i think the biggest problem is the dilute of the WMWOG share after the merger ... long term benefit is good, but the share value just diluted too much in short term.
if not because of dilution of earning per share, new entity, estimated 9 months to complete the corporate exercise ECT, the share price will not be RM0.70.
Unless otherwise stated, all abbreviations used herein shall have the same meanings as those used in the Company’s announcement dated 19 January 2017 in relation to, inter-alia, the proposed acquisition of 37,087,725 ordinary shares in Orkim, representing approximately 95.5% equity interest in Orkim, for a cash consideration of RM472,725,000 (“Announcement”).)
On 19 January 2017, Maybank IB had, on behalf of the Company, announced that as soon as practicable following the signing of the Orkim SPA, UMW-OG shall issue offer to purchase all of the Orkim Shares held by Wan Izani bin Wan Mahmood (“WIWM”) and Khoo Chin Yew (“KCY”) (collectively referred to as “Minority Shareholders”) upon the same terms and conditions set out in the Orkim SPA.
On behalf of the Company, Maybank IB wishes to announce that following the offer by UMW-OG via letters dated 3 February 2017 to each of the Minority Shareholders (“Offer Letters”) (in the manner described in the Orkim Shareholders’ Agreement), the Minority Shareholders have on 13 February 2017 accepted the offer by UMW-OG via the Offer Letters by entering into the following respective agreements with UMW-OG:
(i) conditional share purchase agreement for the purchase of 970,883 Orkim Shares held by WIWM, representing 2.5% equity interest in Orkim, upon the same terms and conditions set out in the Orkim SPA for a cash consideration of RM12,375,000; and
(ii) conditional share purchase agreement for the purchase of 776,706 Orkim Shares held by KCY, representing 2.0% equity interest in Orkim, upon the same terms and conditions set out in the Orkim SPA for a cash consideration of RM9,900,000,
(to be collectively referred to as “Minority SPAs”)
The Minority SPAs are conditional upon the Orkim SPA becoming unconditional. The completion of the Proposed Residual Orkim Acquisition shall take place simultaneously with the completion of the Orkim SPA.
The Proposed Residual Orkim Acquisition will not have any effect on the share capital and shareholding of the substantial shareholders of UMW-OG, and it is also not expected to have any material effect on the EPS, NA per UMW-OG Share and gearing of the UMW-OG Group for the financial year ending 31 December 2017.
None of the Directors, major shareholders of UMW-OG and/or persons connected to them have any interest, direct or indirect, in the Proposed Residual Orkim Acquisition.
KUALA LUMPUR (Feb 18): The Edge weekly in its latest edition said that it has not been an easy 16 months for Badrul Feisal Abdul Rahim since he took over as UMW Holdings Bhd’s president and group CEO on Oct 1, 2015.
In its cover story, the Edge’s Khairie Hisyam Aliman and Adam Aziz wrote that just months into his tenure, Badrul had the dubious honour of presenting the group’s worst full-year financial results since 1998.
For the financial year ended Dec 31, 2015 (FY2015), UMW posted a net loss of RM37.2 million on revenue of RM14.44 billion as lower income from its automotive division was exacerbated by widening losses in its oil and gas (O
i am really concerned about the QR result as it has been managed poorly showing negative 62000% and this can further result in par value being cancelled before restructuring...
"However, the fourth quarter of 2016 posted a higher loss before tax of RM918.1 million as compared to the RM133.0 million loss in the third quarter of 2016 due mainly to asset impairment of RM780.2 million"
. can it be the company provided impairment only in 4th qtr of RM780M throughout the full year? meaning no impairment was actually provided in 1st/2nd/3rd qtr??
. . impairment is a prudence accounting measures to safeguard company investment. i guess it was due to "long-sleeping" naga rigs (expected and known to all investors) once these naga rigs get utilized, these impairment will translate into profit... SKPETRO was once in this mode, today, they show improvement (http://www.thestar.com.my/business/business-news/2016/03/25/sapurakencana-posts-losses-in-q4-and-fy16/) lets see how investors response tomorrow...expecting some knee-jerk reaction
. yes, to add on, UMW HOLDING in huge impairment of > RM2 BILLION !!! never seen before... same pattern, all bantai in 4th qtr!! putting all consolidating parties in high figured RED impairment.... still wondering what game-theory these consolidation goes???
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....
Andrew62
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Posted by Andrew62 > 2017-01-30 18:13 | Report Abuse
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