Loyz finally divest its sanitary ware business for S$9 million in order to fully focus on growing in what is known as upstream energy business. The sanitary ware division will be sold off to none other than Loyz's Chairman and MD, Mr Sim Siang Choon but this divestment is currently still pending shareholders' approval. Mr Sim's wife and brother in law are likely to continue running the sanitary ware business. Probably it is too sentimental for Mr Sim and family to let go of the sanitary ware business or they are not able to find a willing buyer to fork out S$9 million for it?
On energy business, its investment in the US is the only one bearing fruit now as it is in a ready production environment. But Loyz stake in the US venture is only at 20% so this is unlikely to be enough to cover its overall losses. Loyz has been in India for oil and gas exploration and development since May 2008 and it is possible for revenue to start coming in current financial year 2013. Do not bank on its Australia and New Zealand exploration to contribute any revenue as much still needed to be done in both exploration and development works.
Let's hope that Loyz is spending its Chairman and MD's "capital injection" in a much prudent manner. Let there be not another funds raising exercise in the coming months. There's no turning back now as it is embarking an outward bound journey to the horizon.
For now, Loyz started into financial year 2013 (1Q2013) bleeding.
On energy business, its investment in the US is the only one bearing fruit now as it is in a ready production environment. But Loyz stake in the US venture is only at 20% so this is unlikely to be enough to cover its overall losses. Loyz has been in India for oil and gas exploration and development since May 2008 and it is possible for revenue to start coming in current financial year 2013. Do not bank on its Australia and New Zealand exploration to contribute any revenue as much still needed to be done in both exploration and development works.
Let's hope that Loyz is spending its Chairman and MD's "capital injection" in a much prudent manner. Let there be not another funds raising exercise in the coming months. There's no turning back now as it is embarking an outward bound journey to the horizon.
For now, Loyz started into financial year 2013 (1Q2013) bleeding.
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