Posted by JT Yeo > 2015-03-24 12:25 | Report Abuse

Yes of course you not going to pay a price based on the yield that you pluck from skies, but just saying everyone that is going to pay will compare the yield % in relative to what they can get, had they use their money to invest in something else, i.e. FD, bonds, shares, each has different risk profile hence difference yield and returns.

Yea of course if you are staying in a property, even if it is low yield you will still keep it because you know that had you sold it, you can't get a similar value out there (Also need to figure out where to live). But if you have another place ready to stay and you can sell this property at an attractive price, and invest those profit into something that generate higher return, suddenly the perspective changed.

As a shareholder of Hunza, the return you receive (as a minority) from investing in this company is through the property development, rentals income from mall etc that the company conduct, you receive dividend + capital appreciation. How much you are willing to pay will depends how much free cash flow do you expect Hunza to generate, when it will be generated, discount at an appropriate discount rate back to present value, same goes for the mall (which is part of the business).

So say example Gurney mall, expect annual earning is $30mil, based on Kenanga research (2013). That's about $0.13 eps. If using 8% growth rate x 10 years, terminal growth rate 5%, discount rate 10%, it is about $2.02, the mall itself, but it is just a rough figure, but you get an estimation, just to be safe, you can say the mall is worth somewhere $1.80-2.30.

In the end, every investor has different measurement, if I have some better stocks to invest (higher return) than this, and knowing it will take a long time to get to RNAV, I will prefer to sell at a smaller profit and invest there, compare to someone that don't have other better investment option.

Posted by JT Yeo > 2015-03-24 12:42 | Report Abuse

But yes as a long term investor, management quality is a strong consideration (after industry attractiveness). If management cannot explain the rational behind the privatization price convincingly, even if the deal fall through, you won't want to do business with them anymore. You cant make deals with devil

Posted by OngLiao99 > 2015-03-24 15:29 | Report Abuse

Simple math to solve the valuation....Mall worth at a low end - $750MM = RM3.20/share, prime landbank RM2.50, cash RM0.22/share....loan RM1.66/share....

3.2+2.5+.22-1.66 = RM4.26/share, at a low low end, mall 2.50+land 2+ cash - loan = RM3.06/share....this is like fire fire sale price and don't forget this doesn't include treasury shares already purchased.

Wait for Edge coverage this weekend...

Posted by enid888 > 2015-03-24 15:38 | Report Abuse

JT Yeo, I agree with your method of the valuation of the mall to certain extent but not fully. This method of basing on yield (for example 6% yield per year) to value a mall is suitable for matured shopping malls like Sunway Pyramid, Pavillion or Queensbay Mall.
For Gurney Paragon, it is a new mall (1 yr n 9 months old) and is not matured yet. Usually, the rental is lower for new mall to attract tenants n a lot is spent on advertising. After 3 to 4 yrs, the mall will mature n receive appropriate rental incomes when the tenants renew their leasing agreements. The yield will be normalised in another 1 to 2 yrs time from now.
That is the reason I use its next door Gurney Plaza valuation to value the mall. I trust this is a fair method bcos the mall is as good if not better than Gurney Plaza.
The valuation of Gurney Plaza's RM1,295mil for the 887,764 sq. ft. mall is from the CapitalMalls Malaysia Trust 2014 annual report. I hv a very strong base to support my estimation.

Posted by enid888 > 2015-03-24 15:50 | Report Abuse

OngLiao99, I will be very happy if there is a "The Edge" coverage on Hunza this weekend. Are u sure there will be one?

Posted by kstay60 > 2015-03-25 00:25 | Report Abuse

jtyeo, you may have a point. but please bear in mind the rights and interests of the minority shareholders have to be protected.
certainly the stock price may remain stagnant for the next 10 years if the is no corporate exercise. but when one buys the shares and choose to invest in the company, he sees the value of the company and the future potentials. he makes an investment decision and is prepared to keep them for however long he feels worthwhile and has no reason to complain if the price does not appreciate.
however, it is a different story when it comes to major shareholders riding roughshod and taking advantage of minority shareholders. which is happening here.
that's why we have regulatory bodies and minority shareholders watchdog to protect minority shareholders.
we can accept a reasonably lower offer as compared to its actual value, bearing in mind the risks and capital commitment of the offeror, but paying peanuts in return for huge returns tantamounts to bullying and cheating the minority shareholders.
please stand up for your rights, folks

Posted by hoplanner > 2015-03-25 11:02 | Report Abuse

So bila form a minority group to standup against the Offerers, kstay60?

