The Rimbayu's piece has a huge lake which although is a discount, will still be worth something. Buyers like houses overlooking a nice lake, which Rimbayu has.
Now you know why I was pissed off...
Note:
Keuro's effective stake in Bandar Rimbayu Sdn Bhd which is derived from 2013 Annual Report.
Another which shows that the effective ownership of Rimbayu (formerly known as Canal City Construction) is 28% and used to be 35% (Between financial year 2012 and 2013, there was no shareholding change for Rimbayu) is as below:
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| From Annual Report 2012, the one provided under Annual Report 2013 is probably wrong |
14 comments:
After disposal of 10%, KEURO still has 40% stake in Radiant Pillar which develops Rimbayu.
Mind to explain why 28% was used in the calculation instead of 40%?
Thanks
28% is because the controlling company only has 70%. Hence 40% x 70% effectively gives Keuro 28%.
According to their latest circular on the proposed disposal, page 107(appendix IV), note 8, it does say effective equity interest in Bandar Rimbayu Sdn Bhd is 100% by Radiant Pillar(RPSB). Also, there isn't any minority interest under the audited RPSB balance sheet. However the FY13 Keuro annual report shows 35% effective equity interest though(based on 50% holding in RPSB).
Could you please quote any source on the 70%?
Why didn't IJM acquire the 20% stake recently transacted rather than allow MWE to buy that stake if K Euro is grossly undervalued?
Refer to page 2 of 2013 Annual Report, Keuro has 50% effective stake in Radiant Pillar
Keuro>100% KEB Plantations Holdings SB>100% KEB Builders SB>40% Radiant Pillar SB
Keuro>100% KEB Management SB>10% Radiant Pillar SB
So post 10% disposal, Keuro should still own 40% effective stake in Radiant Pillar
I remember I did an extensive research on this. Yes the effective 35% has been in the books of Kumpulan Euro on this.
I am attaching the snapshot of its 35%.
If I am not mistaken, Keuro used a 70% shareholding subsidiary to hold Radiant Pillar, which effectively allows it to hold 35% of bandar Rimbayu. As for IJM Land, it holds the other 50% of through its wholly owned subsidiary.
But that has to be checked. I did trace back the transactions between IJM and Keuro back to its early days, if can remember 2006 or 2007.
Hi Panaceaasia
I do not think this is as straightforward a deal...
Hi Felicity do you think ijm/ijm land will continue to gobble up keuro's assets at low valuation...?
Looking at paragraph 2.1, page 2 of the circular dated 5 Dec.
"RPSB an investment holding company, is a 50:50 JV company of our company and IJML, through their wholly-owned subsidiaries, Bandar Rimbayu Sdn Bhd, the wholly-owned subsidiary of RPSB is primarily engaged in property development.
I can't really answer on what Ijm will do in future
Hi panaceaasia
If IJM acquries the 20% block instead of MWE, IJM's total shareholding interest in Keuro will increase to approx. 45%(crossing 33% threshold) and will be required to extend a MGO on all shares of Keuro.
With the release of the latest KEURO annual report, it is now clear that KEURO holds 40% stake in Rimbayu.
A "bonus" to KEURO shareholders who thought KEURO's stake in Rimbayu was 28%
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