On behalf of the Board of Directors of MKH (“Board”), AmInvestment Bank Berhad (“AmInvestment Bank”) and Kenanga Investment Bank Berhad (“Kenanga IB”) (collectively referred to as the “Joint Principal Advisers”) wish to announce that the Company proposes to undertake a renounceable rights issue of up to 45,402,742 new ordinary shares of RM1.00 each in MKH (“MKH Shares”) at an issue price to be determined and announced later (“Rights Shares”), together with a bonus issue of up to 90,805,484 new MKH Shares (“Bonus Shares”) to be credited as fully paid-up, on the basis of one (1) Rights Share for every ten (10) existing MKH Shares held and two (2) Bonus Shares for every one (1) Rights Share subscribed for on an entitlement date to be determined and announced later (“Entitlement Date”) (“Proposed Rights With Bonus Issue”).
Good news. They are giving bonus shares. According to the announcement, the proceeds of the right issue is for them to build the new infrastructure for its projects. It is also going to build a new KTM station in Kajang 2 so that it will be integrating well with its commercial project there. All these are necessary and value added investments for a well connected township and increase footfalls to their future mall. The future earnings to Kajang 2 will be many times of the money that they invested in. The directors are responsible people and creating values for the company.
with a record cash holding of RM300m, still need to ask for more money of just RM92m????
hmmm.... of late all these property developer with large cash holding seems to be in trend to raise more money via right issue. Was L&G 3 week ago, now MKH.
The warrant will subject to adjustment with lower exercise price.
Say I'm holding 1,000 warrants and the current exercise price is RM1.89, the total value I need to pay is RM1,890 if opt to exercise the warrants into ordinary shares of RM1/- each.
Say the revised exercise price after the Proposed Rights and Bonus Issue is RM1.60 (assuming), then the adjustment on the number of warrants will be as follows:-
RM1,890/RM1.60 - 1,000 = 181 warrants adjustment
Total value of warrants after the completion will be 1,181 x RM1.60 = RM1,889.60 (due to rounding error).
Dear Tomahawk, is that true? I have never experience holding a warrant while mother share has some corporate exercise....so I too, am wondering what will happen to WB...
Further to MKH Berhad's ("MKH") announcement made on 10 June 2016 pertaining to the Proposed Acquisition, the Board of Directors of MKH wishes to announce that its wholly owned subsidiary, MKH Plantation Sdn Bhd ("MPSB") has received the Investment Coordinating Board of Indonesia (Badan Koordinasi Penanaman Modal) approval for the transfer of the Sale Shares from the Vendor to MPSB on 2 December 2016. MPSB has on 9 December 2016 completed the Acqusition. Accordingly, PT Sawit Prima Sakti ("PT SPS") is now a subsidiary company of MKH. PT SPS owns approximately 2,445.49 hectares of oil palm plantation land at Kabupaten Kutai Kartanegara, Kalimantan Timur, Indonesia.
sctan is correct that no warrants will be giving but the exercise price will be adjusting accordingly. Once the exercise price has been adjusted, so do the number of warrants you are holding will be adjusting as I explained earlier.
If you value of conversion as at today is RM1,890 for 1,000 warrants, after the completion of the exercise, it is still value at RM1,890 with lower exercise price. As such, the number of warrants need to be adjusted in order to maintain the value of RM1,890. Hope this answer your query myj88
Comparison between two companies which are quite identical.
Booth companies have twin principal activities. MKH : Property Development + Plantation Scientex : Property Development + Manufacturing
__________________MKH ___________ Scientex EPS ____________48.49 sen _________50.06 sen PE _____________ 5.93 times ________13.38 times NBV ____________ RM3.05 __________RM 2.67 Current Price _____ RM 2.87 _________ RM6.70
From here, we can see that MKH has a very low market valuation as compared to Scientex. If MKH has the same valuation as Scientex, its share price should be trading at RM 6.49 per share. Therefore, MKH is very much undervalued.
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....
kenken85
724 posts
Posted by kenken85 > 2016-11-28 09:40 | Report Abuse
good result also no power.. really need to test so much patience meh? haha