Will 1MDB buy over YTL Power's Paka and Pasir Gudang operations?

The New Mega IPP?

Seems 1MDB is in a hurry and feeding frenzy to gobble up IPPs in Malaysia.

First, they took over Ananda Krishnan's  Tanjong's power operations.

Now, they are in the process of trying to take over Genting Sanyen Power profiting the Genting Group.

So, what is left of the IPPs?

Yes to fell to 1MDB?

The biggest one is under Syed Mokhtar called Malakoff en-route for re-listing on the bursa.

The Southern Megalith 

So, when do you think they will take over YTL Power's assets in Paka and Pasir Gudang?

Note the word, "When".

Knowing Francis, he may give it away if the price is right and concentrate on foreign power and utilities acquisition.

Powering the Eastern Seaboard

After all the current rates for Pasir Gudang and Paka will come for negotiation only in 2015.

So anything can happen with 1MDB until then.

If the government wants to forever get rid of IPPs as a sad relic of the Mahathir era, maybe it is NOW!

But you will get a gigantic 1MDB IPP instead.....won't you?

Will that means no more over-pricing of tariffs to Tenaga?

You never know ......................

Subdued Trading Week at the Bursar

Dull Dullard

If there is one word to describe the mood of the Bursa KL this week, it is subdued.

Trading was down tempo with the general market trading in lack-luster fashion.

Except for the few orang puteh managed companies such as F&N, Nestle, GAB, BAT,Carlsberg, Digi, Dutch Lady, and LMCement, the market see-sawed.

What I did notice was there was sustained buying on two specific counters.

Surreptitious Amassing by EPF

The first is YTL Corp. The buyers included the Yeoh family members themselves including YTL himself. There was aggressive Treasury buy-ins when the counter dived to RM1.76.

Also in apparent disguised buying was EPF, collecting YTL Corp shares like there is no tomorrow.

Something is happening and those in the corridors of corporate powers know.

With RM16 billion in cash, I believe that Francis will announced massive power and utilities acquisition as he puts YTL Power into privatisation mode.

To ensure YTL Corporation shareholders get the best deal, expect both YTL Corp and YTL Power to start on a upward price trajectory soon.

The apparent game to my mind will be to have a significant gap between the price of these two counters before the swap valuation is announced. A good bet will see YTL Corp breaching RM2.50 with YTL Power moving closer to the RM2.30 mark.

The exchange will see the privatisation of YTL Power at the best price to the Yeohs, YTL Corp and YTL Power shareholders.

I think Francis is going for triple harmony.

Telenor Uptake?

Another counter going north is Digi.com. As usual, EPF is just gobbling it up.

The price today at closing was RM4.71 at a 1-sen share par value or an equivalent RM47,100 per lot on the cum-par value basis of a 10 sen share.

What do you think is in the offing?

I do not think it is the current 5.9% cum dividend or the impending dividend in specie due in the first quarter of 2013.

I am inclined to think it will be the liberalisation of the telecoms sector where the foreign sector can take more than the maximum ceiling share holding of 49%. If that be the case, then Telenor can buy more and the price will go up and up as the current float gets digested and warehoused.

Will Starbucks Buck up the Price?

Today marked the last day of BJFoods's mother share. It ended up 1.5 sen at 97 sen.

The new rights at 65 sen and the warrants (2012-2017) at a convertible price of 70 sen  will start trading on Monday 13 August.

Will it go up and will dumping takes place?

If so, will Vincent and his allies start up the Dysonian mopping exercise to ensure the spoils of Starbucks remain in the family?

Whatever the case, it would be interesting to watch what the warrants will fetch.