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Let me explain what might be the reason TGIB decided to dispose (privatize) STGT.
I think this is because currently the F&B business value is locked when is merged with the plastic business, commanding a PE of mere 7, when other F&B business can easily fetch a PE of 15-25.
Instead of letting the F&B business value locked in the plastic business (TGIB), might as well unlock its value by disposing (privatize) it and distributing special dividend for shareholders, this is good for both retail investors and the board of directors of TGIB.
can I know the announcement about the sale of FnB mentioned by you
few years ago I spoke to Alvin Ang personally on this when I proposed spin off and then separate listing of FnB either via organic listing or rto of a shell co
I am under the impression that sale is quite unlikely
spin off and separate listing to unlock value yeah this is highly possible
Nah ! F&B only contributed 10% of total annual sales. The profit is very small.
They had been in F&B business since day 1 doing this business. If can do big, early early do big already
要注意的是，after no more F&B contribution, the eps and book value will reduce, then the PE and PB will be high. It might affecting the share price to revise, if it's core business can't give an investor confidence of growing.
From a strategic perspective, this disposal aligns with TGUAN's long-term focus on the plastic packaging. The F&B segment, though profitable, was a legacy business of the Ang family and has been a relatively minor contributor which is now being monetized. The one-off gain of RM15.43m enhances TGUAN's net asset base, while the cash proceeds improve financial flexibility. The decision to channel part of the proceeds as a special dividend provides immediate value to shareholders, while the remainde
