New Toyo

[potatolover]

Finally people are starting to heed the earlier advices from forummers saying that SAH is not worth even 18 cents (after deducting the 1 cent dividends to be paid out in 2012).

Shouldn't the focus be on New Toyo?

Maybe I am just being too curious...

Why would anyone want to place a bid for SAH at 18.5 cents?

The existing pool left (taking into account the last dividend payout of 1 cent in 2011) is only 19.5 cents at the max...Look at SAH accounts.. the NTA of existing ops is probably negative at around 75mil RMB. Offset this with the sales proceeds and taking into account ( capital gain tax - $50mil RMB and finder's fee - $9mil RMB), we are left with NTA of around $866mil RMB or 19.6 cents per SAH share...

Furthermore, SAH has just declared 1 cent of dividend which is most likely going to be extracted from the 19.6 cents..., leaving only 18.6 cents...


In fact, the logical thing to do is to capitalize on the arbitrage opportunity afforded by New Toyo's 34% owning of SAH, and 54% owning of Tien Wah, whose performance has been nothing short of stellar