Tuesday, May 29, 2012

TMS: Anyone interested?

While looking at TMS's Top 30 shareholders, noticed something interesting. It basically may not have a controlling shareholder anymore. The Top 30 shareholding consists of only 27.77% of the total shareholding. The largest shareholder holds 13.04% of the company and their shares are pledged, hence they may be looking to sell eventually. Second largest shareholder owns less than 1% of the company. Basically all the major shareholders have sold out.

Top 30 Shareholding of TMS as at 30 April 2012

Compared to the shareholding as at 6 May 2011, it is a complete change from that list. In 2011, the Top 30 consisted 77.76% of the total shareholding. See below:

What basically happened is during the run up, which was mentioned in my previous article most major shareholders sold out. Ironically, after several rounds of fund raising, the company now has RM30 million cash although it rarely registers profit. What happened is not known, but the latest announcement shows that it is trying to do a takeover of Viewnet - an IT retail company through issuance of new shares. With the takeover of Viewnet, the latter shareholders could be in control of the RM30 million.

Hence, what we are to witness is a company with net cash but no real controlling party. There can be a possibility that we will witness anyone (besides the Viewnet's shareholders) with some RM4 - 5 million cash may be interested as the company has the RM30 million Moolah. It is now trading at RM0.075, which is almost 1x its cash holding.

Hmmm..wondering whether is it that simple?

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