Proposed Plan to Change Rights Issue Timetable

The regulators is going to change the timetable for the Rights Issue especially on the schedule to get the vote from shareholders (AGM). Previously there has been a lot of problems with the AGM process because the AGM is conducted only after the regulators have approved on the content of the prospectus and therefore if regulator delayed the process, then the AGM timetable will need to change. As such, there are cases where one company has to revise its AGM dates for time and time again as there has been some changes on the content of prospectus.

This new plan will allow the company to announce and to conduct AGM on their intention to do Rights Issue first before any submission of prospectus is done. This will eliminate the change of AGM dates and will create more certainty on the AGM process and more certainty that the Rights Issue will be conducted before any submission to Regulator.

Basically this proposed plan will align the practice that has been done in the US and Spore market.

Stock Price Effect
The market was worried about the information effect on the announcement of Rights issue to the price of the stock and so far the announcement on the price of rights is only done prior to the AGM or just before the execution of the Rights Issue.

Timeline
We are yet to see the certainty on how long the AGM can be conducted prior to the Prospectus submission. In Spore case, a company can have blanket approval from shareholders and execute it within 2 years and the same goes to the US market. However, I would see such blanket approval may not be that long in this market. Most likely it will be 1 year as Regulator may worry that overspeculation in the stock can happen if the blanket approval is given too long. Well, we'll see.

The bottomline is we have been waiting for this regulation to be passed as it will shorten the process of Rights Issue by A LOT!!!!

Have a nice day! 

Chemical Tanker Explodes Off Malaysia

 

Chemical Tanker Explodes Off Malaysia, Fire Now Threatens Nearby Methanol Silo [UPDATED]

By Rob Almeida On July 26, 2012

The Bunga Alpina ablaze in Labuan, Malaysia

UPDATE (7/27/12): Bunga Alpinia Death Toll Rises to Three

Original (7/26/12): An explosion and fire, reportedly the result of a lightning strike, engulfed the Malaysian International Shipping Company (MISC)-owned, 38,000 DWT IMO II chemical/palm oil tanker, Bunga Alpinia, while inport Labuan, Malaysia. The fire broke out at approximately 2.30am (local time) while the vessel was loading methanol at the PETRONAS Chemicals Methanol Sdn Bhd terminal in Labuan.

MISC reports that the ship had 29 crew members, made up of 23 Malaysians and 6 Filipinos.  MISC has confirmed that one crewmember has been killed and another 4 are still missing.

Fires raged throughout the night as offshore supply vessels doused the fires with their water cannons.

Sources from the Maritime Response Coordination Centre (MRCC) told a local newspaper that as of 11am local time, rescue personnel were still trying to put out the blaze on the tanker.  The MRRC spokesman also noted their main concern now is to prevent the tanker from hitting the nearby methanol silo, located a mere 150 meters from the now adrift, and burning vessel.

Authorities fear that if the flames from the tanker ignite the methanol silo, it could result in massive destruction of the surrounding area.

“That is our biggest fear at the concern at the moment. An outcome like that would be catastrophic, to say the least,” said the source.  As a precautionary measure, PETRONAS Chemicals Group (PCG) has shut down its 660,000 tonne/year methanol (PML) 1 unit.

Additional images via perkapalanmalaysia.com

The Bunga Alpina ablaze