26-04-2012, 09:44 AM (This post was last modified: 26-04-2012, 09:58 AM by potatolover.)
SAH just made the announcement on 25 April 2012.
All transactions have closed.
Net Cash balance left in company is 159.15 mil or 18 cents.
The initial 21 cents have whittled down to only 18 cents as repayment of AmBank Loan, dividend (for FY2010), expenses of company, finder’s fee, etc are all deducted from this pool.
The dividend to be paid out in 2012 will be from this 18 cents.
Technically, SAH is only worth 17 cents after deducting the 1 cents for payment of dividend for FY2011.
SAH will compile with MAS’ regulation to place 90% of cash in escrow account.
************
They have tweaked the wording too in relation to the option for the remaining 50% of sales proceeds.
As stated in paragraph 9 of the Circular, the Board proposes to distribute up to fifty percent (50%) of the net proceeds, with the distribution to be by way of dividend, capital reduction or such other manner as the Board shall determine at a later stage and in respect of the remaining fifty per cent (50%) of the net proceeds, the Company will assess and explore various investment options to seek viable business opportunities in other areas of business and/or utilise the net proceeds for any working capital requirements. Such options will include exploring other investment opportunities as well as the option whether or not to distribute up to 100% of the net proceeds to Shareholders.
The Company will update Shareholders from time to time with announcements when appropriate
26-04-2012, 09:53 AM (This post was last modified: 26-04-2012, 11:22 AM by Stockerman.)
Looks like people starting to realize that SAH is not worth the original 21 cents...
Good luck to those who bought from 18 cents to 20 cents...
But still strange to see buyers at above 18 cents...perplexing
The good thing is that we know all the money is safely kept (90% will be deposited in MAS' designated escrow account). 10% is kept at company for admin expenses , etc
Finally people are starting to heed the earlier advices from forummers saying that SAH is not worth even 18 cents (after deducting the 1 cent dividends to be paid out in 2012).
Shouldn't the focus be on New Toyo?
(27-02-2012, 09:52 AM)Curiousparty Wrote: Maybe I am just being too curious...
Why would anyone want to place a bid for SAH at 18.5 cents?
The existing pool left (taking into account the last dividend payout of 1 cent in 2011) is only 19.5 cents at the max...Look at SAH accounts.. the NTA of existing ops is probably negative at around 75mil RMB. Offset this with the sales proceeds and taking into account ( capital gain tax - $50mil RMB and finder's fee - $9mil RMB), we are left with NTA of around $866mil RMB or 19.6 cents per SAH share...
Furthermore, SAH has just declared 1 cent of dividend which is most likely going to be extracted from the 19.6 cents..., leaving only 18.6 cents...
In fact, the logical thing to do is to capitalize on the arbitrage opportunity afforded by New Toyo's 34% owning of SAH, and 54% owning of Tien Wah, whose performance has been nothing short of stellar
The SAH's announcement is opportune in that it dispels people's conjecture that the sales proceed will simply "vaporize".
And I will further add that the greatest beneficiary is likely to be New Toyo.
(26-04-2012, 10:40 AM)Stockerman Wrote: This is remaining cash balance of only net 17 cents and will continue to whittle down if company indulges in frivolous expenditures.
So buying at 17 cents also doesn’t make sense. There is no assurance that 17 cents will remain at 17 cents…
It is not like a General Offer where price certainty is assured.
(26-04-2012, 09:44 AM)potatolover Wrote: SAH just made the announcement on 25 April 2012.
Technically, SAH is only worth 17 cents after deducting the 1 cents for payment of dividend for FY2011.
26-04-2012, 10:18 PM (This post was last modified: 26-04-2012, 10:20 PM by Stockerman.)
Today at New Toyo's AGM, someone asked about the impact of Plain Packaging on the profitability. The general impression is that since less colours will be required, the cost of printing may drop. i.e. revenue will drop.
This may not seem to be the case.
Company explained that the profitability will increase. The jobs will be less complex and can be now be consolidated together for greater efficiency. It will be easier to meet the KIP set by BAT (completion of job within a certain time span). Ink costs are more or less fixed as these are sourced for New Toyo by BAT. As long as job is completed within the stipulated KPI timing, the same fee rate is paid.
