New Toyo

[Curiousparty]

As mentioned by Portuser before, New Toyo's own borrowing is only $28mil. Total sales proceeds attributable to New Toyo (from SAH) = $58mil.

If New Toyo decides to pay off every cent of its debt,
there is still $30mil left for distribution or 6.8 cents!.

If you are equity owners of New Toyo, why would you want to pay off every single cent of your debt and risk straining relationships with your bankers...Moreover, strong cashflow from existing operations will allow the debt to be pared down over a few years without new sources of funding...

This is where I am coming from when I said "the payout will be very substantial"

This is just a personal conviction. Not an induction to buy or sell

Good profit as well as strong cash flow has enabled New Toyo to pare its bank borrowings, from $89m as at 31 Dec 2010 to $73m a year later.

Of the $73m, $45m was incurred by Tien Wah. New Toyo's own borrowings amounted to $28m only.

I hope New Toyo will pay out a substantial portion of the special dividend it receives from Shanghai Asia (after completion of the assets sale).

New Toyo's attributable profit of $19.8m is after making a provision of $2.25m for the proposed ex-gratia retirement gratuity to Mr Yen (subject to approval by minority shareholders). Mr Yen spent more than 35 years, building New Toyo, from scratch, into a significant regional packaging group.