i was wondering why some people in this forum said things about SAAG as if it is in trouble due to the bond conversion! just to refresh your memory this convertible bonds were proposed on 3 dec 2007. pls read below:

"The Exchangeable Bonds will be issued and offered outside Malaysia to certain non-United States resident persons (as defined in Section 902(k) of Regulations S) in offshore transactions under the United States Securities Act of 1933, as amended from time to time.

The Exchangeable Bonds will be exchangeable into new ordinary shares in SAAG at the option of the bondholders at any time within a specified period during the tenure of the Exchangeable Bonds at an exchange price to be determined. The new ordinary shares in SAAG to be issued pursuant to the exchange of the Exchangeable Bonds will be listed on Bursa Malaysia Securities Berhad (“Bursa Securities”).

An application may be made to the Labuan International Financial Exchange (“LFX”) and/or a foreign stock exchange to be identified for the listing of and quotation for the Exchangeable Bonds. However, the Proposed Exchangeable Bonds Issue is not conditional upon approval of the said listing.

The actual size of the Proposed Exchangeable Bonds Issue will be determined by SAAG/ Labuan Co in consultation with AmInvestment Bank after the marketing period but prior to the issuance of the Exchangeable Bonds.

An announcement on the final terms of the Exchangeable Bonds will be made in due course."

i think the bondholders are the ones in trouble as they need to raise cash hence the conversion of the bonds....

just my 2 cts worth!

announcement from SAAG today 5 March:

PRESS RELEASE


SAAG CONSOLIDATED (M) BHD

- Business Operations


The Board of Directors of SAAG Consolidated (M) Berhad (“SAAG” or “the Company”), would like to update the investing public on its business operations and that of its Group of Companies (the “SAAG Group”).

The Board of Directors and Management of SAAG Group wishes to update the public on the following business segments:-

i) Workover Rig Services

The Group has three (3) workover rigs. Based on the unaudited results the value of the three workover rigs (not necessarily classified as fixed assets) amounts to RM 418 million.

The workover rig “SAAG Pacific” is at present being rigged up for Third Party Inspection (“TPI”) by Oil and Natural Gas Corporation of India (“ONGC”) at the Mumbai Port. Upon completion of the TPI by ONGC, the rig will be mobilized at the platform designated by ONGC. This rig is expected to be operational by early 2nd quarter of 2010.

The workover rig “SAAG Saffron” is in the final stage of completion in readiness to be deployed after the successful deployment of SAAG Pacific. This rig is expected to be deployed by end of the 2nd quarter of 2010.

The workover rig “Telaga Usaha” which was previously deployed with Exxon Mobil Exploration and Production Malaysia Inc is undergoing minor modifications to enhance capability for a potential contract either in India or Malaysia. This rig is expected to be deployed by 3rd quarter of 2010.

A fourth workover rig (under construction) will be utilized by SAAG Group as a standby unit or for lighter workover rig operations in view of its light weight and basic operational capabilities.

ii) Derrick Building Services and Fabrication Facility in Singapore

SAAG’s subsidiary in Singapore, SAAG Oilfield Engineering (S) Pte Ltd (“SOE”) has been fully utilized for the internal requirements of upgrading and making rigs operational. SOE has applied for API licence and is expected to secure the certification by 2nd quarter of 2010. This operational facility will then have free space to undertake external work orders.

iii) SpiralLay™

Eurospiraal which was in research and development stage is now ready for commercialization. SAAG Group is presently in negotiations with two oil companies in the Asia. It is expected barring unforeseen circumstances, that two contracts would be secured to lay offshore pipelines using SpiralLay™ technology by 3rd quarter of 2010.

iv) Maritime Logistics

SAAG Group has now deployed the tanker at spot rates instead of time charter to take advantage of present market conditions. The tanker has completed 7 voyages as of date.


v) Construction, infrastructure and project management

SAAG’s Indian subsidiary, SAAG RR Infra Ltd has completed 17 projects and is in the midst of completing three projects valued at approximately Rs 315,700,000.00 (approximately RM 23.4 million).

