PNE Industries

[Harvest Time]

I suspect retirement or partial retirement.

[Harvest Time]

If the management were to offload their entire 42.78% interest in the open market, definitely not a easy feat without causing a significant dip in share price.

Will be a different story if there is a agreed buyer, in this case, the agreed price might be a discount to the current price.

Current cap for PNE PCN Berhad is ~62m while its net book value is ~60m.

Nevertheless, the sale of PNE will add additional cash to PNE. The question is how much?

Managed to find more information after reading the circular. File attached.

Thanks for the info, I will try to calculate the new NTA base on current market price of 101 sen.
NTA is 24.463 cents

[kbl]

Good evening everyone.

The Board wishes to announce that the Company had on 26 June 2014 disposed
5,000,000 PCB Shares at RM1.10 each (equivalent to S$0.4290 each based on an
exchange rate of S$1.00 to RM2.5641).

The PCB Shares were sold via direct business transactions on Bursa Malaysia
Securities Berhad for an aggregate consideration of RM5,500,000 (equivalent to
S$2,145,000 based on an exchange rate of S$1.00 to RM2.5641). The consideration
will be paid to the Company in cash on settlement date.
The book value of the PCB Shares disposed was S$241,000. Thus, the Company
will record a net profit of S$1,904,000 as a result of the disposal.
The Company intends to use the sales proceeds for working capital of the Group.

http://infopub.sgx.com/FileOpen/Disposal...eID=303117

[writser]

According to bloomberg the 52-week high is 1.04. How did they manage to sell 5m shares @ 1.10? Only thing I can come up with is that this wa a block trade facilitated by Bursa Malaysia.

[BlueKelah]

Haha lotsa fishy thing happen in malaysia lah, just enjoy the coming special dividend can loh.

N.B. today's volume was from me, I put 0.146 no one buy so I put 0.14 for the fella who queue at 0.14, dunno who is that fella...

*#vested#*

[Harvest Time]

PNE Ind disposed 5m shares at RM$1.10.
NTA becomes 21.617 cents

Assume PNE Ind disposed the remaining shares at RM$1.10 at same exchange rate, NTA becomes 24.24 cents.


The PCB Shares were sold via direct business transactions on Bursa Malaysia Securities Berhad for an aggregate consideration of RM5,500,000 (equivalent to S$2,145,000 based on an exchange rate of S$1.00 to RM2.5641). The consideration will be paid to the Company in cash on settlement date.


After this disposal, the Company has 23,125,000 PCB shares, representing 35.2% shareholding interest in PNE PCB Bhd. The Board will continue to seek opportunities to dispose the remaining PCB Shares in accordance with the terms of the Disposal Mandate.


RATIONALE AND BENEFITS
The Company is also of the view that the share price of PNE PCB Bhd does not reflect its value. By disposing the PCB Shares, the Company will have more working capital for its existing operations and/or expand into other businesses and undertake new investment opportunities which may arise in the future, and this may result in higher value to the Shareholders.


http://infopub.sgx.com/FileOpen/Disposal...eID=303117

[Harvest Time]

The Board wishes to announce that the Company had on 1 Jul 2014 disposed 14,000,000
PCB Shares at RM1.10 each (equivalent to S$0.4290 each based on an exchange rate of
S$1.00 to RM2.5641). This is the second tranche of PCB Shares disposed todate (the
“Second Tranche”).

http://infopub.sgx.com/FileOpen/2ndTranc...eID=303702

[Harvest Time]

Using Sep 2013 data
NTA before disposal is $70.657m
NTA after disposal is $77.893m
NTA per share ==> 23.20 cents
Cash before $15.327m
Cash after disposal $23.478m

Using Mar 2014 data
NTA before disposal is $71.918m
NTA after disposal is $79.154m
NTA per share ==> 23.58 cents
Cash before $18.571m
Cash after disposal $26.722m
Cash after disposal and after adjust dividend paid recently $25.043m

[BlueKelah]

When they do sell off the last 9M shares in PNE PCB, total sale price will be about 12M+ SGD.

Conservative payout of 50% will be 6M/336M shares=~0.0178 , thats more than 10% yield at todays' price.

I do suspect share price will spike again after next announcement of sale of last tranche of shares and spike again when special dividends are announced.

"The Company intends to use the sales proceeds for working capital of the Group.

The Company may consider declaring a special dividend upon completion or substantial
completion of the disposal of the remaining PCB shares depending on the aggregate
consideration received and the working capital requirements of the Group at that time."


-vested-

[Harvest Time]

PNE Ind sold 14m shares at 110 sen.

The Second Tranche was sold via a mixture of open market trades and direct business transactions on Bursa Malaysia Securities Berhad for an aggregate consideration of RM15,400,000 (equivalent to S$6,006,000 based on an exchange rate of S$1.00 to RM2.5641). The consideration will be paid to the Company in cash on settlement date.

Today at KLSE, it open 110 sen, it went up to 122 sen and come down.
Hence it is very likely that the PNE Ind sold some PNE PCB shares at above 110 sen.
It may be possible all the shares are sold at 110 and above if it is mixture of market trades and direct business transactions.