Duty Free International has fallen sharply from about 40 cents to 23 cents. It started life with the consolidation of 20 shares (worth 2 cents back then) after Esmart had a RTO whereby duty-free shops and other assets were injected into Esmart.
Some people are saying in another forum about the windfall for Duty Free arising from a proposed offer by a 3rd party to buy the real estate of Duty Free in Johor. I question if this is not a sale & leaseback whereby Duty Free will have to pay rent on its current premises in Zon in JB.
While the purchase-sale price is attractive to Duty Free, the question is how much is the rental that Duty Free has to pay to continue operating there? This info is not available in the Duty Free announcements on SGX currently.
I like the chart of Duty Free as it now climbs higher to touch 30.5 cents. The FA is not so crystal clear as the management doesn't engage with the investment community since the RTO
PETALING JAYA (May 4, 2012): Berjaya Corp Bhd (BCorp) has emerged as a substantial shareholder in Atlan Holdings Bhd following the acquisition of a 7.9% stake in the latter for RM85 million or RM4.25 a share via direct business transaction (DBT) yesterday.
BCorp has also entered into a conditional share purchase agreement (SPA) with Cipta Nirwana (M) Sdn Bhd to acquire another 40 million Atlan shares, or a 15.8% stake in the company, for RM170 million to be satisfied by the issue of RM170 million nominal value of five-year 5% irredeemable convertible unsecured loan stocks (ICULS) with 170 million warrants in BCorp.
In a filing with Bursa yesterday, BCorp said: "As at May 3, 2012, BCorp and its subsidiaries hold a total of 23.23 million Atlan shares (including the DBT shares), representing 9.18% of the Atlan voting rights."
Upon the completion of the proposed SPA acquisition, BCorp group will hold a total of 63.23 million Atlan shares, representing a 24.97% stake in the company. Thus, Atlan will become an associated company of BCorp. The ICULs and warrants will not be listed on Bursa Malaysia.
BCorp said the proposals will provide the group with an opportunity to own a strategic stake in the profitable Atlan, which holds an 81.15% stake in Singapore-listed Duty Free International Ltd, which is involved in trading of duty-free goods and non-dutiable merchandise, and property investment and hospitality.
The latter business segment includes the management of the Zon Johor Baru Duty Free Complex, the Zon Regency Hotel in Johor Baru, the international ferry terminal at Johor Baru duty-free zone and operation of a golf club called Black Forest Golf & Country Club at Bukit Kayu Hitam, Kedah
Duty Free International Limited has proven to be resilient. Kind of illiquid stock, however, closing at 31.5 cents.
Independent director Chew Soo Lin recorded his first on-market trades since his appointment in August 2011 with 350,000 shares purchased from March 29 to 30 at 22 cents each.
The trades increased his holdings (direct & deemed) by 26 per cent to 1.692 million shares or 0.15 per cent of the issued capital.
The purchases were made on the back of the 26 per cent rebound in the share price since October 2011 from 16.2 cents.
