MELSTACORP PLC (MELS.N0000)

Value is there for Mel's ,but Rs 80 is bit difficult to achieve...
They are increasing its investment on  JKH gradually.
If they receive money due to them from the treasury ,it will move very fast

Distilleries Company of Sri Lanka PLC (DCSL) and Melstacorp Limited (MC) are Companies registered under the Companies Act No. 07 of 2007 and DCSL is listed on the Colombo Stock Exchange (CSE).

DCSL has circulated to its shareholders, a document titled ‘Proposed Arrangement under Part X of the Companies Act No. 07 of 2007 (The Arrangement)’ and dated 10th August 2016 wherein the intention of the Board of DCSL, to recommend to the shareholders to make MC the ultimate holding company of the group and to be the flagship of the Group and to obtain a listing for its shares in the CSE, has been expressed.

We reviewed each significant activity of the proposed arrangement and connected to it as stated below:

(1) Issue of 148,218,056 new voting shares on 01st August 2016 by MC to its 100% parent DCSL at a consideration of LKR 26,679 million with a view to settle intercompany dues and transfer money from DCSL to MC.
(2) Consolidation of all issued shares of MC to 1,000 shares with the intention of reclassifying them in to non-voting shares subsequently.

(3) Issue of 1,200 million shares by MC to the shareholders of DCSL in lieu of transfer of 300 million shares held by such shareholders in DCSL. This is to be based on four shares of MC for each share of DCSL considering the per share values of DCSL and MC as LKR 47 and LKR 11.75 respectively. At this point MC will become the parent of DCSL.

(4) Repurchase by MC of 34,602,928 of its own shares that will have been held by the Trustee of Melstacorp Limited Employees Share Trust (MLEST) in lieu of LKR 1,392,132,049 owed by MLEST to MC as at 31st March 2016.

(5) Issue of new shares by DCSL with a view to restore the negative position of net assets to positive of the company.
In the aforesaid (1) and (2) have already happened and (3) and (4) are the principle transactions of the arrangement, whereas (5) will have to go through the process of issuing shares after completion of the arrangement.

When the aforesaid activities (1) to (4) are evaluated strictly from point of view of all (majority and minority) the shareholders of DCSL immediately prior to activity (1), those shareholders will continue to own the same proportion of the same net asset base (without any reduction) of the DCSL/MC group (subject to any interim purchases / disposals of DCSL shares) through the resulting shareholding in MC after activity (3).

As a result of activity (4) the proportionate shareholdings of the remaining shareholders, other than the Trustee, will increase and the impact will apply equitably to all the remaining shareholders.

The sole purpose of our exercise is to provide an independent commentary to the Boards of Directors of DCSL and MC, on the proposed arrangement and connected activities, to be used by them in their decision making. The aforesaid evaluation was carried out only from the point of view of the shareholders of DCSL and we have not evaluated the interests of any other stakeholder of DCSL or MC. Therefore our responsibility is confined to the Boards of Directors of DCSL and MC. We will assume no responsibility towards any other party who may use the contents of this commentary in making their decisions.

Our commentary does not constitute an assurance under Sri Lanka Auditing Standards. We have not carried out any due diligence, audit or any exercise of similar nature to validate the information given in the aforementioned documents.

Read the entire restructuring process:
https://cdn.cse.lk/cmt/uploadAnnounceFiles/4351473076548_463.pdf
https://cdn.cse.lk/cmt/uploadAnnounceFiles/6301506082234_463.pdf

