Due to the covid situation, I think the OSK board should consider a 2 years extension of the due date of OSK warrant probably like Japan Olympics may postponed like
when price drops, fat ass doesn't want to do SBB, so that can drop more ..... when price rises, fat ass also doesn't want to do SBB, to prevent it rising too fast .....
fat ass also won't declare special dividend, only traditional/ min dividend .... so that, s holders cannot be happy!
cannot blame OSK for not extending the warrants, as the contract state clearly the expiration date. This covid19 and economic slowdown is definitely not the fault of anyone in Malaysia.
all OSK need to do is to continue to pay consistent dividend and maybe increase the dividend to 6 or 7 sen per year.... and the 6 to 7 sen dividend pretty much can just come from RHB's dividend holding.
with banks being held by the likes of khazanah and epf, dividend will be maintained. where else to get positive cashflow?
yes, as long as osk pays dividend is good. A put his cash in FD 3 years ago, B used the same amount bought osk, B is more Happy than A, bcos B get more dividend than A ....
OLH will convert his warrant as his deemed indirect holding will exceed 50% after converting. At the moment it is already 48.658%. OLH plus PACs will be more than 50%. He is only giving money to himself by converting the warrant as he will take over the company.
Remember he is paying the company for the warrants. The money goes to the company which he will then take over,the company will be his. So all this money goes back to him. Don't you dare to think that he will lose out.
Will he be able to take OSK private? I mean, getting loan to take it private at current economic condition will be hard, but OSK has 10% share of RHB. Will BNM approval be needed?
OSK holds just over 10% of RHB. Institutions are allowed to hold up to 10%,anything above that will require BNM approval. OSK can sell some RHB shares to bring it down to 10%. Once he has succeeded,he can sell off the 10% of RHB to pay for any loan he has borrowed for the takeover and keep the remaining money as the loan required for the takeover is definitely less than half the 10% of RHB. He gets to own OSK for free PLUS free cash to run OSK. Or OSK still ends up owning 5% of RHB. The 5% will still generate dividend income for OSK.
RHB has increased dividend by 51%,from 20.5 cents to 31 cents. Looking more attractive for OLH to takeover. He wants all of it. OSK will get around 125 mil. ringgit in dividends.
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....
Milo Ais
255 posts
Posted by Milo Ais > 2020-03-12 01:04 | Report Abuse
Low bank interest will benefit high DY companies, such as OSK