Posted by kstay60 > 2015-03-26 00:59 | Report Abuse

shareholders who intend to join the proposed action committee please indicate

Posted by hoplanner > 2015-03-26 13:03 | Report Abuse

Count me in

Posted by lks_5291 > 2015-03-26 16:27 | Report Abuse

I can provide proxy if it really happens but cant be active as busy working... Anyway, I'm just a "tiny" shareholder. haha... Not even minor. Still, no obvious action from both KTT and opposing (Yayasan & Lembaga)... But someone must be collecting diam-diam...

Posted by 11172164 > 2015-03-27 13:39 | Report Abuse

Ktt no further action

Posted by lks_5291 > 2015-03-27 16:09 | Report Abuse

There should be solid/full proposal from KTT to Bursa. Otherwise, it means Bursa support goreng... Should be just a matter of time for further material release like appointment of independent advisor... It will become a psychological game of mentality and time...

Posted by Idiot > 2015-03-29 11:38 | Report Abuse

Took a quick look at P/BV : Penang Property Cos like Tambun, Ivory, E&O, avg P/BV : 1.3x, Similar mkt cap property co (RM500-1,000m), P/BV : 0.82. Hunza offer price RM2.50, P/BV = 0.71 but vs RNAV (Alliance Research 15/5/13 RM6.55) = 0.31x. Draw your own conclusion

Posted by Idiot > 2015-03-29 11:39 | Report Abuse

I think the best thing is for Penang shareholders to pressure Yayasan Pinang and for muslim/Tabung Haji members to pressure Tabung Haji

Posted by Joel > 2015-03-29 18:12 | Report Abuse

Idiot, u mean Hunz at current price 2.35 still undervalued to collect ?

Posted by enid888 > 2015-03-29 23:34 | Report Abuse

Please read the latest "The Edge" issue, Pg. 10

"HUNZA WORTH MULTIPLE TIMES PRIVATISATION OFFER'

Posted by enid888 > 2015-04-01 00:14 | Report Abuse

Why is KTT is proposing Selective Capital Reduction (SCR) n Repayment Exercise? Why is it not a straight forward general offer? Any of the members here can inform me abt this?

Posted by lks_5291 > 2015-04-01 07:10 | Report Abuse

Okay, finally the show is going to start soon: http://www.theedgemarkets.com/my/article/hunza-table-proposed-scr-shareholders

So, he still wanna give a try on RM 2.50 per share...

Enid888: I don't quite understand the mechanism of SCR too... I only know he wants to telan the 10% bb share in treasury...

Posted by lks_5291 > 2015-04-01 07:26 | Report Abuse

If you read the details of the proposed SCR:

"KTTHSB believes that this asset management development strategy will result in changes to the financial and risk profile of the Hunza Group considering:" (Means he doubted himself?? haha...)

The reasons are hilarious especially "concern on the dividend capacity of the Company." This is a self-directed plot by vacuuming all the capital for the sake of gurney paragon development and aggressive share bb... If I'm not mistaken, Warren buffett disagree on the concept of "Shareholder controlled management board" or agree on a minimal involvement only if necessary. Otherwise, conflict of interest will happen as in Hunza case whereby capital is misused and interest of minority shareholders is not protected...

Posted by enid888 > 2015-04-01 09:28 | Report Abuse

Thks, lks_5291. After looking at the SCR carefully, two possibilities that I can give.

1) The SCR is carried out at company level. That means, the payments will be paid by Hunza to the shareholders for the shares cancelled. Probably, KTT himself do not hv enough money (abt RM230mil) to carry out the privatisation. Hunza as a company is able to do that by getting loans from banks with pledging of its assets.

2) The SCR needs only 75% votes by the shareholders in the EGM for approval. I think they can even partially cancel the minority shareholders' shares. Which means, if only 60% of the minority shareholders accept the offer, Hunza can just cancel that 60% and the remaining 40% will remain as shareholders.

Posted by lks_5291 > 2015-04-01 10:59 | Report Abuse

As mentioned in the edge, to raise fund is easier. You can easily sell any land or get the gurney paragon listed as REIT or even sell it. Penang is getting HOT in development now with a lot of ongoing plans including the Transportation Restructure plan. Hunza holds a lot of PRIME lands in Penang both island and seberang Prai. Almost all are 1st grade lands and were purchased long time ago at a relatively cheap price. He sure got the money with all these planning done. Just that he is too calculative and smart. Haha...

Posted by Idiot > 2015-04-01 11:14 | Report Abuse

Still reiterating my earlier point : the most effective is for Tabung Haji and Yayasan Pinang to put pressure and ask for higher price

Posted by enid888 > 2015-04-01 12:07 | Report Abuse

Just hope that the board of directors of the 2 organisations will act and safeguard the interest of their members. They are not private firms, sometimes they may neglect their members' interests which are also our interests.

