Lantrovision

Anyone looking at and supporting Lantrovision's proposed - and rather complicated I must add! - corporate exercises (first announced on 12Jun12)?.....
http://info.sgx.com/webcoranncatth.nsf/V...B002F52B2/$file/LanTroVision_Announcement_LTV.pdf?openelement
SGX has granted its usual approval in-principle on 14Aug12....
http://info.sgx.com/webcoranncatth.nsf/V...A003D94C4/$file/LanTroVision_Announcement_AIP.pdf?openelement
and a Circular dated 17Aug12 (not available for downloading yet) has been despatched to shareholders, and an EGM wll be held on 3Sep12 to approve the proposed corporate exercises.....
http://info.sgx.com/webcoranncatth.nsf/V...D003356EA/$file/Lantrovision-Despatch_of_Circular.pdf?openelement

More info on this "Master Cableman" business.....
http://www.lantro.com/
and its latest 3Q-FY12 (ending 30Jun12) results.....
http://info.sgx.com/webcoranncatth.nsf/V...B0036C317/$file/LanTroVision_Q3_FY2012.pdf?openelement

FY12 (ended 30Jun12) full-year result just out.....
http://info.sgx.com/webcoranncatth.nsf/V...30028F4D0/$file/LanTroVision_FullYear_FY2012.pdf?openelement
The B/S has so much cash reserve - there is a mini-bank within Lantrovision!

Is the proposed $0.01/share Special dividend going to excite Mr Market to raise Lantrovision's share price - last done at $0.032 today (23Aug12) - tomorrow and into next week?

(23-08-2012, 08:33 PM)dydx Wrote: Is the proposed $0.01/share Special dividend going to excite Mr Market to raise Lantrovision's share price - last done at $0.032 today (23Aug12) - tomorrow and into next week?

Isn't the 1-ct dividend part of the dividend-share consolidation-rights proposal that was previously announced?

(23-08-2012, 10:31 PM)cif5000 Wrote:

(23-08-2012, 08:33 PM)dydx Wrote: Is the proposed $0.01/share Special dividend going to excite Mr Market to raise Lantrovision's share price - last done at $0.032 today (23Aug12) - tomorrow and into next week?

Isn't the 1-ct dividend part of the dividend-share consolidation-rights proposal that was previously announced?

Yes. Full details of the entire proposal in Circular to Shareholders dated 17Aug12.....
http://info.sgx.com/listprosp.nsf/bc9c2d...1000c0752/$FILE/LANTRO%20Circular_FA.pdf

I think it is relevant to note that the proposed $0.01/share Special dividend payment will be completed first, before the proposed 100-into-1 share consolidation, and the proposed 12-for-1 renounceable non-underwritten rights issue on the Consolidated Shares priced at $0.09 per each rights share.

curious why hasn't it gone up 1 cent since June when corporate news announced? Also it's nav is above current price.

Hmm just wondering, whilst this one off special dividend may seem quite attractive, however, a company which does not regularly give off dividends is it really good to invest in? Of course it has a really strong balance sheet with minimum debt and nav>market price but in the event that there is a dip in the market price with constant dividends it would be able act as a form of margin of safety?

Quote:I think it is relevant to note that the proposed $0.01/share Special dividend payment will be completed first, before the proposed 100-into-1 share consolidation, and the proposed 12-for-1 renounceable non-underwritten rights issue on the Consolidated Shares priced at $0.09 per each rights share.

another rights?

cabling market is very saturated in singapore and their cabling services in singapore context are not cheap. A lot of the projects they tender for are from overseas like US which when you line them up against other competitors there - their prices looks cheap. But to tender for big overseas project means have to show you have a lot of cash.

So the cash there may look like a mini-bank but it's a sacred cow not for milking.

no longer vested but I suppose the div does look rather attractive.

100 into 1 => $1 dividend per share after consolidation.
12 for 1 => 12*0.09 = $1.08 cash for right subscription.

At the end of the right exercise, the shareholders who have held on to the shares will contribute to the mini bank instead of getting money out of it.
Funny.

The extra $0.08 is used to cover the cost of right issues..haha..(around $1659951.2)

Management is quite generous to give a 1 ct dividend, which will
reduce the cash holdings quite substantially.

It also try to reduce to numberof shares.

Yet it is requesting for a rights issue.

Why ?
Very contradicting.

I thought rights issue is to raise cash to pay down loans,
or to acquire a new business.

Why give out cash, then raise cash ?

Why reduce the number of shares and later increase it with rights issue ?

I do not understand this.

(not vested)

That's why I said in the beginning it is "rather complicated", but since the share price has moved up, there is indeed money made by the earlier investors who bought into Lantrovision before and after the first announcement on 12Jun12. There could be more money - including the $0.01/share Special dividend - along the way, especially for those who are nimble and prepared to take a view on Lantrovision's business, which is quite well-established and profitable! I think it is important to do indepth research into the company, and try to understand the objectives and benefits of this restructuring exercise for the stakeholders.