| Latest Forum Topics / $ FM Hldg |
 Post Reply
|
|
Entering coal business
|
|
|
zhuge_liang
Supreme |
16-Jul-2008 12:51
|
|
x 0
x 0 Alert Admin |
It has entered into a subscription agreement with 5 parties, to allot and issue 17 million new shares at a price of $0.30 per share for an aggregate consideration of $5.1 million. When completed, the subscription will increase the share capital of the Group by 13.98% to 138,610,625 ordinary shares. Most noteworthy among these subscribers is a prominent Middle-East investor, Mr Mubarak Ahmad Mohd Bin Fahad, who will take up 4 million of the total share placement. The new shares have been placed out to raise capital for expanding the Group's business, working capital purposes and in connection with expenses relating to the acquisition of 90% of TriStar Global Services Inc. Tristar holds valid coal concessions in respect of 2 coal tenements in the Regency of North Bengkulu, Indonesia. |
| Useful To Me Not Useful To Me | |
|
zhuge_liang
Supreme |
05-Jul-2008 23:15
|
|
x 0
x 0 Alert Admin |
FM Holdings rose to 7-month high as the giftware maker's proposed foray into coal business stirs interest in historically illiquid stock. Company looking to acquire 90% stake in TriStar Global Services Inc., which owns concessions to 2 coal assets in Indonesia. Deal valued at up to $160 m, but FM hasn't finalized funding structure as it has engaged a technical adviser to conduct due diligence first. The decision is part of FM's efforts to diversify its business into the energy sector, the company said in a statement. "We believe that there is a growing need for coal worldwide and we see bountiful opportunities in this industry," said FM''s Chairman Ko Yui Wai. But some question wisdom of chasing up share price, noting among other things FM's net profit of just HK$5 m for FY ended Mar (down 58%yoy). "How are they going to fund it? On top of that, after Dayen's saga, they still want to go into the coal business?" says foreign house dealer, referring to water treatment firm Dayen Environmental's recent snag with its own venture into coal mining business. |
| Useful To Me Not Useful To Me | |