Zeland may require a new shareholders mandate if it were to continue disposing its shares in IJM Corp Bhd, which is key to distress financial position. Even after the aggressive disposing exercise in the past year, Zeland is estimated to still have around 66.56 million in IJM shares with a current market value of just over rm400 million. However, its mandate by shareholders to dispose 30 million shares in the IJM Corp has fully utilized.
The sale of the remaining IJM shares will be key to repairing Zeland’s finances, although the company could be left without much operating assets if the shares are sold. The IJM shares could easily cover its borrowings. AS at Dec 31, 2011 Zelan had rm36.51 million in cash and rm203 million in borrowings or net debt of rm166 million. The company had rm471 million in payables and rm552 million in receivables.
It also faces the further prospect of losses from its JV in Indonesia .
No comments:
Post a Comment