The disposal.
- Further to the announcement made on 23 August 2010 pertaining to the above mentioned matter, the Board of Directors are pleased to inform that :-
i) The total consideration is RM11,851,759.89; and
ii) The highest percentage ratio is 15.78%.
The following statements is most interesting.
- This disposal will allow the Company to realize its investment in LHB and the proceeds will increase the Company’s cash and bank balance position.
- LBB has invested in LHB since 2006 and the original investment cost of RM12,088,798.
oO
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
See this is why I do not like to see our local listed companies dabble in the stock market!
And let us not forget the point no 1.
- This disposal will allow the Company to realize its investment in LHB and the proceeds will increase the Company’s cash and bank balance position
Look at the 10 Q3 cash. It says 15.608 million.
Look at the size of London Biscuit's debts. 218.004 million!
Clearly London Biscuit is lacking cash right now, yes?
Isn't it so clear that London Biscuit needs to 'sell'????
And yes, why did London Biscuit's debts soared in the first place?
As mentioned and shown clearly in the posting Review Of London Biscuit, London Biscuit used cash generated from bank borrowings to make such 'investments'.
And the return from one such investment?
Original investment cost is 12.088 million.
Disposal price of investment is 11.851 million.
How?
Lost money in the investment and not forgetting the cost of borrowings needed to make such an investment!
Yes.... it's absolutely shambolical!
And yeah.. let us not forget about the other shambolical investment in Khee San!
- The Board of Directors ("BOD") of LONBISC are pleased to announce that the Company had on 17 September 2007 signed a Sale & Purchase Agreement dated 17 September 2007 between KHEE SAN REALTY & HOLDINGS SDN BHD (“KSRH”) for the Proposed Acquisition of 18,420,300 ordinary shares of RM1.00 each in KHEESAN representing approximately 30.7% of the enlarged issued and paid-up share capital of KHEESAN (‘the said Sale Shares”) for a total cash consideration of RM27,630,450.00
Glee! That's a cost per share 1.50.
What's the price of Khee San today?
0.565!!!!!!!!!!!!
oO
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
QL Resources Bhd. (QLG MK): The Malaysian producer of fishmeal and palm oil said it bought a 23.3 percent stake in Lay Hong Bhd. (LAY MK), a poultry farming group, for 11.55 million ringgit or 1.05 ringgit a share. QL shares added 0.9 percent to 4.59 ringgit. Lay Hong gained 3.5 percent to 1.19 ringgit.
ReplyDeleteyo
ReplyDeleteif my eyes are correct,
Top Gainers Last +/-
LAYHONG 1.72 0.530
something is fishy here.
LOL!
ReplyDeleteLonBis sold and Lay Hong flies!!!
huhu!
Err.... err.... :P
ps: this reminds me of Ecofirst when they sold their SEGi stocjs. :P
these companies need a better investment advisor
ReplyDeleteOf course a better investment advisor would have helped BUT this is not really the issue for London Biscuits.
ReplyDeleteLondon Biscuits should take a good look at themselves and ask if they should be investing those money in the first place.
If you had followed the posting Review Of London Biscuit, it was so clear that the money invested by London Biscuit came directly from the funding exercises like bank borrowings.
Now would you personally borrow money to invest? ( Now I am very, very sure that you would say no. :P )