Saw below announcement, an issuance of MTN by BJTOTO's subsidiary STMSB. The drawdown from MTN will be used to facilitate BJTOTO Groups existing bank borrowings and for working capital. I would expect more dividend to be given in future...hahaha. That's how VT used to play his game using others people money to fund his companies and his own pocket. Way to go, my firends. HAHAHA
*******************************************************************************
1562 BJTOTO BERJAYA SPORTS TOTO BHD
ISSUANCE OF MEDIUM TERM NOTES
ISSUANCE OF MEDIUM TERM NOTES (MTNs) PURSUANT TO A MEDIUM TERM NOTES PROGRAMME OF UP TO RM800.0 MILLION IN NOMINAL VALUE BY ITS WHOLLY-OWNED SUBSIDIARY, SPORTS TOTO MALAYSIA SDN BHD (STMSB)
The Board of Directors of Berjaya Sports Toto Berhad (B-Toto) is pleased to announce that STMSB proposes to undertake a MTN Programme of up to RM800.0 million in nominal value (the MTN Programme) and has received the approval of the Securities Commission. STMSB has appointed Maybank Investment Bank Berhad as the Principal Adviser, Lead Arranger and Joint Lead Managers together with AmInvestment Bank Berhad.
The MTN Programme is akin to a revolving credit facility where-in the tenure for the MTNs shall be above one (1) year and up to ten (10) years as STMSB may select in consultation with the Joint Lead Managers.
The anticipated initial drawdown of the MTNs is expected to be sized approximately RM500.0 million, the proceeds of which will be principally utilized towards the refinancing of the B-Toto Groups existing bank borrowings and for working capital.
The MTN Programme is an efficient and cost effective avenue to manage the B-Toto Groups funding requirements.
Malaysian Rating Corporation Berhad, had in its press announcement dated 14 June 2010, assigned a AA rating with stable outlook on the MTN Programme.
12 comments:
Update portfolio + Margin line
1. MBF 55.9% (cost 71sen)
2. PJ devel 41.2% (cost 72sen)
3. Kfima 29.6% (cost: 94.5sen)
4 CYL 20.5% (cost 53.5sen)
5. OKA 7.2% (cost 58.8sen)
Second portfolio + Margin line
1. MBF holding 60.1% (cost 71sen)
2. Qcapital 42.6% (cost 1.01)
3. AZRB 17.1% (cost 77sen)
4. Chuan 16.2% (cost 60.5sen)
5. Bolton 11.1% (cost 70sen)
6. PJ deve 10% (cost 71.5sen)
Wau lau, bjtoto is top volume today!? and share is on weakness!!!! take this opportunity to buy maximum stake of bjtoto in both portfolio.... bought all at 4.36....
horse, i support your idea expect special dividend from its MTN + interim dividend of 8sen TE give rise to yield of at least 8% return,
just hope that it turn out to be good. Most likely it will. :)
Based on bjtoto initial 500m MTN, it has capability to payout at least special dividend of 35sen nett special dividend.
After all, the whole idea is to help its parent, bjland, the major beneficial, to meet its debt obligation which is due by end of August.
VC also already start accumulate bjtoto in open market
Update portfolio + UltraMargin line
1. Bjtoto 95% (cost: 4.36)
2. MBF 55.9% (cost 71sen)
2. PJ devel 41.2% (cost 72sen)
3. Kfima 29.6% (cost: 94.5sen)
4 CYL 20.5% (cost 53.5sen)
5. OKA 7.2% (cost 58.8sen)
Second portfolio + UltraMargin line
1. Bjtoto 91% (cost 4.36)
2. MBF holding 60.1% (cost 71sen)
3. Qcapital 42.6% (cost 1.01)
4. AZRB 17.1% (cost 77sen)
5. Chuan 16.2% (cost 60.5sen)
6. Bolton 11.1% (cost 70sen)
6. PJ deve 10% (cost 71.5sen)
Horse, look like you probably will be right that the proceeds of the debt issuance will be utilized for special dividends. The move seems to to be carried out to re-balance Bjtoto's capital structure to utilizing more than 50% debt. Now I know why Bjtoto's return of equity is the highest. However, you are probably correct that the main purpose is to benefit the major shareholders but how would the minor shareholders benefiting from this corporate move? By right, the amount of dividends should not affect the value of a corporation and shareholder value. At today's price of 4.35 and recent earnings of 39 sen, PER of Bjtoto is 15, or a earnings yield of less than 7%. Is it worthwhile as an investment?
