Wednesday, July 30, 2014

Keuro's rights

For those who have Keuro, be prepared to allow yourself some cash to pick up the rights. Basically it is a 3 for 4 rights at issued price of RM1.08 per share. This basically means that if you have 10,000 units of Keuro, you will be entitled to 7,500 (3/4 x 10,000) of the rights shares. That also means that at RM1.08, the amount of cash needed is 7,500 x RM1.08 = RM8,100. Call your remisier on how to pick up your rights. Also, the rights comes with warrants in which case the exercise price is fixed at RM1.18. Assuming the same rights amount of 7,500 is picked up, the number of warrants that will be provided is 3,750 units.

If you decided not to pick up the rights between 6 August to 12 August 2014, you have the option to sell your Keuro-OR. On those dates, the Keuro-OR will be traded and you will be allowed to buy or sell your rights options.

The Keuro's share will be traded ex-rights from 1 August 2014 onwards. This means its price will be adjusted accordingly based on the last traded price as at 31 July 2014 closing.


For me, I will definitely be picking up the rights and due to this, I have decided to sell some of the DKSH to pick up the shares.


Very recently, the update for Keuro it seems is that it will not be holding Talam Transform's shares and it is disposing part of its almost 30% shareholdings. I have blogged about the need to not hold Talam's shares as it is not the key business for Keuro. It seems that Tan Sri Chan Ah Chye is back into Talam with his son and daughter joining the board of Talam and to which Keuro sold some 230 million shares to the company related to Chan Ah Chye. The price sold is not a good price though i.e. below 10 cents.

While Talam's net book value (revised) is very good, I am not so sure with the old management back at the helm though as it has never been looked positively by property buyers before due to many broken promises in the pasts by the Talam group to its house buyers. In many cases, my mantra is to look upon the management that is supposed to carry the company forward.

IJM it seems is moving away from Talam as well with one of the JV which was planned on a piece of land in Gombak being terminated. However, IJM has gotten what it wanted i.e. the WCE and Rimbayu land.

14 comments:

Piny Zone said...

hi, what is the meaning of ex-rights? how does this work and whats the difference between ex-right and keuro-OR?

felicity said...

Ex-rights means if you buy the shares on and after that date, you will not be entitled for the rights shares and warrants.

Keuro-OR is the rights options which a person is allowed opportunity to trade. This usually is only for a short period of time.

Big Sea said...

Felicity,

KEURO warrant only valid for 2 years ? I doubt there is any value in the warrant !

felicity said...

Well, look at it this way, the lower the value the better!

BobChris said...

Hi Felicity,

Why is the price of Keuro dropped so much today @ 1/08/14? Is it because of the Keuro-OR???

felicity said...

Adjusted for ex-rights, but it dropped further.

Unknown said...

Wow, finally meet keuro investor, I am holding Keuro as well. I am planning to subscribe all the rights , and get the free warrants. Who is with me?

Ng Li Chin said...

pretty disappointed with the price keep dropping. not sure its the right choice to add on and purchase more rights...

what you think felicity?

felicity said...

Hi Ng

This is a long term stock. WCE will not return cashflow until 2018. As for the 40% owned Rimbayu project, it will be returning results with the positive sales progress of that project.

One who puts in money into the rights should be expecting Keuro to be returning a market capitalization of at least RM1.5 billion to be worthwhile in the 5 years time.
Having said that, the concession is a 50 -60 years concession, hence it should be a long term investment than anything else.

Be prepared to boredom though as the share price may not move. I am however confident it will stay at around current price not below RM1.00 in the medium term.

Bn911 said...

Hi Felicity, how much market cap do u target for Keuro in 5 years time ( aft completion)? Thanks.

felicity said...

If you do double your money in 5 years, it would be considered be successful. Having said that, this is a very long term investment. I would hope to see WCE to be a serious competitor or alternative to PLUS in the long run especially for the route between Klang Valley to Taiping.

As traffic increases and for the vehicles that's travelling from Klang or Shah Alam to the north, this should be a serious alternative.

Bn911 said...

As from your previos post, u stated RM5b with RM5b in debt seems like a decent number. I would be very happy with a RM10b EV

Piny Zone said...

i had been watching keuro shares 4 years ago and everytime it trying to shoot up, someone or something sure push the price down back again and stagnant there.

which is quiet depressing seeing things that I invested 4 years and no return at all.

felicity said...

I have yet to receive myself. You can contact your remisier or dealer