Pimpinan Ehsan Bhd (PEB) (Bursa Stock code: 5622)(formerly
known as TriPLC Bhd) was in the news for its corporate
deal involving the following in sequence:
(i)
Transfer of TriPLC under Pimpinan Ehsan Bhd -
Completed
(ii)
Sale of 100% stake in TriPLC construction
business unit to Puncak Niaga - Completed
(iii)
Declaration of special dividend of RM1.95 per
share from sale proceeds of TriPLC - Completed
The stock recently went ex-special dividend on 14 June 2018,
and currently trading at ex-dividend price of RM0.64 per share. It is currently
trading at a whopping 45% discount to net cash per share of RM0.93 per share,
which may potentially be distributed back to shareholders should a core
business is not found by PEB within a year.
Final thoughts:
Pros: Potential unlocking of share value via dividend
distribution catalyst, acquisition of earning accretive business
Cons: Extension of timeline for new acquisition of business
thus delay in full realization of share value/narrowing of discount to NTA/net
cash per share, Management hoarding cash (low probability), acquisition of
value destroying business.
Note: This is not an investment advice. Buy and sell any
securities at your own risk.
Disclosure: None.
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