So actually, transition to plain packaging printing jobs will free up capacity??
Capacity can be freed up but how will they filled the freed capacity with jobs since the industry is oligopolistic.
Has there been any mentioned of what can be expected from SAH distribution (at least 50% and what will happen to the balance).
Any other meaningful updates that will drive the share price?
GG
(26-04-2012, 10:18 PM)Stockerman Wrote: Today at New Toyo's AGM, someone asked about the impact of Plain Packaging on the profitability. The general impression is that since less colours will be required, the cost of printing may drop. i.e. revenue will drop.
This may not seem to be the case.
Company explained that the profitability will increase. The jobs will be less complex and can be now be consolidated together for greater efficiency. It will be easier to meet the KIP set by BAT (completion of job within a certain time span). Ink costs are more or less fixed as these are sourced for New Toyo by BAT. As long as job is completed within the stipulated KPI timing, the same fee rate is paid.
So actually, transition to plain packaging printing jobs will free up capacity??
26-04-2012, 11:43 PM (This post was last modified: 27-04-2012, 09:14 AM by Stockerman.)
The drop in Net profit for the Specialty Paper (SP) was due to the loss of business from 2 customers. This will be resolved from Q3 onwards with the new supply agreement from Phillip Morris. The company also explained that the cost of materials has come down. All these factors will help to restore the profitability of SP business.
Company also mentioned that there will be more short run jobs and the reserve capacity is mainly for this purpose.
For the sales proceeds from SAH, company said they also wished that SAH quickly returned the money asap so that they can consider the next move, i.e. strategic review to exploit new opportunities, etc.
Company is also looking to expand beyond the Asia Pacific Region into the Africa continent for the Printed Carton and Labels (PCL) Business.
Sounds pretty exciting. FYI, after they listed SAH in 2004, it took them 4 years to execute the buyout of BAT's oz operations and when machinery finally got installed, the benefits only started to flow from 2H 2011.
Now they are telling you that they are looking into Africa - strategically not wrong since that is probably the last ground that has yet to be explored. Moreover Africa is a big and dangerous region - I just hope that shareholders of N Toyo can finally see some $ from the realisation of wrong term investments (SAH) in terms of one off specials.
However, from your tone - it really sounded like, we will pay down the debt so that we can become a stronger company so that we can conquer new territories.
Hope that I am wrong as N Toyo is a service support company to global sin industry and not the sin industry itself.
(26-04-2012, 11:43 PM)Stockerman Wrote: The drop in Net profit for the Specialty Paper (SP) was due to the loss of business from 2 customers. This will be resolved from Q3 onwards with the new supply agreement from Phillip Morris. The company also explained that the cost of materials has come down. All these factors will help to restore the profitability of SP business.
Company also mentioned that there will be more short run jobs and the reserve capacity is mainly for this purpose.
For the sales proceeds from SAH, company said they also wished that SAH quickly returned the money asap so that they can consider the next move, i.e. strategic review to exploit new opportunities, etc.
Company is also looking beyond the Asia Pacific Region into the Africa continent to expand the Printed Carton and Labels (PCL) Business.
(26-04-2012, 11:21 PM)greengiraffe Wrote: Hi Stockerman,
Capacity can be freed up but how will they filled the freed capacity with jobs since the industry is oligopolistic.
Has there been any mentioned of what can be expected from SAH distribution (at least 50% and what will happen to the balance).
Any other meaningful updates that will drive the share price?
GG
(26-04-2012, 10:18 PM)Stockerman Wrote: Today at New Toyo's AGM, someone asked about the impact of Plain Packaging on the profitability. The general impression is that since less colours will be required, the cost of printing may drop. i.e. revenue will drop.
This may not seem to be the case.
Company explained that the profitability will increase. The jobs will be less complex and can be now be consolidated together for greater efficiency. It will be easier to meet the KIP set by BAT (completion of job within a certain time span). Ink costs are more or less fixed as these are sourced for New Toyo by BAT. As long as job is completed within the stipulated KPI timing, the same fee rate is paid.
So actually, transition to plain packaging printing jobs will free up capacity??
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