MTQ Corporation

[CityFarmer]

Learned new stuff today.

Probably due to limited exposure, 1st time see company selling their treasury shares.

Not particularly surprising, though it's the first time I've seen it too.

Companies normally retain treasury shares as a reward for staff in ESOP exercises, or to be given as a reward.

I'm not sure what their average price was for their treasury shares, but I think they would have made about 60% to 80% profit as a result of selling at 85c.

Company buying share from open market because it is undervalue

So company selling treasury share because it is over-value?

I am not taking it too negative, as long as it benefit the company, any legitimate way should be OK.

(not vested)

[brattzz]

yes, logical thinking, if MTQ thinks that 85cts is worth selling off their treasury shares, then that puts a price value to the shares at around that figure too!

means market price of MTQ now at 90+ cts is over-valued leh...

or wait,

who is buying over these $6millions worth of shares?? if funds/long term shareholders.. then different case liao!!! up up and away!

[Musicwhiz]

Let's look at things in perspective. Since MTQ now has >50% of Neptune Marine Services and has effective control, this means they can influence operational decisions and bring about much-needed changes to steer the Company towards profitability. It also means they need the cash to acquire the relevant stake, and selling treasury shares is one way of raising this cash in order to reduce their potential gearing.

Second - the target maximum gearing is assuming 100% control of NMS; with just 50% acceptances the gearing will be much more manageable.

Since MTQ wants to sell a chunk of shares, it can't very well be at market price but should be at a discount - 85c in this case. It does not indicate if Management feels the shares are over-valued or not.

[pianist]

strange, why can't they sell the shares at the higher open market price of 90++ cents?

[Musicwhiz]

strange, why can't they sell the shares at the higher open market price of 90++ cents?

For the buyer to take such a large chunk at one go, a discount has to be offered. If they sold the treasury shares in the open market, it would crash the share price as MTQ's daily volume is very low.

[pianist]

so it may be a case of seller (needing cash) tempting buyer to buy?

in the open market today 7,502k shares changed hands around 0.94-0.945, this volume exceeds the number of the treasury shares in subject

[Musicwhiz]

As of today, MTQ now has 60.11% of Neptune Marine Services (NMS).

[Musicwhiz]

Just checked my bank account and noted that MTQ's interim dividend of 2c/share has been credited today. I chose cash this time instead of scrip as I felt the scrip price was a little too high this time, and did not offer the value I was seeking.

[brattzz]

Mmmm... 263 lots traded at 97 cts to 98.5 cts.... minority shareholders selling off their script shares...

[Kelvin]

wow whats happening today?