KC
Once bjtoto declare special dividend, every shareholder are entitle to the dividend payout, thus every one benefiting, but certainly major shareholder (bjland) enjoy much more due to larger stake.
This is the way, VC try to extract as much as possible value from bjtoto, as only bjtoto under VC can raise such large MTN and still enjoy AA rating due to its predictable cash flow.
This strategy also applicable to other good cash flow stock such as litrak/Plus/MTD infra, which major shareholder raise as much as possible debt through selling bond/MTN, so long the future cash flow of the company can meet and service these interest rate/coupon rate.
Horse,
The cash in the company belongs to all shareholders whether it is given out or not. A company may retain its cash and not paying any dividend for years for good capital investment and earn higher return for shareholders like Microsoft did at its early stage. Some companies have heaps of cash but misuse it to do all sorts of nonsense or cannot earn a good return from it, the cash should best be returned to the shareholders as special dividends. In Bjtoto's case, borrowing to pay special dividends does not appear to add value to shareholders to me, except that it may ROE very good. The market may however, still react favourably to the special dividends, but notice that the share price drops most of the time to its initial value after ex-dividend. Hence in my opinion whether to buy a share or not, is whether the price is reasonable compared to its earnings, and not how much dividends it pays.
hng, sorry my previous comment on Bjtoto special dividend was related to your comment, not horse's. Since I am here, I would like to recommend you an interesting book, 'Reminiscences of a stock operator' by Edwin Lefevre. I am half way through this book now. It is quite interesting. Cheers
KC
Very simple, short term trade on bjtoto.. if bjtoto declare special dividend, sell at strength and avoid opt for these ' special dividend' entitlement.
hng,
Thanks for your advice. For trading purpose, I think you will probably be right.
Update portfolio + UltraMargin line
1. Bjtoto 95% (cost: 4.36)
2. MBF 55.9% (cost 71sen)
2. PJ devel 41.2% (cost 72sen)
3. Kfima 16.8% (cost: 94.5sen)
4 CYL 13.2% (cost 53.5sen)
5. OKA 7.2% (cost 58.8sen)
Second portfolio + UltraMargin line
1. Bjtoto 91% (cost 4.36)
2. MBF holding 60.1% (cost 71sen)
3. Qcapital 42.6% (cost 1.01)
4. Chuan 16.2% (cost 60.5sen)
5. PJ deve 10% (cost 71.5sen)
6. Bolton 8.3% (cost 70sen)
June 25, 2010 20:55
成功集團2.5億增持成功多多
（吉隆坡25日訊）成功集團（BJCORP，3395，主要板貿易）聯合間接子公司，以平均每股4.37令吉或2億4792萬6856令吉，連續兩日在公開市場買進成功多多（BJTOTO，1562，主要板貿易）5673萬900股或4.24%持股。
成功多多今日發佈文告指出，是與子公司英特太平洋資本（Inter- Pacific Capital）、英特太平洋研究及Bizurai Bijak公司，自昨日（24日）開始，于公開市場買進成功多多持股。
“成功多多務表現良好，加上股息回酬誘人，讓公司有意增持。”
成功多多今日股價疲軟，同時更跌進10大下跌股榜，閉市收在全日最低4.33令吉，跌15仙，成交量716萬7000股。
Post a Comment