Pallonji Mistry of India's Tata Group also seemed interested in taking over. The latter served as a member of Bumi Armada's board of directors from October 2014 to February 2017.

However, there has been no follow-up action since then.

Malaysia International Shipping is a subsidiary of Petronas (holding 51% of the shares) and is mainly responsible for Petronas' transportation-related matters.

Bumi Armada is one of the world's largest floating production storage and offloading (FSPO) operators, with total assets of approximately RM11.59 billion as of the end of March this year.

Has Section 1 been declared open ......dates seem to be an organic matter to management

Rohank it would help if you get up to speed with Finance 101.

Rohank. NPV as you know is a discounting mechanism. It discounts free cashflow from the future to present. Every year’s projected free cashflow is discounted to the present. So from my basic calc say discount rate 14 or 15% ( this can be determined with assumptions) you discount each year to the present. You could take 5 yrs or 10 yrs to discount plus terminal rate. Generally 10 yrs plus terminal rate. Hope this helps. Here in Malaysia one cannot predict 3 yrs in to the future so it becomes quite academic . This works well with large companies with steady cashflow and durable with few surprises.

Thanks DestinyL that was helpful.

This is just info and not to troll Armada's prospects with Kraken. I think this has already been baked in the price. Labour is expected to form the next govt

https://www.express.co.uk/news/uk/1886712/hueg-new-north-sea-oil-field-drilling

I am out but still will keep track of Armada and buy in only severe dips for the sole reason I think AK may just take it private for his upstream business. O & G stocks in the North Sea are being hammered due to the incoming Labour govt ( way ahead in the polls ). Policies are anti fossil fuels ;;;
Headlines Labour energy policies already impacting North Sea business
Labour's proposed ban on award new North Sea oil and gas licences has already spooked producers. UK Labour Plans £1.2 Billion Windfall Tax on Oil & Gas Giants.
I am sure some are already aware of this. This could probably be Armada's halting share price progress.