කවුද හොරා! පුල්වන්නම් හොයා ගන්න!
- රක්ෂණ සංස්ථාව (INSURANCE COPORATION) පැහැර ගන්න ගොස් අහුවුනම අලුතෙන් පටන් ගත්ත කොන්ටිනෙන්ටල් ඉන්සුරන්ස් (CONTINENTAL INSURANCE)
- බැංකුවල බලය ගන්න ගියහම සෙන්ට්‍රල් බැංකුවෙන් (CENTRAL BANK) 10% වඩ වැඩිපුර කොටස් විකුනන්න කියලා බලය සීමිත කලා.
- ආණ්ඩුවට තිබුණු ඩිස්ටිලරීස් කෝපරේෂන් එක කොම්පැනියක් කරගෙන DISTILLERIES 92% අයිති කර ගත්ත.
- ජෝන් කීල්ස්  (JOHN KEELLS  HOLDINGS) 10% සතුව ඇති මොහු තවත් 10% වෙලාව බලාගෙන සිටි.
- අයිට්කන් ස්පෙන්ස් (AITKEN SPENS HOLDINGS) 50% සතුව ඇති මොහු ලංකාවේ සංචාරක සෙස්ත්රය පාලනය කිරිමට් මාන බලයි.
- ලංකා බෙල් (LANKA BELL) බලන්නේ ශ්‍රී ලංකා ටෙලිකොම් එකට කෙලිමටය.

මොහුගේ සියලු ධනය Warren Buffet මෙන් සඟවා ඇත්තේ කුමන ආයතනයෙද??

Melstacorp getting a huge dividend from Distilleries. This Tax free dividend should be in the hands of MELSTA CORP Shareholders. 95% of Distilleries is owned by Melstacorp


DISTLLERIES DIVIDENDS
Voting share (N):
Date of initial announcement:14 Nov 2019
Dividend per share (Rs.) :Voting :0.650
Type of dividend :First interim
Financial year:2019/2020
Shareholder approval:Not required
XD date :25 Nov 2019
Payment date :04 Dec 2019
Share transfer book:Open

Quibit wrote:Melstacorp getting a huge dividend from Distilleries. This Tax free dividend should be in the hands of MELSTA CORP Shareholders. 95% of Distilleries is owned by Melstacorp


DISTLLERIES DIVIDENDS
Voting share (N):
Date of initial announcement:14 Nov 2019
Dividend per share (Rs.) :Voting :0.650
Type of dividend :First interim
Financial year:2019/2020
Shareholder approval:Not required
XD date :25 Nov 2019
Payment date :04 Dec 2019
Share transfer book:Open

Its around LKR 1.6 per share

roshan1039 wrote:

Quibit wrote:Melstacorp getting a huge dividend from Distilleries. This Tax free dividend should be in the hands of MELSTA CORP Shareholders. 95% of Distilleries is owned by Melstacorp


DISTLLERIES DIVIDENDS
Voting share (N):
Date of initial announcement:14 Nov 2019
Dividend per share (Rs.) :Voting :0.650
Type of dividend :First interim
Financial year:2019/2020
Shareholder approval:Not required
XD date :25 Nov 2019
Payment date :04 Dec 2019
Share transfer book:Open

Its around LKR 1.6 per share

don't forget jkh - 9.8% 

once the big seller finished around 45 & 46 this will shoot up to 60 easily

ColomboCSE wrote:

roshan1039 wrote:

Quibit wrote:Melstacorp getting a huge dividend from Distilleries. This Tax free dividend should be in the hands of MELSTA CORP Shareholders. 95% of Distilleries is owned by Melstacorp


DISTLLERIES DIVIDENDS
Voting share (N):
Date of initial announcement:14 Nov 2019
Dividend per share (Rs.) :Voting :0.650
Type of dividend :First interim
Financial year:2019/2020
Shareholder approval:Not required
XD date :25 Nov 2019
Payment date :04 Dec 2019
Share transfer book:Open

Its around LKR 1.6 per share

don't forget jkh - 9.8% 

They own most sound portfolio in the country.

Quibit wrote:Voting share (N)
Description :Melstacorp Plc - Interim Dividend

Date of initial announcement:19 Nov 2019
Dividend per share (Rs.) : Voting :2.000
Type of dividend :First interim
Financial year:31st March 2020
Shareholder approval:Not required
XD date :28 Nov 2019
Payment date :09 Dec 2019
Share transfer book:Open

Share with a Good Dividend Yield
LKR 2/= Interim Dividend is equal to 5% ROI per annum so far. More Dividends expected.

This is one of the valuable share in the market trading around 42 and 43 level

Has potential to reach 60 level in short term

I am holding Mels

@Roshan1039
Yes Melsta.N at this 40 to 45 level is a huge bargain. 