Posted by lks_5291 > 2015-04-06 17:09 | Report Abuse

http://www.theedgemarkets.com/my/article/mulpha-land-offer-%E2%80%98not-fair-and-not-reasonable%E2%80%99

“We are of the view that the RNAV valuation is the most appropriate method in approaching the valuation of property-based companies such as Mulpha Land. Hence, the RNAV valuation is the main valuation methodology used to determine the fair value of Mulpha Land shares,” it said...."

Posted by enid888 > 2015-04-06 18:39 | Report Abuse

lks_5291, I fully agree that RNAV valuation is the most appropriate method in evaluating a property counter.

The offer on MulphaLand has been rated "Not Fair n Not Reasonable" by independent advisor. Comparing to MulphaLand, Hunza is even more undervalued n KTT's offer price is very much lower comparing to the offer for MulphaLand.

In order to make some of you understand better on KTT's offer on Hunza, I give the most simplified scenerio that Hunza as a company has only1 asset (a linked house in KL).
1 unit of linked house - bought in 2004 for RM350,000.00 (hence NTA RM3.50)
House value in 2015 - RM750,000.00 (hence RNAV RM7.50)
KTT wants to buy at RM250,000.00 (hence offer price RM2.50)

Do you want to sell your house that worth RM750,000.00 to KTT at RM250,000.00? Definitely, nobody will sell to him at RM250,000.00. KTT has to raise his offer price if he is keen. I also hope that someones with financial muscles will emerge n collect this undervalued counter just like what is happening to MulphaLand now.

Today, MulphaLand closed at RM0.68, much higher than the offer price RM0.497.

Posted by hoplanner > 2015-04-07 11:14 | Report Abuse

You are absolutely right, brother,,,!!!
KTT thinks we all ........"Kamu Tak Tahu"

Posted by wan7075 > 2015-04-10 11:29 | Report Abuse

Bro enid and hoplanner, how much share hold by ktt now and do you think this privatization will success? Thx...

Posted by enid888 > 2015-04-20 17:28 | Report Abuse

wan7075, KTT holds about 57% as stated in the annual report. Whether he will succeed or not will depend on the vote in the EGM.

Posted by enid888 > 2015-04-20 17:38 | Report Abuse

MulphaLand is trading at RM0.925 which is 86% higher than the general offer price of RM0.497. It needs a general offer for the investors to look into the real value of the counter and realise that the real value is very much higher than the general offer price. This does not happen in Hunza. May be Hunza is too low profile and not many people care.

Posted by xbodoh > 2015-05-15 17:34 | Report Abuse

ktt test water, if tabung haji not agree, he will not be able to ,as tabung haji no need use calculators, also knows, not logic, dont make sense. with 1mdb s case i believe they are very cautious.bayan baru land after clear squatters, per sqft. is rm 350 to 400, gurney paragon .. as start, use investor money,after bolih terbang, dia naik business class, and we go by tongkang, mana bolih.

Posted by xbodoh > 2015-05-15 17:36 | Report Abuse

>>>>> Still reiterating my earlier point : the most effective is for Tabung Haji and Yayasan Pinang to put pressure and ask for higher price>>>>>>not ask, we are actually helping hunza to become today,we r not beggar, we just want fair treatment...agree????

Posted by xbodoh > 2015-05-15 17:38 | Report Abuse

these two bodies know very well, they have teams of professionals to study.unless...mmmmm .... u know i know...

Posted by xbodoh > 2015-05-15 17:43 | Report Abuse

some one should find a way to let the tabung haji and yayasan boards of directors aware these
..http://klse.i3investor.com/servlets/stk/5018.jsp, and knows what actually going on, they are too busy and no one make them aware about all these comments...

Posted by lks_5291 > 2015-05-27 19:32 | Report Abuse

Despite the poor macroeconomic conditions, someone sapu all at 3pm and closed at RM 2.36. As expected, the Quarter result was released thereafter and it is a good one (maturity of investments). Then, you shall find this statement in the Quarter report:
"... the Proposed SCR is expected to be completed in the 4th quarter of calendar year 2015."
Omg, KKT really wants to exploit the weak minded and makes those strong minded waiting like beggars...

Posted by tkg8 > 2015-07-27 09:51 | Report Abuse

Finally...

Posted by chlim75 > 2015-07-27 10:44 | Report Abuse

What hapen?

Posted by lks_5291 > 2015-07-27 11:55 | Report Abuse

Must be KTT and his enemy (us) are fighting to collect share. I don't think KTT will offer higher than his stated offer price RM2.50/share if there is no one to challenge him...

Posted by enid888 > 2015-07-27 11:58 | Report Abuse

Just a reminder to the shareholders,

The actual value of this counter is more than RM7.57/share. Do not accpt the offer from KTT.

Let us look at one of the Hunza properties - Gurney Paragon
We use its next door shopping mall Gurney Plaza as a benchmark.

