this Dnex is not pump and dump stock.....Dnex very good in fundamental .
one have to imagined that this USD$50 billion or at least initial $10 billion from all e-trades permits approvals generate from DFTZ/Alibaba when start in 2018 or early 2019 is COMPULSORY/MUST pass tru DNEX (4456) e-services software platform tat currently been authorized by Gov to integrates with most gov agencies to get each items/goods pass on from shippers to consumers. Just 1 segment from IT can rake up 1000% folds profits, haven't count others segments like O&G, Hydro Energy, Foreign Workers Permit, VEP and RFID profits.
The Board of Directors of Star Media Group (“the Board”) wishes to inform that its wholly-owned subsidiary namely, Laviani has on even date received a notification from Bird & Bird ATMD LLP, a legal firm in Singapore expressing their clients’ interest to purchase Laviani's entire equity interest in Cityneon comprising 128,458,590 ordinary shares, representing approximately 52.51% of the issued share capital of Cityneon.
Pursuant to the above, the Board will deliberate the abovementioned and an appropriate announcement will be made in due course.
Good in short term. proceeds from sale is almost RM380million on top of Star's current warchest. They will have enough money to do special dividend and also look for new business to acquire. Looks like a good deal
deal or no deal depends upon star; no deal they still get a share of the results from cityneon which they have been getting anyway. This is not IWC, please.
KUALA LUMPUR: Star Media Group Bhd’s board of directors has given the green light for the sale of its 52.5% stake in the Singapore-listed Cityneon Holdings Ltd — a unit that is currently contributing about one-third of its revenue, according to sources familiar with the matter.
The stake sale will enable Star Media to unlock the value of its investment in the republic. The deal is expected to bring in more than RM350 million to the media group’s cash coffers, which stood at RM500 million as at Dec 31, 2016. Its borrowings were RM201.7 million.
“Star Media will see its coffers rise more than RM350 million if the deal goes through. It will take decades to earn that kind of money,” said a source from Singapore.
Last week, Star Media announced that its wholly-owned subsidiary Laviani Pte Ltd had received a notification from Bird & Bird ATMD LLP, a legal firm in Singapore expressing its client’s interest to purchase Laviani’s entire equity interest in Cityneon.
Cityneon has been one of the key contributors to Star Media’s revenue since the financial year ended Dec 31, 2015 (FY15) as the print media segment faces declining advertising revenue. The investment is seen as a wise move to diversify its earnings portfolio.
Cityneon contributed 32.2% and 25.2% of the group’s revenue and earnings before interest and tax respectively in FY16.
The stake sale may raise questions about the group’s earnings growth moving forward, some quarters said.
The company in Singapore owns the exclusive global intellectual property rights to Avengers Station and Transformers Experience, which have been a major driver of Star Media’s bottom-line growth.
Star Media shares closed unchanged at RM2.52 yesterday, with a market capitalisation of RM1.86 billion.
Star Media's investment cost of RM120 million for Cityneon is sold for RM360 million. Star made a whopping 3 times its original cost. Good advice Magus!
The FBM KLCI remained in positive territory at the midday break today but managed only limited gains as sellers overtook buyers in line with the regional markets.
At 12.30pm, the FBM KLCI rose 3.24 points to 1,770.41. The index had earlier risen to its intra-morning high of 1,772.21.
Losers overtook gainers by 493 to 340,while 363 counters traded unchanged. Volume was 1.93 billion shares valued at RM1.67 billion.
The top gainers included British American Tobacco (M) Bhd, Dutch Lady Milk Industries Bhd, Fraser & Neave Holdings Bhd, Win Tai Malaysia Bhd, Petronas Gas Bhd, Malaysia Airports Holdings Bhd, Tasek Corporation Bhd, Kuala Lumpur Kepong Bhd, MBM Resources Bhd and Tasco Bhd.
The actives included AirAsia X Bhd, Luster Industries Bhd, Borneo Oil Bhd, Key Alliance Group Bhd, Frontken Corp Bhd, NetX Holdings Bhd, AirAsia Bhd and Green Packet Bhd.
Star Media ought to pay special dividends from Cityneon sale.
Internet and digital assets in the marketplace now are extremely overpriced. Should Star Media pursue these assets aggresively the Board of Directors would need to be accountable and held legally liable for future writedowns.
Also Star Media ought to sell non-core assets TV and Broadcasting divisions to unlock value.
Star Media has to implement a restructuring program
1) change in management and Board of Directors 2) capital repayment - special dividends 3) sell non-core assets - TV & Broadcasting 4) implement strict investment program which offers a good risk/reward with good price
Hold management and Board of Directors accountable for recent and future failures
Star Media's Group CEO and Chief Editor should be personally and legally liable together with the Board of Directors for any action by the Home Ministry.
There should be "Clawbacks" in their compensation scheme so that Star Media can take back money that has already been disbursed plus a penalty if Home Ministry finds them blameworthy.
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....
angiechai
55 posts
Posted by angiechai > 2016-07-04 16:27 | Report Abuse
waiting to buy whn PE is lower