Time dotCom is undertaking a RM339 million acquisition exercise of several companies in the telecommunication services and infrastructure industry in a bid to transform itself into a regional player. As part of the corporate exercise, it is undertaking a share capital reduction, capital repayment and the acquisition of four companies as it seeks to expand into the regional telecommunications industry.

The exercise involves a share capital reduction of its paid-up of RM2.53 billion, comprising of 2.53 billion shares of RM1 each by cancelling 90 sen of the par value, followed by a share consolidation of the 2.53 billion 10 sen shares into 506.15 million shares, on the basis of five shares of 10 sen each to one share of 50 sen each in Time dotCom.

Time dotcom also entered into two memoranda of agreements with the shareholders of Megawisra Sdn Bhd and Global Transit Ltd (Labuan) to acquire four companies for a total of RM286.5 million via the issuance of new shares and RM38.4 million cash.

The four companies are Global Transit Communications Sdn Bhd for RM106 million, Global Transit Ltd for RM105 million, Global Transit (HK) Ltd and Global Transit Singapore Pte Ltd for RM1 each and AIMS Group for RM128 million in cash and shares. It also proposed a capital repayment of RM50.61 million or two sen per TdC share.


Is this not good for Timecom? It's a correct direction, no? How come it seems to be opened in red sea?

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Added on November 16, 2010, 8:57 amLooking ok for far, looks like gonna opened in green.


This post has been edited by yok70: Nov 16 2010, 08:57 AM

Not again!!
What a luck on me lately! First glove, then p&o, now timecom.

0.73

But is the market response too fast? Is that a bad deal??

The damage has already done. Now i'll just wait and see what's going on.

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Added on November 16, 2010, 9:17 amlife is difficult, so humor is the only cure mah.


This post has been edited by yok70: Nov 16 2010, 09:17 AM

red chips goreng time comes, is it?

i found that quite a few stocks practicing buyback late few weeks. Fajar, daibochi, bkawan...

still laggard gua...

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Added on November 16, 2010, 10:00 amI do think over subscription is true. I also didn't get it. As long as I heard, all I heard are people not getting it.

This post has been edited by yok70: Nov 16 2010, 10:00 AM

I subscribed 140 lots leh, zero kena!

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Added on November 16, 2010, 10:02 ammy construction business friend also mentioned they got quite some projects coming up. he bought also.


This post has been edited by yok70: Nov 16 2010, 10:02 AM

Now I kind of agree with cyhew about liking of laggard stocks. I hope Fajar is one of them.

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Added on November 16, 2010, 10:16 amcongrats!

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Added on November 16, 2010, 10:17 amgreen...


This post has been edited by yok70: Nov 16 2010, 10:17 AM

exactly.

As it's consider a major re-structure practice, should we look at its future instead? If it's able to evolved into another high potential telco, that would be worth the pain now...for them, of course I mean, and also for long term investors. However, I've no idea if it's a good business model for this re-structuring, as I've no idea of all those companies it purchases too. So, now anxiously waiting for research houses to write papers to spoon feed me.

But why timecom wants to purchase assets in order to get into PN17?

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Added on November 16, 2010, 11:39 amThanks!!


This post has been edited by yok70: Nov 16 2010, 11:39 AM

Attached File(s)
 mulpha_ta.pdf ( 81.93k ) Number of downloads: 13
 uchitec_ta.pdf ( 77.82k ) Number of downloads: 11
 pohkong_ta.pdf ( 85.6k ) Number of downloads: 8
 salcon_ta.pdf ( 80.23k ) Number of downloads: 11

You are really a good teacher, your ability of CISO (complicated in, simple out)

Now it seems those companies that being purchased by timecom (i read some are of the same boss) is either a good deal (since timecom's share is reducing its value) or they hug together in order to struggle to survive (all are bad companies).

Here comes hong leong's paper.



Attached File(s)
 TimeDotCom_Transforming.pdf ( 549.19k ) Number of downloads: 46

Today also actually.
Buy rate are mostly big buyers.




Attached thumbnail(s)

Now the main issue is lack of information. If they announce more information before this, there wouldn't be such a disaster. However, now things are still quite uncertain. That worried the market.

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Added on November 16, 2010, 12:23 pmghost....


This post has been edited by yok70: Nov 16 2010, 12:23 PM

KUALA LUMPUR, Nov 15 (Bernama) -- Time dotCom Bhd (TdC) is set to transform into regional telcommunication player offering a full range of services upon completion of its proposed acquisition of three telecommunication companies for RM339 million.

The acquisition will be satisfied by RM90.9 million in cash and the remaining RM248.1 million via shares, said TdC chief executive officer Afzal Abdul Rahim.

The three companies to be acquired are AIMS Group for RM128 million, a leading network-neutral data centre, Global Transit Communications Sdn Bhd (GTC) (RM106 million), the region's leading wholesale Internet service backhaul provider and Global Transit Ltd (RM105 million).

These acquisitions will move TdC up the telco value chain, giving it part ownership in a cable system which is only one of five of its kind in Asia, he said.

According to Afzal, this is the most interesting thing to happen in TDC, and in line with its corporate plan to strengthen and expand further in 2011.

"The whole merger process will take six months to complete," he told reporters after a press conference to announce the company's corporate exercise here today.

He said as part of the exercise, TdC is proposing to restructure its capital by eliminating its accumulated losses and to carry out a capital reduction and share consolidation exercise.

Time dot.Com is also planning to make a cap repayment to shareholders totalling some RM50.6 million (which works out to two sen per share)while rationalising its balance sheet by writing off part of the share capital that is not represented by available assets.

Asked whether TdC would bid for the 4G spectrum, Afzal said: "We are not interested and will not take up the bidding."

TdC's acquisition of AIMS Group's data centre operations will allow it to have a platform to provide the infrastructure requirements of cloud computing service providers and the necessary skills to complement the services.

AIMS Group's data centre neutrality has also made it a strategic aggregation point for intra-Asian traffic and will continue to do so for the foreseeable future.

GTC is among a handful of licensees able to build and operate submarine cable landing stations in Malaysia, specialising in the wholesale market.

The company positions itself as an alternative regional gateway to the world, connecting major data centres and peering points around the globe.

-- BERNAMA

I think the Timecom case is different from serious debts case, although you may say it's "future debts" case. But still, it's not. It's practicing this before debts arise. For me, it's more like a fund raising case here, that forces its present shareholders to bare the investment risk.

RHB wrote an article on Time's TA outlook at the Edge.

http://www.theedgemalaysia.com/business-ne...side-ahead.html

RHB is quite stupid I think. Now it's all about the striking M&A news, how can we analyze that with TA?