Tuesday, April 8, 2014

Talam and KEURO

Recently, we are seeing some interests in Talam Transform as it continues to reduce its debt by selling assets. In the process of selling its assets, it is realised that many of its assets are undervalued in its books. At as now the NA per share is about RM0.14 to RM0.15 per share (that is book value) and may not be real value.

I am sure after its cleaning of its books, we will be seeing some real projects, but probably not using the Talam brand.

Why am I interested in Talam? Keuro holds 30% (controlling) of the company.

5 comments:

Big Sea said...

Felicity,

I do a quick calculation. Assume all the land Talam holding can be sold at RM 35 psf. Talam could probably collect RM 2.8 Billon. Assuming other assets are worthless, Talam has a debt of around RM 1.2 Billion to be paid, leaving Talam with RM 1.6 Billion. Dividing RM 1.6 Billion over the total shareholding, is around RM 0.40. Talam probably could take 5-10years to get all these exercise done.

CHOO said...

Hi Felicity,

Can you work out what are the benefits like to Keuro for giving up their interest in Talam? How will it impact their share price? Thanks!

felicity said...

The price is not mentioned, hence would not know how positive it will be for Keuro. Personally, I would not mind Keuro selling Talam as long as the price is right. In my mind, 10 sen per share is not the right price, to me.

Also, I think Talam has announced that it is not aware of the rumour by Star.

CHOO said...

Hi Felicity,

Thanks and best regards!

CHOO said...

Hi Felicity,

Thanks and best regards!