On 19th Dec,
All resolutions were passed at the EGM held on Wed, namely
(a) the proposed sale of all the company’s assets;
(b) proposed name change to ENPORIS GREENZ LTD;
(c) proposed capital distribution of $50mln or 13 cents per share in cash to shareholders.
On 18 Oct 2007, Seksun agreed to sell its assets to Supernova for $295.1mln . The total amount expected to be received from Supernova translates to about 78.6 cents per share while management will endeavour to distribute about 72 cents per share to shareholders. According to management, the difference between the actual amount received and distributed to shareholders reflect provisions, deductions to be made for tax, $15mln to be retained pursuant to the share sale agreement, the costs and expenses incurred by the company in connection with the transaction, the costs and expenses required to be incurred for maintenance of the company’s operations subsequent to the closing of the transaction and any other liabilities.
My Recommendations:
1) Buy and hold if u got spare cash.
Current price is 73cts, distribution is abt 72cts. Effectively u are holding seskun for 1cts per share when they are expected to have 6.6cts cash after the sales and distribution.
Management has expressed their desire to acquire another new business, and to preserve the listing status. Therefore, the fair value of seskun, can only be determined after the proposed acquisation of company. BUT i strongly believe that, with the expertise of the management, a fair deal will be strike.
2) Time factor. Time is a factor. This is expected to take place over the next few months.
All resolutions were passed at the EGM held on Wed, namely
(a) the proposed sale of all the company’s assets;
(b) proposed name change to ENPORIS GREENZ LTD;
(c) proposed capital distribution of $50mln or 13 cents per share in cash to shareholders.
On 18 Oct 2007, Seksun agreed to sell its assets to Supernova for $295.1mln . The total amount expected to be received from Supernova translates to about 78.6 cents per share while management will endeavour to distribute about 72 cents per share to shareholders. According to management, the difference between the actual amount received and distributed to shareholders reflect provisions, deductions to be made for tax, $15mln to be retained pursuant to the share sale agreement, the costs and expenses incurred by the company in connection with the transaction, the costs and expenses required to be incurred for maintenance of the company’s operations subsequent to the closing of the transaction and any other liabilities.
My Recommendations:
1) Buy and hold if u got spare cash.
Current price is 73cts, distribution is abt 72cts. Effectively u are holding seskun for 1cts per share when they are expected to have 6.6cts cash after the sales and distribution.
Management has expressed their desire to acquire another new business, and to preserve the listing status. Therefore, the fair value of seskun, can only be determined after the proposed acquisation of company. BUT i strongly believe that, with the expertise of the management, a fair deal will be strike.
2) Time factor. Time is a factor. This is expected to take place over the next few months.
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