Post by oldman on Dec 6, 2013 19:49:24 GMT 7
How I wish companies will just put forth the numbers rather than get us to figure these out!
At 31st Oct 2013, Blumont share price was 11.7cts. At 30th April, Blumont price was 80cts. IPCO has 137.956 mil + 26 mil = 163 mil shares of Blumont. At 30th April 2013, this was worth $130.4 mil. At 31st Oct 2013, this stake was worth $19 mil. Loss in financial assets of roughly $111 mil.
Of course, if they use today's closing price of Blumont at 6.5cts, the loss will be a further $8.4 mil.
Of interest is that they stated that the bulk of their stake in Blumont in 2010 was bought at 1.5cts per share.
Blumont rights shares were listed on the 21st of Oct. If IPCO still owns 9.74% of Blumont as at 31st Oct 2013, it is then most likely that IPCO susbcribed for all their rights shares. These will then tone down the loss in the financial assets as these right shares were issued at 5cts. If IPCO fully subscribed for the one for two rights issue, they will have a further 81.5 mil shares at 5cts each compared to the closing price of 11.7cts as at 31st Oct 2013. These should lower the losses by about $5.5 mil.
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Announcement Title * PROFIT WARNING
The Board of Directors of Ipco International Ltd (the Company) wishes to announce that the Company, together with its subsidiaries (collectively, the Group), is expected to report a loss and asset impairment for the half year ended 31 October 2013. This is primarily attributable to declines in value of Financial Assets, of which the most significant is the Groups holding of 9.74% of the issued share capital of Blumont Group Ltd (Blumont).
On 7 October 2010, Asia Plan Ltd, in which the Group holds a 70% equity interest and which is engaged in real estate development near Seattle in the state of Washington, USA via its wholly-owned subsidiary Capri Investment L.L.C. (Capri), entered into a Conditional Sale and Purchase Agreement (S&P) with Blumont Group Ltd, a company whose shares are listed and quoted on the Main Board of the SGX-ST, and Blumonts subsidiary company, Phelago Holdings Pte Ltd, to sell 37 finished lots held by Capri for an aggregate purchase consideration of S$2.96 million. Upon completion of the transaction on 28 September 2011, the group received 137,956,868 shares of Blumont (70% of the total of 197,081,240 shares issued to Capri) at a price of S$0.015 per share. At the time this represented 10.93% of Blumonts issued share capital, in addition to the 26 million shares previously held by the Group.
Revenue and profits from the Companys operating subsidiary Excellent Empire Ltd, which distributes natural gas in four cities in Hubei Province, PRC, have continued to show improvements.
The Group is in the process of finalizing its unaudited Half Year Financial Results for FY2014, which will be released on or before 15 December 2013 and will contain further details.
In the meantime the Board of Directors wishes to advise shareholders and potential investors to exercise caution when dealing in the shares of the Company.
BY ORDER OF THE BOARD
Carlson Clark Smith
Executive Director and Chief Financial Officer
6 December 2013
At 31st Oct 2013, Blumont share price was 11.7cts. At 30th April, Blumont price was 80cts. IPCO has 137.956 mil + 26 mil = 163 mil shares of Blumont. At 30th April 2013, this was worth $130.4 mil. At 31st Oct 2013, this stake was worth $19 mil. Loss in financial assets of roughly $111 mil.
Of course, if they use today's closing price of Blumont at 6.5cts, the loss will be a further $8.4 mil.
Of interest is that they stated that the bulk of their stake in Blumont in 2010 was bought at 1.5cts per share.
Blumont rights shares were listed on the 21st of Oct. If IPCO still owns 9.74% of Blumont as at 31st Oct 2013, it is then most likely that IPCO susbcribed for all their rights shares. These will then tone down the loss in the financial assets as these right shares were issued at 5cts. If IPCO fully subscribed for the one for two rights issue, they will have a further 81.5 mil shares at 5cts each compared to the closing price of 11.7cts as at 31st Oct 2013. These should lower the losses by about $5.5 mil.
---------------------
Announcement Title * PROFIT WARNING
The Board of Directors of Ipco International Ltd (the Company) wishes to announce that the Company, together with its subsidiaries (collectively, the Group), is expected to report a loss and asset impairment for the half year ended 31 October 2013. This is primarily attributable to declines in value of Financial Assets, of which the most significant is the Groups holding of 9.74% of the issued share capital of Blumont Group Ltd (Blumont).
On 7 October 2010, Asia Plan Ltd, in which the Group holds a 70% equity interest and which is engaged in real estate development near Seattle in the state of Washington, USA via its wholly-owned subsidiary Capri Investment L.L.C. (Capri), entered into a Conditional Sale and Purchase Agreement (S&P) with Blumont Group Ltd, a company whose shares are listed and quoted on the Main Board of the SGX-ST, and Blumonts subsidiary company, Phelago Holdings Pte Ltd, to sell 37 finished lots held by Capri for an aggregate purchase consideration of S$2.96 million. Upon completion of the transaction on 28 September 2011, the group received 137,956,868 shares of Blumont (70% of the total of 197,081,240 shares issued to Capri) at a price of S$0.015 per share. At the time this represented 10.93% of Blumonts issued share capital, in addition to the 26 million shares previously held by the Group.
Revenue and profits from the Companys operating subsidiary Excellent Empire Ltd, which distributes natural gas in four cities in Hubei Province, PRC, have continued to show improvements.
The Group is in the process of finalizing its unaudited Half Year Financial Results for FY2014, which will be released on or before 15 December 2013 and will contain further details.
In the meantime the Board of Directors wishes to advise shareholders and potential investors to exercise caution when dealing in the shares of the Company.
BY ORDER OF THE BOARD
Carlson Clark Smith
Executive Director and Chief Financial Officer
6 December 2013