Wednesday, March 25, 2009

Oooiiii Advisors, Wake Up La For TMI


TMI was suspended yesterday, and will trade again today. Well, it seems that somebody thought it was sufficient already to announce that you will be raising RM5.25bn via an issuance of RM1.00 par value shares. Eskue me, investors also need to know the ratio and pricing. You can do a variety of combinations and come up to RM5.25bn you know. What was surprising was, didn't SC already approve the rights issue??? Is it OK to approve the rights issue as long as you know the amount you are raising, but not the ratio and pricing??? Same for going into an EGM to approve the size only??

Can you announce the EGM to approve the rights without informing about the ratio and pricing beforehand? It is not just a technicality. Hallooo advisors and lawyers... rights issue by a listed company not something new... you all probably have a checklist....
1) listen to Khazanah
2) follow Khazanah on what they want
3) Khazanah tells you how much to raise
4) make sure there is somebody to mop up amounts that are under subscribed
5) make sure SC is well informed on time line for approval
6) make sure EGM is set within time line for rights issue approval
7) make sure rights issue ratio and pricing are communicated well before EGM

Probably number (7) was on the next page and the paper was jammed in the copier!!??

Seriously, I think they were all caught up doing something else.... preparing the incredible launch of the change of name for TMI to Axiata... ta-dah... Hmmm... Axiata... isn't that part "co-axial cable" and part "data"??? ... sounds like a cable and wire company, but isnt TMI primarily mobile?? Isnt mobile and cellular the improvement and innovation from not having to use cable and wires anymore for data transfer??????????

p/s photos: Sammi Cheng



5 comments:

skiddtrader said...

Is this what you looking for?

On behalf of TMI’s Board of Directors, CIMB Investment Bank Berhad (“CIMB”) wishes to announce that the issue price of the Rights Shares has been fixed at RM1.12 per Rights Share with an entitlement basis of 5 Rights Shares for every 4 existing TMI Shares held by the shareholders of TMI at a date to be determined and announced later. Accordingly, the Proposed Rights Issue will raise gross proceeds of approximately RM5,254.8 million and involve the issuance of approximately 4,691.8 million Rights Shares.

The issue price of RM1.12 per Rights Share represents a discount of 50.9% to the 5-day volume-weighted average market price up to 23 March 2009 of RM2.28 (“5-day VWAMP”) and 31.7% to the theoretical ex-rights price of TMI Shares of RM1.64 (based on the 5-day VWAMP).

Salvatore_Dali said...

skid,

i already know the rights ratio and pricing la... the question i am posing is why so late before the egm, where got meaning... and looking at the thing, didn't the sc approve the rights issue without knowing the pricing and ratio?? thats why you have the hasty suspension just before the egm...

skiddtrader said...

Ahhh apologies then. Agreed it was kind of hasty and late announcement.

In other words they don't care what the minority thinks, as long as their majority shareholders agrees to take up entirely the leftovers, they are safe. Hence the complete ignorance of the public's view and acceptance.

solomon said...

Dali, maybe the calculator battery is not working?? Well, could it be another form of existing share price manipulation? Something like a Mesdaq counter, Asiabio very abnormal trading pattern lately, no queries until to-date....where are the enforcers??

Or, why not have voice for a symbolic RM1 deduction of BODs remuneration for overlooking on this issue??

elizabeth said...

ya lah, very unusual for such important details to be missed out... anyway, having the maybank rights pricing out in the open helps, I was looking at TMI rights to range from RM1 to RM1.20. Over the last few days, the TMI price had a run up, thereby making the rights discount of 30+%. Really handy...