Series of shrewd corporate moves by Robert Tan

The recent spike of the share price of several counters that link to Tan Sri Robert Tan has makes the low profile tycoon came into the limelight of local business world. Here are some his latest moves :

First the tycoon disposed of his PDZ shares to MARA institution for roughly 47 Million. Personally I think is a good cash out from the loss making company with a good selling price of 18 sen per share considering the share only trade at around 8 sen per share early this year.

Then there is the GBH deals that saw the tycoon shifted the company's prime land asset to his another company Keladi and selling off his shares of GBH for not less than RM 2. (This is because Dynac's proposed RTO will trigger the Mandatory General Offer for the rest of GBH shares at a price of not less than RM 2 according the proposal) GBH ceramic business is not too exciting thus one can't help to wonder that the sole motive of the tycoon bought into this company in the first place is this piece of prime land. This is an excellent move which not only the tycoon didn't lost control of the prime land, but he will be able to offload his shares of the remaining GBH that without the prime land to Dynac at a price of not less than RM 2. Currently the share price of GBH is hovering around RM 2.20, if he offload his remaining 119 Million shares at this price which means he will be able to walk away with almost 262 Million cash together with that prime land. What a genius move. Remember, the share price of GBH is just hovering around RM 1.30 early this year before the spike of the price. Can it be any better than that?

Keladi is a cash rich company and will have no problem financing the purchase of the land with internal generated fund. After the purchase, the company will be transform from a low-medium cost housing developer to a luxury residential project developer. If there is a need for cash call in future to fund the development of this prime land, the tycoon can easily increase his stake in the company through private placement with the almost 300 Million that he cash out from PDZ (47 M) and GBH (262 M)

So after these genius moves, does the tycoon has more to come? The 3 other listed entities: Jaskita, Marco and GPA all have clean balance sheet with minimum debt. In fact Jaskita and Marco are net cash companies thus make them a great RTO target. Thus it is interesting to see whether there will be any further RTO involves the tycoon's entities.

Also, don't forget the tycoon's another listed entity FCW which involve in property development. Since Keladi and FCW have the same business nature, may be there is a possibility that the tycoon might further streamline its business by merging the two company.

One can't help to admire the team behind the scene that help the tycoon put those deals together. It is certainly interesting to see what is the next move by the tycoon.