Scomi Marine resumed trading today. Here's the highlights:-
1. Scomi Marine will dispose its 100% equity interest in CH Logistics Ltd, CH Ship Management Pte Ltd, Goldship Pte Ltd and Sea Master Pte Ltd into PTRT. (Dispose for RM550 million)
2. Scomi Marine will own a stake of between 20.63% and 24.55% in PTRT. (Currently 80.54%)
3. Scomi Marine may consider giving out a special dividend and invest in new business opportunities, given that its rich cash, which translates to about 75 sen per share for the RM550 million cash. (Also, to consider CH Offshore sale, RM348.7 million cash, about 48 sen per share.)
4. Scomi Marine will realize a loss on disposal of about RM433 million. (estimated, 59 sen per share)
Now, the stock price stood at 41.5sen during session break. Attractive?
Update: - It is known that RM100 million loss of disposal came from foreign exchange losses. - Analyst targeted 76sen, plenty of room to move up :=)
Scomi Marine has disposed CH Offshore in the 1H10, and now the Indonesia's PT Rig Tender, together with a few more related subsidaries. Now, we are almost certain that Scomi Marine will be tagging with the strategic investors in Indonesia, and also to expand its business in India.
This is inline with the Scomi group's strategy; India will be the prime target for the group to expand its business.
The stock price has been moving south for many months due to one off writedown last year. Now, the roadmap is clear, NTA stood at ~$1.20, healthier balance sheet, a lot of cash for business expansion.
Investors would be interested with the current undervalued price, grab a piece of it. :=)
"Scomi marine has been suspended for material corporate exercise involving a very substantial transaction which will entail the disposal of certain subsidaries of the company..." annoucement from BURSA.
From the chart, SCOMIMR rallied since yesterday with huge volume. (seems a good news waiting to annouce)
Will SCOMI group hive off SCOMI MARINE? Let's wait for annoucement.
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