Scomi's Right Issue.

http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/48256E5D00102DF4482575160036B04F/$File/Announcement.pdf
http://www.klse.com.my/website/bm/listed_companies/company_announcements/announcements/historical.jsp

Moolah has been blogging about this coy for quite a while...

Too bad I was too late in joining this blogger community. Would have saved my family a packet... we got suckered a bit by scomi back in the bull.

Anyhow, summary is:

Scomi is selling a 1 for 2 rights issue. Through some financial hocus pocus, they have managed to do this despite that no bank is willing to underwrite this rights issue!
Furthermore, Shah Hakim, Dato’ Kamaluddin and their PACs will seek an exemption from the Securities Commission from the obligation to undertake a mandatory offer under the Code in the event the subscription for the Rights Shares by the SPV (as defined in the attachment) results in the triggering of the mandatory offer!!!

Why are they doing this?

Because Scomi is INSOLVENT!!!

Their net cash is -22 million!!!

Their business model is terrible... their net cash from operating activities was -44 million for 9 months ended 30th September!

WAH!!!

What a horrible horrible mess.

This company, definitely want to avoid like the plague. PN17, Holland, here we come.