the deal suddenly opening up SMRT's medical colleges reach nationwide.....
SMRT not just benefits from the existing courses (or rather business) offered by MEGB, but more importantly, jump start its reach nationwide! Ready building, ready manpower, infra setup, etc to operate its medical courses immediately!!
Thats why i say Brahmal Vasudevan is so clever! Genius is restructuring both entities!
SMRT will benefit, MEGB will benefit, Creador will also benefit! all win!
Short term not sure but good for long term. Because of few small medic colleges having problem that is why consolidate of colleges needed to save cost.
we have to act and execute when others are in fear because of a good news. we have to think otherwise. Market are flooded with 80% of pp with herd mentality, we have to get ourselves to be the 20% that earn from those losers. Correct me if im wrong.
Killing off competitor and merging into biggest entity. A good moves but somehow this is Malaysian typical mentality. Thought it would open higher today but disappointing.
They can tapped into MEGB colleges straight away with their acquisition and minimize the construction cost and start up time.
Since MEGB have campuses throughout Malaysia, it a good moves.
But all boils down to kiasu mentality of the investors.
KUALA LUMPUR (Nov 11): SMRT Holdings Bhd ( Financial Dashboard) and Masterskill Education Group Bhd (Financial Dashboard) fell after the two counters resumed trading this morning. Both stocks declined on SMRT's intention to purchase a 32.9% stake in Masterskill from the latter's director Siva Kumar M. Jeyapalan.
At 12.30am, SMRT fell 6.5 sen sen to 79.5 sen with over 5.5 million shares changed hands.
Masterskill fell 0.5 sen or to 61 sen with about 22 million shares traded.
Interestingly, SMRT had offered to purchase Siva’s 32% Masterskill stake at 60 sen a share.
Yesterday, Masterskill told the exchange that SMRT together with private equity fund Creador could make a take-over offer for the remaining Masterskill shares they did not own.
Creador already owns 16.26% in Masterskill. The acquisition of the 32.9% Masterskill stake will result in SMRT and Creador owning a combined stake of about 49.16% in Masterskill.
Trading in SMRT and Masterskill shares were suspended between 2.30pm and 5pm yesterday.
Today, a remisier said that the fall in share prices of SMRT and Masterskill “does not make sense” and was mostly driven by negative market sentiment towards the take-over attempt.
“SMRT’s acquisition price of 60 sen a share is very close to Masterskill’s net tangible asset per share value. So, it does not make sense that both counters have fallen so much
“I believe that the market has a negative view on the acquisition because Masterskill is a loss making company” he told TheEdge Markets.com.
The remisier said Masterskill and SMRT's share prices would “settle down” once investors understood the meaning and impact of the latest announcement.
“I expect the share price for Masterskill to hover around 60 sen and SMRT’s share price to be around 80 sen. Any upside for these counters would be driven by momentum or more positive sentiment,” he concluded.
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....
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Posted by workworkwork > 2014-11-10 20:17 | Report Abuse
Brahmal Vasudevan is so clever! I will surely follow his future investment!!