Saturday, June 11, 2011

More Queries On Actual MAA Deal

It may seems like the details are not all out. The whispers have it that Zurich will also assume RM200m of loans, which will actually add another 65 sen to the 1.13 cash deal. Maybe that explains the funny support at RM1.10? This may make more sense because the RM344m was on the low side based on recent similar transactions. Still, its unconfirmed views.

Dali,

How do u derive the rm1.50-1.60 figure?

Pls do a detail valuations of the cash & takaful assets.

Thx.

8:55 AM

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Blogger Jeff said...

Dali,
TY deserves an oscar. Selling MAAB cheap & failure to disclose the details of the pricing.

Sales proceeds plus NTA works out to be approx. RM2.20
Applying a discount factor of 30% fair value should be RM 1.54 in line with your valuation.

Mkt unhappy with cheap sale hence the sell down. Buyer retailer nah. The wolf & gang laughing at us all. Why??? cos the omission of material fact..... Zurich assumes the liability of RM200m syndicated loan.

TY will is not telling lies as MAAH will get RM344m as Zurich will pay the RM200m loan directly to the bankers.

Hence the NTA ramps up to RM 2.80 as actual sale proceeds will be RM544m.........smart wool eh.

Watch the unfolding of the drama.

10:18 PM

5 comments:

clearwater said...

Ha! It's not the first time good governance and transparency take a backseat with TY. MAAH announced BNM's approval of only MAAB's sale for RM344m to Zurich, subject to definitive agreements; further details in due course. The barest of facts disclosed. Trading opportunity next week in MAAH if Jeff's suspicions hits close to the mark.

solomon said...

Doubt so, deal might be called off like Ashley Young wedding.

KC said...

On April 11, 2011, MAA Holdings Bhd had submitted an application to Bank Negara Malaysia (BNM) to seek approval to enter into an agreement and dispose off FIVE of its units to Zurich Insurance Company Ltd.

The units are Malaysian Assurance Alliance Bhd (MAAB), Multioto Services Sdn Bhd, MAAGNET Systems Sdn Bhd, Malaysian Alliance Property Services Sdn Bhd and MAAGNET-SSMS Sdn Bhd, said MAA in a filing to Bursa Malaysia today.

On June 8, 2011, BNM approved the sale of 100% of MAAB to Zurich. The sale approval of the remaining FOUR units should come soon.

I think MAA is a steal at RM1.10 as you are getting the FOUR units plus the TAKAFUL business for FREE.

Jeff said...

KC.....yes its a steal BUT that monkey running the Company will cannot be trusted. I rather trust Repco Lau than this bugger.

MAA was a blue chip look what happened. All doggy loans. Like Dali said previously....one must have iron balls to trade this share.

Good luck to all. If what i suspect is true then this share should hit RM2.50 to RM3.50 in the short run.

clearwater said...

Hey Jeff, I don't have iron balls but I still managed to scalp 3 sen day trading MAA today; enough for a couple of dinners for 4 persons. Revenge of a peeved investor. I hope just to day trade MAA while it lasts. I trust TY as much as you do, won't even hold the stock overnite.