Blogged the other day: Ranhill: Our Financial News Being Used To Drive The Stock Higher! and Ranhill Answers: Our Financial News Being Used To Drive The Stock Higher!
Let's recall what has happened so far.
Last week, an incredible story was published on the Business Times suggesting that Ranhill could be taken private by the owners. It was all based on unnamed sources.
I found it hard to believe. Why would the owners be interested in this deal worth some 420 million? Why would they want to take it private when Ranhill is in a nett debt of 2.569 Billion? It simply did not sound rational at all.
And worse still, the article came out with a bunch of unnamed analysts suggesting a 'sum of private parts' valuation technique. I was amazed by such creativity!
And when questioned by Bursa, I posted Ranhill's reply on the second posting, Ranhill Answers: Our Financial News Being Used To Drive The Stock Higher!. All the management could answer to the Bursa query was the following.
- we are constantly exploring opportunities in seeking for any proposals that may contribute to our objectives to enhance and boost our shareholders’ value
It was truly vague.
And less us not forget that the stock soared some 47.9% during these 2 trading days!
And yesterday there was another shocking development.The owner announced a massive disposal of shares! ( See Changes in Director's Interest (S135) - Hamdan Mohamad )
Yes, Tan Sri Hamdan Mohamad had disposed some 29 million shares on the 23rd July, a couple of days before that article was published.
So why would Tan Sri Hamdan Mohamad want to take Ranhill Bhd private when he was disposing/reducing his shares?
This wouldn't make sense yes?
And since he was disposing/reducing his shares, why didn't Ranhill Bhd management deny that privatisation rumour? Why?
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8 comments:
sigh.. we are but little fishies swimming in a pond of sharks..
how utterly perplexing..
hi...im still new with the stock market...could anyone give some idea to clarify my tout...i just want to know if Ranhill Bhd in trouble with debt of 2.569 bil...the shareholder which in this case Tan Sri Hamdan will surely disposed his shares in order to avoid loses...and to become private is a way to avoid from becoming PN17 and makes minority shareholders suffered...i cant see the abnormal trading behavior in this situation...could anyone explain further to me...really appriciate for your comment...thanks...
Student: This posting is way past its due date. This posting is dated 2008!!!!
Anyway my remark then was:
I found it hard to believe. Why would the owners be interested in this deal worth some 420 million? Why would they want to take it private when Ranhill is in a nett debt of 2.569 Billion? It simply did not sound rational at all.
And end of the day.. the privatisation was mere rumour.
yup i notice it was in 2008.but want to know the reason why Ranhill cant take private when it was in a financial problem company...my tout is they want to protect the investors by giving back their money once its become private...am i wrong???
My answer was in the bold.
Does it make any common sense to fork out 420 million to fully own a company that had total debts of 2.569 Billion???
Think about it.
If it doesn't make sense... everything else doesn't matter, does it?
Im sorry...really sorry becouse i dont really get it...
when u said: Why would they want to take it private when Ranhill is in a nett debt of 2.569 Billion? It simply did not sound rational at all.
how the normal situation for a company taken private? is it the company must be in good fiancial sound? what is the consequences to take company private when they are in bad financial condition?
what i know is company to take private could be in 2 conditions. one is to sell the shares in premium and another one is to sell it at discount...
since Ranhill in bad financial situation..its already give a clue that as an investors we might sell it off to avoid loses...
i cant see any possibility to keep it until the announcement take place because the price could be lower from the price Tan Sri hassan sell off their shares..
im still new with stock market...n still learning...perhaps u dont mind to explain to me in stage by stage...i not an expert...but really appricaite experts' view.. :)
You have not try to think about my initial question. :/
Let me rephrase:
Which logical person wants to take their company private when their company is in a poor financial position?
Does this make sense?
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