Anglo-eastern Plantations Share Discussion Threads

[34adsaddsa] 29/9/2023 00:39

Looks like AEP staff went on a bit of a team building jolly.

[skanjete2] 16/9/2023 08:09

A sale is possibility. It appears that the heirs of Mdm Lim are not really interested in running a palm plantation.

But first they'll have to buy out the minorities. At the right price, this would be very value enhancing.

Also, I suppose that Malaysia will have to be sold.

[tigerbythetail] 14/9/2023 15:16

Hi Foxfox!
I agree that's what you would do if you were looking to sell the business.
But then again, that's what good directors should do anyway. So it's not clear for me.
Certainly, we are in new times here. And they are better times.

[foxfox79] 07/9/2023 12:12

Recent events increase likelihood of a sale imho, divestiture of poor performing parts, divi increase, share buyback, i would not be suprised...

[34adsaddsa] 07/9/2023 04:25

Trades ex-div today.

[34adsaddsa] 05/9/2023 21:52

If this turns out to be a "long term reasonable dividend value share" then it's because the management haven't properly allocated the excess capital. It should be a lot more than that.

[beresford99] 04/9/2023 19:09

I was going to buy MPE until I did some research on AEP and saw how cheap it was in comparison, that’s not to say MPE itself isn’t a bargain. I sold some Bumitama Agri last week at a small loss and topped up at £7.40.Hopefully,AEP is turning out to be long term reasonable dividend value share, if there is a pullback - which I doubt - I will be adding.

[tigerbythetail] 04/9/2023 14:41

We're on a nice slow crawl upwards. There's almost no liquidity in this share, so the buyback could be really effective. The interim dividend won't do any harm, either.
IMO, still massively undervalued. Just compare EV and size of operations to direct competitor MPE - and I don't think MPE is overvalued at all.

[catsick] 31/8/2023 12:49

At 3k a day they can keep going for 5 months.... I think we run into a lack of liquidity and get a nice rise in the price

[tigerbythetail] 31/8/2023 09:02

RNS this morning - buyback has begun. And it shows!

[tigerbythetail] 30/8/2023 15:28

Is this the buyback beginning to move the share price up?
At these volumes, this could go quite a long way before many willing sellers appear. Maybe to 900p on this 1% buyback alone?

[jon4567] 25/8/2023 09:30

My main concern over the last few years with AEP was that Genting/Lim family would try to take the company private on the cheap. If that was their intention, they certainly wouldn't be increasing dividends and commencing share buy backs.With the new shareholder friendly policies, I'm fully expecting a significant share price re-rate

[tigerbythetail] 24/8/2023 16:54

BTW, the maths of the share buyback is as follows...
Company will buy up to 396360 shares
= about 1% of company
Free float and liquidity is limited on this stock, so even a 1% buyback should move the needle considerably
Company has set aside £3.2m for this purpose
= implied average buyback share price of 807p.
(Obviously, if they start now, they can mop up quite a few shares at well below that price, so the buyback should act to drive the share price up to a distance beyond 807p. At least, that's what we hope!)
All in all, I should probably add more here. But I'll sleep on that.

[e43] 24/8/2023 15:32

Agree TBT, announcement time annoying ,but future looking bright.

[tigerbythetail] 24/8/2023 15:08

Any chance the company could release these RNSs at 7am? And maybe give us notice in advance of when results will come out?

Other than that whinge, the RNSs make mostly good reading. Very happy that they have announced an interim dividend (the yield is now credible, though it could still be much higher) and a share buyback (taking out even 1% of the free float may make a surprising difference to the share price).

The share price here - by all objective measures - is obviously way too cheap now that the company is becoming increasingly shareholder friendly. Just compare to sector peer MPE.

Anyway, I've bought quite a few AEP shares over the last few weeks, so I'll just hold on to what I've got for now and enjoy the (unexpected) interim dividend.

[skanjete2] 24/8/2023 12:37

This company for sure became more shareholder friendly after the passing of Mrs. Lim.

Second half bodes well, as well as next year : 7th mill could finally start, no more losses from South Sumatera, minorities bought out and CPO prices could be supported by el Nino effect.

Nice setup at a very cheap price.

[foxfox79] 24/8/2023 11:51

Plantable area stands at 9500 hectares, in a couple of years this will be a nice cash cow, if it isn't taken private by then
4M interest income on investments

[34adsaddsa] 24/8/2023 11:45

Currently on 4.67% yield. I'm very surprised by the introduction of an interim dividend. I think they'll keep both dividends in the years ahead. The buyback is about what I expected.

[34adsaddsa] 24/8/2023 11:26

As you are aware AEP has not been paying Interim dividend for a number years, however, the Board is pleased to declare an interim dividend of 15.0 cents per share in respect of the year ending 31 December 2023. The interim dividend will be paid on 6 October 2023 to those shareholders on the register on 8 September 2023.

[skanjete2] 21/8/2023 13:04

To do this, they would need to find sellers...

I'm quite sure at least 60% of the free float wouldn't sell a share.

[ih_194396] 21/8/2023 11:43

There was supposed to be a buyback. Yes, maybe the reason that management changed their mind on the buyback is to let the shareprice sink so that they can offer us a buyout at a 30% premium.

[tigerbythetail] 21/8/2023 08:40

Share price being taken down on low volume.
Given the company has about 70% of its market cap in cash, and the major shareholder holds 51%, is this leading up to a buyout of the minorities by the major shareholder? They could entirely finance the bid (at a decent premium to the current share price!) using only the company's own cash.
Any way you look at it, the directors should be deeply embarrassed by the current share price. There is no way are they properly representing the interests of all shareholders.

[tigerbythetail] 02/8/2023 10:32

?Seller now done?

[sspurt] 28/7/2023 16:11

Seller still there, 179k traded today.