I guess the Tan brothers are pretty good at asset injections. Remember Vincent Tan trying to inject a less than performing property, Berjaya Times Square into Berjaya Group for something like RM1 billion? Then the same guy tried to inject another, Bukit Tinggi for RM1 billion into same vehicle, Berjaya Group. Another underperforming property being injected. When you are in trouble who do you call? SHAREHOLDERS!
How about injecting a performing McDonald? You don't hear that do you?
Now younger Brother, Danny Tan tried to do the same. Injecting properties worth RM1.1 billion again, this time into his vehicle, Dijaya Corp. Ever wonder anyone really bother to analyze the exercise which involves gearing up the listed company as well as raising funds via rights issue - asking investors for money again.
My little question is if the properties are worth RM1.1 billion, why bother to inject as it is probably worth more than Dijaya now? Too many questions unanswered.
In the process, he nets RM250 million from this exercise as he is selling the property. Yes, he commits RM250 million of the rights himself, meaning that he is not taking any cash out from his property injection. Hey! OTHER SHAREHOLDERS HAVE TO INJECT MONEY ler!
I am smelling something fishy from the Tan brothers again.
By the way, have you read Vincent Tan is donating RM600 million into his foundation? How noble...