Skip to main content
Khazanah and PNB Should Follow Temasek
Further Sale Of SingTel Shares

Temasek continued with its efforts to sell down its stake in SingTel by raising S$2 billion by selling 770 million shares at S$2.66 or a 5% discount from the market price. The sale reduced Temasek's stake in SingTel from 61% to 56.3%. The deal was arranged and placed out by Goldman Sachs. The last sale was in November 2004 when Temasek sold 2% of SingTel.

Of course there could be plenty of reasons for the continued sale: boosting free float; reducing exposure to local assets in preference of overseas assets by Temasek; to help fund the purchase of Shin Corp; part of the trade deal with the US; diversifying away from telecommunications into banks, plantations and drug makers; etc... Still, PNB and Khazanah should take the lead by reducing stakes in government linked companies in Malaysia. As I have frequently argued before, you want more free float, not more control. I can understand if PNB/Khazanah do not want to sell companies if they are performing badly now as they can get better pricing in the future.... but surely not ALL GLCs are badly run.... or am I mistaken? I think Yusli, the CEO of Bursa Malaysia, may be a secret reader of my blog as he said yesterday that he ALSO wanted Khazanah and PNB to start selling down shares to boost liquidity. Hmmm....

Just remember, more free float does not mean lower prices, that's a proven fact in many studies. If you have to maintain stock prices by controlling the free float, that tells a lot about the management:

1) That management is defensive and see investors as competitors for the same pie
2) That management does not wish to share growth prospects and potential with investors till its way over valued
3) That management has a narrow viewpoint with regards to control issues
4) That management is wary of accountability and the ability to meet up to a more open challange to their corporate leadership

Comments

Popular posts from this blog

My Master, A National Treasure

REPOST:  Its been more than two years since I posted on my sifu. This is probably the most significant posting I had done thus far that does not involve business or politics. My circle of close friends and business colleagues have benefited significantly from his treatment.


My Master, Dr. Law Chin Han (from my iPhone)

Where shall I start? OK, just based on real life experiences of those who are close to me. The entire Tong family (Bukit Kiara Properties) absolutely swear that he is the master of masters when it comes to acupuncture (and dentistry as well). To me, you can probably find many great dentists, but to find a real Master in acupuncture, thats a whole different ballgame.


I am not big aficionado of Chinese medicine or acupuncture initially. I guess you have to go through the whole shebang to appreciate the real life changing effects from a master.


My business partner and very close friend went to him after 15 years of persistent gout problem, he will get his heavy attacks at least…

PUC - An Assessment

PUC has tried to reinvent itself following the untimely passing of its founder last year. His younger brother, who was highly successful in his own right, was running Pictureworks in a number of countries in Asia.

The Shares Price Rise & Possible Catalysts

Share price has broken its all time high comfortably. The rise has been steady and not at all volatile, accompanied by steady volume, which would indicate longer term investors and some funds already accumulating nd not selling back to the market.


Potential Catalyst #1

The just launched Presto app. Tried it and went to the briefing. Its a game changer for PUC for sure. They have already indicated that the e-wallet will be launched only in 1Q2018. Now what is Presto, why Presto. Its very much like Lazada or eBay or Alibaba. Lazada is a platform for retailers to sell, full stop. eBay is more for the personal one man operations. Alibaba is more for wholesalers and distributors.

Presto links retailers/f&b/services originators with en…

How Long Will The Bull Lasts For Malaysia

Are we in a bull run? Of course we are. Not to labour the point but I highlighted the start of the bull run back in January this year... and got a lot of naysayers but never mind:






























p/s: needless to say, this is Jing Tian ... beautiful face and a certain kind of freshness in her looks and acting career thus far



http://malaysiafinance.blogspot.my/2016/12/bank-negara-may-have-switched-on-bull.html


I would like to extend my prediction that the bull run for Bursa stocks should continue to run well till the end of the year. What we are seeing for the past 3 weeks was a general lull where volume suddenly shrunk but the general trend is still intact. My reasons for saying so:

a) the overall equity markets globally will be supported by a benign recovery complemented by a timid approach to raising rates by most central banks

b) thanks to a drastic bear run for most commodities, and to a lesser extent some oil & gas players, the undertone for "cost of materials" have been weak and has pr…