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Showing posts with the label privatization

Should or Would Government Privatizing MAS? (Aug 2013)

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Both of our ex & current Prime Minister already voiced their views regarding this matter. Yesterday, our ex-PM said Government should SELL MAS if it can be run more effectively by private sector. Meanwhile, when asked, our current PM said there was no plan to privatize MAS now because it was on track to its turn around plan under the helm of new management. So? In fact, this was like a million ringgit question for many speculative investors. Maybe, they or YOU were hoping for the deal to materialize if you bought the shares just recently. Anyway, it won't be as easy as you might think. MAS is a national carrier . It carries the national flag wherever it goes. (Some more, national day is approaching now) How much to privatized? Especially for a still loss-making company... Definitely, Government won't get much if MAS being privatized now. However, everything is possible given the facts below: National company is just a company anyway. We have just witnessed the privatizati...

YTL Power to be privatized? (Oct 2011)

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According to The Edge over the weekend, " rumours are swirling that YTL Group has hired local investment bankers to work on a possible corporate exercise that could result in its restructuring ".   YTL Power and YTL Land , whereby YTL Corp has a 51.7% and 57.9% stake in respectively, are said to be targets for privatization or share swap exercises to align the group. Well, if this is true, it definitely will boost the said target companies share prices. Before jumping to the conclusion, let us get the view from professionals. With that, we have a timely article from RHB Research who touched on this matter as below: "We believe the likelihood of a privatization is low , as its FY12 PE of 12.8x is not much lower than its 5-year average forward PE of 14.7x. Besides, YTL Power's FY12 PE is similar to the 13x PE used for our end-2012 FBM KLCI 1,385 target." "Also, we believe it will be very costly to privatize YTL Power. While YTL Power could take on more deb...