Friday, 14 August 2015

Donplaypuks : Q: How could PM Najib become a millionaire? A: Simple! Give him a billion ringgit!

steadyaku47 comment : A good read from Donplaypuks.



by warren buffteted senseless, donplaypuks® intrepid correspondent for billionaire to millionaire affairs


    %  No. of Shares      @4.55   @1.56 BOOK LOSS

        RM       RM          RM
Felda Land 20.00%       729,629,800      3,319,815,590   1,138,222,488   2,181,593,102
Felda Asset 13.66%       498,321,192      2,267,361,424       777,381,060   1,489,980,364
Tabung Haji 7.78%       283,710,100      1,290,880,955       442,587,756       848,293,199
Felda Co-operative 5.80%       211,758,908          963,503,031       330,343,896       633,159,135
KWP 5.63%       205,763,500          936,223,925       320,991,060       615,232,865
EPF 5.28%       192,587,200          876,271,760       300,436,032       575,835,728
Pahang State Govt 5.00%       182,407,575          829,954,466       284,555,817       545,398,649
Amanah Saham Bumiputra 4.13%         89,010,989          405,000,000       138,857,143       266,142,857
Sabah State 1.81%         65,934,066          300,000,000       102,857,143       197,142,857
PNB 1.58%         57,803,700          263,006,835         90,173,772       172,833,063
Amanah Saham 2020 1.22%         44,601,400          202,936,370         69,578,184       133,358,186
LTAT 0.97%         35,535,900          161,688,345         55,436,004       106,252,341
Yayasan Islam Terengganu 0.45%         16,455,100            74,870,705         25,669,956         49,200,749
Socso 0.33%         12,200,000            55,510,000         19,032,000         36,478,000
Lembaga Air Perak 0.27%         10,000,000            45,500,000         15,600,000         29,900,000

73.91%   2,635,719,430    11,992,523,407   4,111,722,311   7,880,801,096

# shareholdings based on FGVH 2014 Annual Report. 

In 2012, PM Najib Tun Razak was the prime mover of the listing of Felda Global Ventures Holdings (FGVH) as the 3rd largest palm oil company in the world by acreage, amidst much controversy. 
In 2009, he was also the prime mover of 1MDB which is now embroiled in a $46 billion debt debacle and financial fiasco. 

Nevertheless, FGVH successfully raised US$3.1 billion or RM 9.93 billion @ RM4.55 per share, via its IPO. In 2012, it was the second largest listing in the world.

Three years into its listing, FGVH's share price has plummeted from a historic high of RM5.39 to a historic low of RM1.53, a loss of 72% in value!! Today, it closed at RM1.56.

This has left a bloody trail of losses of about $8 billion by Malaysian GLCs and Statutory Bodies, as shown above, with the loss at 66% of IPO price (4.55-1.56 = 2.99/4.55).

FGVH's profit after tax tumbled by 51% from RM1.1 billion in 2013, to RM539 million in 2014.

In recent months, FGVH shares took another big hit when the company announced its intention to acquire 37% of PT Eagle High Plantation, Indonesia, for RM2.55 billion. The price tag was more than twice the current listed share price of Eagle High. 

A few billion ringgit was wiped off FGVH's share value within a few days.

The high brows at FGVH mumbled something about pricing Eagle High at (the higher) "enterprise value" while largely ignoring its depressed market price. Not surprisingly, there was almost universal condemnation of the acquisition price by investment analysts from here to China. CLICK HERE and HERE for the Eagle High story.

There is also a personal connection between PM Najib and Eagle High owner, Peter Sondakh. CLICK HERE for that connection. There was much suspicion, that once again, possibly, someone was inflating share prices with no good in mind, as in the case of 1MDB's $18 billion acquisition of IPPs.
Anywhere else, the Chairman and CEO would have long ago been shown the exit door for the huge loss to shareholders. In Malaysia, they are still being rewarded with salary increases and bonus! CLICK HERE for some information on FGVH's management.

In the wake of 1MDB's $46 billion fiasco, it looks like PM Najib, dubbed Pink Lips by some bloggers, has the kiss of death and the touch of plague. Whatever he caresses, turns from gold to dust and dross! 

PM Najib still has not learnt that it is not the business of government to dabble in business, especially big business. More so, if you have lived a very sheltered life, and know as much about real business as you would about quantum physics or how to perform brain surgery.  

As for PM Najib's business acumen, who in his right state of mind would buy a 2nd hand car from this snake-oil salesman and serial liar?

As the saying goes in Malaysia:

Q: How could PM Najib become a millionaire? 
A: Simple! Give him a billion ringgit!

Donplaypuks® with IPO's and GLC/Stat Bodies, man!