sifu2 here, i need your help: MGO: In a takeover, an offer to buy all of the remaining shares in a company, that must be made when a company owns more than 33% of the voting shares in another company SMRT own 23%, Creador own 27%, both didn't > 33%, please advice how MGO triggered. Is it because Creador also SMRT major shareholder? If MGO, do we need to sale our megb share to Creador (as in the news Creador will conditionally offer to takeover all remaining megb sahres) in 60c?
Also, is below statement correct? RM 112,000,000 for 115,656,700 shares hold by Siva kumar (30%)?
I dont think MGO will be triggered. Both are separate entity with each holding 23% and 27% signifying that the status as listed company will be remained. If take over is what would have been wanted at first, perhaps Creador will just take up all the shares from Siva together with existing stake via Raphia or Creador ll. Creador has the ability to take this up on its own. Restructuring of business is what we will see next. Who knows M&A might be happening in the near future btw Smrt and Megb.
KUALA LUMPUR: SMRT Holdings Bhd’s subsidiary, Strategic Ambience Sdn Bhd (SASB) and Creador II LLC’s unit, Arenga Pinnata Sdn Bhd (APSB), are finalising plans to acquire a 30.75 stake in Masterskill Education Bhd for RM122 million.
Creador Founder and Chief Executive Officer Brahmal Vasudevan said the acquisition is expected to be completed by end-March 2015.
“Following the acquisition of the 30.75 per cent stake, and the 19.26 per cent that Creador currently holds, we will be the controlling power in Masterskill.
“Within 12 months, we will make the business break even and grow it further,” he told reporters at the sales agreement signing ceremony here today.
Masterskill returned to the black after registering a pre-tax profit of RM6.343 million in the third quarter ended Sept 30, 2014 from a loss of RM104.436 million in 2013.
Revenue fell to RM8.680 million from the RM15.556 million recorded previously.
Under the sales agreement, APSB will acquire 7.75 per cent of shares held by Masterskill Executive Director Siva Kumar Jeyapalan, with the remaining 23 per cent taken up by SASB.
SMRT Chairman and Chief Executive Officer Datuk R Palan said Masterskill will undergo a rebranding process and will be known as Asiamet Education Group Bhd.
“We also intend to maintain the listing status of the company on the Ace Market and within three to six months, we see ourselves transferring to the main board.
“SMRT successfully turned around Cyberjaya University College of Medical Sciences within a short period and we expect the similar scenario for Asiamet,” he added.
He also noted that there will be synergies between the two colleges, which will result in a lower operational cost base and more efficient operations.
“The synergies will help reduce the marketing cost to about 20 to 30 per cent,” R Palan said. -- BERNAMA
The star has tonnes of mistakes, first the MGO offer cost RM112m not the 30.75% stake, and second it said megb shares has gone up 70% after they expressed to buy, that is pure bs, they should sack this reporter, they only expressed at 60c, that is just about 20%
BV mention they need until end of the year to turn mega around I guess there will plenty of time to collect cheap.... So for those who are not happy if the price come down, they might have to be remain so for a while......
Tomorrow possibly breaking 70 la, too cheap la, if acquisition to be completed on q2 2015, then megb has higher upside for short term, longer upside for smrt
SMRT has several catalysts: (i) Wining of pro-elt - expected after april 2015 (ii) Completion of MEGB - expected april 2015 (iii) Main market transfer - expect resume after april 2015
Meantime, wait for more plans for MEGB to rise up, then SMRT would definitely shows good value
bro Marcus, yes,I sold some,but I' am worry tomorrow price may go down to 55 cents level. If price can shot up to 70 cents, sure I 'am happy also and all of us have a good celebration of coming CNY.....
Seriously, who cares if tomorrow what price will it be? Are you guys really adopting such short-sighted strategy for SMRT? If you want fast gains, please go with other penny stocks like IFCA, etc, and definitely not SMRT. If you truly believe the intrinsic value of SMRT and turnaround capabilities of MEGB, you should be looking over more than 1 year time horizon to double or triple your investment capital.
If buy or sell decision is based on tomorrow's price, you can easily be taken advantaged of by sharks to intentionally lower the stock price and force out weak holders such as yourselves. Then will then pick again at lower prices, like how they usually operate.
Sai lang cannot la....wanna keep some money to buy milk powder oso ma..... sifu said this is a long investment ,if sai lang maybe my baby only can drink milk after few year.....hahaha
smrt spend 60c to buy megb which its value more than 60c; no matter current megb price which is 71c, or its bright future. So, i guess smrt tomorrow will fly like rocket.
as AT said, long term, smrt better, short term, megb may run faster. based on the volume and price movement so far, i agree with AT that short term megb has higher chance.
Masterskill was trading abt 40 cts when news of smrt buying them over ...today its up almost 70 odd pct already whereas SMRT share drop n drop ! To many, it was a stupid move but its very unclear what the Tamil show is all abt yet ! Bolleywood !
market value RM110m, is around 29c per megb share (total share 376,119,400; calculated based on Mr. Siva's entire shareholding in MEGB consisting of 115,656,700 ordinary shares in MEGB ("MEGB Shares"), representing 30.75%).
SMRT pay 60c to get 23%, after sell the MEGB non-core properties, get back 29c, 60-29=31c. SMRT actually paying 31c only to take over megb.
SMRT really gona fly!!!
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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....
smurfbee
1,443 posts
Posted by smurfbee > 2015-01-12 14:21 | Report Abuse
60sen is a steal! One down... Another to go.