Ranhill Privatisation Rumours: What's Up With The Owner Disposing?

Blogged the other day: Ranhill: Our Financial News Being Used To Drive The Stock Higher! and Ranhill Answers: Our Financial News Being Used To Drive The Stock Higher!

Let's recall what has happened so far.

Last week, an incredible story was published on the Business Times suggesting that Ranhill could be taken private by the owners. It was all based on unnamed sources.

I found it hard to believe. Why would the owners be interested in this deal worth some 420 million? Why would they want to take it private when Ranhill is in a nett debt of 2.569 Billion? It simply did not sound rational at all.

And worse still, the article came out with a bunch of unnamed analysts suggesting a 'sum of private parts' valuation technique. I was amazed by such creativity!

And when questioned by Bursa, I posted Ranhill's reply on the second posting, Ranhill Answers: Our Financial News Being Used To Drive The Stock Higher!. All the management could answer to the Bursa query was the following.

• we are constantly exploring opportunities in seeking for any proposals that may contribute to our objectives to enhance and boost our shareholders’ value

It was truly vague.

And less us not forget that the stock soared some 47.9% during these 2 trading days!

And yesterday there was another shocking development.

The owner announced a massive disposal of shares! ( See Changes in Director's Interest (S135) - Hamdan Mohamad )

• Disposed 23/07/2008 29,000,000

Yes, Tan Sri Hamdan Mohamad had disposed some 29 million shares on the 23rd July, a couple of days before that article was published.

So why would Tan Sri Hamdan Mohamad want to take Ranhill Bhd private when he was disposing/reducing his shares?

This wouldn't make sense yes?

And since he was disposing/reducing his shares, why didn't Ranhill Bhd management deny that privatisation rumour? Why?