BRIGHT (9938) : Bright - A Brighter Front
Bright had been playing an important role in the packaging of FMCG, featuring goods from tobacco, liquor, confectionery and pharmaceutical.
Bright
had been in the spotlight back at 2013 with a high profile boardroom
dispute that resulted in a replacement of 4 directors in a hostile take
over.The recent major shareholder that had appeared in the limelight had feature Wong SK Holdings Sdn Bhd, which is jointly owned by Dato Ricky Wong and Madam Teh Sew Wan, acquiring huge stake from the open market and through direct business transaction that will be looking to trigger MGO.
While the current outlook of the broad market had been brought down by volatile sentiment which is hit by the declining crude prices, Bright Packaging Berhad could be worth an outlook with coming possible corporate exercise.
Let's have a quick look at Bright Packaging Industry Bhd (Bright - 9938)
Bright had been trading at a range of RM 0.65 to RM 0.70 before the shake up. With a 10% Private Placement that had been issued at the price of RM 0.60, the current open market buying from Dato Ricky Wong Shee Kai to a stake of 32.98%, just 0.02% below the line of MGO, what could be happening in the coming days?
Bright - On a Brighter MGO Process?
The latest balance sheet had been reflected a stronger net cash position that Bright is sitting on, which is amounting to a total of RM 29.45 million with no long term debt in the belt. With that amount, that will be looking at 22.7 net cash worth per share. The company assets had also been recently revalued, hence boosting the NTA to RM 0.76 per share. Currently, Bright is trading at the range of RM 0.50.
The open market purchase and direct business dealing from Wong SK Holdings Sdn Bhd had been quite amusing as of late. In contrast, the looks of Asia Media Berhad, which is founded by Dato Ricky, had not been able to perform, with the share looking to trade at near to worthless.
The prospect and outlook of Amedia is definitely not as bright and steady as what Bright Packaging Industry Berhad can offer to Dato Ricky Wong.
According to some sources, Dato Ricky Wong had been planning to take over Bright for some time to make it his new major listed vehicle. However, it had not been an easy way when the counter is not liquid and had been seeing a lot of sleeping holders. With a high profile management shake up that covers the business headline for almost 6 months, the share price had rocketed strongly above after a one time special dividend announcement. Wong SK Holdings Sdn Bhd had been then slowly accumulating on Bright's share from time to time, with this round putting him a second time near towards the MGO line of 33%.
The past 6 months prices, the highest price is RM 0.685 and the 6 months average is at the range of RM 0.60. Should the take over price be offered at RM 0.65, it will cost Dato Ricky Wong a sum of RM 56.5 million, however, with almost RM 30 million in cash, it will be looking at RM 26.5 million to acquire a steady business which is almost resistant to economy crisis due to it's services to the FMCG and pharmaceutical sector.
To use RM 26.5 million to buy a business without debts, along side with the assets and steady client base, it will definitely be a good deal for Dato Wong after his ailing Amedia had not been able to perform for the past couple of years.
Will Dato Wong trigger the MGO and make an offer soon?
Bearing aside those possible corporate news, Bright is definitely a good company with good prospect to be invested in due to it's business nature that had been supporting the crucial FMCG products and Pharmaceutical goods. Bright will be a good target to be acquire on any cheap sale or dips, after all, the company is sitting on a RM 29.5 million cash, and will be expanding the production line in order to support more orders in the coming days ahead.
Ride the MGO ? You decide.
Bone's short term TP : RM 0.65
Cheers and have a nice day
Regards,
Bone
http://bonescythe.blogspot.com/
