SPEN effect of withdrawing from FDI project

glad · 1 SPEN effect of withdrawing from FDI project Wed Jan 11, 2012 6:57 pm

glad

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What will be the effect of SPEN pulling out of FDI project which was to cost $500m?

sapumal · 2 Re: SPEN effect of withdrawing from FDI project Wed Jan 11, 2012 7:07 pm

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glad wrote:What will be the effect of SPEN pulling out of FDI project which was to cost $500m?

Harry will hold more than 60% of the SPEN

soileconomy · 3 Re: SPEN effect of withdrawing from FDI project Wed Jan 11, 2012 9:08 pm

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Virtually SPEN will loose its money spent on this project.They will not challenge the decision.This will be like another hedging case.
I wonder whether famous 10% commission politician asked for 10% commission out of this project.
If it is completed by our own sri lankan firm Vasudewa will file another case ,but if it is a foreign company he will remain dumb.

insidertrader · 4 Re: SPEN effect of withdrawing from FDI project Thu Jan 12, 2012 12:08 am

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SPEN shares already appreciated for future profits of this project since several years ago.
SPEN was only going to contribute 30% of the project. And they couldn't find extra costs for that 30%. If a famous local blue chip company can't fund that what about others?

aj · 5 Re: SPEN effect of withdrawing from FDI project Thu Jan 12, 2012 9:12 am

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Funny thing is SPEN shares went up yesterday when they're out of the biggest and the most important investment.

wiki · 6 Re: SPEN effect of withdrawing from FDI project Thu Jan 12, 2012 10:20 am

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India is planning start building a port which has the capacity to handle more containers than Colombo fort. So competition will be higher (less profit). this may be a reason too..

LongTerm · 7 Re: SPEN effect of withdrawing from FDI project Thu Jan 12, 2012 11:08 am

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Interesting to note the timing of this announcement, just as Harry J is looking to take control of the Company..

Is it a tactic to let others drop the shares at 110/-, I do not know...

SPEN had only one big project lined up and now they have pulled out of it.

Does this mean that a premier blue chip in the the country is not taking part in the economic boom we are supposedly expereincing?

sapumal · 8 Re: SPEN effect of withdrawing from FDI project Thu Jan 12, 2012 11:48 am

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Other joke is harry have 30bn to buy SPEN, but no money for a PP/Loan to SPEN

WildBear · 9 Re: SPEN effect of withdrawing from FDI project Thu Jan 12, 2012 4:14 pm

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LongTerm wrote:Interesting to note the timing of this announcement, just as Harry J is looking to take control of the Company..

Is it a tactic to let others drop the shares at 110/-, I do not know...

SPEN had only one big project lined up and now they have pulled out of it.

Does this mean that a premier blue chip in the the country is not taking part in the economic boom we are supposedly expereincing?

The Port project was too big for SPEN(It's like Sri Lanka bidding for common wealth game), it will drain their capital like hell and have to wait for years to get a return. There might be many other lucrative investment opportunities for SPEN rather than stuck into this. Uncle Harry knows the game and the play ground very well.

aj · 10 Re: SPEN effect of withdrawing from FDI project Thu Jan 12, 2012 4:57 pm

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There's no relationship between port and hambantota games. This is a solid long term investment. Reason the old JKH is not dead is because they bought a piece of port by some means and running from the money coming from that. This could have been the main income of the company.

sapumal · 11 Re: SPEN effect of withdrawing from FDI project Thu Jan 12, 2012 7:19 pm

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aj wrote:There's no relationship between port and hambantota games. This is a solid long term investment. Reason the old JKH is not dead is because they bought a piece of port by some means and running from the money coming from that. This could have been the main income of the company.

Download the JKH last annual report and see how strong it is. It has lot of solid subsidiaries. hotels, financial institutions, food and beverage, ... Noway comparable with SPEN.
But JKH share price is little bit over valued compare to the short term/medium term. But with the heavy portion of having Hotels it is not over valued in long term . That's why captain hold more than 20% now

aj · 12 Re: SPEN effect of withdrawing from FDI project Thu Jan 12, 2012 8:51 pm

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sapumal wrote:Download the JKH last annual report and see how strong it is. It has lot of solid subsidiaries. hotels, financial institutions, food and beverage, ... Noway comparable with SPEN.
But JKH share price is little bit over valued compare to the short term/medium term. But with the heavy portion of having Hotels it is not over valued in long term . That's why captain hold more than 20% now

If I remember correct about 1/3 of the JKH profits come from the harbour business. Must be the largest contribution. (Other major contribution is hotels)
Food and retail 'profit' contribution is very very low. Although retail business gives a high revenue, the true profit is very little when you cut the expenses.
If I remember correct, captains have been selling off the portion for a while now.

soileconomy · 13 Re: SPEN effect of withdrawing from FDI project Thu Jan 12, 2012 9:13 pm

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WildBear wrote:

The Port project was too big for SPEN(It's like Sri Lanka bidding for common wealth game), it will drain their capital like hell and have to wait for years to get a return. There might be many other lucrative investment opportunities for SPEN rather than stuck into this. Uncle Harry knows the game and the play ground very well.[/quote].

But Reputed company like SPEN was waiting for such kind of project since 7-8 years time back.They might have done a due diligence before coming to an agreement.Even thought the total cost is very heavy for SPEN , they appropriate portion would have very bountiful for them.
As a Sri lankan I am regret to loose such kind of an investment opportunity and massive amount of foreign currency will drain to a foreign company.
Hari will loose the business ,but our poor garment girls will have to work more to earn that amount of foreign currency