SAAG’s subsidiary, Jelang Fajar Sdn. Bhd is presently expecting to complete Phase I of its housing project known as Taman Putera Perwira in Kuantan by end of 2010 all 258 units of houses which have been fully sold out.

PT Interjadi Asia, SAAG’s Indonesian subsidiary, involved in the construction of telecommunications towers has todate completed the construction of 59 sites/telecommunication towers and is presently in the midst of completing 10 sites/telecommunication towers.

vi) Engineering, Procurement, Commissioning and Construction

The Company has on 3 December 2009 been granted a Letter of Award from Garisan Etika Bangladesh (Pvt.) Ltd. (“GEB”) whereby GEB has selected the Company as the engineering, procurement commissioning and construction contractor for the design, supply, construction, installation, testing, commissioning and completion of 6 X 6 MW DG Power Plant and the 2 X 34 MW Combined Cycle Power Plant at the Adamjee Export Processing Zone, for a project sum amounting to USD120,000,000.00 (“Bangladesh Project”). SAAG being an energy engineering Group with expertise in procurement, servicing and managing small sized power generating units and handling the engineering, procurement and commissioning of a power plant in Cambodia has the expertise and capabilities to handle and complete the Bangladesh Project. The Bangladesh Project is now in its engineering stage.

The Cambodia power plant built by SAAG is fully operational. The peak load at the power plant which was originally projected to be approximately 4MW is presently 6MW. The increase in power exported during 2009 was 62% as compared to the forecasted value of 10%.

TPS Builders Ltd, SAAG’s subsidiary in India is involved in handling transportation of materials, erection, testing, commissioning, painting and trial operation of large power plants (in excess of 200MW) is currently executing projects valued at Rs 610,000,000 (approximately RM 45.1 million) which are expected to be completed by 1st quarter of 2012. this subsidiary of the SAAG Group is pre qualified for large and mega power plants including shut down maintenance of nuclear power plant.

As can be seen from the above SAAG’s operations are highly capital intensive requiring a delicate balance of debt and equity. The Management of SAAG is currently pursuing to raise sufficient equity to ensure sustained long term investments and maximize return to shareholders.

The Company had in December 2007 announced its requirement to raise additional capital through rights and exchangeable bonds (“EB”) issues to meet its various capital requirements.

The Company did obtain regulatory approvals and shareholders approval for rights, EB issues as well as new issue of shares (private placement). However, due to the recent economic downturn, there was no possibility of making the rights and EB issues a successful one. It is only in tranches that the EB’s have been placed out to gradually meet the capital expenditure and working capital requirements. However, commitments to capital expenditure had to be met which caused a strain on the availability of funds to undertake projects. To brace itself, SAAG Group was extremely selective in bidding for projects in 2009 and waited for a turn around of the sentiment. Hence the Group has not been aggressive in securing projects in 2009. These projects if and when secured would be announced as per rules of the stock exchange.

in simple words..........SAAG needs to raise money to tender for projects as the nature of the projects are capital intensive! reason why they have been issuing EBs and private placements often! rights issues off for a while due to the share price too low at the moment.......

very simple.....if there is some placements of conversion of bonds into shares......i will push up the price so that the number of shares converted would be less........hence reducing the dilution of the shares.........

i suspect another placement or conversion is just around the corner - that's is what i have been observing!

arent you lucky you didnt go in.........................it seems that each time it goes up the next moment will will announce bond conversion to shares!

me too have also sold today...........................

hoping to get it back at lower prices................looking at today's trading pattern and the sudden drop in the buy q at 0.095 cts to 6 miliions, i think there is further room for downward movement of prices......will only consider if touches 0.075 cts

this saag war very hard to win! it keeps going down! and they kept issuing shares! today the low was 0.085! i lost............................ i bought at 0.105 sold at .10!

just announced - issue rights to subscribe up to 5 billions shares, further issue of bonds.................

yes this was the announcement i was referring to - nearly wnated to jump in at 0.06 sen!

am i correct to say that at the end of exercise the no of shares will be about 6 billions..................will this affect the nta of the company? what's the rights subscription price? 0.10? if it is would they push up the current price of saag to encourage more people to subscribe to the shares.