From CapitalMalls Malaysia Trust 2014 Annual Report.

Gurney Plaza (CapitalMalls Malaysia Trust)
Net Lettable Area : 887,764 sq. ft., Independent valuation : RM1,295mil.
Value/ sq. ft. = RM1,458.72

Gurney Paragon (Hunza)
Net Lettable Area : 720,000 sq. ft.
Value = 720,000xRM1,458.72 = RM1,050.28mil
Hunza Tower
Net Lettable Area : 100,000 sq. ft.
Value = 100,000xRM1,000.00 = RM 100mil
Total Value of Gurney Paragon = RM1,150,28mil
Total no. of Hunza Shares in Market 225,085,440 shares
(From Khor Teng Tong Holdings Sdn. Bhd. Offer Letter)
Value/share = RM5.11/share

Bayan Baru Development Land measuring 42.3acres.
The current value/sq.ft. of the land is RM 300.00/sq. ft.
This piece of land worth RM552.78mil
Value/Share = RM2.46/share

Shareholders, just these 2 prime properties,
Hunza already worth RM7.57/share. The offer price of RM2.50 is totally unfair.

There are other valuable assets
400 acres in Bandar Putra Bertam, Seberang Perai
9.8 acres in Alila 2, Tanjung Bungah
6 acres near to Mont Kiara (KL)
36.9 acres near Auto City, Juru, Seberang Perai
500 acres in Sungai Petani (Kedah)

Posted by KCGOH1234 > 2015-07-27 13:02 | Report Abuse

Insider - KTT has instructed IB to increase offer price to RM 2.85 .. Announce soon. Stay tune.

Posted by enid888 > 2015-07-28 11:50 | Report Abuse

Even the offer price is revised to RM2.85, it is still a big advantage to KTT. Paying RM2.85 for things worth more than RM7.57. They don't want to share the harvest with the shareholders that have put in the capital in the company.

Posted by RosmahMansur > 2015-08-04 14:59 | Report Abuse

Why suddenly up today?

Posted by tobuy2006 > 2015-08-04 21:48 | Report Abuse

2.90 new offer

Posted by RosmahMansur > 2015-08-04 22:35 | Report Abuse

wow....huat ahhh!

Posted by Wikiileaks > 2015-08-04 22:48 | Report Abuse

Idito buy

Posted by tobuy2006 > 2015-08-04 23:14 | Report Abuse

Still below expectation

Posted by enid888 > 2015-08-05 21:57 | Report Abuse

The RNAV of Hunza

Assets of Hunza
Gurney Paragon (Hunza) - Value/share = RM5.11/share
Bayan Baru Development Land measuring 42.3acres - Value/Share = RM2.46/share
400 acres in Bandar Putra Bertam, Seberang Perai
9.8 acres in Alila 2, Tanjung Bungah
6 acres near to Mont Kiara (KL)
36.9 acres near Auto City, Juru, Seberang Perai
500 acres in Sungai Petani (Kedah)
Treasury Shares of 10% of Hunza shares

Add : Other assets
Less : All Liabilties

The RNAV of Hunza is RM9.50/share

Shareholders, the offer price of RM2.90 per share is only 30% of the actual value. Reject the offer.

We hope that Lembaga Tabung Haji n Yayasan Bumiputra will act on the interest of their contributors and act like it is their own money.

Posted by Sharenoob > 2015-08-06 17:53 | Report Abuse

We refer to the Company’s announcement dated 4 August 2015 in relation to the receipt of a letter from KTTHSB to revise the Offer Price for the Proposed SCR to RM2.90 for each existing Hunza Share (“Revised Offer Price”) held by the Entitled Shareholders (“Revised SCR Offer Letter”).

On behalf of the Board of Directors of Hunza (“Board”), we, CIMB Investment Bank Berhad as Principal Adviser and OCBC Advisers (Malaysia) Sdn Bhd as Financial Adviser, wish to announce that the Board, save for the interested Directors, has deliberated on the contents of the Revised SCR Offer Letter and has resolved to table the Proposed SCR to the shareholders of Hunza for their consideration.

The Board notes that save for the Revised Offer Price, all other terms and conditions to the Proposed SCR remains the same.



This announcement is dated 6 August 2015

Posted by cm > 2015-08-07 09:18 | Report Abuse

now is the good time to offer takeover...a lot ppl will accept...they need money

Posted by enid888 > 2015-08-16 13:46 | Report Abuse

The offer price of KTT is very unreasonable. Does anybody know abt the actions of Lembaga Tabung Haji n Yayasan Bumiputra? I think the minority shareholders should not consider anything below RM6.00.

Posted by immas > 2015-08-17 11:05 | Report Abuse

i have more than 1000lots hunza, i will reject the KTT offer, i appreciate all the investor here, reject their offer too. thanks.