Need accountant to advise. Their NTA is 0.78, I assume that this already included the assets in China, assuming they sell with 10%, premium, meaning NTA is about 0.86, but they won't have the assets anymore, they have cash. So, is hood or not? Can the share price break 0.80? I have no idea
tedbeh when is Tan Sri Liew taking over SALCON? Also watch out whether Eco World hv been accumulating SALCON shares n becoming a substantial shareholder becos this Co is under the property arm of Tan Sri Liew's son.
I guess the price will move after the situation is clear, which means after Salcon disposes all his water assets and Tan Sri Liew comes in. Just a point of concern, Peoperty Business is very tough in the coming future especially after the new budget as government trying to curb the speculation, I wonder whether the timing is right for Salcon. For me, Salcon short term target could be between 0,.75 to 0.85 when they announce the disposal of water asset, it will only fly after the annoucement of their new partner in property development
Just Announced in Bursa, will get back RM200+ million after paying back the loan, NTA is 0.91, don't know whether is good or not. No more steady income from China, have RM200 mil cash for investments in Property Development, Property Development is very challenging business nowaday, but they may have Tan Sri Liew, still a lot of uncertainties
Poor corporate governance for sure : for a disposal involving such a substantial part of the business, they didn't suspend the stock today, very strange instead
Not to worry guys. From TA perspective, uptrend intact. I believe Salcon wanna focus on property development, that's why they dispose those water assets. Why focus on property development? Who is behind them? Why they so confident suddenly? Guess guess.
Salcon Bhd today announced it is disposing its entire shares in six water companies in China for RM518.3 million, a move that will allow it to expand further into its new business, property development. It also announced that its subsidiary, Nusantara Megajuta (NMSB) has signed a letter of intent with Eco World Development Sdn Bhd to jointly develop two pieces of land in Johor. Eco World will acquire 100 per cent shares of Kembar Makmur (KMSB), which owns 49.99 per cent shares in NMSB from existing shareholders of KMSB. This agreement will be formalised in a month, Salcon executive director Datuk Eddy Leong said at the signing of the deal.
May i know anybody has info of how much these 6 companies contributed to the bottom line of Salcon? China big market, they sold because of losing money? Or Malaysia biz is much profitable?
Eco World Development Sdn Bhd is the peoperty development Co of SP Setia Tan Sri Liew Kee Sin's son Liew Tian Xiong based in Johore, Recently they hv bought a piece of land covering 248.8ha in Iskandar Malaysia valued at RM534.7mil.
SALCON Executive Director Datuk Leong Kok Wah who sat on the SPSETIA board for 13 years, also sit on the board of Eco World Development Sdn Bhd.
Very unusual. Normally share price surged before the announcement, and furthermore the news had already leaked to the Edge one day before, and yet, the price didn’t move. It lead me to think that this could be one of the pre-purchase condition of Tan Sri LKS, sell off all your water assets, clean up the company, maintain the share price at current level, before he can take over. Anyway, is just a rough guess...
Let's do a rough guess, Eki World land worth RM600mil, Salcon has approximately 600 mil share. The market cap will be around RM500 mil if the price is 0.80, if Eko World pump in their land worth RM600 mil, they will have the controlling stake of 55%. With this calculation, I think they will not let the share price up too high before the this exercise. We may need to hold for a longer duration
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tedbeh
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Posted by tedbeh > 2013-09-12 09:13 | Report Abuse
The selling of water assets will justify that Tan Sri wants to come in to a very clean and pure property firm