MTQ Corporation

MTQ subscribed to the IPO at 26c and bought some in open market also. Why need to sell at 20.5c when the NTA is more than 27c and HL is a fairly profitable company ?

I guess one advantage for acquiring all of NMS is that, there will be no last traded price to show a paper loss for those NMS shares on MTQ's book. Otherwise the board has to answer questions at every AGM.

(20-11-2012, 06:10 PM)valueinvestor Wrote: MTQ subscribed to the IPO at 26c and bought some in open market also. Why need to sell at 20.5c when the NTA is more than 27c and HL is a fairly profitable company ?

it would seem that they need the cash for the NMS acquisition. that is the only reason i can think of. Unless, they do not see a Hai Leck a good investment anymore

As of today, MTQ has just 26.29% of NMS. It would seem that gaining control is a problem, much less 100% and privatizing it.

On a positive note, this would also mean less gearing on MTQ side.

Let's wait till the close of offer to see how many % MTQ manages to garner....

the scrip dividend is priced at $0.85..

is it a good idea to apply for it?

i am taking script! continue to look upon MTQ as a positive growth+dividend counter..

sales of treasury shares 7487k lots @ 85 cents

(10-12-2012, 11:38 AM)Kelvin Wrote: sales of treasury shares 7487k lots @ 85 cents

Learned new stuff today.

Probably due to limited exposure, 1st time see company selling their treasury shares.

(10-12-2012, 12:58 PM)CityFarmer Wrote: Learned new stuff today.

Probably due to limited exposure, 1st time see company selling their treasury shares.

Not particularly surprising, though it's the first time I've seen it too.

Companies normally retain treasury shares as a reward for staff in ESOP exercises, or to be given as a reward.

I'm not sure what their average price was for their treasury shares, but I think they would have made about 60% to 80% profit as a result of selling at 85c.

(10-12-2012, 01:48 PM)Musicwhiz Wrote:

(10-12-2012, 12:58 PM)CityFarmer Wrote: Learned new stuff today.

Probably due to limited exposure, 1st time see company selling their treasury shares.

Not particularly surprising, though it's the first time I've seen it too.

Companies normally retain treasury shares as a reward for staff in ESOP exercises, or to be given as a reward.

I'm not sure what their average price was for their treasury shares, but I think they would have made about 60% to 80% profit as a result of selling at 85c.

There are precedent of sale of treasury shares in SGX:

i) Advance SCT sold 2.0 million treasury shares in 2009 to fund M&A:

http://info.sgx.com/webcoranncatth.nsf/V...4005471A8/$file/Announcement.-.Proposed.issue.new.shares.and.sale.of.treasury.share.pdf?openelement [SGX Announcement]

ii) Technics O&G sold 6.6 million treasury shares at $1 each in Sept 2012:

http://info.sgx.com/webcoranncatth.nsf/V...4003594E4/$file/Annt_Change_in_capital_Sales_Transfer_of_treasury_shares_250912.pdf?openelement [SGX Announcement]