Whats Next For GenM After EGM ?

Below, Genm announcement, as expected, shareholders gave its approval to acquire UK casino. A plus for GSP and a minus for Genm.

Announcement Details :

We refer to the Initial Announcement and the announcement dated 9 August 2010, both in relation to the above.

On behalf of GENM’s Board of Directors, we wish to announce that GENM’s shareholders have approved the resolution in relation to the Proposed Acquisition, as set out in the Notice of EGM dated 9 August 2010, at GENM's EGM held today.

Whats next for Genm ? More RRPT ? Lets work out the remaining cash for GENM :-

TOTAL CASH about RM5.2billions

1) Based on the Company’s issued and paid-up share capital of 5,907,059,648 ordinary shares as at 18 August 2010, and after taking into account the cumulative net outstanding treasury shares to-date of 214,501,100 (representing approximately 3.63% of the issued and paid-up share capital), the Company intends to purchase up to a further 376,204,865 of its shares (representing approximately 6.37% of the issued and paid-up share capital) within the next 10 months.

2) On 3 August 2010, New York Lottery announced that its evaluation committee has unanimously recommended to the New York Governor that Genting NY be awarded the New York video lottery licence for the Project. Genting NY’s proposal included US$380 million as an upfront licencing fee.

• Item 1 of shares buyback of 376millions shares, this may cost approximately, 376mil x RM3.10 = RM1.2billions
• Item 2 will cost approx. US$380 x RM3.2 = RM1.2billions
• Acquire UK casino = RM1.68billions

 
Est. Cash balance remain = 5.2 - 1.2 - 1.2 - 1.68 = RM1.12billions
 
Est. coming Q to be announced on 26/8/2010 & net profit approx. = RM270millions
 
Est. total cash balance = RM1.12b + RM270m = RM1.39billions
 
Will there be special dividend for this Q ????
 
Lets work out :-
 
Share Issued = 5.9billions
 
Maximum afforded dividend for this Q = 1.39/5.9 = 23sen per share
 
Let's chop dividend by half = 23/2 = 11sen per share
 

11sen per share dividend for this Q is possible but based on track records and the possibility to retain more cash for development and enrichment works for item 2 and UK casino. So, cut this by another half = 11/2 = 5.5sen.

 

My final figure of dividend for this Q could be around 3sen to 5sen. Special dividend ???? big fat hope again.