However their problem is they invested lot of money (Rs. 23 billion) in john keells holdings and other companies to improve their portfolio using debt funded money. Therefore Melstacorp's Cash is negative (in their 2018/ 2019 annual report Cash and cash equivalent value was negative Rs. 23 billion). That why as I believe investors are afraid to invest at the moment. 
However they have generated approximately Rs. 10 billion in this year and their current Cash and Cash equivalent value is negative Rs. 14.9 billion. This huge cash amount in the last interim and previous interims generated due to their massive profits earned from mainly DCSL and the remaining companies Melstacorp's negative cash value will be positive probably in the next year. 
This will gradually grow to Rs. 55 to 60 level during 2020 to 2021 period. At the moment I am just enjoying their attractive dividend. 

AT one stage I was ready to buy it @ Rs.60 even @70
36-38 not a bad price to enter ,

Yes this is good share only disadvantage is CASH FLOW.

Hope they will continue with their dividend policy.
This will go pass 50 but it will take some time.

What do you think about melstacorp?

They are accumulating wealth.

soileconomy wrote:They are accumulating wealth.

only JKH and Hospital(I can't remember name) rit? any-other???

ColomboCSE wrote:

soileconomy wrote:They are accumulating wealth.

only JKH and Hospital(I can't remember name) rit? any-other???

Maybe you trying to recall "Browns Hospital - Ragama" which Melscrop purchased last week for 1.6 Billion. (They already manage Joseph Fraser Memorial Hospital - Colombo 05). Also, they have set up standalone diagnostic laboratory networks.

As per 2019 annual report,

Nest asset per share: 83.21 (company)
EPS: 5.48 (company)

Business nature: beverages, telecommunications, leisure, plantations, energy, logistics and financial services
Last Trade value: 28.40

What do you think?

He is mostly fail telecommunications and plantations.

Teller wrote:He is mostly fail telecommunications and plantations.

Net Cash Flow from Operating Activities: 4,403,659,000

Net Cash Flow Used in Investing Activities: 9,048,170,000


Net Increase/Decrease in Cash & Cash Equivalent during the period 10,018,637,000

Improved a lot?

I think they try to sell tetecom...and plantations will do better in coming months.
they form MELST COP.. TO be a real diversified holding company so they are aggressive in a rock bottom market.

I'm collecting MELS.N slowly knowing that they have used huge lone to buy the JKH shares. But I think they can manage the chashflow, 28/- per share is reasonable if i can sell it around 35/- nxt year around. what do you think ? is their any thing that i'm missing here? any negative points that im not aware of ?

Health sector will always be a winner. See the crowd at private hospitals at any given time, its packed.

celtic tiger wrote:I think they try to sell tetecom...and plantations will do better in coming months.
they form MELST COP.. TO be a real diversified holding company so they are aggressive in a rock bottom market.

Thanks celtic tiger. Seems MELS starts to picking up. This should be another under value gem.

celtic tiger wrote:I think they try to sell tetecom...and plantations will do better in coming months.
they form MELST COP.. TO be a real diversified holding company so they are aggressive in a rock bottom market.

If they sell their telecommunication arm group profitability will improve. I do not think they will sell.

See huge negative cash flow,

madukp wrote:

celtic tiger wrote:I think they try to sell tetecom...and plantations will do better in coming months.
they form MELST COP.. TO be a real diversified holding company so they are aggressive in a rock bottom market.

Thanks celtic tiger. Seems MELS starts to picking up. This should be another under value gem.

If you can hold on to this share for next 2 years it will give you 3 times of your investment. HOW ???
1 ELPL,DIST,SPEN,MADU and health sector will increase earnings.
2 Equity holdings of JKH,DFCC,COMB-will help negative cash flow and net ass. val.
finally they says GOOD TIME TO BUY IS WHEN THE BLOOD ON THE STREET EVEN WHEN IT IS YOUR OWN.
Its risky but good risk to take if it give you three times of your investment.

What is going on? Any one knows?