SMRT & Creador will become major shareholder ( add up to more than 50% ) upon completion of buying MEGB shares from major stake holder Siva.
If megb minority share holders reject SMRT Holdings Bhd and private equity firm Creador's 60-sen-a-share takeover bid, then they shall keep their stocks. If they agree, then they have to sell their holdings to Creador/SMRT at 60c a pcs.
So irrespective of megb minority shareholder agree or disagree, smrt/creador will become major shareholder once the the deal with Siva is completed.
The only difference would be the minority shareholders can either decide to keep or to sell their stakes at the stipulated decision date. Or they could sell at market price now.
The price after the decision date would either run up or down nobody knows........
The deal would only be call off if shareholders of SMRT rejected it in this coming EGM....
SMRT substantial shareholders are Dato' Dr. Palan, Datin Kamatchi, SFHSB, FWSB, GPSB...I think chances of deal off would be negligible....an interesting point would be price fixing date for and listing of private placement shares at early March 2015 and mid March 2015...so the waiting should be over soon.
Result as expected. Profits drop due to acquisition plan. However, Revenue has increased significantly which is a good sign. Let's see how smrtian react next week. The lower the better. ;)
The Group's revenue increased by 133% to RM121.86million for the cumulative quarter 2014 compared to the previous year's corresponding quarter of RM52.40 million. The increased in revenue is mainly due to revenue contributed from education sector subsequent to the acquisition of CUCMS in Jan 2014.
For the current quarter under review, the Group had achieved a revenue of RM31.54 million with a profit before tax ("PBT") of RM0.17 million compared with a revenue of RM17.45 million and PBT of RM6.25 million in the same quarter of 2013(Q4,2013). PBT of the reporting quarter decreased by RM6.08 million mainly due to one off corporate exercise expenses of approximately RM221,530, impairment of goodwill of RM1.5mill as well as amortisation of in tangible assets RM0.5 mill.
Earnings were hit by one-off expenses such as goodwill impairment, corporate exercises, amortization of intangibles, etc.
All these are merely accounting and by accounting, you will never see the true picture of business performance. Look the fair and pristine figures such as revenue, number of students enrolment, etc, cashflows, etc.
They give a better picture of the performance of a company. Revenue increased significantly with the acquisition of new CUCMS university. Also look into the future catalysts such as Pro-Elt contracts, possible MESB partnership, improvement of CUCMS enrolment and listing to the main market. These are extremely crucial factors for the future of the company.
We should be holding on to stocks that we see great future. At a growth stage now, there will definitely be turbulences here and there, but given sufficient time, they will grow into a strong company where we can just sit down and collect dividends.
May be we should pray that Tan Teng Boo does not support it, so that we can collect cheap , isn't it ? May be Tan Teng Boo will make use of this opportunity to goreng it down to top up at cheaper price ? @alphajack is drooling to collect cheap , I think ...... ; )
SMRT used to be good, I made decent profit last time from 55c all the way to 85c (peak reached 91-92)..I still have a bit smrt shares cause didnt sell all (sold 3/4 last time)..now almost back to my original purchase price 7-8 months ago sigh..a bit disappointed la..zzz. dunno wanna hold or dump it..zzz
investors should look beyond 2014 la, might be a good buying opportunity if it cross below 53 tomorrow, a bad call from me though, didnt know they were so aggresive, maybe they were taking chance to impair those assets given the weakness in share price
At first purpose transfer to main board, then follow by acquisition with megb, at the end said delay transfer to main board, now profit drop.. but acquisition not being done.. Don't u think they are very obvious in doing bollywood drama? Haha.. the mgmt are suxx!!
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....
Kingston1
1,718 posts
Posted by Kingston1 > 2015-02-25 13:12 | Report Abuse
if Megb really drop the acquisition plan, it would definitely be good news for smrt. Time is the key for now.