I think deal is still on. Ekuinas wants to IPO their education group next year. Some analyst in the news said they need to clean up their books first b4 can list. If not, cannot get good valuation since profit need to share with minority.
If 2016 listing, they will need to clean the 2015 books to show in their prospectus. In order to do tht they need to acquire minority interest b4 end of the year.
According to the edge article, Sapres portion of Apiit is valued @ rm400mil. With 139.6 mil shares = Rm400mil/139.6mil = RM2.87 per share.
This means if deal goes through @ 400mil, there will be cash of RM2.87 pe share in the company's book.
I seldom see stocks trading below cash portion (stock currently trading @ only 50% of potential cash to be receive, if deal goes through). Hence why i am bullish in sapres.
Even @ rm300mil, the cash portion to b received will be rm300mil/ 139.6mil= rm2.15 per share.
The potential deal between Ilmu (owned by Ekuinas) and Sapres will be on the acquisition of the remaining 49% interest of APIIT. Ekuinas is expected to list its Ilmu Group in 2016. They would want to acquire 100% of APIIT which is one of the most profitable asset in Ilmu's portfolio b4 the listing. The edge mentioned that potential value of the 49% to be around RM400m which translate to around RM2.86 per share. Investors are practically getting all the other business in SAPRES for free. I seldom see a stock that trades below the cash value. So i would assume the stock to be heading to at least the cash value (RM2.86) once and if SAPRES receive an offer from Ekuinas. Even if the offer is only RM300m this would still translate to RM2.15 per share.
The deal for the divestment of 49% of Apiit with Ilmu Group is expected to be completed by 1Q16 in line with the potential listing of the group targeted on the 2nd half of the year. Given the timeline, an announcement is expected sometime in Jan or Feb in order to give time for the company to hold an EGM. Rumours in the media put the valuation of the 49% to be around rm300m to rm400m. However if Ilmu decides to delay the listing, the completion might also be delayed.
Appreciate if anyone can give any input on this. If the rumours are true, the company is super undervalue at the moment.
Not sure bro patrick. All the things u said are what was being presented in the media. But looking at the timeline, IF Ekuinas really wanted to list Ilmu by 2nd half 2016, they will need to complete the deal soon.
But totally agree that the company is undervalue at the moment....
Panic selling in the last hour of trading in line with the selling off the general market. This stock got hit quite badly due to the lack of liquidity.
I still believe that the announcement of the deal with ilmu will be made soon (by Jan or Feb)
For those who are yet to enter and believe in the deal, this might be a good point of entry.
For those who are already in, i guess they will need to be patient and have to face the volatility of the current market condition.
Ahmad Jauhari is actually more of an energy (IPP) guy rather than an aero specialist. He was appointed to the CEO of MAS previosly because of his succes in turning around Malakoff where he served between 1994 to 2010.
So i am not sure if his appointment into the BOD has anything to do with Sapres strategy in the aero business.
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....
bone
968 posts
Posted by bone > 2015-11-13 11:32 | Report Abuse
why deleted all your 2.7 comments?