TJL.N0000 - Corporate Disclosure

[sashimaalTop contributor]

http://www.cse.lk/cmt/upload_cse_announcements/3991432629832_.pdf

[කිත්සිරි ද සිල්වාTop contributor]

Thanks Shasi.
Looks like it will add more repertoire and value with this acquisition.  

[bonbon]

but why dump then.It suddenly created a vaccum and came down.

[Future123Active Member]

http://cse.lk/cmt/upload_cse_announcements/411435578926_.pdf

TJL has finalized the acquisition of Ocean India. The acquisition is going to be by way of partly cash settlement and a share swap to the owners of Ocean India.

From the disclosure, I understand that there will not be any share issue by way of private placement. Therefore, the issued capital will not change.

Please share your thoughts on this.

[sashimaalTop contributor]

Acquiring Ocean Lanka is a great decision. This definitely would increase the medium-long term profitability of TJL.

Disc: Do not hold TJL currently

[කිත්සිරි ද සිල්වාTop contributor]

As I said before as well, it will add more repertoire and value with this acquisition.  
(Hold fair amount of this counter at present).

[Future123Active Member]

Few points to note

1) From the disclosure I understand that there will not be any new share issue or increase in issued share capital. Is it correct?

2) Two major acquisitions taken place which will increase the profitability significantly
a) Purchase of Quenby Lanka Prints for US$ 3.5 million
b) Ocean India (Pvt) Ltd for US$ 15 million

3) We may not get a final dividend for 2014/15 as there were massive acquisitions. The upcoming quarters will be very impressive for TJL.

4) TJL did not go for rights issue or any other form of borrowings. This is a sign of a very well managed company. Borrowing up to a limit is fine as far is the gearing is under control.

For me this is a solid counter for the future irrespective of government change. A UNP government will bring back the GSP + which is a big plus factor. Further, the rupee depreciation would help TJL to make higher profits.

[The AlchemistTop contributor]

Few points to note

1) From the disclosure I understand that there will not be any new share issue or increase in issued share capital. Is it correct?

No incorrect. Since the total consideration price is usd 15 mill and half will be paid by cash by TJL, balance of usd 7.5 million will be by TJL issuing approx 35 mill (new) shares @ notional price of Rs 28.50 and settling the shareholders of Ocean India.
so issued shares increase by approx 5 %.

[Future123Active Member]

Thanks Alchemist. Hope the seller of Ocean India does not create selling pressure for TJL when trying to dispose the shares in the market.

[The AlchemistTop contributor]

Thanks Alchemist. Hope the seller of Ocean India does not create selling pressure for TJL when trying to dispose the shares in the market.

Pacific, the largest shareholder of TJL also wants to sell 10 % or 70 mill shares of TJL.

points to ponder -

1. why does Ocean Lanka want to part with its "profitable" business to TJL ?

2. why did Ocean Lanka want 50 % cash from TJL and not 100 % equity, if it was bullish of TJL's future prospects ?

3. why does largest shareholder want to sell 10 % of its shares ?

4. when will GSP benefit materialize ? if at all ? or wait and see Geneva outcome in Sept'2015.

5. will the Rupee devalue ? not according to recent statements by Ravi, Arjuna Mahendra et al.

6. What is the track record of TJL promoters ? i.e. Kuruwita saga

7. How is the competition doing i.e. Hayleys Knitting ?

Nevertheless, with all the hype and other favourites like AEL, TOKYO, LIOC slightly out of favour, TJL could be good for another quick 4-5 bucks !
but i dont think it will be another "American Pharoah".

[guruji]

Pesiimistic view only,its not balanced analysis

[guruji]

Wts happening,what crossin

[wagonr]

TJL is a good investment in the current price

[AdminAdmin]

Kindly use appropriate titles

[guruji]

Ok sory for title

[LeonTop contributor]

How about GSP +? Any idea?
That kind of a move will take tjl & mgt to new highs. Waiting for such a news.

[nis2008]

How about GSP +?  Any idea?
That kind of a move will take tjl & mgt to new highs. Waiting for such a news.

i think TJL price depend on September UN war crime report.