DATUK YAP YEE PING was appointed on 27 February 2020 as a new executive of Gunung Capital. She is a director of CBG Capital Sdn Bhd and CBG Builders Sdn Bhd, subsidiary of Kumpulan Powernet Bhd.
New Gunung will further invest in businesses with good future growth prospect. In addition to the existing renewable energy business of developing small hydro plants, Gunung is in negotiation for the waste disposal in Sihanoukville in Cambodia with the local Cambodian partner that had already own a 10 years concession ;and buying shares in LCY Healthcare, a health care company.
As mentioned earlier new Gunung will add new businesses. An extract of announcement by Gunung today:
Reference is made to the Company’s announcement dated 4 May 2020. We wish to futher clarify the following excerpts from the news article published by The Edge Malaysia dated 4 May 2020 titled “Gunung Capital on the prowl for M&A”.
“Over the past few weeks, rumours have been rife that Gunung Capital plans to acquire a substantial stake in a financial institution in Cambodia. It is said that the total investment value will be more than US$25 million.”
The management of Gunung Capital Berhad (“GCB” or “the Company”) has been invited by promoters of a yet-to-be-issued, fully fledged commercial banking licence in Cambodia, to evaluate a proposal to participate. At this stage of evaluation and discussions, the Company cannot confirm the quantum of the investment value involved.
“Yap confirms that Gunung Capital is in advanced talks to acquire a more than 20% equity stake in a new full-fledged commercial bank in the country.”
The management of the Company is currently in advanced discussions, regarding the allowable equity participation in financial institutions, and other qualitative and quantitative requirements, such as governance issues, imposed by the relevant authorities in Cambodia on foreign equity participation.
Upon completion of the evaluation of the proposal, and the prospective yeild of such an equity investment is strongly beneficial to the Company, then the management of the Company will seek a meaningful equity participation, of at least a 20% equity stake to maximize on this investment opportunity.
"Potentially, we are also looking to unlock the value [of the bank] through a listing on the Cambodia Securities Exchange,"
It is premature to conclude that a listing exercise in Cambodia is the Company’s only option to unlock the value of such an equity investment. This option is obviously a long term strategy given the current infancy stage of the commercial bank proposal, the unconcluded evaluation of the proposal, and would require the necessary approvals from relevant authorities in Cambodia to list on the stock exchange. The management of the Company will look into all options to maximize the financial returns of the Company, when and if, the time comes.
LYC already proven a very good investment as the share price of LYC has gone up tremendously since. Gunung with the two proposed investments in Cambodia is an excellent counter to invest especially at the current price levels. If Cambodia deals successful price will shoot up and if fails the downside is very limited. Good optionality kind of trade: head I will gain a lot, tail I will loose little if any.
The new Gunung with the new ones and management is now already in Transportation, Renewable Energy ( Small Hydros) and Health Care via LYC Health Care. It will soon venture into Waste Disposal and Banking in Cambodia. All the business sectors Gunung are and will be involved except perhaps Transportation are in the growing sectors.
Gunung will have a bright future. Gunung already investing in healthcare via LYC Healthcare and in planning stage to venture into banking and waste disposal businesses in Cambodia. Investments in small hydro plants will very soon provide substantial steady profitable income for 21 years from contracts to supply renewable energy to TNB in addition to the current supply of land transportation services to arm forces. Not to forget the possible write back of impairment amounting to RM 6.2 m being receivable due from Government.
KUALA LUMPUR (June 26): Gunung Capital Bhd has acquired 4.7 million shares representing a 3.2% stake in construction renovation and interior decoration firm Yi-lai Bhd for RM5.22 million.
This works out to RM1.11 per Yi-lai share, a 12 sen premium to the stock’s closing price of 99 sen per share.
“Our financial asset investment division, after thorough evaluation, is confident of the growth prospects of Yi-lai, and is of the opinion that Yi-lai is currently undervalued by the market,” Gunung said in a bourse filing today.
“As such, the decision was made to invest in Yi-lai to secure higher returns on investments for Gunung,” the group added.
Gunung said the acquisition, which was done via direct business transfer, was funded by internally-generated funds.
Loss-making since 2015, Gunung is mainly involved in the chartering of land-based transport assets and speciality vehicles.
The group operates the fleet requirements of the Ministry of Defence, transporting schoolgoing children of armed forces personnel nationwide.
In a separate filing, the group said the aggregate purchase consideration of quoted securities acquired by Gunung for the past 12 months stood at RM9.61 million or 9.59% of its latest audited consolidated net assets.
Gunung’s investments in quoted securities as at June 26 involved a total cost and book value of RM9.61 million and total market value of RM10.34 million, the filing showed.
The group has not recorded any profit from the sale of such securities during the financial year ending Dec 31, 2020, it noted.
Under the listing requirements of Bursa Malaysia, a company must announce to the exchange of such transactions committed within the preceding 12 months, with the total being 5% or more of the listed issuer’s latest audited consolidated net assets.
Shares of Gunung closed one sen or 1.87% lower at 54.5 sen today, with 422,500 units done. This valued the company at RM131.8 million.
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....
giveme 5
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Posted by giveme 5 > 2020-03-12 13:11 | Report Abuse
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