BUY. The emergence of a prominent name as SEGi’s major shareholder should bolster trading interest in the company’s shares. More importantly, the entry of Navis Capital signifies the underlying growth potential in SEGi, although we believe that a general offer is unlikely to be made at this juncture. Maintain BUY, at an unchanged FV of RM2.17, based on an unchanged 18x FY12 PER and a fully enlarged share base of 748.4m shares upon conversion of all the outstanding warrants.
Unattractive pricing.In our previous report, we highlighted that any privatization offer has to be priced at a minimum of RM2.10/share to entice the minority shareholders. The final offer of RM1.714/share is on par with Navis Capital's entrance cost but fell short of our expectations and it is at a significant 5.3% discount (instead of premium) to its last closing of RM1.81. Given the unappealing MGO valuation which translates into 14.2x FY12 PER and 12.9x FY13 PER based on a fully enlarged share base vis-''-vis our FV of RM2.17 at 18x FY12 PER, we advise minorities to reject the offer.
if they cannot get >90%, they will increase offer price until >90% accept. Then they can compulsorily acquire the remaning share from you at their last offer price
20 yrs in this industry, this is the first time i come across a general offer below market price that leads to the falls of the share price. Market price is much better than those idiots offering price. what they think? minority share holders are stupid? DO NOT ACCET THEIR OFFER, IF THEY DONT GET UP TO 75% NOTHING CAN THEY DO, LET THEM ACQUIRE FROM THE MARKET, WHICH IS QUITE IMPOSSIBLE.IF THEY TRY TO ACQUIRE FROM THE MARKET, THE PRICE WOULD MOVE UP
jaynetan...if u think this is bad, check out Esso general offer...it was trading at RM4.50++ when the announcement came out the general offer was RM3.59...the share price crashed the next day. You're right minority s/holders are always at the losing end.
Bloody Suckers Cheat on all the small investors. That is Malaysia. I think Bursa will do nothing and minority shareholders all suffer in silence. It is a daylight robbery.
this have left a very very bitter feeling on small investors. I am considering not to invest in Bursa anymore. Damn. Better invest elsewhere. Moreover now so many access in investing overseas. Stupid Bloody Lim Kam Puke (Navis and Hii Basket)
I've been wondering, how could Navis bought at the bottom RM1.71 and thereafter the price never went lower than that?? It even rose as high as RM1.81 the day before the cursed GO was announced. Any idea?
It means Clement and Navis F**K....I cursed those who cheat public. Good luck to you clement, Chow Yin and navis gang....might the dialysis chair be your companion soon. Ohhh...not to forget the Lipitor for your daily intake. Plus not to forget your daily Insulin and Wheel Chair to all those Bastard who cheat people from SEGI. Hope you have multiple Blood Sugar Excursion too, just to keep you guys cheater happy and excited always.
@tand3. So many medical terms huh? You are really good at cursing. What about the directors of Transmile and Megan. Please curse them also for my friends and 8K.
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....
JimYeoh
1,514 posts
Posted by JimYeoh > 2012-04-17 09:50 | Report Abuse
Good time to enter..