Monday, December 5, 2016

Mark Chang's offer of JCBNext at RM1.20

I no longer hold JcbNEXT (formerly Jobstreet) and do miss a great business and management. Although there are similar traits in Jobstreet and MYEG in terms business nature, certain moats, the management of the 2 companies are different. One care for its shareholders, the other more of its own pockets - not going to tell which is which but for you to find out!

I just would like to comment on JCBNext towards its offer to purchase all its shares at RM1.20. I do not think it is its intention to delist or make purchases all its shares from the minority shareholders. The offer is out of the requirement under the SC guidelines.

As shown  in the red boxes above, the major shareholder has acquired a 20.17% stake from SEEK, to whom was sold to. Since the group has now own more than 50% of JcbNEXT, it is obliged to offer the same offer to all other shareholders. I do not think JcbNEXT is to delist its company.

However, as the deal that Mark Chang has gotten is pretty sweet i.e. RM1.20 while some of the people have claimed that the actual value of JcbNEXT is much more than the RM1.20 value, I feel the right thing to do is to offer the sale of RM1.20 by SEEK to shareholders rather than a single individual takes the entire deal up at an attractive price. This means the 20.17% should have been offered to all shareholders rather than 1 individual.

Sorry to the main shareholder of JcbNEXT (Mark) but this is the right thing to do. All food should be offered on the table and not for one to just take and eat it.
(You know what, in his interview with BFM, Mark Chang has mentioned he wanted to invest into companies that have social impact to the community - this is one as largely minority shareholders are considered the social group, to me as most shareholders just want their investment to see through)


value investing in malaysia said...

Felicity, what's your take on below? seems JCBNext is not just a cash company. But with great investment!

Today, JcbNext’s most prized asset is 104 Corporation, the largest job site in Taiwan listed on Taiwan stock exchange.

JcbNext is the largest shareholder of 104 Corp with shareholding of 23.03%. Share of dividend from 104 Corp was NT$61 mil or RM7.4 mil last year.

At yesterday’s closing price of NT$136, the stake in 104 Corp is worth NT$1.04 bil or RM145 mil.

In other words, about half of its assets are invested in 104 Corp, which had captured over 90% of the online recruitment advertising market share in Taiwan.

Possible for JCBNext take over 104?


felicity said...

I am not so sure of the takeover. Usually, a takeover will involve higher valuation than market price.

Although the value is great, I am not so interested in the business yet as I do not know of its growth plans as yet. But this is a counter worth watching.

value investing in malaysia said...

Definitely worth watching. JCBNEXT currently sells at more than 30% discount. Little downside risk with huge margin of safety. It would be great if they can take over 104 Corp which has been paying dividends since 2008. I like the management too. Couldn't find a better one.

Turmeric Trader said...

this Mark guy is taking advantage of the shareholder by forcing shareholder to accept such ridiculous price of RM1.20 when the market was trading the share at RM1.7 - RM1.8. is this call responsible or he is just lining up his own fat pocket. The boss of Maxis and Airasia would not have done this to their loyal shareholder. This JCBNEXT Mark guy is a big cunning crocodile.