"Overhang or concerns from Wimax. YTLP plans to invest M$2.5B in Wimax over the next 3-5 years. Of this, M$500MM will be equity funded from its gross cash of M$7B. The remaining M$2B will be debt funded where suppliers (Samsung, Cisco) will only be paid after 1MM subscribers are achieved, with full repayment based on 14MM subscribers. In view of this, management indicated that dividends will not be at risk unless the group makes new acquisitions."

So YTLP is taking a stake in which company? How much equity is 500mil? 20%? 50%? What are the terms of the 2billion debt? 6% interest per annum?

YTLPOWER's WiMax operations almost no news about the details. This report is the first I've seen that discusses the capital requirements and how their suppliers are going to be paid.

Their quarterly reports has no indication of any new loans for WiMax roll-out, nor any news of capital expenditure for the operation. I don't know how they convince the suppliers that they will only be paid once they achieve 1 mil or more customers. It's like saying if the venture fails, they all don't get paid?

Are you sure YTLPOWER went 1:1 bonus issue? How come i didn't see it in stock performance guide book?

Sorry what i meant is NET ASSET PER SHARE VALUE of ytlpower. Latest Net asset per share of ytlpower was only RM 1.04. When i refer to 2002 Net asset value it was more than RM 2.XX

Darkknight, cheeroy is half right. YTLPOWER went through a share split on 28/06/2004, splitting their RM1 par to RM0.50 shares.

Thanks for the correction.

Ok. Thanks to both SIFU

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This post has been edited by darkknight81: Aug 3 2010, 12:15 PM


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Thanks for sharing Dark.

Somewhere i read that there is a possibility YTLpower giving 25:1 share..
possible ?

Possible giving 1 for 25 shares like it used to give last time but since last year YTLP did not give and did not do any share buy back recently. But if it is true, I'll just treat it as bonus and could be a real reason why YTLP trying to break 2.28 recently

Check at the numbers of TREASURY SHARES they got. If i am not wrong they are not able to give any shares dividend as they don have much treasury shares at the moment.

This post has been edited by darkknight81: Aug 5 2010, 04:52 PM

They stopped Share Buybacks after they got Seraya Power. So no more Share Dividends anymore.

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Thanks. darkknight81.

Thanks

Got the below from it which seems to be an opinion to an earlier q on share distribution.

Strong share buy-back program . Over FY07-09, YTLPI has repurchased
359m shares which have provided strong share price support. Currently, it
has 56.7m treasury shares remaining at a value of RM2.11 per treasury
share vs. current share price of RM2.22. If YTLPI distributes all of its
remaining treasury shares, it can do so at 1-for-123 share distribution
implying additionally 1.7sen per share. However, we expect YTLPI to
accumulate more shares before share distribution given trend of 1-for-25
share distribution.

so we have a good chance for a 1:25 share distribution..
time to add some to accumulate to 50 shares

Nope I don't think so. Unless you start seeing some share buyback announcements almost every week like what we used to see, there will be no share dividends.

The last share dividend given was 1:40 to clear up their remaining treasury shares before the warrant issue and subsequent acquisition of Seraya Power.

FYI, to give a 1:25 dividend, the company needs to buy up to 250 mil shares from the open market. That means, they have to by an average of 680k shares from the market EVERYDAY for 365 days to get to that amount. So meaning you'll get a strong hint from the Bursa announcements if the company decides to start accumulating for the share dividends.

Don think it is possible for any share dividend within this few years or any increase in dividend. Basically, they are more to expansion mode right now.

Agree with you. I think most company buyback shares as a last resort to support their share price and not for the purpose of share dividend. I personally dont like share dividend because I would have to worry about the odd lots thingy.

Dark.. thanks for the nice sharing..