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Perhaps, EPF & KWAP bought in Aberdeen’s share disposals to average down :-). Let’s wait for their announcements. EPF definitely dumping their position in VSI very fast from 10.321% (31/10) to 6.193% (28/11) ie. within 1 month ! That was delayed reaction too after VSI bad QR (Gross Loss) announcement on 30/9.
EPF & KWAP still have ~ 7% shareholdings respectively. Huge shares overhang as share price was > RM2 just early this year ! Takes very brave funds to buy in now based on the inventories impairment uncertainties.
ABERDEEN GROUP PLC will definitely disposed off their remaining 70m shares (5.6%) within a short period of time. They reacted fast immediately the day after the QR announcement due to the huge RM250m impairment on inventories.
Oversupplies situation will persist and in fact increase with commissioning of new Chinese rivals factories in ASEAN. Malaysian players have been actively cutting inefficient production lines and closing old factories, but these measures will continue to be undermined by Chinese rivals (INTCO Medical, Winner Medical Co., Ltd.,Blue Sail Medical & others) continuing to add new capacity. VENI VIDI VICI !
Once a shareholder (or party acting in concert) reaches over 50% voting shareholding (i.e. a controlling share), the “creeping acquisition” rule (the 2% per six-months cap) ceases to apply. GenT can continue to accumulate GenM shares thereafter. Effectively, their objective to have > 50% shareholdings via the MGO duly accomplished.
Precisely, Michael based on lead time and stock holding costs. Previous inventory level of > 600m (prior to impairment) is simply amazing. BTW 260m was their quarterly instead of monthly sales figures.
Hopefully and we shall see as they continue to have continuous quarterly losses. Tariff situation still fluid but once US CAPEX fully committed, there goes their exceptional cash buffer generated during the good COVID 19 pandemic years. Hartalega and Kossan still prudent and conserving their huge Cash position. Top Glove frivolous in their past share buy-backs when their share price at ~ RM7 !
USA production costs and CAPEX are not low in relation to prevailing ASPs for the glove sector. It is not easy to do manufacturing business in the USA unless margins are lucrative.
